ADAMA: Sales and profitability improved year-over-year, with net loss narrowing and margins rising

Q3 and 9M 2025 saw stable sales, improved margins, and a return to adjusted net income, driven by higher volumes, lower costs, and operational efficiencies. Regional and product mix shifts, new product launches, and the 'Fight Forward' plan supported performance despite ongoing pricing and market pressures.

Original document: ADAMA Ltd. Class A [000553] Earnings Release — Nov. 10 2025

BEIJING and TEL AVIV, Israel, Oct. 29, 2025 /PRNewswire/ — ADAMA Ltd. (the "Company") , today reported its financial results for the third quarter and first nine months of 2025 that ended September 30, 2025.

Third Quarter 202 5 Highlights:

• Stable Sales (0% in USD, 1% in RMB) of $933 million, reflecting the combined results of a 1% increase in volume and a 1% decrease in prices
• Adjusted gross profit up 14% to $257 million, representing an improvement of gross margin to 27.6% from 24.2% last year, reflecting the benefits of lower costs and higher volumes
• Adjusted EBITDA up 50% to $120 million, representing an improvement of EBITDA margin to 12.9% from 8.6% last year
• Adjusted net loss reduced to $20 million from $78 million last year; Reported net loss improved by $85 million to $48 million compared to $133 million last year

First Nine Months 2025 Highlights:

• Stable Sales (0% in USD, 1% in RMB) of $3,025 million, reflecting the combined results of a 3% increase in volume and a 3% decrease in prices
• Adjusted gross profit up 12% to $878 million, representing an improvement of gross margin to 29.0% from 25.8% last year, reflecting the benefits of lower costs and higher volumes
• Adjusted EBITDA up 30% to $430 million, representing an improvement of EBITDA margin to 14.2% from 11.0% last year
• Adjusted net income turned positive to $29 million compared to a loss of $149 million last year; Reported net loss improved by $200 million to $59 million compared to $259 million last year
• Operating cash flow of $331 million generated vs. $402 million last year
• Free cash flow of $112 million vs. $179 million last year

Gaël Hili, President and CEO of ADAMA, said, "In the third quarter, we continued to deliver improved financial results with stable sales and our sixth consecutive quarter of year-over-year EBITDA growth, clear indicators that our Fight Forward transformation plan is delivering results in support of our value innovation strategy. We remain focused on strengthening our operational foundations, enhancing commercial execution, and driving innovation across our portfolio, delivering meaningful impact for farmers and positioning ADAMA for sustainable, long-term profitable growth."

Table 1. Financial Performance Summary

 
               As Reported           Adjustments                 Adjusted 
----------  ------------------  ---------------------  ---------------------------- 
                                          Q 3 
              Q 3       Q 3               202   Q 3      Q 3       Q 3 
 USD (m)      202 5     202 4   % Change   5    202 4    202 5     202 4   % Change 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
Revenues         933       929       0 %    -       -       933       929       0 % 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
Gross 
 profit          236       188      25 %   22      37       257       225      14 % 
 % of 
  sales       25.2 %    20.2 %                           27.6 %    24.2 % 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
Operating 
 income 
 (loss) 
 (EBIT)           30      (34)             26      46        56        13     343 % 
 % of 
  sales        3.2 %   (3.6 %)                            6.0 %     1.4 % 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
Loss 
 before 
 taxes          (41)     (122)      67 %   29      51      (11)      (72)      84 % 
 % of 
  sales      (4.4 %)  (13.2 %)                          (1.2 %)   (7.7 %) 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
Net loss        (48)     (133)      64 %   28      55      (20)      (78)      74 % 
 % of 
  sales      (5.1 %)  (14.3 %)                          (2.1 %)   (8.4 %) 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
EPS 
 - USD      (0.0206)  (0.0569)                         (0.0086)  (0.0335) 
 - RMB      (0.1470)  (0.4049)                         (0.0611)  (0.2382) 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
EBITDA           104        56      87 %   16      24       120        80      50 % 
 % of 
  sales       11.2 %     6.0 %                           12.9 %     8.6 % 
----------  --------  --------  --------  ---  ------  --------  --------  -------- 
 
 
 
               As Reported           Adjustments                Adjusted 
----------  ------------------  ---------------------  -------------------------- 
                                          9M 
              9M         9M               202    9M      9M       9M 
 USD (m)      202 5     202 4   % Change   5    202 4   202 5    202 4   % Change 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
Revenues       3,025     3,028       0 %    -       -   3,025     3,028       0 % 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
Gross 
 profit          792       672      18 %   86     110     878       782      12 % 
 % of 
  sales       26.2 %    22.2 %                         29.0 %    25.8 % 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
Operating 
 income 
 (EBIT)          155         1             81     136     237       137      73 % 
 % of 
  sales        5.1 %     0.0 %                          7.8 %     4.5 % 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
Income 
 (loss) 
 before 
 taxes          (58)     (203)      71 %   91     116      33      (87) 
 % of 
  sales      (1.9 %)   (6.7 %)                          1.1 %   (2.9 %) 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
Net income 
 ( loss )       (59)     (259)      77 %   89     110      29     (149) 
 % of 
  sales      (2.0 %)   (8.5 %)                          1.0 %   (4.9 %) 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
EPS 
 - USD      (0.0254)  (0.1110)                         0.0127  (0.0638) 
 - RMB      (0.1815)  (0.7890)                         0.0910  (0.4535) 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
EBITDA           378       252      50 %   53      80     430       332      30 % 
 % of 
  sales       12.5 %     8.3 %                         14.2 %    11.0 % 
----------  --------  --------  --------  ---  ------  ------  --------  -------- 
 
 

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, according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. 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 number of shares used to calculate both basic and diluted earnings per share in both Q 3 and 9M 202 5 and 202 4 is 2,329.8 million shares.

In this table and all tables in this release numbers may not sum due to rounding .

The General Crop Protection (CP) Market Environment

Through the first nine months of 2025, channel inventory returned to pre-pandemic levels in most countries, allowing crop protection demand recovery. Pricing pressure remains high, driven by production over-capacity of active ingredients. Crop commodity prices remain stably low and coupled with the high-interest rate environment, farmer profitability remains tight leading to just-in-time purchasing patterns.[1]

Portfolio Development Update

In the third quarter 2025, ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. As part of the Fight Forward transformation plan, the Company is focused on improving its overall portfolio mix, particularly by targeting the Value Innovation segment, with the intent of improving value delivered to all stakeholders.

In Q3 2025, launches of differentiated products included:

• FERRABAIT(R), a patented molluscicide composition based on the active ingredient FERALLA(R), has been launched in New Zealand for use in arable, horticultural, and ornamental crops.
• COSAYR(R), a long-lasting Chlorantraniliprole-based suspension, has been launched in Canada, Hungary, and Argentina (as CARTADO(R)), to deliver fast and effective control of chewing insects across a wide range of horticultural and field crops.

Notable differentiated product registrations during Q3 2025 included:

• PORAFAM(R) , an herbicide aqueous solution with Aminopyralid as the active ingredient, has been registered in Germany. This marks ADAMA's first registration of an Aminopyralid-based formulation in Europe.
• The active substance FERALLA(R)was registered UK
• COSAYR(R) was registered in Austria, France, Spain and Greece
• AVASTEL(R) a broad-spectrum fungicide utilizing Asorbital Formulation Technology and combining the active ingredients Prothioconazole and Fluxapyroxad, has been officially registered in Germany.
• EDAPTIS(R) has been registered in Germany. This innovative post-emergence herbicide combines Pinoxaden and Mesosulfuron-methyl to provide effective control of a broad spectrum of grasses, including resistant populations, with a patented formulation that ensures stable and reliable performance.
• REXARO(R)a fungicide suspension containing Cymoxanil and Fluopicolide, has been registered in Ghana.
• ETHOSAT(R), an herbicide suspension based on Ethofumesate active ingredient, has been registered in Finland.

In addition, patents granted during Q3 2025 included GILBOA(R) mixtures patents in multiple countries including Europe and US, and Gilboa formulation patents in the US and Columbia. Gilboa is a proprietary fungicide having a new mode of action for use in cereals. As well, BAROZ(TM) , a unique granular formulation for reliable rice stem borer control, was patented in Colombia and Indonesia.

Geopolitical Situation

ADAMA is headquartered and has three manufacturing sites in Israel. The regional tensions which escalated on October 7, 2023, continued to have no material impact to-date on the Company's ability to support its markets or its consolidated financial results.

ADAMA is a global company with manufacturing and formulation facilities in several locations around the world, principally in Israel, China and Brazil. The Company's management appointed a dedicated task force to analyze implications of US tariff policies and to closely monitor and manage the situation and the potential impact on its global network. Despite the uncertainty regarding the US tariff policies, the Company currently expects that the impact on its operations and business results will be immaterial.

'Fight Forward' Transformation Plan

In early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan designed to deliver improved profit and cash targets over a three-year period. The plan optimizes financial management, streamlining ADAMA's operating model in order to increase focus on the Value Innovation segment in which differentiated, high-impact solutions are developed to deliver greater value to farmers.

Financial Highlights

Revenues in the third quarter were stable (1% in RMB; 0% in CER) reaching $933 million, mainly reflecting the combined results of a 1% increase in volume and a 1% decrease in prices. The higher volumes reflected the gradual recovery of market demands and improvement of channel inventories in most regions. Prices remained weak mainly due to low prices of active ingredients in light of overcapacity, as well as a high interest rate environment and low commodity prices, which put pressure on distributors and farmers.

Revenues in the first nine months were also stable (1% in RMB; 1% in CER) reaching $3,025 million. The stabilization of revenues in the first nine months was driven by volume growth of 3% offsetting a decrease in prices of 3%.

Table 2. Regional Sales Performance

 
             Q       Q 
           3 202   3 202   Change  Change  9M 202  9M 202   Change  Change 
            5 $m    4 $m     USD     CER    5 $m    4 $m      USD     CER 
--------   ------  ------  ------  ------  ------  -------  ------  ------ 
Europe, 
 Africa & 
 Middle 
 East         233     216     8 %     3 %     903      911   (1 %)   (2 %) 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
North 
 America      164     158     4 %     4 %     659      572    15 %    16 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
Latin 
 America      312     287     9 %     8 %     675      687   (2 %)     1 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
Asia 
 Pacific      225     269  (16 %)  (15 %)     789      859   (8 %)   (7 %) 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
 Of which 
  China        91     109  (17 %)  (16 %)     400      384     4 %     4 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
 Total        933     929     0 %   (0 %)   3,025    3,028   (0 %)     1 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
 

Notes:

• CER: Constant Exchange Rates
• As part of ADAMA's business optimization program, on January 1, 2025, ADAMA's South Africa business was reclassified from APAC operations to EAME operations. To enable meaningful comparisons, the 2024 data presented here includes South Africa under EAME.
• Numbers may not sum due to rounding

Europe, Africa & Middle East (EAME): Volumes and revenue in EAME increased in the third quarter, though significant Q1 declines in Turkey impacted the year-to-date results. Pricing continued to decline in light of intense competition. Foreign exchange rates had positive impact in the third quarter.

North America: In the US Ag market, though slightly down in the third quarter, was significantly up in the first nine months following improvements in volumes and prices. Similarly in Canada, while the third quarter was flat with an increase in volume offset by a decrease by prices, for the nine months volumes are significantly up. Consumer & Professional Solutions experienced increased volumes and flat prices for both the third quarter and year-to-date.

Latin America: In Brazil, revenues were significantly up in the third quarter, resulting in higher revenues also for the first nine months compared to the previous year. Growth was driven by increased volumes, while the third quarter also experienced modest pricing increases. In the rest of LATAM lower volumes, prices, and revenues were reported in the third quarter and the first nine months, primarily in Paraguay and Argentina, due to channel destocking and just-in-time purchasing behavior.

Asia-Pacific (APAC): India experienced significant declines in the third quarter revenues, primarily due to lower volumes driven by extreme weather conditions and lower prices. In the rest of APAC (excluding India and China), sales and volumes were slightly up for the quarter, despite ongoing pricing pressures.

In China, sales in the third quarter mainly reflected the impacts of lower non-ag sales, partially compensated by the increase of AI sales. Non-ag sales declined following implementation of the company's strategic decision to pivot away from manufacturing some basic chemical products, and weaker market demands. Higher AI sales were driven by volume growth due to the expansion of new distribution channels and supported by the recovery of global demand. Sales of the formulations business stabilized, still reflecting relatively high channel inventories and severe market competition. Supported by the growth in the first half, sales in China in the first nine months increased compared to last year.

Reported gross profit in the third quarter increased 25% to $236 million (gross margin of 25.2%) from $188 million (gross margin of 20.2%) last year, and increased 18% to $792 million (gross margin of 26.2%) in the first nine months from $672 million (gross margin of 22.2%) last year.

