Combined Adama Group Provides Net Income Estimate for the First Nine Months and Third Quarter of 2018

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Oct 15, 2018, 02:57 ET

BEIJING, Oct. 15, 2018 /PRNewswire/ -- Global crop protection company ADAMA (SZSE: 000553), the combination between Adama Agricultural Solutions Ltd. ("Solutions") and Hubei Sanonda Co., Ltd. ("Sanonda") (together, "ADAMA" or "the Combined Company"), today provided an estimate regarding its reported net profit for the first nine months and third quarter of 2018, pursuant to requirements of the Shenzhen Stock Exchange.

	Estimated 9M 2018	9M 2017
Reported net profit attributable to shareholders (USD millions)	393.5 – 403.5	233.9
Reported earnings per share (USD)	0.1608 – 0.1649	0.0999
Reported net profit attributable to shareholders (RMB millions)	2,512.4 – 2,580.4	1,599.5
Reported earnings per share (RMB)	1.0269 – 1.0547	0.6830

	Estimated Q3 2018	Q3 2017
Reported net profit attributable to shareholders (USD millions)	22.0 – 32.0	42.3
Reported earnings per share (USD)	0.0090 – 0.0131	0.0181
Reported net profit attributable to shareholders (RMB millions)	149.6 – 217.6	282.5
Reported earnings per share (RMB)	0.0611 – 0.0889	0.1206

The Combined Company expects reported net profit in the first nine months of 2018 to range between $393.5 – 403.5 million (RMB 2,512.4 – 2,580.4 million), compared to reported net profit in the corresponding period of 2017 of $233.9 million (RMB 1,599.5 million). Reported earnings per share for the Combined Company in the first nine months of 2018 are expected to range between $0.1608 – 0.1649 (RMB 1.0269 – 1.0547), compared to reported earnings per share in the corresponding period of 2017 of $0.0999 (RMB 0.6830).

The Combined Company expects reported net profit in Q3 2018 to range between $22.0 – 32.0 million (RMB 149.6 – 217.6 million), compared to reported net profit in Q3 2017 of $42.3 million (RMB 282.5 million). Reported earnings per share for the Combined Company in Q3 2018 are expected to range between $0.0090 – 0.0131 (RMB 0.0611 – 0.0889), compared to reported earnings per share in Q3 2017 of $0.0181 (RMB 0.1206).

When compared to the reported net profit in the first nine months of 2017, the increase in the estimated reported net profit in the first nine months of 2018 reflects the recognition of a one-time profit in the first quarter of 2018 on the divestiture of several crop protection products in Europe in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina. The proceeds of this divestiture, net of taxes and transaction expenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature and economic value.

Over the nine month period, the Combined Company has achieved strong sales growth, notwithstanding an exceptionally severe drought in Europe in the third quarter which started, as previously reported, towards the end of the second quarter, reducing highly profitable sales. ADAMA continued increasing selling prices to offset higher procurement costs and lower currencies.

On a combined, adjusted basis, excluding mainly the impact of the one-time divestiture profit and related non-cash expenses, and excluding the first-half Euro hedge impact, the net income of the Combined Company in the first nine months of 2018 is estimated to be only somewhat lower than last year's all-time-high.

These estimations are preliminary and have not been audited or reviewed by the Combined Company's auditors. These estimations may change, inter alia, as a result of the further processing and analysis of the financial data that the Combined Company will perform for the preparation of its financial statements for the first nine months and third quarter of 2018, which will be published on October 30, 2018.

Investors are reminded to exercise caution when making investment decisions.

About the Combined Company

The combined company, which will be named ADAMA, is comprised of Adama Agricultural Solutions Ltd. and Hubei Sanonda Ltd., and is one of the world's leading crop protection companies. We strive to Create Simplicity in Agriculture – offering farmers effective products and services that simplify their lives and help them grow. With one of the most comprehensive and diversified portfolios of differentiated, quality products, our 6,600 strong team reaches farmers in over 100 countries, providing them with solutions to control weeds, insects and disease, and improve their yields. For more information, visit us at www.adama.com and follow us on Twitter^® at @AdamaAgri.

Contact

Wayne Rudolph
Head of Investor Relations
Email: [email protected]

Zhujun Wang
China Investor Relations
Email: [email protected]

SOURCE Adama Agricultural Solutions Ltd