Investor relations section

ADAMA Reports Results of Fourth Quarter and Full Year of 2021

Strong Q4 performance, driven by significant price increases and continued volume growth, caps another record growth year for ADAMA and brings a marked improvement in cash flow generation

Fourth Quarter 2021 Highlights

  • Sales up 17% to an all-time quarterly record-high of $1,337 million (RMB: +13%), driven by 14% higher prices and 5% volume growth
  • Adjusted EBITDA up by 23%, reaching $207 million (RMB: +19%)
  • Reported net income up by 31% to $25 million (RMB: +26%); Adjusted net income of $54 million
  • Operating cash flow up $277 million to $372 million; Free cash flow up $282 million to $190 million

Full Year 2021 Highlights

  • Sales up 17% to a record-high of $4,813 million (RMB: +9%), driven by 12% volume growth and 4% higher prices
  • Adjusted EBITDA up 7%, reaching $671 million (RMB: +0%)
  • Reported net income of $25 million; Adjusted net income of $139 million
  • Operating cash flow up $418 million to $710 million; Free cash flow up $225 million to $75 million

BEIJING, CHINA and TEL AVIV, ISRAEL, March 30, 2022 – ADAMA Ltd. (the “Company”) (SZSE 000553), today reported its financial results for the fourth quarter and full year period ended December 31, 2021.

Commenting on the results, Ignacio Dominguez, President and CEO of ADAMA, said, “2021 was an outstanding year of exceptional growth. Nevertheless, it was a very difficult year with many challenges, including massive cost increases of raw materials and intermediates, as well as significantly higher shipping and logistics costs and container shortages. These factors were in addition to the ongoing and debilitating effects of the COVID-19 pandemic, including its intensification in December with the onset of the Omicron wave. It is in these times of challenge and uncertainty that the true strength of our business shines through, with not only strong sales growth, but also as we started to see in the fourth quarter, significant price increases to compensate for the higher cost environment. As we face yet another year of uncertainty, this time emanating from massive geopolitical volatility, we remain focused on supporting our people and our customers as they navigate through this difficult time. Indeed, I am deeply humbled by the great spirit and courage shown by our colleagues in Ukraine, as well as our other leaders across the region, who are supporting the team and their families in every way they can."

Table 1. Financial Performance Summary

USD (m)

As Reported

Adjustments

Adjusted

Q4

2021

Q4

2020

% Change

Q4

2021

Q4

2020

Q4

2021

Q4

2020

% Change

Revenues

1,337

1,141

+17%

-

-

1,337

1,141

+17%

Gross profit

379

330

+15%

33

5

412

335

+23%

% of sales

28.4%

28.9%


 

 

30.8%

29.4%

Operating income (EBIT)

110

63

+73%

33

44

143

107

+33%

% of sales

8.2%

5.5%

 

 

10.7%

9.4%

Income before taxes

47

17

+183%

34

42

81

59

+37%

% of sales

(3.5)%

1.4%

 

 

6.0%

5.2%

Net income

25

19

+31%

29

33

54

52

+2%

% of sales

1.9%

1.7%

 

 

 

4.0%

4.6%

EPS

 

 

 

 

 

 

 

 

- USD

0.0108

0.0083

+31%

 

 

0.0231

0.0225

+3%

- RMB

0.0692

0.0547

+27%

 

 

0.1476

0.1489

-1%

EBITDA

188

154

+22%

19

14

207

168

+23%

% of sales

14.1%

13.5%

 

 

15.5%

14.7%

 

 

USD (m)

As Reported

Adjustments

Adjusted

FY

2021

FY

2020

% Change

FY

2021

FY

2020

FY

2021

FY

2020

% Change

Revenues

4,813

4,128

+17%

-

-

4,813

4,128

+17%

Gross profit

1,311

1,173

+12%

101

50

1,412

1,223

+15%

% of sales

27.2%

28.4%

 

 

29.3%

29.6%

Operating income (EBIT)

291

251

+16%

134

143

425

394

+8%

% of sales

6.0%

6.1%

 

 

8.8%

9.6%

Income before taxes

85

83

+2%

134

142

219

225

-3%

% of sales

1.8%

2.0%

 