Adjustments to reported results: The adjusted gross profit mainly includes reclassification of inventory impairment, taxes and surcharge, and excludes certain transportation costs (classified under operating expenses) and the remediation costs by a wholly owned subsidiary for its plant in Israel.

Adjusted gross profit in the third quarter increased 14% to $257 million (gross margin of 27.6%) from $225 million (gross margin of 24.2%) last year, and increased 12% to $878 million (gross margin of 29.0%) in the first nine months from $782 million (gross margin of 25.8%) last year.

The higher adjusted gross profit and margin in the quarter and first nine months mainly reflected the positive impacts of lower costs due to improved operational efficiency and lower costs of inventory sold as well as higher volume, more than compensating for lower prices.

Operating expenses reported in the third quarter were $205 million (22.0% of sales), compared to $222 million (23.9% of sales) last year, and were $636 million (21.0% of sales) in the first nine months compared to $671 million (22.2% of sales) last year.

Adjustments to reported results: Please refer to the explanation above regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment. Non-operating income and expenses are also reclassified into adjusted operating expenses.

The Company recorded certain non-operational items within its reported operating expenses amounting to $26 million in the third quarter of 2025 in comparison to $37 million in the third quarter of 2024 and $73 million in the first nine months 2025 in comparison to $113 million in the first nine months 2024. These items in 2025 mainly include: i. non-cash amortization charges in respect of transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition; ii. non-cash amortization net charges related to intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions; and iii. restructuring and advisory costs incurred as part of the implementation of the Fight Forward transformation plan. For further details on these non-operational items, please see the appendix to this release.

Adjusted operating expenses in the third quarter were $201 million (21.5% of sales), compared to $212 million (22.8% of sales) last year, and were $641 million (21.2% of sales) in the first nine months compared to $645 million (21.3% of sales) last year.

The lower operating expenses in the third quarter was mainly due to a credit loss recorded last year, which compensated for an increase in expenses attributed to company success-based employee compensation due to improved 2025 results to-date. For the first nine months, the positive impacts following implementation of the Fight Forward plan more than compensated for expected credit losses due to liquidity issues of some local distributors in certain countries.

Reported operating income in the third quarter was $30 million (3.2% of sales) compared to a loss of $34 million (-3.6% of sales) last year, and increased to $155 million (5.1% of sales) in the first nine months from $1 million (0.0% of sales) last year.

Adjusted operating income in the third quarter increased to $56 million (6.0% of sales) from $13 million (1.4% of sales) last year, and increased to $237 million (7.8% of sales) in the first nine months from $137 million (4.5% of sales) last year. The increase in operating income was a combined result of higher gross profit and lower operating expenses.

Reported EBITDA in the third quarter increased to $104 million (11.2% of sales) from $56 million (6.0% of sales) last year, and increased to $378 million (12.5% of sales) in the first nine months from $252 million (8.3% of sales) last year.

Adjusted EBITDA in the third quarter increased to $120 million (12.9% of sales) from $80 million (8.6% of sales) last year, and increased to $430 million (14.2% of sales) in the first nine months from $332 million (11.0% of sales) last year.

Adjusted financial expenses decreased to $68 million in the third quarter compared to $84 million last year, and decreased to $204 million in the first nine months compared to $224 million last year.

The lower financial expenses in both the third quarter and the first nine months were primarily positively impacted by a bond buyback that was executed in late Q2, as well as the lower hedging costs related to the Israeli Shekel.

Adjusted taxes on income in the third quarter were an expense of $8 million, compared to expenses of $6 million in the corresponding period last year, and amounted to an expense of $4 million in the first nine months compared to expenses of $61 million last year.

The Company recorded tax expenses mainly because losses that were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred tax assets on the losses. On the other hand, the subsidiaries that generated profit have a higher tax rate.

The tax expenses in first nine months of 2025 are lower compared to the first nine months of 2024 due to (1) lower losses in subsidiaries that did not create deferred tax assets; (2) tax income raised by the accounting method of calculation of tax assets related to unrealized profits; and (3) foreign exchange impact of the stronger BRL in 2025 compared with tax expenses due to the weakness of the BRL in the first nine month of 2024.

Net loss reported in the third quarter narrowed to $48 million from $133 million last year, and narrowed to $59 million in the first nine months from $259 million last year.

After reflecting the impact of the aforementioned extraordinary and non-operational charges, adjustednet loss in the third quarter was reduced to $20 million from a loss of $78 million last year, and adjusted net income in the first nine months turned positive to $29 million from a loss of $149 million last year.

Trade working capital as of September 30, 2025, was $2,093 million compared to $2,218 million as of September 30, 2024. The decrease in working capital was mainly due to the decline in the level of inventory to $1,685 million as of September 30, 2025, from $1,740 million as of September 30, 2024. The decline of inventories was a result of continued implementation of enhanced inventory management, more than offsetting increased procurement in preparation to capture momentum as the market recovers, which also led to an increase in trade payables.

Cash Flow: Operating cash flow of $89 million and $331 million was generated in the third quarter and First Nine Months respectively, compared to $159 million and $402 million generated in the corresponding periods last year. The lower operating cash flow generated in the third quarter was mainly due to higher procurement payments in preparation to capture growth momentum. The dynamics in the first nine months reflected an improvement in collection offsetting higher outflow due to increased procurement payments.

Net cash used in investing activities was $43 million in the third quarter and $131 million in the First Nine Months, compared to $7 million and $122 million in the corresponding periods last year, respectively. The higher cash used in investing activities in the third quarter was mainly due to inflow from last year's sale of a real estate asset. For the first nine months, the mild increase was also due to the payment for earn out related to AgriNova, a controlled subsidiary of the Company in Q2, more than offsetting prioritization of investments in manufacturing facilities and portfolio optimization.

Free cash flow of $22 million was generated in the third quarter and $112 million generated in the First Nine Months compared to $128 million and $179 million in the corresponding periods last year, respectively, reflecting the aforementioned operating and investing cash flow dynamics.

Table 3. Revenues by operating segment

Sales by segment

 
                Q 3 202         Q 3 202         9M 202          9M 202 
                 5 USD           4 USD           5 USD           4 USD 
                  (m)      %      (m)      %      (m)      %      (m)      % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Crop 
 Protection         867   93 %      840   90 %    2,771   92 %    2,746   91 % 
Intermediates 
 and 
 Ingredients         67    7 %       89   10 %      254    8 %      282    9 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Total               933  100 %      929  100 %    3,025  100 %    3,028  100 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
 

Sales by product category

 
                Q 3 202         Q 3 202         9M 202          9M 202 
                 5 USD           4 USD           5 USD           4 USD 
                  (m)      %      (m)      %      (m)      %      (m)      % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Herbicides          369   40 %      345   37 %    1,288   43 %    1,213   40 % 
Insecticides        311   33 %      302   33 %      857   28 %      896   30 % 
Fungicides          187   20 %      193   21 %      626   21 %      638   21 % 
Intermediates 
 and 
 Ingredients         67    7 %       89   10 %      254    8 %      282    9 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Total               933  100 %      929  100 %    3,025  100 %    3,028  100 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
 

Notes:

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.

Numbers may not sum due to rounding.

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 practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com.

Abridged Adjusted Consolidated Financial Statements

The following abridged consolidated financial statements and notes have been prepared as described in Note 1 in this appendix. While prepared based on the principles of Chinese Accounting Standards (ASBE), they do not contain all of the information which either ASBE or IFRS would require for a complete set of financial statements, and should be read in conjunction with the consolidated financial statements of both ADAMA Ltd. and Adama Agricultural Solutions Ltd. as filed with the Shenzhen and Tel Aviv Stock Exchanges, respectively.

Relevant income statement items contained in this release are also presented on an "Adjusted" basis, which exclude items that are of a one-time 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.

Abridged Consolidated Income Statement for the Third Quarter

 
                                     Q 3 2025  Q 3 2024  Q 3 2025  Q 3 2024 
Adjusted ([2])                        USD (m)   USD (m)   RMB (m)   RMB (m) 
-----------------------------------  --------  --------  --------  -------- 
Revenues                                  933       929     6,654     6,613 
Cost of Sales                             670       702     4,776     4,994 
Other costs                                 6         2        43        20 
-----------------------------------  --------  --------  --------  -------- 
Gross profit                              257       225     1,835     1,600 
% of revenue                           27.6 %    24.2 %    27.6 %    24.2 % 
 Selling & Distribution expenses          152       162     1,085     1,151 
 General & Administrative expenses         37        33       265       236 
 Research & Development expenses           13        14        90       102 
 Other operating expenses (income)        (1)         3       (7)        21 
Total operating expenses                  201       212     1,434     1,509 
% of revenue                           21.5 %    22.8 %    21.5 %    22.8 % 
-----------------------------------  --------  --------  --------  -------- 
Operating income (EBIT)                    56        13       401        90 
% of revenue                            6.0 %     1.4 %     6.0 %     1.4 % 
Financial expenses                         68        84       483       600 
-----------------------------------  --------  --------  --------  -------- 
Loss before taxes                        (11)      (72)      (82)     (510) 
Taxes on Income                             8         6        61        45 
Net Loss                                 (20)      (78)     (142)     (555) 
% of revenue                          (2.1 %)   (8.4 %)   (2.1 %)   (8.4 %) 
Adjustments                                28        55       200       388 
-----------------------------------  --------  --------  --------  -------- 
Reported net loss                        (48)     (133)     (342)     (943) 
% of revenue                          (5.1 %)  (14.3 %)   (5.1 %)  (14.3 %) 
-----------------------------------  --------  --------  --------  -------- 
Adjusted EBITDA                           120        80       856       569 
% of revenue                           12.9 %     8.6 %    12.9 %     8.6 % 
-----------------------------------  --------  --------  --------  -------- 
Adjusted EPS ([3])   -- Basic        (0.0086)  (0.0335)  (0.0611)  (0.2382) 
                 -- Diluted          (0.0086)  (0.0335)  (0.0611)  (0.2382) 
-----------------------------------  --------  --------  --------  -------- 
Reported EPS([) (2])   -- Basic      (0.0206)  (0.0569)  (0.1470)  (0.4049) 
                 -- Diluted          (0.0206)  (0.0569)  (0.1470)  (0.4049) 
-----------------------------------  --------  --------  --------  -------- 
 

Abridged Consolidated Income Statement for the First Nine Months of 2025

 
                                        9M 2025   9M 2024   9M 2025   9M 2024 
Adjusted ([4])                           USD (m)   USD (m)   RMB (m)   RMB (m) 
--------------------------------------  --------  --------  --------  -------- 
Revenues                                   3,025     3,028    21,678    21,523 
Cost of Sales                              2,129     2,238    15,260    15,909 
Other costs                                   18         8       126        59 
--------------------------------------  --------  --------  --------  -------- 
Gross profit                                 878       782     6,292     5,555 
% of revenue                              29.0 %    25.8 %    29.0 %    25.8 % 
 Selling & Distribution expenses             474       500     3,396     3,552 
 General & Administrative expenses           113       102       811       723 
 Research & Development expenses              43        45       306       320 
 Other operating expenses (income)            11       (1)        81       (9) 
Total operating expenses                     641       645     4,595     4,585 
% of revenue                              21.2 %    21.3 %    21.2 %    21.3 % 
--------------------------------------  --------  --------  --------  -------- 
Operating income (EBIT)                      237       137     1,698       970 
% of revenue                               7.8 %     4.5 %     7.8 %     4.5 % 
Financial expenses                           204       224     1,460     1,590 
--------------------------------------  --------  --------  --------  -------- 
Income (loss) before taxes                    33      (87)       238     (620) 
Taxes on Income                                4        61        26       436 
--------------------------------------  --------  --------  --------  -------- 
Net income (loss)                             29     (149)       212   (1,057) 
% of revenue                               1.0 %   (4.9 %)     1.0 %   (4.9 %) 
Adjustments                                   89       110       635       782 
--------------------------------------  --------  --------  --------  -------- 
Reported net loss                           (59)     (259)     (423)   (1,838) 
% of revenue                             (2.0 %)   (8.5 %)   (2.0 %)   (8.5 %) 
--------------------------------------  --------  --------  --------  -------- 
Adjusted EBITDA                              430       332     3,082     2,357 
% of revenue                              14.2 %    11.0 %    14.2 %    11.0 % 
--------------------------------------  --------  --------  --------  -------- 
Adjusted EPS ([5]) -- Basic               0.0127  (0.0638)    0.0910  (0.4535) 
                             -- 
                              Diluted     0.0127  (0.0638)    0.0910  (0.4535) 
--------------------------------------  --------  --------  --------  -------- 
Reported EPS([) (4])  -- Basic          (0.0254)  (0.1110)  (0.1815)  (0.7890) 
                -- Diluted              (0.0254)  (0.1110)  (0.1815)  (0.7890) 
--------------------------------------  --------  --------  --------  -------- 
 

