Q1 2025: Strong growth leading to +67.9% increase in net profit

Zhigang HAO, Chairman and CEO of Adisseo, said: “Adisseo achieved excellent results again in Q1 2025. The strong top-line and bottom-line performance in Q1 2025 demonstrated Adisseo’s market leadership in animal nutrition solutions and capability to proactively manage product pricing and control costs, as well as our readiness to capture the market opportunities when possible.

In addition to the excellent business performance, I am pleased to announce that our financing project has recently been accepted by the Shanghai Stock Exchange. Adisseo is fully engaged, aiming to deliver the project in a high-quality manner.

Adisseo is also implementing interim and final dividend distribution plan in 2025 with more than 40% pay-out ratio.

Moving forward, despite huge volatility and geopolitical uncertainty, we are committed to deliver growth and improve margins thanks to our global footprint.”

Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosed its Q1 2025 results.

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

Safety is and will remain Adisseo’s priority. For Q1 2025, Adisseo’s safety performance is excellent with TRIR landing at 0.

Adisseo is progressing in the successful implementation of best-in-class HSE system.

Adisseo is also on track towards its sustainability ambition, monitoring closely its key performance indicators.

In Q1 2025, Adisseo is on track in GHG emission reduction. Water and energy intensity reduction is also on track although temporarily impacted during the planned maintenance shut-down period.

Adisseo issued 2024 ESG report, the 10th year since its first publication.

Nanjing plant wastewater treatment project applies biochemical method as an innovative technical path for wastewater treatment. It will not only achieve energy conservation and emission reduction but also generate tangible economic benefits. It is one of the important examples of the company's adherence to sustainability. The project is progressing smoothly and is expected to be put into use in June.

In Q1 2025, revenue recorded a yoy double-digit growth of +23% to reach CNY4.3 billion and gross margin improved significantly by +14% yoy to CNY1.27 billion, driven by:

• Strong revenue growth of performance products (+29%) thanks to the strong methionine and vitamin performance

• Sustained growth in Specialties (+7%) despite continuous challenging dairy market in China

In Q1 2025, Adisseo achieved outstanding double-digit growth in methionine driven by:

• Continuous penetration and historical record of liquid methionine volume (+24%)

• Close price monitoring and agile pricing management

• High plant reliability with high yields in all plants, offsetting negative impact arising from high raw material price

• European plants are restarting smoothly after 1-month technical shut-down

• echnical maintenance shutdown of Nanjing plant has started

The new 150KT powder methionine plant in Quanzhou has achieved more than 1 million man-hours without recordable accident. The construction is on track with major equipment procurement completed, training of workforce in Europe started in April. The affiliated sulfuric acid project started too.

Adisseo is also conducting an incremental capacity expansion in its European Liquid Methionine plant, providing the company with more flexibility to adapt to trade barriers and reinforcing its competitiveness. This will be fully operational by the end of the year.

The vitamins business demonstrates strong growth momentum in the quarter.

On Vitamin A, Adisseo recorded strong volumes despite pressure on price. Strong demand has also been recorded in Vitamin E with good level of prices.

In Q1 2025, the specialty business continued its growth in yoy revenue (+7%) and in gross profit (+5%), thanks to:

• Monogastric species notably Selisseo® (+21%), Feed Digestibility (+12%) and Palatability (+24%)

• As well as ruminant (+10%) driven by continuous improvement in North American market

This is offsetting the lower-than-expected contribution from animal resilience products, and challenging China dairy market.

The Specialties Capacity Expansion and Optimization Projects, one in Nanjing China and the other in Spain Europe, were completed on schedule. Both plants are in operational phase. 37KT Specialty Blending Facility in Nanjing obtained its official production license in early 2025 with its first commercial sales recorded in March 2025. Localization strategy for specialties is being pursued to deliver more localized new products with better cost competitiveness and faster customer response capability.

30KT European Specialties Expansion and Optimization Project is fully operational, now focusing on optimization of production process to further enhance yield.

