BEIJING, CHINA, July 13 2018 - Global crop protection company ADAMA (SZSE 000553), the combination between Adama Agricultural Solutions Ltd. (“Solutions”) and Hubei Sanonda Co., Ltd. (“Sanonda”) (together, “ADAMA” or “the Combined Company”), today provided an estimate regarding its reported net profit for the first half of 2018, pursuant to requirements of the Shenzhen Stock Exchange due to the first time inclusion of the results of Solutions in the consolidated financial statements of the Combined Company.
Estimated H1 2018 Combined
H1 2017 Sanonda Standalone
Reported net profit attributable to shareholders (USD millions)
360.4 – 390.1
Reported earnings per share (USD)
0.1473 – 0.1594
Reported net profit attributable to shareholders (RMB millions)
2,292.1 – 2,481.2
Reported earnings per share (RMB)
0.9369 – 1.0141
Similarly to the Combined Company’s Q1 2018 net profit estimate, which was released on April 13, 2018, note that when compared to the standalone Sanonda reported net profit in H1 2017, the increase in the estimated H1 2018 reported net profit reflects the inclusion 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 in the third quarter of 2017.
In addition, the increase in the estimated H1 2018 reported net profit reflects the recognition of a one-time profit made by Solutions in the first quarter of 2018 on the divestiture of several crop protection products in Europe in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina. The proceeds of this divestiture, 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.
The Combined Company continued to achieve strong sales growth in the half year, notwithstanding the shortened agricultural season in Europe. This is somewhat offset by higher procurement costs, as well as the negative impact of hedge positions on the Euro created last year, as reported previously.
On a combined, adjusted basis, which excludes the impact of the one-time divestiture profit, the net income of the Combined Company in H1 2018 is estimated to be only somewhat lower than the corresponding combined net income of H1 2017, and, excluding the 2017 Euro hedge impact, is estimated to be in line with last year’s all-time-high.
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 half-year financial statements, which will be published on August 28, 2018.
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.