 

4.6%

5.5%

Net income

25

51

-52%

114

125

139

176

-21%

% of sales

0.5%

1.2%

 

 

 

2.9%

4.3%

EPS

 

 

 

 

 

 

 

 

- USD

0.0106

0.0213

-50%

 

 

0.0596

0.0734

-19%

- RMB

0.0676

0.1469

-54%

 

 

0.3843

0.5039

-24%

EBITDA

593

592

78

36

671

628

+7%

% of sales

12.3%

14.4%

 

 

13.9%

15.2%

 

Notes:

“As Reported” denotes the Company’s financial statements according to the Accounting Standards for Business Enterprises and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the Chinese Ministry of Finance (the “MoF) (collectively referred to as “ASBE”). Note that in the reported financial statements, as a result of recent changes in the ASBE guidelines [IAS 37], certain items in 2021 (specifically certain transportation costs and certain idleness charges) have been reclassified from Operating Expenses to COGS, while in this release such items have not been so reclassified in order to maintain comparability between the 2020 and 2021 financial periods. Please see the appendix to this release for further information.

Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude items that are of a transitory or non-cash/non-operational nature that do not impact the ongoing performance of the business, and reflect the way the Company’s management and the Board of Directors view the performance of the Company internally. The Company believes that excluding the effects of these items from its operating results allows management and investors to effectively compare the true underlying financial performance of its business from period to period and against its global peers. A detailed summary of these adjustments appears in the appendix below.

The Q3 2020 and 9M 2020 Adjusted Income Statements have been amended from that presented at the time to include additional adjustments in order to consistently reflect largely the treatment of China Relocation & Upgrade Program-related costs amongst other adjustments that the Company has deemed non-operational and one-time in nature, as well as to reflect a change in allocation of certain costs between those impacting Operating Expenses and those impacting Gross Profit.

The number of shares used to calculate both basic and diluted earnings per share in Q4 and FY 2020 is 2,334.5 million shares and 2,401.5 million shares, respectively. The number of shares used to calculate both basic and diluted earnings per share in Q4 and FY 2021 is 2,329.8 million shares, reflecting the repurchase and cancellation of 102.4 million shares from CNAC in July 2020 and repurchase and cancellation of 14.3 million B shares during the second half of 2020.

The general crop protection market environment

During the fourth quarter of 2021, crop prices of most of the major commodity crops remained elevated, and even further increased, supporting strong crop protection demand in most regions. This demand was also further supported by higher planted area in South America as planting progressed there in the quarter.

On the whole, farmers continue to benefit from the high global crop prices. However, this benefit is somewhat dampened by broad inflationary pressures they are experiencing across most of their input costs, including seeds, fertilizers, crop protection, fuel and machinery.

During the quarter, availability of intermediates and active ingredients sourced from China improved somewhat as the “Dual Control” energy saving measures in the country were relaxed, and agrochemical production came back online. However, China agrochemical prices remained high and COVID-19 restrictions and lockdowns continued to negatively impact agrochemical production and logistics.

Global energy prices remained high during the fourth quarter of 2021. In addition, global freight and logistics costs remained significantly elevated during the quarter, and even further increased in December as COVID-19 continued to disrupt port activity, coupled with high stay-at-home demand brought on by the Omicron wave. Similarly, in-land logistics remained challenged as pandemic-related restrictions continued to create frictions in domestic supply lines. Taken together, these constraints have impacted both availability of shipping and transportation resources, as well as significantly increased their costs, a dynamic widely observed across all international trade-related industries.

The Company continues to actively manage its procurement and supply chain activities in order to mitigate these higher procurement and logistics costs. It also endeavors to adjust its pricing wherever market conditions allow, to compensate for these increased costs, the results of which were apparent in Q4, and are continuing to be seen into the beginning of this year.

As the world continues to watch in horror the unfolding tragic and traumatic events in Ukraine, the Company is doing everything possible to ensure the safety and security of its people, and stands strongly in support of its employees, partners and customers. Although the Company is continuing to support farmers in Ukraine, its business in the country is being impacted to a certain extent. At this stage, the Company anticipates that its overall results for the first quarter of 2022 will not be materially impacted, due to promising performance in other geographies. The Company is continuously reviewing the situation on the ground and assessing the potential risks involved, and will provide a further update in due course. At times like these, ADAMA is keenly aware of the important role it plays in helping farmers to continue to grow their crops, in order to ensure global food security.

