Key Takeaways
- ADAMA Q4 2024 sales declined by 2% to $1,113 million, with a 7% volume increase offset by lower prices and currency impacts.
- Full-year 2024 sales fell 11% to $4,141 million, primarily due to an 8% price decline with stable volumes.
- Adjusted EBITDA improved by 45% in Q4 2024 and 15% for the full year, reflecting better cost management and an improved product mix.
- The company reported a net loss of $407 million for 2024, impacted by restructuring costs associated with its ‘Fight Forward’ transformation plan.
- Free cash flow turned positive at $217 million for 2024, marking an improvement from a $147 million outflow in 2023.
ADAMA Q4 2024 Financial Performance Summary
The following table summarizes ADAMA’s financial performance for Q4 2024, compared to the same period in 2023:
Table 1: Q4 2024 Financial Performance Summary
| Metric | Q4 2024 (USD million) | Q4 2023 (USD million) | % Change |
|---|---|---|---|
| Revenues | 1,113 | 1,136 | (2%) |
| Gross Profit | 280 | 245 | 14% |
| Gross Margin (%) | 25.2% | 21.5% | +3.7 pp |
| Adjusted EBITDA | 137 | 95 | 45% |
| Adjusted Net Loss | (58) | (101) | 43% |
| Operating Cash Flow | 126 | 293 | (57%) |
| Free Cash Flow | 38 | 130 | (71%) |
ADAMA Full-Year 2024 Financial Performance Summary
Table 2: Full-Year 2024 Financial Performance Summary
| Metric | FY 2024 (USD million) | FY 2023 (USD million) | % Change |
|---|---|---|---|
| Revenues | 4,141 | 4,661 | (11%) |
| Gross Profit | 1,061 | 1,060 | – |
| Gross Margin (%) | 25.6% | 22.7% | +2.9 pp |
| Adjusted EBITDA | 469 | 407 | 15% |
| Adjusted Net Loss | (206) | (236) | 13% |
| Operating Cash Flow | 528 | 356 | 48% |
| Free Cash Flow | 217 | (147) | +$364 million |
ADAMA Regional Sales Performance
Sales performance varied across different regions, with North America seeing growth, while Latin America and Asia-Pacific experienced declines.
Table 3: Regional Sales Performance
| Region | Q4 2024 (USD million) | Q4 2023 (USD million) | % Change | FY 2024 (USD million) | FY 2023 (USD million) | % Change |
|---|---|---|---|---|---|---|
| Europe, Africa & Middle East | 240 | 241 | – | 1,122 | 1,240 | (9%) |
| North America | 279 | 252 | 11% | 851 | 820 | 4% |
| Latin America | 348 | 379 | (8%) | 1,035 | 1,292 | (20%) |
| Asia-Pacific | 246 | 264 | (7%) | 1,133 | 1,308 | (13%) |
| Total | 1,113 | 1,136 | (2%) | 4,141 | 4,661 | (11%) |
Strategic Transformation Plan: ‘Fight Forward’
In 2024, ADAMA launched its ‘Fight Forward’ strategic transformation plan aimed at improving profitability, operational efficiency, and product portfolio optimization. The plan focuses on:
- Financial Optimization – Enhancing cost structures and improving free cash flow.
- Operational Streamlining – Focusing on core markets and optimizing business processes.
- Value Innovation – Emphasizing high-return, differentiated crop protection products.
According to Gaël Hili, President and CEO of ADAMA, the company has already seen positive momentum from the transformation plan, including improved EBITDA, free cash flow, and sales volumes in the second half of 2024.
“We are already seeing tangible results, including growth in adjusted gross profit and EBITDA. The early accomplishments of Fight Forward provide momentum for further success in 2025.”
ADAMA Product Portfolio and Innovation
ADAMA has continued to expand its differentiated product portfolio, with 22% of full-year sales attributed to new product introductions (NPIs) launched over the past five years.
Table 4: Sales by Product Category
| Product Category | Q4 2024 (USD million) | % of Total | FY 2024 (USD million) | % of Total |
|---|---|---|---|---|
| Herbicides | 436 | 39% | 1,649 | 40% |
| Insecticides | 338 | 30% | 1,233 | 30% |
| Fungicides | 248 | 22% | 886 | 21% |
| Intermediates & Ingredients | 91 | 8% | 373 | 9% |
| Total | 1,113 | 100% | 4,141 | 100% |
Recent Product Launches
- Forpido® (India) – A new insecticide for rice stem borer control.
- Edaptis® (Europe) – A post-emergence herbicide for resistant grasses.
- Matos® (South Korea) – An SC insecticide formulation for fruit and vegetable crops.
ADAMA is also expanding its Prothioconazole-based fungicide portfolio into new markets, leveraging its Asorbital® Formulation Technology for enhanced uptake and systemic performance.
Sustainability and Manufacturing Innovations
In 2024, ADAMA made progress in sustainable product formulations and manufacturing:
- EDAPTIS® Herbicide – Formulated with renewable rapeseed oil instead of hydrocarbons.
- Feralla® Molluscicide – Advanced formulation enhancing pest control efficiency.
- Energy-Efficient Chloralkali Plant – 40% more energy-efficient chlorine production.
- Regenerative Thermal Oxidizer (RTO) – Reducing wastewater emissions to improve air quality.
ADAMA Outlook for 2025
Despite challenges in global crop protection markets, ADAMA is optimistic about its growth trajectory, driven by:
- Continued execution of the ‘Fight Forward’ transformation plan.
- Increased focus on high-value products and innovative formulations.
- Expansion into new markets and geographies.
Read their entire financial results here.
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