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

In Q1 2025, One-China Strategy progressed successfully.

• Strong double-digit revenue growth was recorded in Q1 2025 thanks to:

  • Continuous double-digit growth in liquid methionine

  • Strong growth in monogastric business driven by feed digestibility and health by nutrition

  • Offsetting very difficult dairy market

• Record High yield achieved by the Nanjing Plant

• Implementation of distinctive digital tools such as APC (Advanced Process Control) and AI-applied preventive maintenance, etc., allowing the continuous improvement in operational excellence

• The first-generation newly developed acidifiers product tailor made for the Chinese market launched to the market and the development of the second-generation new production for other application scenarios expected to be launched in the second quarter

• FeedKind® business: First sizeable orders in Aqua market and the second batch of trial sales in pet market were delivered

The ongoing Cost competitiveness enhancement program is well on track:

• Continuous efforts in Europe through the European Plant Competitiveness Enhancement program (EURISE program). The social plan related to the shutdown of a methionine plant which is in its final execution phase. More than 20 projects have also been identified and are being implemented to deliver expected savings

• Investments in digitalization: APC (Advanced Process Control) is being rolled out from the Nanjing plant to European plant

• Continuous cost controlling measures such as raw material price & tolling fee renegotiation, supply chain route remapping, strict control on FTE

EBITDA ratio continued its improvement in Q1 2025 to 23% (vs 22% in Q1 2024), largely contributed by:

• Continuous close monitoring and implementation of effective cost competitiveness program

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

The net profit margin in Q1 2025 increased by +3ppt to 11%. Q1 2025 net profit attributable to shareholders landed at CNY465 million, with an increase of +67.9% yoy , contributed by strong business growth as well as positive finance and FX results.

II.    Cash-flow and Net Debt

Cash and bank balances as of 31 March 2025 increased by +CNY342 million compared to 31 December 2024, driven by:

• Positive cash flow generated from operating activities, and the settlement of anti-dumping deposit

• Strict working capital management

• Offsetting the continuous CAPEX investment for future growth and payment of interim dividend

III.    Major Financing Activities Update

^{The Private Placement Refinancing Plan to raise up to CNY3 billion was accepted by the Shanghai Stock Exchange on the 15th of April and is now entering vetting session.}

^{Adisseo implemented an interim dividend and final dividend distribution plan, representing a total pay-out ratio of 40.08%.}

• ^{Interim dividend of CNY161 million has been distributed to shareholders on the 28th of March}

• ^{A final dividend of CNY322 million was approved by the annual shareholder meeting and is to be distributed in May.}

IV.    FY2025 Outlook

Safety and sustainability remain Adisseo’s top priorities.

Volatility and uncertainty are increasing, notably due to the recent changes in the U.S. trade policies. At the beginning of April, the Trump administration announced a new tariff regime which targets major US trading partners. This disrupted global trading relations and created significant uncertainty in the global economy.

Thanks to the global industrial set-up of the Company, the export of Adisseo from China to the U.S. is very limited. Adisseo is closely monitoring the development of the new tariffs policy and is adjusting its supply chain and distribution route strategically leveraging its well-positioned global landscape.

Thanks to solid market demand, close pricing management across all business lines and ongoing implementation of operational excellence program, Adisseo is confident in the solid business performance in Q2 2025 despite the global trade disruptions.

Adisseo will continue to manage with agility and is fully engaged in delivering growth, improving margins and pursuing strategic investments for the future.

Strong operational dynamics is being pursued with:

• Strong operational performance across plants thanks to the smooth execution of technical shutdowns

• Continuous proactive supply management in methionine

• Competitiveness enhancement program of Vitamin A and opportunity grasping in the market for all Vitamin products

• Acceleration of specialties dynamics, leveraging the full range of services and product offerings

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

• Contribution from operational excellence and cost control measures

Adisseo is also exploring all possible solutions and implementing the defined action plans in a swift and agile way to mitigate potential headwinds which could arise from longer-than expected full-scale industrialization of disruptive FeedKind® technology.

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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