China Operations Update

The Company's manufacturing site in Jingzhou, Hubei (ADAMA Sanonda) continues on its path of gradually ramping up production following the completion of the Relocation & Upgrade program at the site, progressively reducing the need for incurring additional procurement costs, and gradually reducing idleness charges as production and utilization levels steadily increase.

As a result of the institution during 2021 of China's "Dual Control" energy restrictions as well as certain regulatory inspections conducted at some industrial parks, the Company's manufacturing facilities in Huai'An (ADAMA Anpon) and in Dafeng (ADAMA Huifeng), both in Jiangsu province, were suspended for a number of weeks in September and October 2021. As the restrictions were loosened in the following weeks, operations at these sites resumed, albeit initially at a more limited capacity, reaching normal operations by December. This temporary suspension caused an increase in idleness costs during the quarter.

The energy restrictions and resulting widespread production suspensions contributed to a significant increase in procurement costs of raw materials and intermediates, on top of the already high costs seen in prior months in the face of strong underlying demand and relatively constrained supply. Although these industry-wide supply shortages have started to alleviate somewhat in recent weeks, the Company is expecting the high procurement costs seen in H2 2021 to continue to pose challenges for its margins in the coming months as these inventories progress through the Company's inventory cycle. The Company endeavors, wherever possible and supported by market conditions, to increase prices in order to mitigate the impact of the higher costs.

In China, the Company is benefiting to some extent from the generally higher pricing environment in the sales of its raw materials and intermediates, where it is seeing robust demand, driving the strong performance in China in the fourth quarter.

Financial Highlights

Revenues in the fourth quarter grew by 17% (+13% in RMB terms) to $1,337 million, driven by a significant 14% increase in prices, a trend which started in the third quarter and accelerated into the fourth quarter. The markedly higher prices were complemented by continued volume growth (5%), including the contribution of newly acquired companies, and only slightly moderated by the adverse impact of exchange rate movements.

In the quarter, ADAMA delivered significant growth in Latin America, both in Brazil and across much of the rest of the region. In Brazil, the Company benefited from the good soybean planting season, as well as the strong farmer demand which supported higher prices, factors which are also supporting growth throughout South and Central America. The Company continues to grow strongly in Asia Pacific, led by a significant increase in sales in the quarter in China, with sales of its raw materials and intermediates in the country benefiting from higher prices resulting from strong demand in a generally supply-constrained environment. In North America, the Company saw a pleasing performance in the fourth quarter, enjoying robust pre-season demand in both US and Canadian agricultural markets as farmers order early in light of continued industry-wide concerns around availability later in the season. Sales in the India, Middle-East & Africa region grew in the quarter, led by a strong performance in India driven by new product launches in the country, as well as South Africa, where the Company continues to benefit from favorable cropping conditions and new product launches. The fourth quarter saw sales in Europe only slightly higher than the same period last year, as growth across most of the region was largely offset by supply challenges, felt mainly in France and Germany.

The continued robust growth in the quarter brought full year sales to a record-high of $4,813 million, an increase of 17% (+9% in RMB terms), driven by 12% volume growth alongside 4% higher prices, and further aided somewhat by stronger currencies.

Gross Profit reported in the fourth quarter increased 15% to $379 million (gross margin of 28.4%) compared to $330 million (gross margin of 28.9%) in the same quarter last year, and was up 12% to $1,311 million (gross margin of 27.2%) in the full year period compared to $1,173 million (gross margin of 28.4%) last year.

The Company recorded certain extraordinary charges within its reported cost of goods sold, totaling approximately $33 million in the fourth quarter (Q4 2020: $5 million) and $101 million in the full year period (FY 2020: $50 million). These charges were largely related to its continuing Relocation & Upgrade program, and include mainly (i) excess procurement costs, both in quantity and cost terms, incurred as the Company continued to fulfill demand for its products in order to protect its market position through replacement sourcing at significantly higher costs from third-party suppliers, and (ii) elevated idleness charges largely related to suspensions at the facilities being relocated and upgraded, as well as to the temporary suspension of the Jingzhou site in Q1 2020 at the outbreak of COVID-19 in Hubei Province. For further details on these extraordinary charges, please see the appendix to this release.

