Newly Combined Adama Group Provides Earnings Guidance for Third Quarter 2017
Global crop protection group ADAMA, the combination between Adama Agricultural Solutions Ltd. (“Solutions”) and Hubei Sanonda Co., Ltd. (“Sanonda”) (together, “ADAMA” or “the Combined Company”), pursuant to regulatory requirements of the Shenzhen Stock Exchange, provided an estimation regarding its net income for the third quarter and first nine months of 2017.
The Combined Company expects net profit in the first nine months of 2017 to range between RMB1.45 billion – RMB1.77 billion ($213 million – $260 million), up from RMB 20.5 million ($3.1 million) in the first nine months of 2016 for Sanonda alone. Earnings per share for the Combined Company are expected to range between RMB 0.62 – RMB 0.76 ($0.091 – $0.111), compared to RMB 0.0345 ($0.005) last year for Sanonda alone.
The Combined Company expects net profit in the third quarter of 2017 to range between RMB 218 million – RMB 327 million ($32.7 million – $49.0 million), up from RMB 3.7 million ($0.6 million) in the parallel quarter in 2016 for Sanonda alone, while earnings per share in the third quarter are expected to range between RMB 0.093 – RMB 0.139 ($0.014 – $0.021), up from RMB 0.0062 ($0.001) in the parallel quarter last year for Sanonda alone.
The significant increase in the estimated net income is due largely to the inclusion, for the first time, of the contribution of the results of Solutions in the consolidated results of the Combined Company following the closing of the combination between the two companies earlier in the third quarter. In addition, the increased estimation reflects an improvement in performance.
These estimations are preliminary and have not been audited or reviewed by the Combined Company's auditors. These estimations may change, inter alia, as a result of the further processing and analysis of the financial data that the Combined Company will perform for the preparation of its third quarter financial statements, which will be formally published on 31 October 2017.
Investors are reminded to exercise caution when making investment decisions.
About the Combined Company
The combined company, which will be named ADAMA, is comprised of Adama Agricultural Solutions Ltd. and Hubei Sanonda Ltd., and is one of the world's leading crop protection companies. We strive to Create Simplicity in Agriculture – offering farmers effective products and services that simplify their lives and help them grow. With one of the most comprehensive and diversified portfolios of differentiated, quality products, our 6,600 strong team reaches farmers in over 100 countries, providing them with solutions to control weeds, insects and disease, and improve their yields. For more information, visit us at www.adama.com and follow us on Twitter® at @AdamaAgri.