Ignacio Dominguez, President and CEO of ADAMA, said, "In these challenging times, we have delivered a second quarter marked by strong underlying business growth, despite the many headwinds posed by the persistent COVID-19 pandemic which has continued to disrupt lives and economies around the globe. While some countries have been able to emerge from pandemic-related shutdowns, many parts of the world continue to see new infections and deaths rising tragically on a daily basis. During this troubling and uncertain period, I am proud of the response of our teams across the world to ensure the health and safety of our employees, and not only to mitigate the impact of the pandemic on our business, but to keep us on a growth trajectory and delivering solutions to farmers. Their efforts have enabled the Company to maintain more than $2 billion in sales in the first half of 2020, despite the challenges posed by COVID-19, including its significant impact on global currencies."
- Q2 Sales of $1,036 million, +12% at constant exchange rates (CER), +3% in USD (RMB: +8%)
- Resilient performance driven by 12% volume growth, led by robust growth in emerging markets
- US dollar sales impacted by an estimated $85 million due to weaker currencies
- H1 Sales of $2,008 million, +7% in CER terms; in line with 2019 record high in USD (RMB: +4%)
- Q2 growth bringing a full recovery in H1 sales, with a 10% increase in volumes, despite Q1 COVID-19 challenges
- US dollar sales impacted by an estimated $135 million due to weaker currencies
- Q2 EBITDA of $163 million (Q2'19: $177 million); impacted by estimated $61 million in currency headwinds
- Strong Q2 volume growth alongside improved product mix more than offset by significant currency weakness
- Maintained tight control of operating expenses, also benefiting from weaker currencies
- H1 EBITDA of $306 million (H1'19: $365 million); impacted by estimated $94 million in currency headwinds
- Significant impact of global COVID-19 related currency weakness more than offsetting volume growth and reduction in operating expenses
- Q2 Net Income of $47 million (Q2'19: $51 million); estimated FX impact of $55 million
- Lower financial expenses only partially mitigating the lower Q2 operating income
- H1 Net Income of $74 million (H1'19: $131 million); estimated FX impact of $117 million
- Reduced financial expenses more than offset by higher Q1 tax expense largely due to BRL weakness against USD
Find the entire Q2 report here.