Excluding the impact of the abovementioned extraordinary items, adjusted gross profit in the fourth quarter increased 23% to $412 million (30.8% of sales) compared to $335 million (gross margin of 29.4%) in the same quarter last year, and was up 15% to $1,412 million (gross margin of 29.3%) in the full year period compared to $1,223 million (gross margin of 29.6%) last year.

In the quarter, the significantly higher gross profit and pleasing improvement in the adjusted gross margin were largely driven by the markedly higher prices, complemented by continued volume growth, which more than offset higher logistics, procurement and production costs as well as the effect of the strong RMB and ILS, the Company's main production currencies.

In the full year period, the increased gross profit was driven by the higher prices, a trend which started in the third quarter and accelerated into the fourth quarter, alongside the strong volume increases seen in each of the four quarters of the year, as well as a net positive impact from portfolio mix, and generally favorable currency movements. These combined to more than offset higher logistics, procurement and production costs, which nevertheless resulted in a somewhat lower adjusted gross margin over the full year period.

Operating expenses reported in the fourth quarter were $270 million (20.2% of sales) and $1,020 million (21.2% of sales) in the full year period, compared to $267 million (23.4% of sales) and $923 million (22.3% of sales) in the corresponding periods last year, respectively.

The Company recorded certain non-operational, mostly non-cash, charges within its reported operating expenses, totaling approximately $1 million in the fourth quarter (Q4 2020: $39 million) and $33 million in the full year period (FY 2020: $93 million). These charges include mainly (i) $4 million in Q4 2021 (Q4 2020: $8 million) and $23 million in FY 2021 (FY 2020: $31 million) in non-cash amortization charges in respect of Transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition, (ii) $6 million benefit in Q4 2021 (Q4 2020: $5 million) and $4 million benefit in FY 2021 (FY 2020: benefit of $12 million) in non-cash impacts related to incentive plans, and (iii) $2 million in Q4 2021 (Q4 2020: $3 million) and $13 million in FY 2021 (FY 2020: $11 million) in charges related mainly to the non-cash amortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired, as well as other M&A-related costs. The higher aggregate amount of non-operational charges in Q4 and FY 2020 then also included $10 million and $45 million, respectively, in non-cash amortization charges related to the legacy PPA of the 2011 acquisition of Adama Agricultural Solutions, which have now largely finished, and $1 million and $11 million, respectively, in early retirement expenses. For further details on these non-operational charges, please see the appendix to this release.

Excluding the impact of the abovementioned non-operational charges, adjusted operating expenses in the quarter and full year period were $269 million (20.1% of sales) and $986 million (20.5% of sales), compared to $228 million (20.0% of sales) and $829 million (20.1% of sales) in the corresponding periods last year, respectively.

The higher operating expenses in the quarter and the full year period largely reflect the strong growth of the business and the additional operating expenses of the newly acquired companies, together with significantly higher global logistics and shipping costs. In addition, in the full year, alongside the many benefits the Company enjoys from the collaboration with other companies in the Syngenta Group, most notably in commercial cross-sales as well as in the areas of procurement and operations, ADAMA recorded certain related expenses. The Company also saw the impact on its operating expenses of generally stronger global currencies against the US dollar, as well that of the generally inflationary environment being seen globally in recent quarters.

Operating income reported in the fourth quarter increased 73% to $110 million (8.2% of sales) compared to $63 million (5.5% of sales) in the same quarter last year, and was up 16% to $291 million (6.0% of sales) in the full year period compared to $251 million (6.1% of sales) last year.

Excluding the impact of the abovementioned non-operational, mostly non-cash items, adjusted operating income in the fourth quarter increased 33% to $143 million (10.7% of sales) compared to $107 million (9.4% of sales) in the same quarter last year, and was up 8% to $425 million (8.8% of sales) in the full year period compared to $394 million (9.6% of sales) last year.

