FY2024: double digit growth in revenues (+18%) and gross profit (+67%) Net profit CNY 1.2bn

Zhigang HAO, Chairman and CEO of Adisseo, said: “In 2024 market demand has rebound despite several challenges - the aftermath of the pandemic, the geopolitical tensions and conflicts, and the global economic slowdown.

Thanks to the reinforced competitiveness of the company as well as the agility and reactiveness of the whole teams, Adisseo has successfully achieved excellent safety and financial performance.

We kept reinforcing our leadership position by mastering our global industrial set-up, continuous launching of new innovative products and services, and providing tailored solutions for different markets.

Our cost saving program has delivered higher than expected results, which is a strong achievement for the 6th consecutive years, especially in the context of the fast-increasing inflationary pressures in overseas markets.

In 2025, we are confident in our ability to pursue growth, improve margins and continue to invest for the future.”

Unaudited figures presented to BAC Audit Committee

(Full year 2024 audited consolidated accounts are expected to be presented to the Board on 27th February 2025)

I.              Business Review: Revenues & Net Profit Attributable to Shareholders

*Note: Since 2024, Adisseo streamlined its business units and recategorized all the products into performance and specialty products business units. Performance products include methionine, vitamins, ammonium sulfate, sodium sulfate, and sulfur products. Specialty products include monogastric, ruminant and aqua products, Norfeed, Innovia (drying formulation services) and FeedKind. FY2023 figures were restated per the new categorization.

Safety is and will remain Adisseo’s priority. In 2024, Adisseo’s TRIR landed at a record level of 0.10.

The Outstanding Listed Company in Sustainability Excellence Awards was granted to Adisseo as a recognition of its sustainable development.

As an illustration of Adisseo’s sustainability projects, the wastewater retreatment project in Nanjing is on track. It is at equipment installation stage with start-up expected in June 2025.

In FY2024, revenues recorded a yoy double-digit growth (+18%) to CNY15.53 billion, gross profit increased by +67% to CNY4.69 billion and gross margin improved by +9ppt to 30%, thanks to:  

• Strong methionine performance (+24%)

• Vitamin price rebound in the end of 2024

• Sustained performance in Specialties (+4%) despite challenges in dairy market in China and the U.S.

2024 has been a year of records for methionine business. Adisseo recorded significant volume growth based on operational record. In addition, Adisseo also played its role of market leader in methionine with pricing policies allowing to optimize profitability.

The revenue achieved double-digit yoy growth (+24%) driven by record sales of both liquid and powder methionine.

The gross margin was improved significantly compared with last year thanks to the high level of plants reliability and supply chain agility despite raw material price increase. All the plants have achieved record production volume.

The 150KT powder methionine plant in Quanzhou obtained basic engineering design approval and construction is on track.

Regarding vitamins business, Vitamin A and Vitamin E prices rebounded in late 2024 and realized positive impact on margins. VA plant has been running according to plan for the entire year.

In 2024, specialties business continued its solid growth in revenues (+4%) and also improved its profitability on the growth with increase in gross profit (+9%), mainly contributed by:

• Solid dynamic for poultry and swine species

• Excellent performance of Selisseo®

• Continuous good performance in palatability and mycotoxin management

The continuous signs of improvement in North America led to the best performance month for Ruminants in December 2024 while challenges persist in China market.

The construction of the 30KT European Specialties Expansion and Optimization Project was completed. And the ramp-up is now accelerating.

The project to internalize esterification process to produce the key ruminant product is expected to start-up in Q3 2025.

In 2024, One-China Strategy progressed successfully. As an illustration:

• Double-digit revenue growth in China thanks to:

       o   Record-high in liquid methionine revenue

       o   Strong growth in aqua thanks to the new offerings tailored to Chinese market and rebounding performance in palatability

       o   Offsetting the negative impact arising from difficult dairy and swine market in China

• Record high production volume and excellent yield and reliability in the Nanjing plant

• The 37KT Specialty Blending Facility in Nanjing achieved mechanical completion in December 2024 with on-going start up as planned.

• Calysseo, the joint venture of Adisseo and Calysta, marched on its innovation path.

       o   The plant is delivering steady operations since Q2 2024, allowing to deliver on-spec products

       o   The positioning of the products with its nutritional benefits on top of its high protein content is on-going both in China and in Southeast Asia

The cost competitiveness enhancement program is being pursued. Several measures have been pursued:

• Agile monitoring of prices variation

• Reactive negotiation with suppliers

• Stringent control of FTE

• Sustained optimization of organization

• Effective implementation of operational excellence program

• Application of digitalization

• Successful management of global supply chain operations including duty management

Better-than-expected cost saving results were achieved in 2024, leading to FY recurring savings of CNY179 million. In total, 6-year accumulated savings amounted to more than CNY1 billion. It contributes significantly to the continuous reinforced competitiveness of the Company.

Recurring EBITDA ratio continued improvement in 2024 (22%) vs. 2023 (14%), largely contributed by:

• Strongly improved gross margin driven by strong business performance

• Effective cost competitiveness program allowing to deliver additional savings

• Despite continuous investment in R&I, liquid dosing installations, business development in specialties to support future growth and innovation

Recurring net profit attributable to shareholders increased significantly to CNY1.35 billion, representing a margin increased by +9ppt to 9%.

II.            Cash-flow and Net Debt

Cash position as of 31 December 2024 stood at CNY1.266 billion, increased by CNY260 million compared to 31 December 2023, driven by:

• Positive cash flow generated from operating activities

• Strict working capital management

III.           Major Financing Activities Update

The Private Placement of up to CNY3 billion, initiated in 2024 is being prepared with an objective to raise funds between end of 2025 and early 2026.

A proportional financing of no more than USD16.25 million will be injected respectively by Adisseo together with Calysta to Calysseo, the joint venture between Adisseo and Calysta, to support its further development of the first global manufacturing plant applying the disruptive technology to produce FeedKind®, an innovative contribution to the sustainability of aquaculture.

Interim dividend of CNY160 million will be submitted to shareholder meeting for approval early February.

IV.          FY2025 Outlook

Safety and sustainability remain Adisseo’s top priorities.

Volatility and uncertainty will be increasing, while market demand is expected to remain solid. Adisseo is fully engaged in delivering growth, improving margins, and pursue strategic investments for the future.

Strong operational dynamics is being pursued with:

• More proactive pricing management in methionine with positive sign observed in early 2025

• Enhanced competitiveness in Vitamin A thanks to European Optimization Project

• Acceleration of specialties dynamics, leveraging the full range of services and product offerings and the gradual recovering of dairy market in the U.S.

• Well-positioned international set-up, including dual platforms, international teams and global marketing coverage, allowing for continuous optimization of supply to address global supply chain disruptions and to capture global market demand & local opportunities

• Contribution from the operational excellence and cost control measures  

-End-

About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 6 research centers and its production sites based in Europe, the U.S., China and Thailand to design, produce, and market nutritional solutions for sustainable animal feed. With more than 2,730 employees, it serves around 4,200 customers in over 110 different countries and regions through its global distribution network. In 2024, Adisseo recorded an operating revenue of CNY15.53 billion.  

Adisseo is one of the main subsidiaries of China National BlueStar, a leader in the Chinese chemical industry with more than 12,000 employees and a turnover of CNY41.5 billion in 2023.

Adisseo is listed on the Shanghai Stock Exchange.

Adisseo Corporate websites: www.adisseo.com; www.bluestar-adisseo.com

Adisseo’s press contact

In China: Yun CAI, yun.cai@adisseo.com