Full-year results were better than expected
For FY2017, Adisseo recorded an operating revenue of CNY10.4 billion (US$1.6 billion), a minor decrease of 3 percent, compared with last year mainly driven by the significant decrease of methionine prices in 2017 which was partly compensated by significant volume growths for all product lines.
The rebound of business over the last quarter where revenues were up 7 percent enabled the company to achieve a better-than-expected full-year operating revenues (+5 percent vs. budget). The net profit contributed to shareholders was CNY1.32 billion, a 29 percent decrease compared with 2016, but better than the company’s original budget of CNY1.16 billion, thanks to the execution of a robust action plan that seized market opportunities and which was sustained by double-digit growth in main products volume, continuous processes improvements, rigorous cost control, innovation, commercial development and price management. In Q4 2017, net profits to shareholders were back to growth (+29 percent vs. Q4 2016).
“We are thrilled to present our better-than-expectation performance for 2017,” said Jean-Marc Dublanc, CEO of Adisseo. “The competitive landscape in 2017 was challenging with newcomers and new capacities from existing players coming into the market. Thanks to the effective implementation of a customer-oriented business value, our ‘two-business-pillar’ strategy as well as our excellent operational performance combined with rigorous cost control initiatives, we successfully maintained our profitability and consolidated our market leadership.”
In 2017, Adisseo confirmed its leadership in liquid methionine, with a high sales volume growth of 11 percent on average versus a global methionine demand growing by approximately 6 percent. This leading position will be further strengthened with the commercialization of Rhodimet A-Dry+ as well as the completion of capacity expansion on the European platform in 2018. The newly announced investment for the construction of a 180KT liquid methionine plant in Nanjing will enable Adisseo to meet ever-increasing customer needs and growth as well as to improve Adisseo costs efficiency.
Adisseo is uniquely positioned in vitamin business for the feed industry, which endeavors to provide a global offer of vitamin solutions with high quality and complete traceability of the products. Adisseo achieved very good results on its vitamin business in 2017 thanks to rigorous cost, proactive as well as operational pricing and purchasing management. The company has also taken all possible measures to minimize the impact of the accidental shutdown of its intermediate supplier of vitamin A as regards its end customers.
Specialty products, consisting of enzymes, rumen-protected methionine, organic selenium and probiotics additives, are under active development as Adisseo’s second business pillar. This business segment recorded another year of strong growth of 27 percent in sales in 2017, with a gross profit margin increased from 50 percent last year to 56 percent in 2017. Notably, rumen-protected methionine product Smartamine achieved a 50 percent volume increase, and the operating revenue of organic selenium product Selisseo and probiotics product Alterion, which were launched in recent years, almost doubled that of last year.