Abridged Consolidated Balance Sheet

 
                        September 30  September 30  September 30  September 30 
                            2025          2024          2025          2024 
                           USD (m)       USD (m)       RMB (m)       RMB (m) 
----------------------  ------------  ------------  ------------  ------------ 
Assets 
 Current assets: 
   Cash at bank and on 
    hand                         526           596         3,734         4,178 
   Bills and accounts 
    receivable                 1,198         1,219         8,511         8,539 
   Inventories                 1,684         1,740        11,969        12,192 
   Other current 
    assets, 
    receivables and 
    prepaid expenses             288           278         2,049         1,946 
----------------------  ------------  ------------  ------------  ------------ 
   Total current 
    assets                     3,696         3,832        26,263        26,855 
----------------------  ------------  ------------  ------------  ------------ 
 Non-current assets: 
   Fixed assets, net           1,600         1,746        11,370        12,233 
   Rights of use 
    assets                        77            79           548           555 
   Intangible assets, 
    net                        1,324         1,386         9,407         9,714 
   Deferred tax assets           204           208         1,453         1,460 
   Other non-current 
    assets                       125           100           890           702 
   Total non-current 
    assets                     3,331         3,520        23,668        24,665 
----------------------  ------------  ------------  ------------  ------------ 
Total assets                   7,027         7,352        49,931        51,519 
----------------------  ------------  ------------  ------------  ------------ 
 
Liabilities 
 Current liabilities: 
   Loans and credit 
    from banks and 
    other lenders              1,181           938         8,393         6,574 
   Bills and accounts 
    payable                      838           760         5,957         5,325 
   Other current 
    liabilities                  861           836         6,119         5,859 
   Total current 
    liabilities                2,881         2,534        20,469        17,758 
----------------------  ------------  ------------  ------------  ------------ 
 Long-term 
 liabilities: 
   Loans and credit 
    from banks and 
    other lenders                203           380         1,443         2,666 
   Debentures                    743           944         5,281         6,613 
   Deferred tax 
    liabilities                   29            43           205           304 
   Employee benefits              76            81           537           570 
   Other long-term 
    liabilities                  499           547         3,543         3,830 
                        ------------  ------------  ------------  ------------ 
   Total long-term 
    liabilities                1,549         1,995        11,009        13,982 
----------------------  ------------  ------------  ------------  ------------ 
Total liabilities              4,430         4,530        31,477        31,741 
----------------------  ------------  ------------  ------------  ------------ 
 
Equity 
   Total equity                2,597         2,823        18,453        19,779 
----------------------  ------------  ------------  ------------  ------------ 
Total liabilities and 
 equity                        7,027         7,352        49,931        51,519 
----------------------  ------------  ------------  ------------  ------------ 
 

Numbers may not sum due to rounding Abridged Consolidated Cash Flow Statement for the Third Quarter of 2025

 
                                        Q 3 2025  Q 3 2024  Q 3 2025  Q 3 2024 
                                         USD (m)   USD (m)   RMB (m)   RMB (m) 
--------------------------------------  --------  --------  --------  -------- 
Cash flow from operating activities: 
   Cash flow from operating activities        89       159       635     1,131 
Cash flow from operating activities           89       159       635     1,131 
--------------------------------------  --------  --------  --------  -------- 
 
Investing activities: 
   Acquisitions of fixed and 
    intangible assets                       (39)      (38)     (276)     (274) 
   Net cash received from disposal of 
    fixed assets, intangible assets 
    and others                                 4        30        29       212 
   Other investing activities                (8)         1      (60)        10 
Cash flow used for investing 
 activities                                 (43)       (7)     (307)      (51) 
--------------------------------------  --------  --------  --------  -------- 
 
Financing activities: 
   Receipt of loans from banks and 
    other lenders                             30        42       210       297 
   Repayment of loans from banks and 
    other lenders                           (78)     (112)     (557)     (796) 
   Interest payment and other               (24)      (28)     (172)     (202) 
   Other financing activities                 67      (22)       477     (157) 
Cash flow used for financing 
 activities                                  (6)     (121)      (41)     (853) 
--------------------------------------  --------  --------  --------  -------- 
Effects of exchange rate movement on 
 cash and cash equivalents                     0         1      (23)      (63) 
--------------------------------------  --------  --------  --------  -------- 
Net change in cash and cash 
 equivalents                                  41        32       264       158 
--------------------------------------  --------  --------  --------  -------- 
Cash and cash equivalents at the 
 beginning of the period                     463       557     3,316     3,971 
Cash and cash equivalents at the end 
 of the period                               504       589     3,580     4,129 
--------------------------------------  --------  --------  --------  -------- 
 
Free Cash Flow                                22       128       157       912 
--------------------------------------  --------  --------  --------  -------- 
 

Abridged Consolidated Cash Flow Statement for the First Nine Months of 2025

 
                                      9M 202 5   9M 2024   9M 202 5   9M 2024 
                                       USD (m)    USD (m)   RMB (m)    RMB (m) 
------------------------------------  ---------  --------  ---------  -------- 
Cash flow from operating activities: 
   Cash flow from operating 
    activities                              331       402      2,374     2,862 
Cash flow from operating activities         331       402      2,374     2,862 
------------------------------------  ---------  --------  ---------  -------- 
 
Investing activities: 
   Acquisitions of fixed and 
    intangible assets                     (121)     (151)      (866)   (1,074) 
     Net cash received from disposal 
      of fixed assets, intangible 
      assets and others                       6        34         46       242 
   Payment in respect of business 
    combination                             (8)         -       (56)         - 
   Other investing activities               (9)       (5)       (66)      (35) 
                                      ---------  --------  ---------  -------- 
Cash flow used for investing 
 activities                               (131)     (122)      (942)     (866) 
------------------------------------  ---------  --------  ---------  -------- 
 
Financing activities: 
   Receipt of loans from banks and 
    other lenders                           366       235      2,625     1,666 
   Repayment of loans from banks and 
    other lenders                         (510)     (505)    (3,665)   (3,589) 
   Interest payments and other             (97)     (111)      (699)     (789) 
   Other financing activities                47         1        330         8 
                                      ---------  --------  ---------  -------- 
Cash flow used for financing 
 activities                               (196)     (380)    (1,408)   (2,703) 
------------------------------------  ---------  --------  ---------  -------- 
Effects of exchange rate movement on 
 cash and cash equivalents                    2         3       (28)      (21) 
------------------------------------  ---------  --------  ---------  -------- 
Net change in cash and cash 
 equivalents                                  5      (97)        (4)     (728) 
------------------------------------  ---------  --------  ---------  -------- 
Cash and cash equivalents at the 
 beginning of the period                    499       686      3,584     4,857 
------------------------------------  ---------  --------  ---------  -------- 
Cash and cash equivalents at the end 
 of the period                              504       589      3,580     4,129 
------------------------------------  ---------  --------  ---------  -------- 
 
Free Cash Flow                              112       179        807     1,276 
------------------------------------  ---------  --------  ---------  -------- 
 

Numbers may not sum due to rounding

Notes to Abridged Consolidated Financial Statements

Note 1: Basis of preparation

Basis of presentation and accounting policies: The abridged consolidated financial statements for the quarters ended September 30, 2025 and 2024 incorporate the financial statements of ADAMA Ltd. and of all of its subsidiaries (the "Company"), including Adama Agricultural Solutions Ltd. ("Solutions") and its subsidiaries.

The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance (the "MoF") and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the MoF (collectively referred to as "ASBE").

The abridged consolidated financial statements contained in this release are presented in both Chinese Renminbi (RMB), as the Company's shares are traded on the Shenzhen Stock Exchange, as well as in United States dollars ($) as this is the major currency in which the Company's business is conducted. For the purposes of this release, a customary convenience translation has been used for the translation from RMB to US dollars, with Income Statement and Cash Flow items being translated using the quarterly average exchange rate, and Balance Sheet items being translated using the exchange rate at the end of the period.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.

Note 2: Abridged Financial Statements

For ease of use, the financial statements shown in this release have been abridged as follows:

Abridged Consolidated Income Statement:

• "Gross profit" in this release is revenue less costs of goods sold, taxes and surcharges, inventory impairment and other idleness charges (in addition to those already included in costs of goods sold); part of the idleness charges is removed in the Adjusted financial statements
• "Other operating expenses" includes impairment losses (not including inventory impairment); gain (loss) from disposal of assets and non-operating income and expenses
• "Operating expenses" in this release differ from those in the formally reported financial statements in that certain transportation costs have been reclassified from COGS to Operating Expenses.
• "Financial expenses" includes net financing expenses and gains/losses from changes in fair value.

Abridged Consolidated Balance Sheet:

• "Other current assets, receivables and prepaid expenses" includes financial assets held for trading; financial assets in respect of derivatives; prepayments; other receivables; and other current assets
• "Fixed assets, net" includes fixed assets and construction in progress
• "Intangible assets, net" includes intangible assets and goodwill
• "Other non-current assets" includes other equity investments; long-term equity investments; long-term receivables; investment property; and other non-current assets
• "Loans and credit from banks and other lenders" includes short-term loans and non-current liabilities due within one year
• "Other current liabilities" includes financial liabilities in respect of derivatives; payables for employee benefits, taxes, interest, dividends and others; advances from customers and other current liabilities
• "Other long-term liabilities" includes long-term payables, provisions, deferred income and other non-current liabilities

Income Statement Adjustments

 
                                Q 3 202 5  Q 3 202 4  Q 3 202 5  Q 3 202 4 
                                 USD (m)    USD (m)    RMB (m)   RMB (m) 
------------------------------  ---------  ---------  ---------  ----------- 
Reported Net Loss                    (48)      (133)      (342)      (943) 
------------------------------  ---------  ---------  ---------  --------- 
 Adjustments to COGS & 
 Operating Expenses: 
------------------------------ 
1. Amortization of 
 acquisition-related PPA and 
 other acquisition related 
 costs                                  4          6         25         42 
2. Amortization of Transfer 
 assets received and 
 written-up due to 2017 
 ChemChina-Syngenta 
 transaction (non-cash)                 5          5         39         37 
3. Cleanup and remediation 
 costs for plants in Israel             -          6          -         43 
4. ASBEs classifications COGS 
 impact                              (22)       (27)      (154)      (195) 
5. ASBEs classifications OPEX 
 impact                                22         27        154        195 
6. Restructuring and advisory 
 costs                                 16          8        112         59 
7. Other                                -          1          1         10 
8. Provisions such as legal 
 claims, registration 
 impairment and update of 
 registration depreciation              1         19          9        139 
Total Adjustments to Operating 
 Income (EBIT)                         26         46        186        330 
Total Adjustments to EBITDA            16         24        114        173 
Adjustments to Financing 
Expenses: 
------------------------------ 
9. Non-cash adjustment related 
 to put options revaluation             4          3         28         21 
12. Other financing expenses          (1)          1        (4)         11 
 Adjustments to Taxes: 
------------------------------ 
Taxes impact                          (1)          4       (10)         27 
                                ---------  ---------  ---------  --------- 
Total adjustments to Net Loss          28         55        200        388 
------------------------------  ---------  ---------  ---------  --------- 
Adjusted Net Loss                    (20)       (78)      (142)      (555) 
------------------------------  ---------  ---------  ---------  --------- 
 
 
 
                                        9M 202 5  9M 202 4  9M 202 5  9M 202 4 
                                         USD (m)   USD (m)   RMB (m)   RMB (m) 
--------------------------------------  --------  --------  --------  -------- 
Reported Net loss                           (59)     (259)     (423)   (1,838) 
--------------------------------------  --------  --------  --------  -------- 
 Adjustments to COGS & Operating 
 Expenses: 
-------------------------------------- 
1. Amortization of acquisition-related 
 PPA and other acquisition related 
 costs                                        11        14        77        97 
2. Amortization of Transfer assets 
 received and written-up due to 2017 
 ChemChina-Syngenta transaction 
 (non-cash)                                   16        15       117       109 
3. Cleanup and remediation costs for 
 plants in Israel                              7        17        48       121 
4. ASBEs classifications COGS impact        (78)      (87)     (559)     (617) 
5. ASBEs classifications OPEX impact          78        87       559       617 
6. Restructuring and advisory costs           45        23       321       166 
7. Other                                       2         3        11        22 
8. Provisions such as legal claims, 
 registration impairment and update of 
 registration depreciation                     1        63         9       451 
Total Adjustments to Operating Income 
 (EBIT)                                       81       136       583       965 
Total Adjustments to EBITDA                   53        80       375       567 
Adjustments to Financing Expenses: 
-------------------------------------- 
9. Non-cash adjustment related to put 
 options revaluation                           7      (30)        48     (212) 
10. Repurchase of debentures by a 
 controlled subsidiary                         9         -        68         - 
11. Arbitration decision related to a 
 controlled subsidiary                       (4)         -      (32)         - 
12. Other financing expenses                 (2)        10      (12)        69 
 Adjustments to Taxes: 
-------------------------------------- 
Taxes impact                                 (3)       (6)      (21)      (41) 
Total adjustments to Net loss                 89       110       635       782 
--------------------------------------  --------  --------  --------  -------- 
Adjusted Net Income (Loss)                    29     (149)       212   (1,057) 
--------------------------------------  --------  --------  --------  -------- 
 

Notes:

1. Amortization of acquisition-related PPA and other acquisition related costs: 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.

