Key Takeaways
- ADAMA reported first-quarter sales of $1,000 million, a 5% decline compared to Q1 2024.
- Adjusted EBITDA increased 21% year-over-year, with a margin improvement to 16.0%.
- Net income reached $21 million, compared to a loss of $32 million in Q1 2024.
- Operational and free cash flow improved significantly, supporting the company’s ongoing transformation plan.
- Continued product portfolio development and new market launches despite challenging market conditions.
ADAMA Sees Growth in Profitability Despite Sales Decline
ADAMA Ltd. (Profile) announced its financial results for the first quarter ended March 31, 2025. The company reported revenues of $1,000 million, representing a 5% decrease compared to the same quarter in 2024. The decline reflected stable volumes and a 4% reduction in average prices, influenced by global market pressures, low active ingredient (AI) prices, and cautious purchasing behavior across the supply chain.
However, despite the lower sales figures, ADAMA achieved significant improvements in profitability. Adjusted gross profit rose 5% to $303 million, with the gross margin improving from 27.2% to 30.3%. Adjusted EBITDA grew 21% year-over-year to $160 million, and the adjusted EBITDA margin increased to 16.0%.
Gaël Hili, President and CEO of ADAMA, commented: “I’m encouraged to see additional positive data, which can be attributed to the ongoing implementation of ADAMA’s Fight Forward strategic transformation plan. Despite challenging market conditions, I’m optimistic our recent achievements provide momentum towards further success as we focus on providing long-term value both to our investors and to farmers throughout the world.”
ADAMA Advances Transformation Strategy and Portfolio Innovation
ADAMA’s “Fight Forward” transformation plan, launched in 2024, continued to show positive momentum in the first quarter. The company focused on improving operational efficiencies, optimizing financial management, and emphasizing its Value Innovation segment.
New product launches during the quarter included:
- Cazado in Canada: A novel herbicide for wheat growers.
- Prothioconazole-based products across Europe and other markets using proprietary formulation technology.
- Gengfule in China: A pre-emergent herbicide for broad-spectrum weed control.
- Stemper in the UK and Denmark: A growth regulator supporting cereal harvests.
- Timeline FX in Romania and Poland: A triple-active post-emergence herbicide for cereals.
Additionally, registrations of products like Temper More (U.S.), Klinner (Brazil), and new patents granted in New Zealand, China, and Australia reinforced ADAMA’s pipeline for future growth.
ADAMA Strengthens Financial Position with Improved Cash Flow
Operating cash flow consumption improved to $29 million, compared to $103 million in Q1 2024. Free cash flow also showed significant recovery, with $86 million used in Q1 2025 compared to $194 million the previous year. This reflects better working capital management, lower inventory levels, and improved receivables collection.
By segment, Crop Protection remained the core business, accounting for 91% of revenues. Sales by product category showed herbicides representing 45%, insecticides 24%, and fungicides 22%.
Regional sales performance was mixed:
- Europe, Africa & Middle East: 6% decline, impacted by competitive pressures.
- North America: 15% growth driven by consumer and professional solutions.
- Latin America: 23% decline, reflecting price competition and weaker currencies.
- Asia-Pacific: 7% decrease overall, but China recorded 8% growth.
Looking Ahead Amidst Challenging Market Conditions
The company continues to monitor external factors such as commodity crop pricing, interest rates, and geopolitical developments. Despite these challenges, ADAMA’s management expressed confidence that the company’s transformation plan and strategic focus will continue to improve profitability and create long-term value for stakeholders.
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