EBITDA reported in the fourth quarter increased 22% to $188 million (14.1% of sales) compared to $154 million (13.5% of sales) in the same quarter last year, and reached $593 million (12.3% of sales) in the full year period, in line with the $592 million (14.4% of sales) recorded last year.

Excluding the impact of the abovementioned non-operational, mostly non-cash items, adjusted EBITDA in the fourth quarter increased 23% to $207 million (15.5% of sales) compared to $168 million (14.7% of sales) in the same quarter last year, and was up 7% to $671 million (13.9% of sales) in the full year period compared to $628 million (15.2% of sales) last year.

Financial expenses and investment income were $62 million in the fourth quarter and $206 million in the full year period, compared to $48 million and $169 million in the corresponding periods last year, respectively. The higher financial expenses in the quarter and the full year period were mainly driven by the net effect of the increase in the Israeli CPI on the ILS-denominated, CPI-linked bonds, and higher non-cash charges related to put options in respect of minority interests. In the fourth quarter, the Company also saw higher receivables securitization charges incurred in respect of the markedly higher sales recorded in Brazil. In the full year, the higher financial expenses also reflect increased hedging costs on the BRL, which were somewhat mitigated by the benefit from hedges in respect of the RMB.

Taxes on income in the fourth quarter were $27 million and $79 million in the full year period, compared to $7 million and $49 million in the corresponding periods last year, respectively. The significantly higher tax expenses in the fourth quarter and over the full year period reflects the incurring of higher taxes by the Company's high-growth selling entities in end-markets.

In the fourth quarter, the increase also reflects the largely non-cash impact on the value of non-monetary tax assets of the less significant strengthening of the BRL in the fourth quarter of 2021 when compared to the same quarter in 2020, which then resulted in higher tax income in Q4 2020.

By contrast, over the full year period, the increased tax expenses seen in 2021 were partially mitigated by the relatively lower weakening of the BRL during 2021 as compared to its more significant weakening during 2020, which then resulted in relatively higher BRL-related tax expenses during 2020.

Net income attributable to the shareholders of the Company reported in the fourth quarter was $25 million (1.9% of sales) and $25 million (0.5% of sales) in the full year period, compared to $19 million (1.7% of sales) and $51 million (1.2% of sales) in the corresponding periods last year, respectively.

Excluding the impact of the abovementioned extraordinary and non-operational charges, adjusted net income in the fourth quarter was $54 million (4.0% of sales) and $139 million (2.9% of sales) in the full year period, compared to $52 million (4.6% of sales) and $176 million (4.3% of sales) in the corresponding periods last year, respectively.

Trade working capital at December 31, 2021 was $2,210 million compared to $2,357 million at the same point last year. The marked reduction in working capital was due in large part to significantly higher trade payables, reflecting higher purchases made in the fourth quarter in advance of the continued growth expected in 2022, as well as a certain lengthening of credit terms received. In addition, the Company saw a reduction in its trade receivables, despite its strong growth in emerging markets where customer credit terms are generally longer, due largely to improved collections and increasing use of receivables securitization in Brazil. Against this, the Company is holding higher inventory levels, due mainly to a shift in geographic and portfolio sales mix, the anticipation of further volume growth in coming quarters in the face of uncertain supply conditions, the increase in procurement and production costs, as well as the inclusion of recent acquisitions. Notwithstanding the strong improvement in working capital levels seen during the fourth quarter, the Company expects working capital to increase during the first half of 2022 back to the higher levels customarily seen in the first half of the year, in support of the solid growth of the business.

Cash Flow: Operating cash flow of $372 million was generated in the quarter and $710 million in the full year period, compared to $95 million and $292 million generated in the corresponding periods last year, respectively. The markedly stronger operating cash flow generated in both the fourth quarter and full year periods reflects the higher reported operating income achieved in both periods this year, alongside the abovementioned reduction in working capital during 2021 compared to its expansion during the same periods in 2020.

Net cash used in investing activities was $136 million in the quarter and $525 million in the full year period, compared to $141 million and $341 million in the corresponding periods last year, respectively. The higher level of cash used in investing activities over the year largely reflects an increase in investments in fixed assets, mainly driven by the payments for the upgrading of manufacturing facilities in Israel and globally, as well as the payments for acquisitions.