2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash): The proceeds from the Divestment of crop protection products in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina, 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. Since the products acquired from Syngenta are of the same nature and with the same net economic value as those divested, and since in 2018 the Company adjusted for the one-time gain that it made on the divested products, the additional amortization charge incurred due to the written-up value of the acquired assets is also adjusted to present a consistent view of Divestment and Transfer transactions, which had no net impact on the underlying economic performance of the Company. These additional amortization charges will continue until 2032 but at a reducing rate, yet will still be at a meaningful level until 2028.

3. Cleanup and remediation costs for plants in Israel: a wholly-owned indirect subsidiary of the Company recorded remediation costs for its plants in Israel in 2025 and 2024.

4. & 5. ASBEs classifications COGS impact: according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs) are classified under COGS.

6. Restructuring and advisory costs: The Company initiated its Fight Forward transformation plan in early 2024. Part of the plan includes restructuring its organizational structure, workforce and managerial processes, and as a result thereof, the Company recorded restructuring and advisory costs.

7. Other: Mainly attributable to accelerated depreciation associated with facilities upgrade.

8. Provisions such as legal claims, registration impairment and update of registration depreciation: Legal claims related to product liabilities was settled and incurred expenses in 2024. Registration impairment and update of registration depreciation is mainly related to the management's strategic decision to increase focus on products in line with the optimization of the Company's portfolio, and hence to focus on the quality of business.

9. Non-cash adjustment related to put options revaluation: expenses/income due to revaluation of put options attributed to minority stake in subsidiaries

10. Repurchase of debentures by a controlled subsidiary: As part of strengthening its debt structure, a subsidiary of the Company repurchased a significant part of its bond principal in the second quarter for the purpose of improving its long-term financing structure and efficiency. A loss was recorded due to the premium between the buyback price and its issuance price.

11. Arbitration decision related to a controlled subsidiary: An arbitration case related to a controlled subsidiary incurred a one-time income.

Exchange Rate Data for the Company's Principal Functional Currencies

 
                September 30              Q3 Average               9M Average 
--------  ------------------------  -----------------------  ----------------------- 
            2025    2024  Change      2025    2024  Change     2025    2024  Change 
--------  ------  ------  --------  ------  ------  -------  ------  ------  ------- 
EUR/USD    1.174   1.119    4.88 %   1.168   1.098   6.33 %   1.116   1.087   2.67 % 
USD/BRL    5.319   5.448    2.38 %   5.447   5.545   1.77 %   5.653   5.238  -7.91 % 
USD/PLN    3.632   3.819    4.92 %   3.647   3.899   6.48 %   3.800   3.963   4.10 % 
USD/ZAR   17.301  17.094   -1.21 %  17.627  17.971   1.91 %  18.135  18.481   1.88 % 
AUD/USD    0.661   0.692   -4.45 %   0.654   0.670  -2.35 %   0.641   0.662  -3.27 % 
GBP/USD    1.343   1.341    0.18 %   1.348   1.300   3.70 %   1.313   1.277   2.84 % 
USD/ILS    3.306   3.710   10.89 %   3.363   3.713   9.42 %   3.520   3.701   4.90 % 
                                                    -0.89                    -0.98 
USD L 3M  4.00 %  4.59 %  -0.59 bp  4.19 %  5.08 %  bp       4.26 %  5.24 %  bp 
--------  ------  ------  --------  ------  ------  -------  ------  ------  ------- 
 
 
                September 30               Q3 Average               9M Average 
--------  -------------------------  -----------------------  ----------------------- 
           2025    2024    Change     2025    2024   Change    2025    2024   Change 
--------  ------  ------  ---------  ------  ------  -------  ------  ------  ------- 
USD/RMB    7.106   7.007     1.40 %   7.129   7.115   0.20 %   7.165   7.108   0.80 % 
EUR/RMB    8.341   7.843     6.35 %   8.326   7.816   6.53 %   7.995   7.725   3.49 % 
RMB/BRL    0.749   0.777     3.72 %   0.764   0.779   1.96 %   0.789   0.737  -7.05 % 
RMB/PLN    0.511   0.545     6.23 %   0.512   0.548   6.66 %   0.530   0.557   4.86 % 
RMB/ZAR    2.435   2.439     0.19 %   2.473   2.526   2.11 %   2.531   2.600   2.66 % 
AUD/RMB    4.696   4.847    -3.11 %   4.663   4.766  -2.16 %   4.590   4.707  -2.49 % 
GBP/RMB    9.545   9.396     1.58 %   9.611   9.250   3.90 %   9.407   9.074   3.67 % 
RMB/ILS    0.465   0.529    12.12 %   0.472   0.522   9.60 %   0.491   0.521   5.66 % 
                                                      -0.29                    -0.39 
RMB L 3M  1.58 %  1.84 %   -0.26 bp  1.56 %  1.86 %   bp      1.68 %  2.04 %   bp 
--------  ------  ------  ---------  ------  ------  -------  ------  ------  ------- 
 

Forward looking statement:

This press release published by ADAMA Ltd. or ADAMA Agricultural Solutions Ltd. (together the "Company") is for marketing and information purposes only, and contains forward-looking statements which are based on Company's management's beliefs and assumptions and on information currently available to the Company's management. By this press release, the Company does not intend to give, and the press release does not constitute, professional or business advice or an offer or recommendation to perform any transaction in the Company's securities. The accuracy, completeness and/or adequacy of the content of this press release, as well as any estimation and/or assessment included in this press release, if at all, is not warranted or guaranteed and the Company disclaims any intention and/or obligation to comply with such content. The Company shall not be liable for any loss, claim, liability or damage of any kind resulting from your reliance on, or reference to, any detail, fact or opinion presented herein. The Company's assessments are based on the information available to the Company as of the date hereof, and may not be realized or be realized in a different manner than the Company estimates, inter alia, due to factors out of the Company's control, including the risk factors listed in the Company's annual reports and changes in the industry or potential operations of the Company's competitors. Any content contained herein shall not constitute or be construed as any regulatory, valuation, legal, tax, accounting and investment advice or any advice of any kind or any part of it, nor shall they constitute or be construed as any recommendation, solicitation, offer or commitment (or any part of it) to buy, sell, subscribe for or underwrite any securities, provide any credit or insurance or engage in any transactions. Before entering into any transactions, you shall ensure that you fully understand the potential risks and returns of such transactions. Before making such decisions, you shall consult the advisors you think necessary, including your accountant, investment advisor and legal and tax specialists. The Company and its affiliates, controlling persons, directors, officials, partners, employees, agents, representatives or their advisors shall not assume any responsibilities of any kind (including negligence or others) for the use of and reliance on such information by you or any person to whom such information are provided.

[1] Sources: AgbioInvestor Quarterly report (September 2025), peer quarterly financial results, internal sources

[2] For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below "Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements".

[3] The number of shares used to calculate both basic and diluted earnings per share in both Q3 2025 and 2024 is 2,329.8 million shares.

[4] For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below "Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements".

[5] The number of shares used to calculate both basic and diluted earnings per share in both 9M 2025 and 2024 is 2,329.8 million shares.

 
Contact 
Joshua Phillipson          Zhujun Wang 
Global Investor Relations  China Investor Relations 
Email: ir@adama.com        Email: irchina@adama.com 
 

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SOURCE ADAMA Ltd.

Bringing 15 years of international experience in business development, M&A, and strategic project leadership

BEIJING and TEL AVIV, Israel, Oct. 22, 2025 /PRNewswire/ — ADAMA , a global leader in crop protection, has announced the appointment of Dafna Cohen-Asher as Chief Executive Officer of Lycored, an ADAMA subsidiary that develops, manufactures, and markets solutions for the health and beauty industries, as well as nature-based coloring, flavoring, and texturizer ingredients for food and beverages. Lycored operates extensively across global markets and continues to expand its reach, serving a diverse portfolio of clients in the health, food, and beauty sectors.

Lycored, which recently marked its 30(th) anniversary, is the world's largest producer of lycopene, a natural antioxidant extracted from tomatoes and widely used in dietary supplements and natural ingredients for the food and beverage industry. The company applies a unique model that utilizes the entire tomato fruit, achieving zero waste, and offers more than 100 different products to over 75 countries, primarily in North America, Europe, and Japan. Its portfolio includes a variety of carotenoids, vitamins, minerals, and naturally derived food-enhancing agents.

Cohen-Asher brings 15 years of international experience in business development, mergers and acquisitions, and the strategic management of complex projects. She joined ADAMA in 2017 and most recently served as the company's Head of Corporate Development, leading major international acquisitions in Peru, Greece, the United States, and other markets. Prior to joining ADAMA, she served as Senior Director of Business Development at Teva Pharmaceuticals.

Throughout her career, Cohen-Asher has gained extensive managerial experience across diverse cultures and markets, including the United States, Europe, Latin America, and Asia. In her new role, she will be responsible for shaping and executing Lycored's growth strategy, strengthening its global sales and marketing network, and deepening relationships and collaborations with customers worldwide, while overseeing the company's teams in Israel, the United States, and Europe.

Eric Dereudre, Lycored Chairman and ADAMA's Chief Commercial Officer, commented: "Lycored is a strong company with significant growth potential. Dafna brings extensive experience in transforming strategy into results, and appointing a prominent manager who has developed within ADAMA emphasizes the importance we place to this business and our confidence in its growth potential. I am confident that Dafna will lead Lycored forward and unlock new opportunities in the food and health sectors."

Dafna Cohen-Asher, incoming CEO of Lycored, said: "I am excited to lead a company that combines the power of nature-based ingredients with scientific and research excellence. Lycored will continue to be a partner in innovation in the food and beverage, dietary supplement, and beauty industries, offering naturally derived, top-quality solutions that promote health, beauty, and wellness. We will build on our strong scientific foundation, while remaining deeply committed to the values that have guided Lycored for over 30 years."

About ADAMA

ADAMA Ltd. is a global leader in crop protection, providing practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com and follow us on X at @ADAMAAgri.

ADAMA Contact:

Tal Moise

Public Relations

Email: pr@adama.com

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SOURCE ADAMA Ltd.

Q2 2025 saw a 3% revenue increase and significant margin improvement, driven by higher volumes and cost efficiencies, while adjusted net loss narrowed sharply. The company executed a major bond buyback and continued its transformation plan amid ongoing pricing pressure and market recovery.

Original document: ADAMA Ltd. Class A [000553] Interim report — Aug. 28 2025

Year-over-year quarterly sales grew for first time since Q3 2022 with improvements in key financial metrics for both the quarter and half year periods

BEIJING and TEL AVIV, Israel, Aug. 26, 2025 /PRNewswire/ — ADAMA Ltd. (the "Company") , today reported its financial results for the second quarter and first half of 2025 that ended June 30, 2025.

Second Quarter 2025 Highlights:

• Sales up 5% (6% in RMB) to $1,092 million, driven by an 8% increase in volume, which more than offset a 3% decrease in prices
• Adjusted gross profit up 18% to $318 million, representing an improvement of gross margin to 29.1% from 25.8% last year, reflecting the benefits of lower costs and higher volumes
• Adjusted EBITDA up 25% to $150 million, representing an improvement of EBITDA margin to 13.7% from 11.5% last year
• Adjusted net income turned positive to $6 million from a loss of $61 million last year; Reported net loss improved by $62 million to $32 million compared to $94 million last year

First Half Year 2025 Highlights:

• Stable Sales (0% in USD, 1% in RMB) of $2,091 million, mainly reflecting volume growth of 4% offset by a 3% decrease in prices
• Adjusted gross profit up 11% to $620 million, representing an improvement of gross margin to 29.7% from 26.5% last year, reflecting the benefits of lower costs and higher volumes
• Adjusted EBITDA up 23% to $310 million, representing an improvement of EBITDA margin to 14.8% from 12.0% last year
• Adjusted net income turned positive to $49 million compared to a loss of $71 million last year; Reported net loss improved by $115 million to $11 million compared to $126 million last year
• Operating cash flow of $242 million generated vs. $243 million last year
• Free cash flow increased to $90 million vs. $51 million last year

Gaël Hili, President and CEO of ADAMA, said, "As we reach the midpoint of 2025, I am encouraged by the tangible progress we are making through our Fight Forward transformation plan. In the second quarter, ADAMA returned to year-over-year revenue growth for the first time since Q3 2022, while also achieving our fifth consecutive quarter of year-over-year EBITDA growth. We strengthened our capital structure through improved cash generation and disciplined inventory management. Operationally, we have sharpened our geographic focus and centralized key support functions, enabling greater agility, enhanced customer proximity, and improved focus on commercial execution. These strategic shifts aim to create the conditions for sustainable growth and allow us to concentrate on delivering differentiated, high-value solutions to our Value Innovation customer segment. We remain committed to advancing a portfolio of innovative formulations and technologies that provide real value to farmers — improving performance, ease of use, and return on investment for our customers and other stakeholders."

