Safety and health remain Adisseo’s first priority while ensuring business continuity: a solid safety result achieved in H1 2021 with TRIR at 0.49.
Sustainability & Environment: encouraging performance towards long-term target:
H1 2021: despite continued supply chain difficulties, stabilized YTD revenue CNY5.98 billion (+2%) and continued growth in net profit contributed to shareholders CNY816 million (+14%) comparing to the strong H1 2020 driven by:
Key projects:
One-China Strategy in progress with tangible benefits
2nd Nanjing plant (BANC 2 project) and construction of 1st Commercial FeedKind® plant well on track as well as the European methionine debottlenecking project
FRAmelco integration on-going with commercial and industrial synergies underway
Investment of a minority stake in PigChamp, a key milestone in Precision Livestock Farming
Shareholder structure:
As of 20th July 2021, around 22% of the total exchangeable bonds issued by Bluestar had been converted into shares. Floating thus reached around 14.2% of Adisseo market capitalization
H2 2021 outlook
In an environment where volatility and uncertainty will still prevail, Adisseo is confident and engaged to ensure its employees’ safety and business continuity while pursuing investment in sustainable growth
Adisseo will accelerate growth in sales in H2 at a solid margin level despite increased pressure on raw material costs thanks to:
Continued volume growth in liquid methionine and an improved volume increase in powder methionine
Proactive price management
Accelerated robust growth in specialties
Seizing of market opportunities in vitamins sector
Proactive margin and cost optimization thanks to competitiveness enhancement program
Expanded innovation capabilities and external growth opportunities
Jean-Marc Dublanc, CEO of Adisseo, said: “There is still significant uncertainty regarding COVID-19 pandemic. I am extremely proud to see the resilience and adaptability of our teams in this difficult environment, supporting our communities and customers and ensuring business continuity and continued net profit growth. Sustainability is one of our key performance indicators with encouraging performance realized in H1 2021 towards our long-term target.
I am also pleased of the dynamic of our business in China with tangible benefits delivered. We are fully mobilized to grasp the great potential of the local market and become the leader in both methionine and specialty business in China. The first FeedKind® Chongqing plant to start up in Q4 2022 will become an important booster for Adisseo in alternative protein and aqua market in China and Southeast Asia.
‘In Science, We Trust’ mindset is deeply rooted in Adisseo. Investment on Research & Innovation (R&I) is being intensified by the establishment of China R&I center and two European R&I centers. The record-high number of applications received after the launch of Adisseo Research Grant in H1 2021 proves our thought leadership in the industry. Recently, the minority investment in PigChamp, a 20-year service company focused on providing digital transformation in swine industry, represents a key milestone of Adisseo’s investment in Precision Livestock Farming.
Looking at the second half of 2021, Adisseo will ensure its employees’ safety and business continuity while dealing with the market volatility and uncertainty. Benefiting from the continuous strong market demand in all segment including in swine market, we are expecting an accelerated growth with a solid margin level. Furthermore, in this challenging context, we are willing to pursue our profitable growth ambition.”
Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosed its H1 2021 results.
Business Review: Revenues & Net Profit Contributed to Shareholders
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Unit: CNY (100mil) | H1 2021 | H1 2020 | YoY variance |
Operating revenue | 59.8 | 58.9 | +2% |
| 41.4 | 41.9 | -1% |
| 15.4 | 14.2 | +9% |
| 3.0 | 2.7 | +9% |
Gross profit (in % of operating revenue) | 23.6 39.4% | 23.3 39.6% | +1% -0.2ppt |
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