ADAMA Ltd. reported its financial results for the fourth quarter and full year ended December 31, 2023.

For the whole year 2023, the company registered 16% drop in its sales to $4,661 million, mainly reflecting a 8% decrease in prices and a 7% decrease in volumes. Adjusted EBITDA amounted to $407 million vs. $740 million in the full year of 2022 and Adjusted net loss of $236 million. The company’s Operating Cash Flow stood at $356 million vs $106 million in 2022.

During Q4, 2023, ADAMA’s sales drop 3% to US$ 1,136 million, mainly reflecting a 15% decrease in prices and a 1% increase in volumes. Adjusted EBITDA also dropped to $95 million vs. $129 million in Q4 2022.  

Steve Hawkins, President and CEO of ADAMA, said, "The crop protection industry as a whole faced challenging market conditions throughout 2023, resulting from high channel inventory and ongoing destocking at the distributor level. In response, ADAMA took immediate steps that supported a significant improvement ‎in cashflow in ‎‎2023, highlighting our strong execution ability‎. ‎

"In addition to the significant improvement ‎ in cashflow, we improved the ‎sales mix of higher margin products, reduced operating expenses and inventory. These, however, are only the first steps to ensure the Company is ‎fully prepared to take advantage of anticipated market opportunities in 2024 and ‎onwards. To fully respond to the long-term as well as short-term market challenges, we launched an intensive transformation plan aimed at improving the quality of the business and revaluing ADAMA.

“We will focus on winning in the largest growing segment of the market – the value innovation segment – with our outstanding pipeline of differentiated products powered by our proprietary formulation technologies. Coupled with resolute focus on improving our cost base and leveraging our strong commercial engine and customer driven culture, I am confident that we will succeed to revalue the Company going forward. I expect to share key milestones as the year progresses."

‎According to ADAMA, sales in India declined over the full year period following high channel inventory, creating pressure on pricing in the market. Moreover, the erratic weather did not support the consumption of such inventory. Despite this, it is noteworthy that differentiated product Trassid was well accepted in the market and along with increased focus on farmer demand generation, the Company's sales increase in Q4.