Table 1. Financial Performance Summary

 
                    As Reported           Adjustments             Adjusted 
----------  ----------------------------  -------------  -------------------------- 
            Q2        Q2                  Q2     Q2      Q2      Q2 
 USD (m)     2025      2024     % Change   2025   2024    2025    2024     % Change 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Revenues       1,092     1,041       5 %      -       -   1,092     1,041       5 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Gross 
 profit          284       227      25 %     33      41     318       269      18 % 
 % of 
  sales       26.0 %    21.8 %                           29.1 %    25.8 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Operating 
 income 
 (loss) 
 (EBIT)           55      (16)               29      69      85        52      63 % 
 % of 
  sales        5.1 %   (1.6 %)                            7.8 %     5.0 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Income 
 (loss) 
 before 
 taxes          (36)      (59)      39 %     39      42       3      (17) 
 % of 
  sales      (3.3 %)   (5.7 %)                            0.3 %   (1.7 %) 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Net income 
 (loss)         (32)      (94)      66 %     38      33       6      (61) 
 % of 
  sales      (2.9 %)   (9.0 %)                            0.5 %   (5.8 %) 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
EPS 
 - USD      (0.0138)  (0.0403)                           0.0024  (0.0261) 
 - RMB      (0.0994)  (0.2864)                           0.0171  (0.1855) 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
EBITDA           130        76      71 %     20      44     150       120      25 % 
 % of 
  sales       11.9 %     7.3 %                           13.7 %    11.5 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
 
 
 
                    As Reported            Adjustments            Adjusted 
----------  ----------------------------  -------------  -------------------------- 
            H1        H1                  H1     H1      H1      H1 
USD (m)      2025      2024     % Change   2025   2024    2025    2024     % Change 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Revenues       2,091     2,098       0 %      -       -   2,091     2,098       0 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Gross 
 profit          556       484      15 %     65      73     620       557      11 % 
 % of 
  sales       26.6 %    23.0 %                           29.7 %    26.5 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Operating 
 income 
 (EBIT)          125        34     264 %     55      89     181       124      46 % 
 % of 
  sales        6.0 %     1.6 %                            8.6 %     5.9 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Income 
 (loss) 
 before 
 taxes          (17)      (80)      78 %     62      65      45      (16) 
 % of 
  sales      (0.8 %)   (3.8 %)                            2.1 %   (0.7 %) 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
Net income 
 (loss)         (11)     (126)      91 %     61      55      49      (71) 
 % of 
  sales      (0.5 %)     (6 %)                            2.4 %   (3.4 %) 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
EPS 
 - USD      (0.0048)  (0.0541)                           0.0212  (0.0303) 
 - RMB      (0.0345)  (0.3841)                           0.1521  (0.2152) 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
EBITDA           273       196      39 %     36      55     310       252      23 % 
 % of 
  sales       13.1 %     9.4 %                           14.8 %    12.0 % 
----------  --------  --------  --------  -----  ------  ------  --------  -------- 
 
 

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, according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. 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 number of shares used to calculate both basic and diluted earnings per share in both Q2 and H1 2025 and 2024 is 2,329.8 million shares.

In this table and all tables in this release numbers may not sum due to rounding.

The General Crop Protection (CP) Market Environment

In H1 2025 channel inventory returned to pre-pandemic levels in most countries, allowing crop protection demand recovery. Pricing pressure remains high, driven by production over-capacity of active ingredients. Crop commodity prices remain stably low and coupled with the high-interest rate environment, farmer profitability remains tight leading to just-in-time purchasing patterns.[1]

Portfolio Development Update

In Q2 2025, ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. As part of the Fight Forward transformation plan, the Company is focused on improving its overall portfolio mix, particularly by targeting the Value Innovation segment, with the intent of improving value delivered to all stakeholders.

In Q2 2025, launches of differentiated products included:

• Brevis(TM) SC (USA): A fruit thinner for managing flowering and fruiting in pome fruits such as apples and pears.
• Prothioconazole-Based Portfolio Expansion including Maxentis(R) in Argentina and Forapro(R) in Latvia
• Upturn(R) (India): Officially launched following its soft introduction in 2024, this blend of Fomesafen and Propaquizafop offers broad-spectrum control of hard-to-kill weeds.
• Jumbo(R) (Brazil): A herbicide combining Sulfentrazone and Tebuthiuron, offering broad-spectrum, high-efficiency weed control in sugarcane.
• Temper(TM) More (USA): A herbicide developed with ADAMA's SESGAMA(TM) technology, combining Glufosinate-ammonium and S-metolachlor for dual-action burndown and residual control of grasses and small-seeded broadleaf weeds.

Notable differentiated product registrations during Q2 2025 included:

• COSAYR(R): Chlorantraniliprole suspension registered in Croatia, Germany, and Slovakia; In Czech Republic registered under the name RYNO-A(R).
• Prothioconazole-Based Formulations Registrations MAGANIC(R), AVASTEL(R) VAZANTI(R) in several European countries.
• MAXENTIS(R) (Azoxystrobin + Prothioconazole SC) in Bulgaria, Canada, and Denmark, and in Poland under the name BODEGA(R)
• FORAPRO(R) (Fenpropidin + Prothioconazole EC) -- Latvia
• DOMAGO(R) (China): A formulation combining Penoxsulam and Pretilachlor for effective weed control in rice.
• MATTOK(R) (Mexico): A unique combination of Azoxystrobin and Tebuconazole enriched with a biostimulant, for fungal disease control and boosting plant health and crop quality in cereals, cotton, and corn.
• RAVARI(R) (Mexico): A combination of Chlorantraniliprole and Novaluron offering superior control of Spodoptera and other caterpillars, with extended residual protection for row crop growers.
• FERALLA(R): The active substance FERALLA(R), was approved in the EU as a low-risk active substance.

In addition, Gilboa(R) , a proprietary fungicide, was recognized by the Fungicide Resistance Action Committee (FRAC) for having a new mode of action for use in cereals. As well, a patent was allowed in the EU for the proprietary stabilization of the Edaptis(R) formulation, and in Australia a patent was granted for deploying carbetamide before or during sowing.

ESG

In July, ADAMA achieved a fifth consecutive year of improved ESG performance ratings from EcoVadis, a leading global sustainability assessment platform. The Company placed among the top 23% of companies in its sector, and in the top 14% for environmental performance. This recognition reflects ADAMA's ongoing commitment to responsible business practices and continuous improvement across key ESG areas.

Geopolitical Situation

ADAMA is headquartered and has three manufacturing sites in Israel. The regional tensions which escalated on October 7, 2023 and briefly escalated in June 2025 continued to have no material impact to-date on the Company's ability to support its markets or its consolidated financial results.

Regarding US tariff policies, ADAMA's management appointed a dedicated task force to analyze implications of US tariff policies and to closely monitor the situation and the potential impact on its global network.

'Fight Forward' Transformation Plan

In early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan aimed at gradually delivering improved profit and cash targets over a three-year period. The plan aims to optimize financial management and to streamline ADAMA's operating model in order to increase focus on the Value Innovation segment in which differentiated, high-impact solutions are developed to deliver greater value to farmers.

Financial Highlights

Revenues in the second quarter increased by approximately 5% (6% in RMB; 5% in CER) to $1,092 million, reflecting a volume growth of 8%, more than offsetting a decrease of 3% in prices. The higher volumes reflected the gradual recovery of market demands and improvement of channel inventories in most regions, while the Company has been shifting away from selected low profit products and businesses. Prices were weak mainly due to low prices of active ingredients in light of overcapacity, as well as a high interest rate environment and low commodity prices, which put pressure on distributors and farmers.

Supported by the growth of revenues in the second quarter, ADAMA reported flat sales for the first half of 2025 (0% in USD, 1% in RMB, 1% in CER), compared to the first half of 2024. The stabilization of revenues in the first half was driven by volume growth of 4% offsetting a decrease in prices of 3%.

Table 2. Regional Sales Performance

 
           Q2      Q2                      H1 
           2025    2024    Change  Change  2025    H1 2024  Change  Change 
           $m      $m       USD     CER    $m       $m       USD     CER 
--------   ------  ------  ------  ------  ------  -------  ------  ------ 
Europe, 
 Africa & 
 Middle 
 East         314     318   (1 %)   (4 %)     670      695   (4 %)   (4 %) 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
North 
 America      276     223    24 %    25 %     495      414    19 %    20 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
Latin 
 America      216     209     3 %     7 %     363      400   (9 %)   (4 %) 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
Asia 
 Pacific      286     292   (2 %)   (1 %)     564      590   (4 %)   (3 %) 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
 Of which 
  China       143     121    18 %    18 %     309      275    12 %    13 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
 Total      1,092   1,041     5 %     5 %   2,091    2,098     0 %     1 % 
---------  ------  ------  ------  ------  ------  -------  ------  ------ 
 

Notes:

• CER: Constant Exchange Rates
• As part of ADAMA's business optimization program, on January 1, 2025, ADAMA's South Africa business was reclassified from APAC operations to EAME operations. To enable meaningful comparisons, the 2024 data presented here includes South Africa under EAME.
• Numbers may not sum due to rounding

Europe, Africa & Middle East (EAME): Volumes and revenue in Europe have generally improved year-over-year in H1 and were similar in Q2, though EAME results were negatively impacted by significant Q1 declines in Turkey which also impacted H1. Pricing continued to decline in light of intense competition. Weather challenges in Northern Europe were offset by good conditions in France and other countries.

North America: In the US Ag market, reduction of stock in the channel and good weather conditions in key markets such as corn and soybean led to volume increases. Just-in-time purchasing behavior continues with slight improvements in prices. Similarly in Canada while AI pricing pressures remain, volumes for ADAMA's overall portfolio have improved significantly in Q2 and H1. Consumer & Professional Solutions experienced flat Q2 revenues with a slight increase in volume offset by a slight decline in prices. However, for the half-year revenues increased with declining prices more than offset by higher volumes. End users did not consume as much inventory as normal due to rain and adverse weather conditions.

Latin America: In Brazil, volumes are up resulting in Q2 revenue improvements, partially offsetting a weaker Q1. Competition remains strong, resulting in lower pricing. In the rest of LATAM pricing pressures continue in light of generics competition and just-in-time purchasing behaviors, with lower volumes and revenues reported in Q2 and H1.

Asia-Pacific (APAC): Sales continue to experience pricing pressure, with declines in Q2 and H1. These declines reflect both ample oversupply and the Company's decision to optimize regional layouts. In India, irregular weather including flooding in some regions and deficient rainfall in others, impacted sales, though volumes increased in both the quarter and half year.

In China, sales increased both in the second quarter and first half. Non-ag sales increased led by strong chlor-alkali markets with stronger margin due to higher operational efficiency. AI sales also increased, driven by volume growth due to the expansion of new distribution channels and supported by the recovery of global demand. Lower prices and volumes of branded formulations reflected the impacts of market competition.

Reported gross profit in the second quarter increased 25% to $284 million (gross margin of 26.0%) from $227 million (gross margin of 21.8%) last year, and increased 15% to $556 million (gross margin of 26.6%) in the half year period from $484 million (gross margin of 23.0%) last year.

Adjustments to reported results: The adjusted gross profit mainly includes reclassification of inventory impairment, taxes and surcharge, and excludes certain transportation costs (classified under operating expenses) and the remediation costs by a wholly-owned subsidiary for its plant in Israel.

Adjusted gross profit in the second quarter increased 18% to $318 million (gross margin of 29.1%) from $269 million (gross margin of 25.8%) last year, and increased 11% to $620 million (gross margin of 29.7%) in the half year period from $557 million (gross margin of 26.5%) last year.

