Sales growth with improvement in net profit
BEIJING and TEL AVIV, Israel, April 29, 2026 /PRNewswire/ -- ADAMA Ltd. (the "Company") $(000553)$, today reported its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights:
-- Sales increased 4% (0.5% in RMB) to $1,037 million, mainly reflecting a
3% increase in volumes
-- Adjusted gross profit up 5% to $318 million, with an improvement in gross
margin from 30.3% in Q1 2025 to 30.6% in Q1 2026, reflecting the benefits
of higher volumes and improved business quality
-- Reported net profit increased 2.9 times to $82 million vs $21 million in
Q1 2025; Adjusted net profit increased 35% to $59 million from
$44 million in Q1 2025
-- Adjusted EBITDA amounted to $150 million vs $160 million in Q1 2025
-- Operating cash outflow was -$141 million in Q1 2026 vs. -$29 million in
Q1 2025
-- Free cash outflow was -$139 million in Q1 2026 vs. -$86 million in
Q1 2025
Gaël Hili, President and CEO of ADAMA, said "The strong foundation built through our Fight Forward transformation plan now provides the base for the next phase of our strategy execution, focused on profitable growth. In the first quarter of 2026, ADAMA delivered sales and gross profit growth and higher net income, reflecting improved volumes and continued progress in portfolio quality. At the same time, profitability and cash generation in the quarter were affected by higher operating expenses and increased working capital, reflecting investments to support growth and inventory build up to capture recovering market momentum. I remain confident that ADAMA is well positioned to capture market opportunities and deliver sustainable long-term value for our customers and investors."
Table 1. Financial Performance Summary
As Reported Adjustments Adjusted
---------- -------------- ---------------------- --------------------------
Q1 Q1 Q1 Q1 Q1 Q1
USD (m) 2026 2025 % Change 2026 2025 2026 2025 % Change
---------- ------ ------ -------- ---- ------ ------ ------- ---------
Revenues 1,037 1,000 4 % 0 0 1,037 1,000 4 %
---------- ------ ------ -------- ---- ------ ------ ------- ---------
Gross
profit 287 272 6 % 30 31 318 303 5 %
% of
sales 27.7 % 27.2 % 30.6 % 30.3 %
---------- ------ ------ -------- ---- ------ ------ ------- ---------
Operating
income
$(EBIT)$ 110 70 57 % (22) 26 88 96 -8 %
% of
sales 10.6 % 7.0 % 8.5 % 9.6 %
---------- ------ ------ -------- ---- ------ ------ ------- ---------
Income
before
taxes 60 18 228 % (22) 23 38 42 -8 %
% of
sales 5.8 % 1.8 % 3.7 % 4.2 %
---------- ------ ------ -------- ---- ------ ------ ------- ---------
Net profit 82 21 289 % (23) 23 59 44 35 %
% of
sales 7.8 % 2.1 % 5.7 % 4.4 %
---------- ------ ------ -------- ---- ------ ------ ------- ---------
EPS
- USD 0.0352 0.0090 0.0253 0. 0188
- RMB 0.2443 0.0649 0.1760 0.1350
---------- ------ ------ -------- ---- ------ ------ ------- ---------
EBITDA 182 144 27 % (33) 16 150 160 -6 %
% of
sales 17.6 % 14.4 % 14.5 % 16.0 %
---------- ------ ------ -------- ---- ------ ------ ------- ---------
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 Q1 2026 and 2025 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
Recent geopolitical developments are introducing market volatilities that could prove either transitory or structural as events unfold, with higher oil prices posing a potential inflationary pressure on the market and potentially pressuring farmer profitability. While channel demand has rebounded in 2025 and inventory levels have largely returned to pre--pandemic norms, in the first quarter of 2026 pricing pressures remain elevated due to persistent oversupply and production over--capacity of active ingredients. Crop commodity prices are stabilizing at relatively low levels but remain sensitive to geopolitical risks, limiting upside for farmer income. As a result, ongoing pressure on farmer profitability continues to drive just--in--time purchasing behavior, even as volumes normalize across most markets, after growth achieved in the market in 2025.(1)
Strategy execution
In 2026 ADAMA entered the next phase of its strategy execution, building on the achievements of the Fight Forward program. With a stronger cost base, better operational efficiency, and enhanced capabilities, the Company is now focused on driving profitable top-line growth while continuing to improve business quality. ADAMA aims to deliver this by strengthening commercial capabilities, accelerating differentiated innovation, improving portfolio quality, and shaping a lighter and competitive global supply and manufacturing network.
Sustainability
ADAMA has published its 2025 ESG Report, highlighting progress across key ESG areas, including a 21% reduction in Scope 1 and Scope 2 greenhouse gas emissions and the training of more than 680,000 farmers and agricultural workers on the safe and responsible use of crop protection products. This progress reflects continued efforts to improve operational efficiency, strengthen safety and stewardship practices, and manage ESG-related risks across the business. For further details, please refer to the full ESG Report released on the 29(th) of April, 2026.
Portfolio development update
During Q1 2026 ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. The Company continued to focus on advanced, value--driven formulations supporting optimization of its product portfolio.
Q1 2026 launches of differentiated products included:
-- FORABAZ$(R)$ (India): Launched as an SC (suspension concentrate) formulation combining Chlorantraniliprole and Novaluron. It provides fruit and vegetable growers with early and long-lasting caterpillar control, supporting yield protection and resistance management. -- BREVIS$(TM)$ SC (Canada): A novel Metamitron-based plant growth regulator delivering consistent and reliable fruitlet thinning in pome fruits such as apples and pears. -- MARATHON(R) (Australia): ADAMA's first high-load Pyrasulfotole formulation with an in-built crop safener. Marathon delivers early post-emergence control of challenging and herbicide-resistant weeds in wheat and barley, with flexible tank-mix options and robust performance for yield protection and resistance management. -- ATEKA(TM) $(USA)$: Ateka insecticide is a high-load, Spirotetramat based, fully systemic solution designed to help fruit and vegetable growers clean out tough sucking pests with speed and staying power. Powered by the proprietary Ayalon(TM) Formulation Technology, Ateka enhances leaf penetration and plant uptake, delivering earlier population control and enhanced performance. -- COSAYR(R) (Germany, Poland, Romania and Czech Republic): A long-lasting Chlorantraniliprole-based suspension, to deliver fast and effective control of chewing insects across a wide range of horticultural and field crops. -- Prothioconazole-based Products Expansion: ADAMA continued to extend its Prothioconazole-based portfolio, launching several combinations and solo formulations across EU and other key markets. Products such as MAGANIC(R), MAXENTIS(R), AVASTEL, and SORATEL(R) leverage ADAMA's proprietary ASORBITAL(R) Formulation Technology for enhanced uptake and systemic performance.
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