On-going sustainability projects launched in Chinese and European plants
H1 2022: +20% growth in revenue and +6.5% net profit contributed to shareholders, with stabilized gross margin (32%) despite dramatic increase of raw material, energy and freight costs, thanks to:
Strong revenue growth in performance products (+26%) led by methionine
Continuous proactive pricing management of all product lines
Specialties driven by monogastric, aqua, ruminant business in China and exceptional growth in regions including Latin America, Asia and Middle East
Key projects
European operations sustained and optimized
Nanjing plant achieved excellent production reliability after 45-day shut-down and realized high production level since then
Pursue its success effort to develop its business and increase its growth in China
2nd Nanjing Plant (BANC2 project) commissioning at full speed, heading for expected start-up in the following month
Feasibility study of new China Specialty blending facility obtained approval
Calysseo launched commissioning as planned
Specialty capacity expansion project is progressing both in Europe and China
H2 2022 outlook
Safety and sustainability remain Adisseo’s top priorities.
Volatility and uncertainty are more than ever prevailing in the context of historically high inflation level and the persistent pandemic. Facing the challenges from raw material supply shortage and cost increase in addition to on-going supply chain disruptions, Adisseo is engaged in delivering sustainable profitable growth while pursuing long-term value-creating investments.
In H2 2022, revenue growth is expected to continue and to offset dramatic raw material cost increase.
Jean-Marc Dublanc, Vice Chairman and CEO of Adisseo, said: “Since early 2022, when we thought we were finally seeing the light at the end of the pandemic tunnel, various headwinds have arisen – from the surge-in of new COVID variants, continued worldwide supply chain disruptions and levels of inflation not seen for decades, last but certainly not least, the Ukraine crisis.
Despite these major complications, Adisseo managed to pursue its activities and the business performance was in line with our initial expectations in H1 2022, thanks to our proactive pricing management across the product lines to maintain our margin at a solid level and continuous competitiveness enhancement program to keep our costs under control.
The global demand was weakening in the 2nd quarter in the context of huge pressure from high agriculture raw material costs. Thanks to our global presence, proactive pricing management amid supply chain disruption with a strong commitment to fulfill customers’ demand, we were able to capture strong positive market dynamics in key regions such as Latin America and Middle East Regions. With the start-up of BANC2 in the following month, our expanded capacity across the globe will allow Adisseo to optimize volume allocation in the context of fluctuated raw material and energy costs.
Looking at H2 2022, we recognize the difficulties in the environment that we are facing. However, we will remain resilient as always, and this makes us confident to achieve our target. We will continue the execution of our major projects fueling our growth to build Adisseo future.”
Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosed its H1 2022 results.
Business Review: Revenues & Net Profit Contributed to Shareholders
