ADAMA Reports First Quarter 2025 Results

By ADAMA Ltd.|28 April 2025

ADAMA Ltd. has reported its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 highlights include:

Sales down 5% (-4% in RMB; -3% in CER) to $1,000 million, mainly reflecting stable volume and 4% decrease in prices.
Adjusted gross profit up 5% to $303 million, representing an improvement of gross margin from 27.2% in Q1 2024 to 30.3% in Q1 2025, mainly reflecting the benefits of lower costs.
Adjusted EBITDA up 21% to $160 million representing an improvement of EBITDA margin from 12.5% in Q1 2024 to 16.0% in Q1 2025.
Adjusted net income of $44 million compared to a loss of $10 million in Q1 2024; Reported net income up to $21 million from a loss of $32 million in Q1 2024.
Operating cash flow improved by $75 million; -$29 million in Q1 2025 vs. -$103 million in Q1 2024.
Free cash flow improved by $108 million, -$86 million in Q1 2025 vs. -$194 million in Q1 2024.

Gaël Hili, President and CEO of ADAMA, said, “I’m encouraged to see additional positive data, which can be attributed to the ongoing implementation of ADAMA’s Fight Forward strategic transformation plan. In addition to improved operational and free cash flow and continued growth of adjusted gross profit and EBITDA and their margins, in Q1 2025 we saw a positive quarterly net profit. I congratulate ADAMA’s team for their efforts to improve operational efficiencies. 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.”

The General Crop Protection (CP) Market Environment

Continuing the trend from 2024, key commodity crop prices remained subdued in Q1 2025, pressuring farmer income, despite some ease in the prices of inputs.

While channel inventory levels continue to ease following pandemic-era stockpiling, the high-interest rate environment coupled with ample product supply driven by significant over-capacity production of active ingredients in China, continue to contribute to low active ingredient (“AI”) prices and a just-in-time purchasing approach by the channel.