Crop protection firm Adama fourth-quarter loss narrows
TEL AVIV, March 15 (Reuters) - Adama Agricultural Solutions, world's largest provider of generic crop-protection products, reported a narrower fourth quarter loss due to higher volume sales and lower operating expenses.
Israel-based Adama's net loss of $20 million in the fourth quarter - which tends to be negative due to seasonality -compared with a loss of $33 million a year earlier.
Revenue fell 3.6 percent to $650 million while excluding foreign currency effects revenue was up 12.6 percent.
A significant increase in sales in growing markets and from geographical expansion as well as sales of new products led to a 7 percent increase in volumes in the quarter.
Adama said during the second half of 2015 it took steps to reduce its exposure to currency and customer credit risks in Brazil, which has been hurt by a political and economic crisis, by avoiding fulfilling certain orders.
China National Chemical Corp (ChemChina) owns 60 percent of Adama, with the rest held by Israel's Discount Investment Corp.
During the quarter, Adama's two main manufacturing sites in Israel were connected to natural gas power stations, a move that is expected to reduce energy costs
Adama, which makes copies of agrochemicals that have expired patents, said it launched direct sales activity in China at the start of 2016. A new formulation and packaging plant in the city of Huai'an is expected to come on stream at the end of 2016. (Reporting by Tova Cohen)
© Thomson Reuters 2017 All rights reserved.