ADAMA(SZ:000553)2021-08-25 16:00Financial Performance - In Q2 2021, the company's sales reached $1.22 billion, a year-over-year increase of 18% in USD and 7% in RMB, driven by a strong 15% growth in sales volume[1]. - The adjusted EBITDA for Q2 2021 was $186 million, reflecting a 9% increase in USD year-over-year, while it decreased by 0.5% in RMB[1]. - The net profit for Q2 2021 was reported at $34 million, an 8% increase in USD year-over-year, but a 1.4% decrease in RMB[1]. - For the first half of 2021, the company achieved a record sales figure of $2.33 billion, marking a 16% increase in USD and 7% in RMB compared to the same period last year[4]. - The adjusted net profit for the first half of 2021 was $115 million, a 21% increase in USD year-over-year, and an 11% increase in RMB[4]. - The gross profit margin for Q2 2021 was 27.9%, slightly down from 29.0% in Q2 2020[3]. - The company reported a significant increase in net profit for the first half of 2021, with a 97% increase in USD compared to the same period in 2020[4]. - The company's gross profit for Q2 was $340 million, with a gross margin of 27.9%, compared to $300 million and a gross margin of 29% in the same period last year, reflecting a 13% increase[8]. - Adjusted gross profit for Q2, excluding non-recurring costs, was $365 million, with a gross margin of 29.9%, up 17% from $311 million in the previous year[10]. - The EBIT margin for the first half of 2021 was 9.6%, down from 10.4% in the first half of 2020[32]. - The gross profit margin for the first half of 2021 was 29.5%, slightly down from 30.2% in the first half of 2020[32]. Operational Challenges - The company faced challenges in global logistics and supply chains due to the ongoing pandemic, impacting shipping costs and availability[6]. - The company is actively managing procurement and supply chain operations to mitigate rising costs and is considering price adjustments where possible[6]. - The company incurred approximately $25 million in non-recurring costs related to the relocation and upgrade project in Q2, compared to $11 million in the same period last year[9]. - The company anticipates continued improvements in operational efficiency and cost management strategies moving forward, aiming for sustained growth in profitability[41]. Market Performance - The agricultural product prices are at multi-year highs, leading to increased planting areas and strong demand for crop protection products globally[2]. - Total sales in Q2 reached $1.22 billion, a 17.7% increase year-over-year, with notable growth in North America (25.2%) and Asia-Pacific (26.4%) regions[20]. - In the Asia-Pacific region, sales in Q2 grew by 26.4% year-over-year, driven by strong performance in China and the acquisition of Jiangsu Huifeng's domestic business[23]. - The crop protection products segment accounted for 90.5% of total sales in Q2, generating $1.104 billion, up from $941 million in the same period last year[25]. - The company launched several new products in Q2, including TIMELINE FX® in Sweden and MAXENTIS® in Australia, enhancing its differentiated product line[19]. - The company reported a 36% increase in sales in China for Q2, reflecting strong demand and successful integration of acquired assets[20]. - The company’s sales in the Latin America region increased by 22.9% in Q2, despite adverse weather conditions affecting crop production in Brazil[22]. - The company expects continued growth in the second half of the year, supported by strong market demand and strategic acquisitions[21]. Cash Flow and Investments - In Q2, the company generated operating cash flow of $361 million, up from $229 million in the same period last year, reflecting improved collection and higher operating profit[17]. - The net cash flow used in investing activities in Q2 was $184 million, primarily due to increased fixed asset investments and the acquisition of a majority stake in Jiangsu Huifeng Agrochemical Co., totaling $101 million[18]. - The company achieved free cash flow of $132 million in Q2, compared to $127 million in the same period last year, indicating a positive trend in cash generation[18]. - Free cash flow for the first half of 2021 was reported at -$116 million, contrasting with a positive free cash flow of $12 million in the same period of 2020[35]. - The net cash flow from investing activities for Q2 2021 was -$184 million, compared to -$62 million in Q2 2020, indicating a significant increase in cash outflow for investments[34]. Assets and Liabilities - As of June 30, 2021, total assets amounted to $7,655 million, an increase from $6,935 million as of June 30, 2020, representing a growth of approximately 10.4%[33]. - The total liabilities increased to $4,337 million as of June 30, 2021, compared to $3,733 million in the previous year, reflecting a rise of about 16.1%[33]. - The total equity as of June 30, 2021, was $3,318 million, slightly up from $3,202 million in the previous year, marking an increase of about 3.6%[33]. - The company’s inventory increased to $1,746 million as of June 30, 2021, compared to $1,500 million in the previous year, representing a growth of about 16.4%[33]. - The company’s long-term borrowings rose to $506 million as of June 30, 2021, from $314 million in the previous year, reflecting an increase of approximately 61.1%[33]. Exchange Rates - The exchange rate of USD/CNY decreased by 8.7% from 7.080 in 2020 to 6.460 in 2021[43]. - The average exchange rate of USD/BRL improved by 8.7% from 5.476 in 2020 to 5.002 in 2021[42]. - The average exchange rate of USD/ZAR decreased by 16.8% from 17.241 in 2020 to 14.347 in 2021[42]. - The average exchange rate of AUD/USD increased by 9.6% from 0.684 in 2020 to 0.750 in 2021[42]. - The average exchange rate of GBP/USD increased by 12.9% from 1.227 in 2020 to 1.386 in 2021[42]. - The average exchange rate of EUR/USD increased by 6.1% from 1.120 in 2020 to 1.189 in 2021[42]. - The average exchange rate of EUR/CNY decreased by 3.2% from 7.931 in 2020 to 7.678 in 2021[43]. - The average exchange rate of CNY/BRL remained stable at 0.774[43]. - The average 3-month LIBOR rate in USD decreased by 51.8% from 0.30% in 2020 to 0.15% in 2021[42]. - The average exchange rate of CNY/ZAR increased by 9.7% from 0.411 in 2020 to 0.450 in 2021[43].