Adama releases figures for the first quarter of 2023

Adama Ltd. today released its financial results for the first quarter ended March 31, 2023. Overall, sales fell 11% to $1,259 billion; adjusted EBITDA totaled US$165 million against US$201 million in the first quarter of 2022; and adjusted net income was US$22 million.

Once again, the highlight was Brazil. Here, according to the company's statement, sales increased slightly in the first quarter, reflecting a "wait and see" approach in the market due to falling sales prices and competition to sell accumulated inventory.

Ignacio Dominguez, President and CEO of Adama, said: "In 2022, supply challenges and rising crop protection prices have led to stockpiling throughout the supply chain. While market demand is being met by stocks of products in the channel, high inventory levels and declining raw material prices are also supporting a "wait and see" approach. We believe that as the year progresses and the agricultural season in Latin America and India begins, this stock will begin to deplete and the demand that Adama sees for its products will be reinvigorated."

Overall Crop Protection Market Environment

In the first quarter of 2023, according to the company's assessment, commodity prices continued to fall as a result of the slowdown in the global economy and better-than-expected production in some regions. However, crop prices remain above the 10-year average as stocks remain low, supporting positive producer margins.

Update on product development

Adama reported, regarding its products, that:

• in the first quarter of 2023, the company continued with launches, including prothioconazole blends based on the Asorbital formulation domain technology platform;

• patent has been granted in Europe for a formulation domain technology used to stabilize active ingredients (AI) that otherwise cannot be formulated together (products expected in the coming years);

• patent granted in additional geographic regions during the first quarter for Sesgama, a proprietary formulation technology platform for high-load formulations, enabling reduced use of coformulants, transportation and packaging materials (first products expected to launch next year).

Additionally, the company mentioned registrations and releases across the world. Your products may also be based on recently off-patent active ingredients (AI) that have been classified as having high commercial potential -- "Core Leap" AI -- and include several features such as unique proprietary formulations, products with more than one mode of action and biological.

Adama has launched two insecticides, Cosayr and Lapidos, based on "Core Leap" AI, Chlorantraniliprole (CTPR), in India, focusing on rice and sugarcane targeting stem borer and larvae. Executing its "Core Leap" strategy, these products are based on backward integration (in-house) production.

In addition, it registered products including, in Australia, the herbicide Sierra, with the active ingredient Saflufenacil.