Q3 YTD 2018: Revenue (CNY8.53 billion) and gross profit (CNY2.97 billion ) recorded yoy growth of 12% and 5% respectively, mainly driven by:
-Steady volume growth in liquid methionine
-Exceptional contribution from vitamins in a context of volatile market supply situation
-+31% specialty sales growth thanks to new speciality products together with Nutriad offerings
Key projects are on track:
-BANC2 project: well on track in terms of both schedule and budget
-Polar project: start up in Oct 2018
-Integration with Nutriad: businesss synergies are confirmed
-Adisseo Venture Fund: 1 investment in biotech industry to be closed in November aiming at delivering new feed materials to both poultry and aquaculture market in a very sustainable way, with other 4-5 projects in due diligence phase
-New product RumenSmart realized the first sales in Q3 with positive feedback from customers
Outlook for Q4 2018 and beyond:
-The overall environment is challenging, pressure on margin creation remains serious, which includes raw material costs and dairy market crisis in the US. In this context, Adisseo’s business remains very competitive for all product categories.
-Adisseo is and will continue to implement its strategy to consolidate its leadership in methionine by further penetration of liquid methionine as well as acceleration of sales growth in specialties to deliver profitable and sustainable growth.
-Adisseo is undertaking and accelerating its competitiveness improvement plan with sustainable cost reduction actions
Q3 YTD 2018: resilient results with steady double-digit revenue growth in a challenging environment
Jean-Marc Dublanc, CEO of Adisseo, said: “Thanks to our leadership in methionine, especially liquid methionine and to our development in specialties reinforced by our remarkable add-on of Nutriad, we implemented our ‘two-pillar’ strategy and delivered steady growth in sales volume of liquid methionine and achieved strong growth in revenue and gross profit for specialty business.
But, the increase of more than 20% in the price of crude oil together with pressure on methionine prices had a significant impact on our financial performance. For the fourth quarter in 2018, we will continue to execute our operational efficiency enhancement plan to make sure that we can offer the most cost-efficient products to customers and to improve our competitiveness and profitability in general.”
Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosedits Q3 2018 results today.
I.Business Review: Revenues & Net Profit Contributed to Shareholders
