Adisseo News
Back >>FY2022: Revenues of CNY14.5bn (+13% vs FY2021) allowing to deliver solid profits (CNY1.25bn) in a highly challenging environment
Release time:2023-02-16
Safety and Sustainability
- 2022 TRIR at 0.45, zero accident remains Adisseo’s target
- Adisseo ranked top 10 “best corporate governance company” in “Golden Responsibility” award in 2022 among 1,500 companies
- -10% reduction of GHG emission vs 2021 in line with Adisseo’s sustainability ambition
FY 2022: Revenues of CNY14.5bn (+13% growth) allowing to deliver solid profits in a highly challenging environment in 2022 thanks to:
- Proactive pricing management across product lines, especially in methionine and specialty
- Global industrial footprint further reinforced by the successful BANC2 start up
- Continuous growth in specialties with acceleration in H2 2022
- Swift competitiveness action plans allowing to mitigate impact from huge increase in energy and raw material cost
- European plants managed with agility, adapted to demand while protecting customer interest
- Strict cost control plan with additional recurring saving in 2022 of CNY137mil
One-China Strategy
- Nanjing plant running with high reliability following the smooth start up and ramp up of BANC2
- R&I organization reinforced (+20% R&I FTE) in 2022
- Calysseo (FeedKind®) plant construction completed in 2022
- Specialty capacity expansion project in China entered basic engineering design stage
Key Projects
- Signing of acquisition of Nor-Feed, which will allow Adisseo to enter attractive fast-growing segment of natural plant extracts
- Specialty capacity expansion project in Europe being pursued on schedule
FY2023 outlook
- Safety and sustainability remain Adisseo’s top priorities.
- Volatility and uncertainty keep prevailing. Adisseo will continue to protect its market position and proactively manage its margin while pursuing investment to reinforce competitiveness and continue its development.
- Adisseo will keep investing long-term projects including innovation, CAPEX as well as external growth opportunities to support sustainable and profitable business growth in the future.
Jean-Marc Dublanc, Vice Chairman and CEO of Adisseo, said: “Despite in a chaotic year, with the combination of COVID-19, geopolitical conflicts, and European energy crisis, which triggered a slow-down of market demand in Q3 confirmed in Q4 2022, Adisseo managed to deliver +13% growth in revenue and to protect its profitability at a solid level with EBITDA ratio maintained at 20%. Adisseo keeps investing in innovation, in people, in CAPEX, in digital smart plant to fuel its 2-pillar strategy as well as in external growth opportunities while managing proactively prices and costs.
Through Competitiveness Enhancement Program, we recorded additional recurring saving of around CNY137 million in 2022, an accumulated savings of more than CNY660 million since 2019.
In 2023 we expect volatility and uncertainty to keep prevailing. Adisseo will continue to protect its market position and proactively manage its margin while pursuing investment to reinforce our competitiveness and continue our development.”
Unaudited figures presented to BAC Audit Committee
(Full year 2022 audited consolidated accounts are expected to be presented to the Board on 30th March)
I.Business Review: Revenues & Net Profit Attributable to Shareholders
|
Unit: CNY (100mil) |
FY2022 |
FY2021 |
YoY variance |
|
Operating revenue |
145.3 |
128.7 |
+13% |
|
103.4 |
90.7 |
+14% |
|
33.2 |
31.6 |
+5% |
|
8.7 |
6.3 |
+38% |
|
Gross profit* (in % of operating revenue) |
40.0 28% |
43.9 34% |
-9% -6ppt |
|
23.9 |
27.3 |
-12% |
|
15.6 |
15.4 |
+1% |
|
0.44 |
1.29 |
-66% |
|
Net profit attributable to the shareholders of the Company |
12.5 |
14.7 |
-15% |
Safety is and will remain Adisseo’s priority. The safety performance for 2022 TRIR landed at 0.45, down from 0.78 in 2021. Zero accident remains Adisseo’s target.
Adisseo was ranked top 10 “best corporate governance company” in “Golden Responsibility” award in 2022 among 1,500 companies.
-10% reduction of GHG emission vs 2021 has been achieved. Adisseo is pursuing its sustainable development efforts, targeting a 21% reduction of its scope 1 & 2 GHG emissions by 2025 vs 2020 despite an increase of more than 30% of its estimated production volume.
In FY2022, even though chaotic (COVID-19 in China, geopolitical conflicts, European energy crisis), Adisseo managed to deliver double-digit revenue growth (+13%, CNY14.53 billion) and to protect profitability at a solid level (gross margin at 28%), thanks to:
- Proactive pricing management across product lines, especially methionine and specialties
- Global industrial footprint, further reinforced by the successful BANC2 start up
- Continuous growth in Specialties with acceleration in H2 2022 across animal species
- Swift competitiveness action plans allowing to mitigate impact from huge increase in energy and raw material cost
- European plants managed with agility, adapted to demand while protecting customer interest
- Strict cost control plan partially mitigated the negative impact from huge rise in raw material, energy, and freight costs.
Adisseo achieved strong revenue growth in methionine despite a softening demand in 2nd half of 2022, mainly driven by price increase and double-digit volume growth in China, Middle East and Africa.
The successful start-up in mid-September and the ramp-up of the new 180KT liquid methionine plant (BANC2) allowed Adisseo to reinforce its cost competitiveness advantage and its No.1 market position in liquid methionine. Adisseo can take the full advantage of its highly competitive platform. With more capacity and lower costs, Adisseo will continue to best serve its customers across the world while optimizing production and supply. Key projects in Nanjing plant (water waste treatment & heat recycling) have been launched, aiming to achieve higher yield with less energy consumption and waste output.