The higher adjusted gross profit and margin in the quarter and half year mainly reflected the positive impacts of higher volume as well as lower costs due to improved operational efficiency and lower costs of inventory sold, more than compensating for lower prices.

Operating expenses reported in the second quarter were $229 million (21.0% of sales), compared to $244 million (23.4% of sales) last year, and reached $431 million (20.6% of sales) in the half year period compared to $449 million (21.4% of sales) last year.

Adjustments to reported results: Please refer to the explanation above regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment. Non-operating income and expenses are also reclassified into adjusted operating expenses.

The Company recorded certain non-operational items within its reported operating expenses amounting to $22 million in Q2 2025 in comparison to $56 million in Q2 2024 and $47 million in H1 2025 in comparison to $76 million in H1 2024. These items in 2025 include: i. non-cash amortization charges in respect of transfer assets received from Syngenta related to the 2017 ChemChina- Syngenta acquisition; ii. non-cash amortization net charges related to intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions; and iii. restructuring and advisory costs incurred as part of the implementation of the Fight Forward transformation plan. For further details on these non-operational items, please see the appendix to this release.

Adjusted operating expenses in the second quarter were $233 million (21.3% of sales), compared to $216 million (20.8% of sales) last year, and were $440 million (21.0% of sales) in the half year period compared to $433 million (20.6% of sales) last year.

In the first half, there was positive impact in adjusted operating expenses following implementation of the Fight Forward plan and the positive impacts of exchange rates. These benefits were offset mainly by expected credit loss in Q2 in LATAM due to liquidity issues of some local distributors.

Reported operating income in Q2 was $55 million (5.1% of sales) compared to a loss of $16 million (-1.6% of sales) last year, and increased 264% to $125 million (6.0% of sales) in H1 from $34 million (1.6% of sales) last year.

Adjusted operating income in Q2 increased 63% to $85 million (7.8% of sales) from $52 million (5.0% of sales) last year, and increased 46% to $181 million (8.6% of sales) in H1 from $124 million (5.9% of sales) last year. The increase in operating income was a combined result of higher gross profit partially offset by higher operating expenses.

Reported EBITDA in Q2 increased 71% to $130 million (11.9% of sales) from $76 million (7.3% of sales) last year, and increased 39% to $273 million (13.1% of sales) in H1 from $196 million (9.4% of sales) last year.

Adjusted EBITDA in Q2 increased 25% to $150 million (13.7% of sales) from $120 million (11.5% of sales) last year, and increased 23% to $310 million (14.8% of sales) in H1 from $252 million (12.0% of sales) last year.

Adjusted financial expenses were $82 million in Q2 compared to $70 million last year, and were $136 million in H1 compared to $139 million last year.

The higher financial expenses in the second quarter were largely attributable to higher hedging costs on exchange rates in LATAM, primarily Brazil, and lower deposit income as the Company prioritized repaying debts for better cash management. In the first half, financial expenses were slightly lower compared to last year following strengthening of our debt structure also through improved cash generation.

As part of strengthening debt structure, a subsidiary of the Company repurchased a significant part of its bond principal in the second quarter for the purpose of improving financing structure and efficiency. As the repurchase was completed late in the quarter, the impacts on improving the financial costs were minor during the reporting periods.

Adjusted taxes on income in the second quarter were an income of $3 million, compared to expenses of $43 million in the corresponding period last year, and amounted to an income of $5 million in the half year period compared to expenses of $55 million last year. The tax income in 2025 was mainly due to the accounting method of calculation of tax assets related to unrealized profits and the non-cash impact of the stronger BRL.

In the 2024 periods despite reaching losses before tax, the Company recorded tax expenses mainly because (1) the losses were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred tax assets on the losses and on the other hand, the subsidiaries that generated profit have a higher tax rate, and (2) non-cash impact of the weaker BRL.

Net loss reported in the second quarter was narrowed by 66% to $32 million from $94 million last year, and narrowed by 91% to $11 million in the first half from $126 million last year.

After reflecting the impact of the aforementioned extraordinary and non-operational charges, adjusted net income in the second quarter turned positive to $6 million from a loss of $61 million last year, and in the first half to $49 million from a loss of $71 million last year.

Trade working capital as of June 30, 2025 was $2,089 million compared to $2,289 million as of June 30, 2024. The decrease in working capital was mainly due to the decline in the level of inventory to $1,622 million as of June 30, 2025 from $1,728 million as of June 30, 2024. The decline of inventories was a result of continued implementation of selective procurement, enhanced inventory management and lower AI and raw material costs. The slight decrease in receivables reflected the intensive collections and similar sales in the same period. Trade payables increased as the Company increased procurement in preparation to capture momentum as the market recovers.

Cash Flow: Operating cash flow of $271 million and $242 million was generated in the second quarter and first half year periods respectively, compared to $347 million and $243 million generated in the corresponding periods last year. The lower operating cash flow generated in the second quarter was mainly due to higher procurement payment in preparation to capture growth momentum, which exceeded the positive impacts from improved business earnings. The dynamics in the half-year period reflected an improvement in collection, offsetting higher outflow due to higher procurement payments.

Net cash used in investing activities was $52 million in the second quarter and $88 million in the first half period, compared to $48 million and $115 million in the corresponding periods last year, respectively. The higher cash used in investing activities in the second quarter was mainly payment for earn out related to Agrinova, a controlled subsidiary of the Company. Other than that, cash used in investing activities in both the quarter and the first half was lower, reflecting continued prioritization of investments in ADAMA's manufacturing facilities and portfolio optimization.

Free cash flow of $176 million was generated in the second quarter and $90 million generated in the half-year period compared to $245 million and $51 million in the corresponding periods last year, respectively, reflecting the aforementioned operating and investing cash flow dynamics.

Table 3. Revenues by operating segment

 
                       Sales by segment 
--------------------------------------------------------------  -------  ----- 
 
                Q2 2025         Q2 2024         H1 2025         H1 2024 
                  USD             USD             USD             USD 
                  (m)      %      (m)      %      (m)      %      (m)      % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Crop 
 Protection     998      91 %   945      91 %   1,904    91 %   1,906    91 % 
Intermediates 
 and 
 Ingredients    94       9 %    96       9 %    187      9 %    192       9 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Total             1,092  100 %    1,041  100 %    2,091  100 %    2,098  100 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
 
 
                  Sales by product category 
--------------------------------------------------------------  -------  ----- 
 
                Q2 2025         Q2 2024         H1 2025         H1 2024 
                  USD             USD             USD             USD 
                  (m)    %        (m)      %      (m)      %      (m)      % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Herbicides        474    43 %     414    40 %     919    44 %     868    41 % 
Insecticides      302    28 %     304    29 %     546    26 %     594    28 % 
Fungicides        222    20 %     227    22 %     439    21 %     444    21 % 
Intermediates 
 and 
 Ingredients      94      9 %     96      9 %     187     9 %     192     9 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
Total           1,092    100 %  1,041    100 %  2,091    100 %  2,098    100 % 
--------------  -------  -----  -------  -----  -------  -----  -------  ----- 
 

Notes:

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.

Numbers may not sum due to rounding.

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 practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com.

Abridged Adjusted Consolidated Financial Statements

The following abridged consolidated financial statements and notes have been prepared as described in Note 1 in this appendix. While prepared based on the principles of Chinese Accounting Standards (ASBE), they do not contain all of the information which either ASBE or IFRS would require for a complete set of financial statements, and should be read in conjunction with the consolidated financial statements of both ADAMA Ltd. and Adama Agricultural Solutions Ltd. as filed with the Shenzhen and Tel Aviv Stock Exchanges, respectively.

Relevant income statement items contained in this release are also presented on an "Adjusted" basis, which exclude items that are of a one-time 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.

 
   Abridged Consolidated Income Statement for the Second Quarter 
--------------------------------------------------------------------  -------- 
 
                                       Q2 2025    Q2 2024   Q2 2025   Q2 2024 
Adjusted([2])                           USD (m)    USD (m)   RMB (m)   RMB (m) 
-------------------------------------  ---------  --------  -------- 
Revenues                                   1,092     1,041     7,851     7,401 
Cost of Sales                                765       769     5,503     5,466 
Other costs                                    9         3        64        26 
-------------------------------------  ---------  --------  --------  -------- 
Gross profit                                 318       269     2,285     1,910 
% of revenue                              29.1 %    25.8 %    29.1 %    25.8 % 
 Selling & Distribution expenses             166       169     1,196     1,203 
 General & Administrative expenses            39        33       279       233 
 Research & Development expenses              16        15       113       106 
 Other operating expenses (income)            12       (1)        86       (4) 
Total operating expenses                     233       216     1,674     1,538 
% of revenue                              21.3 %    20.8 %    21.3 %    20.8 % 
-------------------------------------  ---------  --------  --------  -------- 
Operating income (EBIT)                       85        52       611       371 
% of revenue                               7.8 %     5.0 %     7.8 %     5.0 % 
Financial expenses                            82        70       589       495 
-------------------------------------  ---------  --------  --------  -------- 
Income (loss) before taxes                     3      (17)        22     (123) 
Taxes on Income                              (3)        43      (18)       309 
-------------------------------------  ---------  --------  --------  -------- 
Net income (loss)                              6      (61)        40     (432) 
% of revenue                               0.5 %   (5.8 %)     0.5 %   (5.8 %) 
Adjustments                                   38        33       271       235 
-------------------------------------  ---------  --------  --------  -------- 
Reported net loss                           (32)      (94)     (232)     (667) 
% of revenue                             (2.9 %)     (9 %)   (2.9 %)     (9 %) 
Adjusted EBITDA                              150       120     1,078  851 
% of revenue                              13.7 %    11.5 %    13.7 %    11.5 % 
-------------------------------------  ---------  --------  --------  -------- 
Adjusted EPS([3])        -- Basic         0.0024  (0.0261)    0.0171  (0.1855) 
                    -- Diluted            0.0024  (0.0261)    0.0171  (0.1855) 
-------------------------------------  ---------  --------  --------  -------- 
Reported EPS([2])       -- Basic        (0.0138)  (0.0403)  (0.0994)  (0.2864) 
                    -- Diluted          (0.0138)  (0.0403)  (0.0994)  (0.2864) 
-------------------------------------  ---------  --------  --------  -------- 
 
 
     Abridged Consolidated Income Statement for the First Half of 2025 
--------------------------------------------------------------------------- 
 
                                     H1 2025   H1 2024   H1 2025   H1 2024 
Adjusted([4])                         USD (m)   USD (m)   RMB (m)   RMB (m) 
-----------------------------------  --------  --------  --------  -------- 
Revenues                                2,091     2,098    15,024    14,910 
Cost of Sales                           1,459     1,536    10,484    10,915 
Other costs                                12         6        83        39 
-----------------------------------  --------  --------  --------  -------- 
Gross profit                              620       557     4,457     3,956 
% of revenue                           29.7 %    26.5 %    29.7 %    26.5 % 
 Selling & Distribution expenses          322       338     2,311     2,401 
 General & Administrative expenses         76        69       546       487 
 Research & Development expenses           30        31       216       218 
 Other operating expenses (income)         12       (4)        88      (30) 
Total operating expenses                  440       433     3,161     3,076 
% of revenue                           21.0 %    20.6 %    21.0 %    20.6 % 
-----------------------------------  --------  --------  --------  -------- 
Operating income (EBIT)                   181       124     1,297       880 
% of revenue                            8.6 %     5.9 %     8.6 %     5.9 % 
Financial expenses                        136       139       977       990 
-----------------------------------  --------  --------  --------  -------- 
Income (loss) before taxes                 45      (16)       320     (110) 
Taxes on Income                           (5)        55       -34       391 
-----------------------------------  --------  --------  --------  -------- 
Net income (loss)                          49      (71)       354     (501) 
% of revenue                            2.4 %   (3.4 %)     2.4 %   (3.4 %) 
Adjustments                                61        55       435       393 
-----------------------------------  --------  --------  --------  -------- 
Reported net loss                        (11)     (126)      (80)     (895) 
% of revenue                          (0.5 %)     (6 %)   (0.5 %)     (6 %) 
Adjusted EBITDA                           310       252     2,226     1,789 
% of revenue                           14.8 %    12.0 %    14.8 %    12.0 % 
-----------------------------------  --------  --------  --------  -------- 
Adjusted EPS([5])         -- Basic     0.0212  (0.0303)    0.1521  (0.2152) 
                    -- Diluted         0.0212  (0.0303)    0.1521  (0.2152) 
-----------------------------------  --------  --------  --------  -------- 
Reported EPS([4])     -- Basic       (0.0048)  (0.0541)  (0.0345)  (0.3841) 
                    -- Diluted       (0.0048)  (0.0541)  (0.0345)  (0.3841) 
-----------------------------------  --------  --------  --------  -------- 
 
