March 28, 2018

Strong final quarter drives 2017 sales above $3.5bn mark, 15% EBITDA growth to $646m and 44% Net Income growth over the year

• Q4 Sales up 13.0% to $821 million; driven by robust 11.3% volume growth
  - Full year sales up 5.8% to $3,523 million, driven by 8.0% growth in volume
   
• Gross Profit up 20.2% to $265 million in Q4; gross margin up 1.9 percentage points to 32.3%
  - Full year gross profit up 14.8% to $1,237 million, with an increase of 2.8 percentage points in gross margin to 35.1%
   
• EBIT up 45.9% to $45 million in Q4; EBIT margin up 1.2 percentage points to 5.5%
  - Full year EBIT up 25.7% to $436 million, with an increase of 2.0 percentage points in EBIT margin to 12.4%
   
• Net income up to $26 million in Q4; net income margin up 3.3 percentage points to 3.1%
  - Full year net income up 44.3% to $280 million , with an increase of 2.2 percentage points in net income margin to 8.0%
   
• EBITDA up 19.2% to $100 million in Q4; EBITDA margin up 0.7 percentage points to 12.2%
  - Full year EBITDA up 15.0% to $646 million , with an increase of 1.4 percentage points in EBITDA margin to 18.3%
   
• Strong cash flow generation drives ongoing debt reduction
  - Working capital further reduced
  - Operating Cash Flow in the quarter of $217 million and of $586 million in the year
  - Free Cash Flow in the quarter of $115 million and of $310 million in the year
  - Major $427 million reduction in balance sheet net debt over the last 12 months to $442 million 
  - Reaching net debt / EBITDA ratio of 0.7x
   
• Key business highlights
  - Adama-Sanonda Combination completed, with name of Combined Company to change to ADAMA, subject to required approvals
  - Build-up and integration of China commercial and operational activities well underway, including the launch of a state-of-the-art R&D center
  - $240m in new equity raised from six of China’s leading institutional investors
  - Shares included on the Shenzhen-Hong Kong Stock Connect, providing access to international investors

Download:

- Full news release:

• English
• Hebrew

- Management discussion and analysis
- 2017 full year financial presentation
- 2017 Annual Report

Website: http://www.adama.com/en/

Published: March 28, 2018