Adjustment measures, including the temporary shut-down of a European powder plant and the reduction of liquid production in Europe, have been taken in Europe to reduce costs.
In Q4, energy price in Europe decreased by -25% compared to its peak level, resulting in positive impacts on production costs, which are expected to be further reflected in 2023.
On Vitamins, in the context of slow-down demand and on-going pricing pressure in Vitamin A, production has been adapted to optimize production costs as well as working capital. Vitamin E prices remained at a solid level.
In 2022, specialties business recorded sustainable growth in revenue (+5%) with resilient gross margin at 47% thanks to
- Solid growth across species
- Proactive pricing adjustment
- Ongoing product portfolio optimization
High value-added benefits from specialty products are recognized by customers, which allowed continued revenue growth with significant contribution from the following product lines:
- Strong ruminant business with best quarter ever in Q4 2022 thanks to growth across markets, reinforced by development of new products: Smartamine® ML and Rumensmart®
- Good performance in Monogastric business driven by
- Health by nutrition in particular Selisseo & Alterion products, and
- Positive developments in feed digestibility: Rovabio Enzyme
- Mycotoxin
- Continuous growth in Aqua across regions, driven notably by significant growth in digestion portfolio powered by Aqualyso leveraging FRAmelco acquisition
European Specialties Capacity Expansion and Optimization Project has been pursued: Feasibility Study Report approval has been obtained, industrial layout has been validated, flatting work has been finalized with major contracts signed on engineering and key equipment.
Signing of the acquisition of Nor-Feed is a key step to allow Adisseo to enter the attractive fast-growing segment of natural plant extracts.
The Competitiveness Enhancement Program, a global systematic and transversal program initiated in 2019, continued to deliver significant savings in 2022. Adisseo recorded an extra recurring saving of around CNY137 million in 2022, an accumulated savings of more than CNY660 million since 2019, thanks to:
- Industrial process upgrading allowing to deliver yield improvement
- Energy consumption reduction and recycling
- Contract renegotiations
- Supply chain optimization
- Digital application in animal test, marketing, data monitoring and manufacturing
An extra cost control plan has been implemented instantly following European energy crisis. The temporary shutdown of one powder plant and the reduction of liquid production in Europe led to an extra saving of CNY62 million in methionine production costs in 2022. More benefits are expected in 2023.
More stringent implementation of cost control plan is and will be rolled out in following years to ensure cost competitiveness.
In 2022, One-China Strategy continued its successful implementation with tangible benefits realized:
- Double-digit growth in China both on
- Liquid and powder methionine
- Specialties, driven by high double-digit growth in Ruminants, Aqua and Mycotoxin
- Research & Innovation:
- Reinforced organization with +20% FTE in 2022
- 4 new patents granted among 7 new applications
- Important contribution to the optimization of key industrial process as well as technology and service application in China and globally
- Digitalization Transformation of Nanjing plant at full speed to improve operation efficiency, yield, HSE performance and sustainability
- Specialty capacity expansion project in China entered basic engineering design stage
- Calysseo Chongqing plant, the world’s first commercial FeedKind® facility, completed its construction in 2022 with excellent safety performance (TRIR=0)
- First strategic alliance agreement on FeedKind® has been signed with one of top feed producers in China
FY2022 net profit attributable to shareholders (CNY1.25 billion) decreased by -15% mainly due to:
- Reduction in gross profit
- Continuous investment in sales & marketing and accelerated research & innovation
- Negative FX financial result due to volatility between invoicing and payment, however fully offset by positive FX impact on EBITDA
- Partially compensated by the benefits from competitiveness enhancement program
II.Cash-flow and Net Debt
Cash position as of 31st December 2022 stood at CNY0.8 billion, a reduction of CNY1.32 billion compared to 31st December 2021. Cash flow generated from operating activities has been invested in:
- CAPEX financing
- Extra working capital consumption in the context of supply challenges
- Dividend payment and preferred shares redemption
III.Corporate Governance & Shareholder Structure
Adisseo received a recognition of 2022 Annual Outstanding Practice Case of Board of Directors Office of Public Companies organized by CAPCO (China Association for Public Companies).
The conversion of the exchangeable bonds issued by Bluestar started on 21st October 2020 and will continue until 2024. No conversion was recorded in 2022. As of 31st December 2022, the conversion rate stayed at around 22% with floating reaching 14.2% of Adisseo market capitalization.
IV.FY2023 outlook
Safety and sustainability remain Adisseo’s top priorities.
In 2023, volatility and uncertainty keep prevailing. Adisseo continues to reinforce its market position while protecting margins by:
- Acceleration of liquid methionine penetration supported by capacity expansion projects
- Robust growth in specialties
- Continuous action plans to manage margins and optimize cost
- Leveraging global footprint and innovation capabilities
Adisseo is also intending to pursue its investments in long-term projects including innovation and external growth opportunities to support sustainable and profitable business growth in the future.
-End-
About Adisseo
Adisseo is one of the world's leading experts in feed additives. The group relies on its 8 research centers and its production sites based in Europe, USA, Thailand and China to design, produce, and market nutritional solutions for sustainable animal feed. With more than 2,523 employees, it serves around 3,900 customers in over 110 different countries through its global distribution network.
Adisseo is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with more than 20,000 employees and a turnover of CNY 73.5 billion in 2022.
Adisseo is listed on the Shanghai Stock Exchange.
Adisseo Corporate websites: www.adisseo.com; www.bluestar-adisseo.com
ADISSEO press contact
In China: Yun CAI, yun.cai@adisseo.com
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