 
           Abridged Consolidated Balance Sheet 
----------------------------------------------------------  --------  -------- 
 
                                        June 30   June 30   June 30   June 30 
                                          2025      2024      2025      2024 
                                         USD (m)   USD (m)   RMB (m)   RMB (m) 
--------------------------------------  --------  --------  --------  -------- 
Assets 
 Current assets: 
   Cash at bank and on hand                  489       561     3,497     3,995 
   Bills and accounts receivable           1,249     1,314     8,942     9,368 
   Inventories                             1,622     1,728    11,613    12,316 
   Other current assets, receivables 
    and prepaid expenses                     355       279     2,542     1,986 
--------------------------------------  --------  --------  --------  -------- 
   Total current assets                    3,715     3,882    26,595    27,665 
--------------------------------------  --------  --------  --------  -------- 
 Non-current assets: 
   Fixed assets, net                       1,610     1,754    11,522    12,499 
   Rights of use assets                       74        81       528       576 
   Intangible assets, net                  1,346     1,407     9,635    10,027 
   Deferred tax assets                       212       203     1,518     1,449 
   Other non-current assets                  127        89       906       638 
   Total non-current assets                3,368     3,534    24,109    25,189 
--------------------------------------  --------  --------  --------  -------- 
Total assets                               7,083     7,416    50,703    52,854 
--------------------------------------  --------  --------  --------  -------- 
 
Liabilities 
 Current liabilities: 
   Loans and credit from banks and 
    other lenders                          1,187       928     8,498     6,611 
   Bills and accounts payable                831       761     5,946     5,424 
   Other current liabilities                 856       794     6,132     5,659 
   Total current liabilities               2,873     2,483    20,576    17,695 
--------------------------------------  --------  --------  --------  -------- 
 Long-term liabilities: 
   Loans and credit from banks and 
    other lenders                            244       406     1,746     2,892 
   Debentures                                719       960     5,147     6,844 
   Deferred tax liabilities                   36        41       251       292 
   Employee benefits                          77        80       542       572 
   Other long-term liabilities               494       502     3,536     3,578 
                                        --------  --------  --------  -------- 
   Total long-term liabilities             1,569     1,989    11,222    14,177 
--------------------------------------  --------  --------  --------  -------- 
Total liabilities                          4,442     4,472    31,798    31,872 
--------------------------------------  --------  --------  --------  -------- 
 
Equity 
   Total equity                            2,641     2,944    18,905    20,982 
--------------------------------------  --------  --------  --------  -------- 
Total liabilities and equity               7,083     7,416    50,703    52,854 
--------------------------------------  --------  --------  --------  -------- 
 

Numbers may not sum due to rounding

 
   Abridged Consolidated Cash Flow Statement for the Second Quarter of 2025 
------------------------------------------------------------------------------ 
 
                   Q2 2025 USD    Q2 2024 USD    Q2 2025 RMB     Q2 2024 RMB 
                       (m)            (m)            (m)             (m) 
----------------  -------------  -------------  --------------  -------------- 
Cash flow from 
operating 
activities: 
   Cash flow 
    from 
    operating 
    activities              271            347           1,946           2,466 
Cash flow from 
 operating 
 activities                 271            347           1,946           2,466 
----------------  -------------  -------------  --------------  -------------- 
 
Investing 
activities: 
   Acquisitions 
    of fixed and 
    intangible 
    assets                 (38)           (47)           (273)           (332) 
   Net cash 
    received 
    from 
    disposal of 
    fixed 
    assets, 
    intangible 
    assets and 
    others                    1              4               4              27 
   Payment in 
    respect of 
    business 
    combination             (8)              -            (56)               - 
   Other 
    investing 
    activities              (7)            (5)            (48)            (37) 
Cash flow used 
 for investing 
 activities                (52)           (48)           (373)           (342) 
----------------  -------------  -------------  --------------  -------------- 
 
Financing 
activities: 
   Receipt of 
    loans from 
    banks and 
    other 
    lenders                 200             21           1,435             151 
   Repayment of 
    loans from 
    banks and 
    other 
    lenders               (366)          (198)         (2,635)         (1,410) 
   Interest 
    payment and 
    other                  (53)           (59)           (381)           (419) 
   Other 
    financing 
    activities             (43)           (26)           (309)           (184) 
Cash flow used 
 for financing 
 activities               (263)          (262)         (1,890)         (1,861) 
----------------  -------------  -------------  --------------  -------------- 
Effects of 
 exchange rate 
 movement on 
 cash and cash 
 equivalents                  1              2             (3)              29 
----------------  -------------  -------------  --------------  -------------- 
Net change in 
 cash and cash 
 equivalents               (43)             39           (321)             292 
----------------  -------------  -------------  --------------  -------------- 
Cash and cash 
 equivalents at 
 the beginning 
 of the period              507            519           3,637           3,679 
Cash and cash 
 equivalents at 
 the end of the 
 period                     463            557           3,316           3,971 
----------------  -------------  -------------  --------------  -------------- 
 
Free Cash Flow              176            245           1,266           1,740 
----------------  -------------  -------------  --------------  -------------- 
 
 
Abridged Consolidated Cash Flow Statement for the First Half of 2025 
------------------------------------------------------------------------------ 
 
                   H1 2025 USD    H1 2024 USD    H1 2025 RMB     H1 2024 RMB 
                       (m)            (m)            (m)             (m) 
----------------  -------------  -------------  --------------  -------------- 
Cash flow from 
operating 
activities: 
   Cash flow 
    from 
    operating 
    activities              242            243           1,739           1,731 
Cash flow from 
 operating 
 activities                 242            243           1,739           1,731 
----------------  -------------  -------------  --------------  -------------- 
 
Investing 
activities: 
   Acquisitions 
    of fixed and 
    intangible 
    assets                 (82)          (113)           (590)           (800) 
     Net cash 
      received 
      from 
      disposal 
      of fixed 
      assets, 
      intangible 
      assets and 
      others                  2              4              17              30 
   Payment in 
    respect of 
    business 
    combination             (8)              -            (56)               - 
   Other 
    investing 
    activities              (1)            (6)             (6)            (45) 
Cash flow used 
 for investing 
 activities                (88)          (115)           (635)           (815) 
----------------  -------------  -------------  --------------  -------------- 
 
Financing 
activities: 
   Receipt of 
    loans from 
    banks and 
    other 
    lenders                 336            193           2,415           1,369 
   Repayment of 
    loans from 
    banks and 
    other 
    lenders               (432)          (393)         (3,107)         (2,792) 
   Interest 
    payments and 
    other                  (73)           (83)           (527)           (587) 
   Other 
    financing 
    activities             (20)             23           (147)             165 
Cash flow used 
 for financing 
 activities               (190)          (260)         (1,367)         (1,845) 
----------------  -------------  -------------  --------------  -------------- 
Effects of 
 exchange rate 
 movement on 
 cash and cash 
 equivalents                  1              2             (5)              42 
----------------  -------------  -------------  --------------  -------------- 
Net change in 
 cash and cash 
 equivalents               (35)          (129)           (268)           (886) 
----------------  -------------  -------------  --------------  -------------- 
Cash and cash 
 equivalents at 
 the beginning 
 of the period              499            686           3,584           4,857 
Cash and cash 
 equivalents at 
 the end of the 
 period                     463            557           3,316           3,971 
----------------  -------------  -------------  --------------  -------------- 
 
Free Cash Flow               90             51             651             364 
----------------  -------------  -------------  --------------  -------------- 
 

Numbers may not sum due to rounding

Notes to Abridged Consolidated Financial Statements

Note 1: Basis of preparation

Basis of presentation and accounting policies: The abridged consolidated financial statements for the quarters ended June 30, 2025 and 2024 incorporate the financial statements of ADAMA Ltd. and of all of its subsidiaries (the "Company"), including Adama Agricultural Solutions Ltd. ("Solutions") and its subsidiaries.

The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance (the "MoF") and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the MoF (collectively referred to as "ASBE").

The abridged consolidated financial statements contained in this release are presented in both Chinese Renminbi (RMB), as the Company's shares are traded on the Shenzhen Stock Exchange, as well as in United States dollars ($) as this is the major currency in which the Company's business is conducted. For the purposes of this release, a customary convenience translation has been used for the translation from RMB to US dollars, with Income Statement and Cash Flow items being translated using the quarterly average exchange rate, and Balance Sheet items being translated using the exchange rate at the end of the period.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.

Note 2: Abridged Financial Statements

For ease of use, the financial statements shown in this release have been abridged as follows: Abridged Consolidated Income Statement:

• "Gross profit" in this release is revenue less costs of goods sold, taxes and surcharges, inventory impairment and other idleness charges (in addition to those already included in costs of goods sold); part of the idleness charges is removed in the Adjusted financial statements
• "Other operating expenses" includes impairment losses (not including inventory impairment); gain (loss) from disposal of assets and non-operating income and expenses
• "Operating expenses" in this release differ from those in the formally reported financial statements in that certain transportation costs have been reclassified from COGS to Operating Expenses.
• "Financial expenses" includes net financing expenses and gains/losses from changes in fair value.

Abridged Consolidated Balance Sheet:

• "Other current assets, receivables and prepaid expenses" includes financial assets held for trading; financial assets in respect of derivatives; prepayments; other receivables; and other current assets
• "Fixed assets, net" includes fixed assets and construction in progress
• "Intangible assets, net" includes intangible assets and goodwill
• "Other non-current assets" includes other equity investments; long-term equity investments; long-term receivables; investment property; and other non-current assets
• "Loans and credit from banks and other lenders" includes short-term loans and non-current liabilities due within one year
• "Other current liabilities" includes financial liabilities in respect of derivatives; payables for employee benefits, taxes, interest, dividends and others; advances from customers and other current liabilities
• "Other long-term liabilities" includes long-term payables, provisions, deferred income and other non-current liabilities Income Statement Adjustments

---------------------------------------------------------------------------- 
 
                                    Q2 2025   Q2 2024   Q2 2025    Q2 2024 
                                     USD (m)   USD (m)   RMB (m)    RMB (m) 
----------------------------------  --------  --------  --------  ---------- 
Reported Net Loss                     (32)      (94)     (232)     (667) 
----------------------------------  --------  --------  --------  -------- 
 Adjustments to COGS & Operating 
 Expenses: 
---------------------------------- 
1. Amortization of 
 acquisition-related PPA and other 
 acquisition related costs                 4         4        26        28 
2. Amortization of Transfer assets 
 received and written-up due to 
 2017 ChemChina-Syngenta 
 transaction (non-cash)                    5         5        39        36 
3. Cleanup and remediation costs 
 for plants in Israel                      7        11        48        78 
4. ASBEs classifications COGS 
 impact                                 (26)      (29)     (190)     (208) 
5. ASBEs classifications OPEX 
 impact                                   26        29       190       208 
6. Restructuring and advisory 
 costs                                    13         4        94        26 
7. Other                                   1         1         5         6 
8. Provisions such as legal 
 claims, registration impairment 
 and update of registration 
 depreciation                              -        44         -       312 
Total Adjustments to Operating 
 Income (EBIT)                            29        69       212       488 
Total Adjustments to EBITDA               20        44       144       312 
Adjustments to Financing Expenses: 
---------------------------------- 
9. Non-cash adjustment related to 
 put options revaluation                   0      (34)       (3)     (238) 
10. Repurchase of debentures by a 
 controlled subsidiary                     9         -        68         - 
12. Other financing expenses               0         7         3        48 
 Adjustments to Taxes: 
---------------------------------- 
Taxes impact                             (1)       (9)       (8)      (62) 
Total adjustments to Net Loss             38        33       271       235 
----------------------------------  --------  --------  --------  -------- 
Adjusted Net Income (Loss)                 6      (61)        40     (432) 
----------------------------------  --------  --------  --------  -------- 
 
 
 
                                        H1 2025   H1 2024   H1 2025   H1 2024 
                                         USD (m)   USD (m)   RMB (m)   RMB (m) 
--------------------------------------  --------  --------  --------  -------- 
Reported Net loss                         (11)     (126)      (80)     (895) 
--------------------------------------  --------  --------  --------  -------- 
 Adjustments to COGS & Operating 
 Expenses: 
-------------------------------------- 
1. Amortization of acquisition-related 
 PPA and other acquisition related 
 costs                                         7         8        52        54 
2. Amortization of Transfer assets 
 received and written-up due to 2017 
 ChemChina-Syngenta transaction 
 (non-cash)                                   11        10        78        72 
3. Cleanup and remediation costs for 
 plants in Israel                              7        11        48        78 
4. ASBEs classifications COGS impact        (56)      (59)     (405)     (421) 
5. ASBEs classifications OPEX impact          56        59       405       421 
6. Restructuring and advisory costs           29        15       209       107 
7. Other                                       1         2        10        12 
8. Provisions such as legal claims, 
 registration impairment and update of 
 registration depreciation                     -        44         -       312 
Total Adjustments to Operating Income 
 (EBIT)                                       55        89       397       635 
Total Adjustments to EBITDA                   36        55       262       394 
Adjustments to Financing Expenses: 
-------------------------------------- 
9. Non-cash adjustment related to put 
 option revaluation                            3      (33)        20     (233) 
10. Repurchase of debentures by a 
 controlled subsidiary                         9         -        68         - 
11. Arbitration decision related to a 
 controlled subsidiary                       (4)         -      (32)         - 
12. Other financing expenses                 (1)         8       (8)        59 
 Adjustments to Taxes: 
-------------------------------------- 
Taxes impact                                 (2)      (10)      (11)      (68) 
Total adjustments to Net loss                 61        55       435       393 
--------------------------------------  --------  --------  --------  -------- 
Adjusted Net Income (Loss)                    49      (71)       354     (501) 
--------------------------------------  --------  --------  --------  -------- 
 

Notes:

1. Amortization of acquisition-related PPA and other acquisition related costs: 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.

