PRESS RELEASE
October 27, 2017
Bluestar Adisseo Company announces strong 2017 Q3 results
and expects 2017 financial results above Target.
· Price increase on Methionine and Vitamins
· Strong growth on Specialty products
· Very positive perspectives for 2018
Bluestar Adisseo Company (“Adisseo” or “the Company”, 600299.SH), a global leader in nutrition & health feed solutions, announces its 2017 Q3 financial results.
Adisseo achieved a significant growth in terms of business activity in all its product lines and maintained a solid gross profit margin, sustained by continuous process improvement and rigorous cost control, on top of price improvements for key products. A quarter-to-quarter increase of 28.8% in net profit confirms an obvious growth trend.
1. Key Figures
· Operating revenue was at 76.2 (100 million) Yuan. Variation +9.0% (2.685 MRMB / 2.463 MRMB) in Q3 2017 versus Q2 2017
· Net profit reached the level of 9.1 (100 million) Yuan, representing a net margin of 12.0%. +28.8% (335 MRMB / 260 MRMB) in Q3 2017 versus Q2 2017
· Net cash flow from operating activities amounted to 15.9 (100 million) Yuan.
2. Business highlights
The Specialty Products Business Unit recorded a very significant revenue growth of 30% YTD versus last year.
This growth is fueled by our historical products in the dairy market (+34%) thanks to successful Sales & Marketing activities and dairy market rebound.
It is also linked to the continued growth at a pace of 8% for Enzymes and our new product Rovabio®? Advance as well as by successful sales volume increase of our new specialty products – Selisseo® and Alterion (65% and 344% on volumes and + 0.4 (100 million) Yuan in total on revenue, on 9M17 versus 9M16).
Adisseo is very confident on its ability to keep growing successfully on Specialties products in the coming years.
The Performance Products Business Unit achieved a solid performance and witnessed a clear rebound in Q3 2017.
On the Methionine market, the Rhodimet® brand has significantly reinforced its market positions in both forms: liquid and powder. Adisseo recorded a double-digit growth rate despite a very competitive environment.
Beyond the growth in market shares, riding on its strong leadership, Adisseo is also able to take full benefit from a much better pricing market environment. Prices increase during summer has sustained overall profitability and is expecting to deliver further for the fourth quarter and next year.
Production plants also demonstrated excellent operational performances with high volumes and efficiency level above expectation. Nanjing plant for liquid methionine has reached record levels of production. Adisseo keeps demonstrating its reliability and improving competitiveness which confirms its capabilities to serve its customer’s needs.
Thanks to product growth combined with very significant prices increase of vitamins A and numerous vitamins B, Adisseo Vitamins business, which represents close to 20% of its sales, recorded exceptional margin, reinforced by rigorous cost management.
With a comprehensive portfolio, Adisseo is a leading player on the vitamines market and is particularly well positioned in emerging regions such as Latin America, Asia, North Africa, Middle East and India.
3. Forward-looking statement
Adisseo anticipates a positive trend for Q4 2017 and for 2018, building on stronger pricing trends since the beginning of the second half of 2017 as well as further to its new projects and product launches already in the pipeline for next year, and therefore anticipates profitable growth further.
Adisseo intends to strengthen its industrial strategy by developing further synergies between Chinese and European platforms and developing the full potential of its existing facilities in order to support customers’ demand and meet their request for high quality and reliability.
Adisseo will gradually increase its capacity to meet customers’ demands for its key products.
R&D facilities are geared to implement innovative technologies in order to strenghtenAdisseo manufacturing excellence and to bring breakthrough technology to the market.
Projects supported by manufacturing excellence and innovation are progressing according to the plans.
Polar project is an investment program to add 50 KT capacity on the European plants.
Rhodimet® A-Dry+? is a brand new powder methionine product, based on liquid methionine (“HMTBA”) technology. It will offer the advantages of this molecule to customers whose manufacturing process does not allow the use of liquid form.
Adisseo’s second business pillar, the Specialty Products, keeps growing significantly as planned. Thanks to innovation, global market coverage and customer intimacy, we are confident in our ability to increase the market share of our existing products and to launch new products at a steady pace of at least one per year for the coming years.
About Adisseo
Adisseo is one of the world's leading experts in feed additives. The group relies on its 7 research centers and its production sites based in Europe and China to design, produce and market nutritional solutions for sustainable animal feed. With more than1,900 employees, it serves around 2,600 customers in over 100 different countries through its global distribution network.
Adisseo is listed on the Shanghai Stock Exchange and is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with nearly 25,000 employees and a turnover of 6.4 billion euros.
Adisseo Corporate website: www.adisseo.com
About Adisseo products and services
Adisseo offers its customers 4 forms of an essential amino acid, methionine for poultry and swine (Rhodimet®? AT88 and Rhodimet®? NP99) and protected methionine for ruminants (Smartamine®? M and MetaSmart®?), a complete range of vitamins (Microvit®?), multi-activities enzymes (Rovabio®?) and the specialty (Selisseo®?).
Adisseo supports the development of its customers by providing valuable and innovative services such as PNE – Precise Nutrition Evaluation.
Adisseo Brands website: www.feedsolutions.adisseo.com
ADISSEO press contact
In China: Citigate Dewe Rogerson - Grace Xu: +86 21 53530303; grace.xu@citigate.com.cn
In France: Scenarii - Kattia Mendiguetti : +33 1 40 22 66 45 / +33 6 08 27 68 85 – kmendiguetti@scenarii.fr
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