The aforementioned operating and investing cash flow dynamics drove a significant improvement in the Company's free cash flow generation, with free cash flow of $190 million being generated in the fourth quarter compared to a net free cash outflow of $93 million in the same quarter last year, while $75 million of free cash flow was generated over the full year period compared to $150 million consumed over the course of last year.

Portfolio Development Update

In the fourth quarter, ADAMA continued to advance the development of its differentiated product portfolio, launching multiple new products in markets across the globe. Of special note was the launch in Europe of TIMELINE® FX, a unique three-way spring foliar herbicide mixture providing cross-spectrum protection for cereals against broadleaf and grass weeds. The Company continues to strengthen its presence in the biologic space with the launch in Europe of VIGNEXEL®, a plant extract biostimulant for the treatment of abiotic stress in vines. In the Consumer & Professional space, ADAMA launched SUPRADOTM, a product developed uniquely by the Company to address Annual Bluegrass Weevil, a highly devastating pest affecting golf courses across the northeastern U.S., as well as Neem Max cold-pressed neem oil, an innovative natural insecticide in the U.S. consumer market.

Table 2. Regional Sales Performance

 

Q4 2021

$m

Q4 2020

$m

Change

USD

Change

CER

FY 2021

$m

FY 2020

$m

Change

USD

Change

CER

Europe

247

246

+0.4%

+3.4%

1,072

1,036

+3.5%

+3.0%

North America

289

258

+11.7%

+11.1%

917

776

+18.2%

+17.4%

Latin America

456

374

+21.9%

+25.8%

1,276

1,088

+17.3%

+19.3%

Asia Pacific

221

159

+38.6%

+36.4%

898

656

+36.8%

+28.5%

 Of which China

133

73

+80.8%

+75.7%

 

513

324

+58.5%

+50.8%

India, Middle East & Africa

125

104

+20.4%

+20.7%

650

572

+13.7%

+12.7%

Total

 

1,337

1,141

+17.2%

+18.7%

 

4,813

4,128

+16.6%

+15.4%

CER: Constant Exchange Rates

 

Europe: Sales were up by 3.4% in the fourth quarter and by 3.0% in the full year, in CER terms, compared with the corresponding periods last year.

In the fourth quarter, the Company saw moderate growth in Europe, achieved despite the impact of the COVID-19 Omicron wave hampering regular commercial activities, with growth across most of the region being partially offset by supply challenges, mainly felt in France and Germany.

In US dollar terms, sales were higher by 0.4% in the quarter and by 3.5% in the full year, compared to the corresponding periods last year, reflecting the net impact of the weaker currencies in the quarter, contrasted with the somewhat stronger currencies over the full year.

North America: Sales were up by 11.1% in the fourth quarter and by 17.4% in the full year, in CER terms, compared with the corresponding periods last year.

The pleasing performance in the fourth quarter reflects the robust pre-season demand seen in both US and Canadian agricultural markets as farmers order early in light of continued industry-wide concerns around availability later in the season.

In US dollar terms, sales in the region grew by 11.7% in the quarter and by 18.2% in the full year, compared to the corresponding periods last year, reflecting the strengthening of the Canadian Dollar.

Latin America: Sales grew by 25.8% in the fourth quarter and by 19.3% in the full year, in CER terms, compared to the corresponding periods last year.

Strong growth was seen in Brazil and across much of the rest of the region. In Brazil, the Company benefited from the good soybean planting season, as well as the strong farmer demand which supported higher prices. The Company commenced local production and commercialization in Brazil of ARMERO™, its new dual-mode fungicide containing the active ingredients Prothioconazole and Mancozeb, benefiting from its new in-house production of Prothioconazole, a leading broad-spectrum systemic fungicide. The Company also delivered pleasing growth in Paraguay following an acquisition in the country in the fourth quarter of 2020, as well as in Central America and many other countries in the wider region.

In US dollar terms, sales in the region grew by 21.9% in the quarter, and by 17.3% in the full year, compared to the corresponding periods last year, reflecting the generally weaker average currency levels that prevailed over the periods, in particular the BRL.