2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash): The proceeds from the Divestment of crop protection products in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina, 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. Since the products acquired from Syngenta are of the same nature and with the same net economic value as those divested, and since in 2018 the Company adjusted for the one-time gain that it made on the divested products, the additional amortization charge incurred due to the written-up value of the acquired assets is also adjusted to present a consistent view of Divestment and Transfer transactions, which had no net impact on the underlying economic performance of the Company. These additional amortization charges will continue until 2032 but at a reducing rate, yet will still be at a meaningful level until 2028.

3. Cleanup and remediation costs for plants in Israel: a wholly-owned indirect subsidiary of the Company recorded remediation costs for its plants in Israel in 2025 and 2024.

4. & 5. ASBEs classifications COGS impact: according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs) are classified under COGS.

6. Restructuring and advisory costs: The Company initiated its Fight Forward transformation plan in early 2024. Part of the plan includes restructuring its organizational structure, workforce and managerial processes, and as a result thereof, the Company recorded restructuring and advisory costs.

7. Other: Mainly attributable to accelerated depreciation associated with facilities upgrade.

8. Provisions such as legal claims, registration impairment and update of registration depreciation: Legal claims related to product liabilities was settled and incurred expenses in 2024. Registration impairment and update of registration depreciation is mainly related to the management's strategic decision in 2024 to increase focus on products in line with the optimization of the Company's portfolio, and hence to focus on the quality of business to achieve a better sales mix of higher margin products.

9. Non-cash adjustment related to put options revaluation: expenses/income due to revaluation of put options attributed to minority stake in subsidiaries 10. Repurchase of debentures by a controlled subsidiary: As part of strengthening its debt structure, a subsidiary of the Company repurchased a significant part of its bond principal in the second quarter for the purpose of improving its long-term financing structure and efficiency. A loss was recorded due to the premium between the buyback price and its issuance price. As the repurchase was completed late in the quarter, the impacts on improving the financial costs were minor during the reporting periods.

11. Arbitration decision related to a controlled subsidiary: An arbitration case related to a controlled subsidiary incurred a one-time income.

 
Exchange Rate Data for the Company's Principal Functional Currencies 
-------------------------------------------------------------------------------------- 
 
                  June 30                  Q2 Average                H1 Average 
--------  ------------------------  ------------------------  ------------------------ 
           2025    2024    Change    2025    2024    Change    2025    2024    Change 
--------  ------  ------  --------  ------  ------  --------  ------  ------  -------- 
EUR/USD    1.173   1.069    9.67 %   1.134    1.08    5.41 %   1.091   1.081    0.96 % 
USD/BRL    5.457   5.559    1.83 %   5.666    5.22   -8.61 %   5.756   5.085  -13.19 % 
USD/PLN    3.616   4.032   10.31 %   3.757    4.00    6.01 %   3.877   3.994    2.94 % 
USD/ZAR   17.794  18.448    3.55 %  18.285   18.58    1.57 %  18.388  18.736    1.86 % 
AUD/USD    0.653   0.663   -1.49 %   0.641    0.66   -2.78 %   0.634   0.658   -3.71 % 
GBP/USD    1.371   1.264    8.50 %   1.335    1.26    5.81 %   1.296   1.265    2.43 % 
USD/ILS    3.372   3.759   10.30 %   3.584    3.73    3.95 %   3.599   3.696    2.63 % 
USD L 3M  4.30 %  5.32 %  -19.33 %  4.30 %  5.33 %  -19.37 %  4.30 %  5.32 %  -19.25 % 
--------  ------  ------  --------  ------  ------  --------  ------  ------  -------- 
 
 
                   June 30                   Q2 Average                  H1 Average 
--------  -------------------------  --------------------------  -------------------------- 
           2025     2024    Change    2025     2024     Change    2025     2024     Change 
--------  -------  ------  --------  -------  -------  --------  -------  -------  -------- 
USD/RMB   7.159    7.127   0.45 %    7.191    7.108    1.18 %    7.840    7.105    10.34 % 
EUR/RMB   8.397    7.622   10.16 %   8.158    7.650    6.65 %    7.840    7.681    2.07 % 
RMB/BRL   0.762    0.780   2.27 %    0.788    0.762    -3.36 %   0.801    0.716    -11.95 % 
RMB/PLN   0.505    0.568   11.11 %   0.522    0.596    12.37 %   0.540    0.619    12.77 % 
RMB/ZAR   0.402    0.386   -4.14 %   0.393    0.383    -2.79 %   0.391    0.381    -2.63 % 
AUD/RMB   4.677    4.727   -1.05 %   4.607    4.683    -1.63 %   4.554    4.678    -2.64 % 
GBP/RMB   9.816    9.007   8.98 %    9.602    8.969    7.06 %    9.309    8.989    3.56 % 
RMB/ILS   0.471    0.527   10.69 %   0.498    0.525    5.07 %    0.501    0.520    3.70 % 
RMB L 3M  1.630 %  1.92 %  -14.97 %  1.700 %  1.991 %  -14.63 %  1.754 %  2.135 %  -17.83 % 
--------  -------  ------  --------  -------  -------  --------  -------  -------  -------- 
 

Forward looking statement:

This press release published by ADAMA Ltd. or ADAMA Agricultural Solutions Ltd. (together the "Company") is for marketing and information purposes only, and contains forward-looking statements which are based on Company's management's beliefs and assumptions and on information currently available to the Company's management. By this press release, the Company does not intend to give, and the press release does not constitute, professional or business advice or an offer or recommendation to perform any transaction in the Company's securities. The accuracy, completeness and/or adequacy of the content of this press release, as well as any estimation and/or assessment included in this press release, if at all, is not warranted or guaranteed and the Company disclaims any intention and/or obligation to comply with such content. The Company shall not be liable for any loss, claim, liability or damage of any kind resulting from your reliance on, or reference to, any detail, fact or opinion presented herein. The Company's assessments are based on the information available to the Company as of the date hereof, and may not be realized or be realized in a different manner than the Company estimates, inter alia, due to factors out of the Company's control, including the risk factors listed in the Company's annual reports and changes in the industry or potential operations of the Company's competitors. Any content contained herein shall not constitute or be construed as any regulatory, valuation, legal, tax, accounting and investment advice or any advice of any kind or any part of it, nor shall they constitute or be construed as any recommendation, solicitation, offer or commitment (or any part of it) to buy, sell, subscribe for or underwrite any securities, provide any credit or insurance or engage in any transactions. Before entering into any transactions, you shall ensure that you fully understand the potential risks and returns of such transactions. Before making such decisions, you shall consult the advisors you think necessary, including your accountant, investment advisor and legal and tax specialists. The Company and its affiliates, controlling persons, directors, officials, partners, employees, agents, representatives or their advisors shall not assume any responsibilities of any kind (including negligence or others) for the use of and reliance on such information by you or any person to whom such information are provided.

[1]. Sources: AgbioInvestor Quarterly report (June 2025), peer quarterly financial results, internal sources

[2]. For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below "Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements".

[3]. The number of shares used to calculate both basic and diluted earnings per share in both Q2 2025 and 2024 is 2,329.8 million shares.

[4]. For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below "Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements".

[5]. The number of shares used to calculate both basic and diluted earnings per share in both H1 2025 and 2024 is 2,329.8 million shares.

Logo: https://mma.prnewswire.com/media/799829/5245713/Adama_Agricultural_Solutions_Logo.jpg

Contact

 
Joshua Phillipson          Zhujun Wan 
Global Investor Relations  China Investor Relations 
Email: ir@adama.com        Email: irchina@adama.com 
-------------------------  ------------------------ 
 

View original content:https://www.prnewswire.com/news-releases/adama-reports-second-quarter-and-first-half-year-2025-results-302538961.html

SOURCE ADAMA Ltd.

TEL AVIV, Israel and BEIJING, July 14, 2025 /PRNewswire/ — ADAMA Ltd. (the "Company") , today provided an estimate regarding its financial performance for the first half of 2025. The Company saw further positive impact of its 'Fight Forward' strategic transformation plan, with improvements in key financial metrics.

Sales

Supported by the growth of revenues in the second quarter of 2025, ADAMA is expecting to report flat sales for the first half of 2025 (0% in USD, 1% in RMB), compared to the first half of 2024. The stabilization of revenues in H1 2025 was driven by volume growth due to improved channel inventories, which offset lower prices. Prices were weak mainly due to low prices of active ingredients in light of overcapacity, as well as a higher interest rate environment and comparably low commodity prices, which put pressure on distributors and farmers.

Adjusted EBITDA and Net Profit

For the first half of 2025, the Company is expecting to report an increase in adjusted EBITDA and in its margin, in comparison to the first half of 2024. Adjusted EBITDA and its margin improved due to an increase in the gross profit and its margin, mainly reflecting the positive impact of lower costs of new inventory sold and higher volumes.

The Company expects to report an adjusted net profit in the range of USD 47 million to 54 million for the first half of 2025, compared to a loss of USD 71 million for the first half of 2024. The profit was due to a higher adjusted operating profit and lower tax and financial expenses.

 
                                          Estimated 
Adjusted net profit (loss)              First Half 2025  First Half 2024 
Net profit (loss) attributable to 
 shareholders (USD millions)                47-54             (71) 
Earnings per share (USD)                0.0202-0.0234       (0.0303) 
-------------------------------------  ----------------  --------------- 
Net profit (loss) attributable to 
 shareholders (RMB millions)               337-391            (501) 
Earnings per share (RMB)                0.1446-0.1677       (0.2152) 
-------------------------------------  ----------------  --------------- 
 

Adjusted Net profit excludes the impact of transitory, non-operational or non-cash items, mainly including:

i. Non-cash amortization charges in respect of transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition;

ii. Non-cash amortization net charges related to intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired;

iii. Restructuring and advisory costs incurred as part of the continued implementation of the Fight Forward transformation plan;

iv. Provision of remediation costs by an indirectly wholly owned subsidiary of the Company for its plant in Israel;

v. Financial expenses including losses from repurchase of debentures at a premium by a wholly controlled subsidiary of the Company.

Reported EBITDA and Net Loss

The Company expects a higher reported EBITDA and its margin and a narrowed reported net loss (which include the impact of the above adjusted items) for the first half of 2025 compared to 2024. This expectation is mainly due to higher reported operating profit and lower tax expenses despite an increase in financial expenses.

 
                                          Estimated 
Reported net profit (loss)             First Half 2025   First Half 2024 
Net loss attributable to 
 shareholders (USD millions)              (15)-(7)            (126) 
Earnings per share (USD)              (0.0064)-(0.0032)     (0.0541) 
------------------------------------  -----------------  --------------- 
Net loss attributable to 
 shareholders (RMB millions)             (108)-(54)           (895) 
Earnings per share (RMB)              (0.0464)-(0.0232)     (0.3841) 
------------------------------------  -----------------  --------------- 
 

The estimated results of the Company are a preliminary estimation of the Company and have not been audited or reviewed by certified accountants. However, the Company and the external auditor have preliminarily communicated regarding relevant matters of the performance estimation and have no material disagreement. These estimations may change as a result of the further processing and analysis of the financial data that the Company will perform for the preparation of its financial statements, which are expected to be released after trading hours on August 26, 2025.

Investors are reminded to exercise caution when making investment decisions.

About ADAMA

ADAMA Ltd. is a global leader in crop protection, providing practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com and follow us on X at @ADAMAAgri.

 
Contact 
Joshua Phillipson          Zhujun Wang 
Global Investor Relations  China Investor Relations 
Email: ir@adama.com        Email: irchina@adama.com 
 

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