PRESS RELEASE
July 26, 2017
Bluestar Adisseo Company announces 2017 H1 results
Solid GP ratio of 37%
Revenue and gross profit of specialty products increase by 31% and 46% respectively
Bluestar Adisseo Company (“Adisseo” or “the Company”, 600299.SH), a global leader in nutrition & health feed solution, today announces its 2017 H1 financial results.
Adisseo managed to record a solid gross profit margin, a result of implementing competitive measures and rigorous cost control.
1. Key Figures:
? Operating revenue was at 49.3 Yi (100 million) Yuan + Variation -9%
? Gross profit ratio remain at 37% despite of low methionine price
? Net profit reached the level of 5.8 Yi (100 million) Yuan, representing a net margin of 11.8%
? Net cash flow from operating activities amounted to 12.1 Yi (100 million) Yuan + Variation -20%
2. Business highlights
Specialty products saw a significant growth
Specialty products recorded significant growth. Their revenue and gross profit increased by 31% and 46% respectively, contributing 17% of total revenue and 25% of gross profit.
The improvement of the dairy market after a year of global crisis lets Adisseo confirm its leading position and ability to capture the rebound.
Enzyms grew as expected, especially with the new product Rovabio®? Advance which is technically described by Adisseo as a Feedase.
Other specialty products Selisseo®? and Alterion? also recorded steady increase in sales .
Performance products achieved steady performance
Methionine consolidated its leadership in a growing market demand with a high volume growth . The implementation of competitive measures in plants also further improved cost effectiveness. Global market demand for methionine continued to grow steadily, at a pace of around 5-6% per year. Although in H1 2017, the Chinese market is impacted by bird flu, the demand in China has come back to strong after the outbreak ended.
Although margins remained under pressure, due to the short-term change in demand and supply dynamics. the market has proved that prices have reached bottom level, which can be interpreted as a stabilization of the market conditions.
Through cost optimization, Adisseo managed to partly offset price decrease and maintained margins on Vitamins at a reasonable level.
Production plants posted an excellent operational performance with high volumes and efficacy across almost all product lines, after a period of capacity expansion in liquid methionine.
3. Forward-looking statement
Adisseo intends to strengthen its industrial strategy combining Chinese and European expertise and develop the full potential of its existing facilities in order to support customers’ demand and meet their request for high quality and pricing.
Its leadership in methionine market will be further enhanced riding on the undisputable quality and innovative product offerings.
The Polar project, launched at the beginning of this year, will add another 50KT on the European plants and will allow the company to face the continuous increase of methionine demand in the long run. This project is progressing well, in line with planning and budget, and is expected to be completed by the end of 2018. Rhodimet® A-Dry+?, a brand new powder methionine product based on the liquid methionine (“HMTBA”) technology, is also in line with the schedule defined early this year and is expected to be commercialized in early 2018.
The company also sees great growth potential in specialty products, its second business pillar. Adisseo continues to invest in innovation, especially in new nutritional feed additives, to launch new products and to extend the geographical coverage of its products.
In addition, Adisseo is implementing continuous improvements programs which can be illustrated by the on going implemented “We Move” project.
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 140 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: feedsolutions.adisseo.com
ADISSEO press contact
In China : Citigate Dewe Rogerson - Grace Xu: +86 21 53530303; grace.xu@citigate.com.cn
In France : Scenarii - Jihane Teretal: +33 1 40 22 66 45 / +33 6 08 27 68 85 - jteretal@scenarii.fr