Asia-Pacific: Sales grew by 36.4% in the quarter and by 28.5% in the full year, in CER terms, compared to the corresponding periods last year.

The Company continues to grow strongly in Asia Pacific, led by a significant increase in sales in the quarter in China. In China, the Company's sales of raw materials and intermediates, where it continues to see strong demand, benefited from the higher pricing environment resulting from general supply constraints. In addition, ADAMA continues to grow sales of its branded, formulated portfolio, and was also bolstered by the acquisition of Huifeng during the year.

In the wider APAC region, the Company saw moderate growth in the quarter, with increases in the Pacific region being balanced by somewhat softer performances in some east Asian markets, where commercial activities continued to be hampered by COVID-related restrictions and supply constraints.

In US dollar terms, sales in the region grew by 38.6% in the fourth quarter and by 36.8% in the full year, compared to the corresponding periods last year, reflecting the impact of the strengthening of regional currencies, most notably the Australian Dollar and Chinese Renminbi.

India, Middle East & Africa: Sales grew by 20.7% in the quarter and by 12.7% in the full year, in CER terms, compared to the corresponding periods last year.

Growth in the quarter was led by a strong performance in India, driven by new product launches in the country, including BARROZ®, a leading tool for the control of stem borer in rice, as well as South Africa, where the Company continues to benefit from favorable cropping conditions and new product launches.

In US dollar terms, sales in the region grew by 20.4% in the quarter and by 13.7% in the full year, compared to the corresponding periods last year, reflecting the impact of the somewhat weaker currencies in the quarter contrasted with the strengthening of regional currencies over the full year period, most notably the Israeli Shekel.

Table 3. Revenues by operating segment

Fourth quarter sales by segment

Q4 2021

USD (m)

%

 

 

Q4 2020

USD (m)

%

Crop Protection

1,197

89.5%

1,032

90.5%

Intermediates and Ingredients

140

10.5%

109

9.5%

Total

1,337

100%

 

1,141

100%

 

Fourth quarter sales by product category

Q4 2021

USD (m)

%

 

 

Q4 2020

USD (m)

%

Herbicides

582

43.5%

477

41.8%

Insecticides

359

26.8%

316

27.7%

Fungicides

256

19.1%

240

21.0%

Intermediates and Ingredients

140

10.5%

109

9.5%

Total

1,337

100%

 

1,141

100%

Note: the sales split by product category is provided for convenience purposes only and is not representative of the way the Company is managed or in which it makes its operational decisions.

 

Full year sales by segment

FY 2021

USD (m)

%

 

 

FY 2020

USD (m)

%

Crop Protection

4,389

90.4%

3,738

90.6%

Intermediates and Ingredients

464

9.6%

389

9.4%

Total

4,813

100%

 

4,128

100%

 

Full year sales by product category

FY 2021

USD (m)

%

 

 

FY 2020

USD (m)

%

Herbicides

1,972

41.0%

1,707

41.4%

Insecticides

1,425

29.6%

1,174

28.5%

Fungicides

952

19.8%

857

20.8%

Intermediates and Ingredients

464

9.6%

389

9.4%

Total

4,813

100%

 

4,128

100%

Note: the sales split by product category is provided for convenience purposes only and is not representative of the way the Company is managed or in which it makes its operational decisions.

Further Information

All filings of the Company, together with a presentation of the key financial highlights of the period, can be accessed through the Company website at www.adama.com.

 

About ADAMA

ADAMA Ltd. is a global leader in crop protection, providing solutions to farmers across the world to combat weeds, insects and disease. ADAMA has one of the widest and most diverse portfolios of active ingredients in the world, state-of-the art R&D, manufacturing and formulation facilities, together with a culture that empowers our people in markets around the world to listen to farmers and ideate from the field. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations and high-quality differentiated products, delivering solutions that meet local farmer and customer needs in over 100 countries globally. For more information, visit us at www.ADAMA.com and follow us on Twitter® at @ADAMAAgri.

 

Contact

Rivka Neufeld Zhujun Wang
Global Investor Relations China Investor Relations
Email: ir@adama.com Email: irchina@adama.com

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