In April, Bluestar Adisseo
released its financial report for Q1 2018. Both revenue and net profit saw YoY
increases. The company is benefiting from past investments to boost volume
growth in methionine, especially in liquid methionine.
Bluestar
Adisseo released the financial report for Q1 2018 in late April. It saw a
revenue of USD480.20 million, up by 22% YoY. The net profit showed USD56.05
million, up by 11% YoY.
Jean-Marc
Dublanc, the CEO of Adisseo, give his comment on the report, that they are
satisfied with the results which have been also in line with the previous
expectations. The company successfully maintained a solid profit margin, thanks
to a well-balanced operation management, a one-off contribution from Vitamin
business and confirmed innovation capability. According to him, the continuous
innovation is a key engine for sustainable growth of Adisseo.
Performance
products saw a 19% YoY increase in revenue and the gross profit margin was 38%.
This was mainly due to a large sales increase of liquid methionine. Vitamin
business also made its contribution. According to Bluestar Adisseo, thanks to
liquid methionine, it was able to further consolidate its position as a leader
in the methionine industry, thanks to the successful management of market
crisis due to the supply shortage of intermediate.
In
H1 2018, Bluestar Adisseo predicted that sales will continue to increase.
However, the company will have to bear some pressure, like the tightened supply
of raw materials and the appreciating RMB.
At
present, the global demand for methionine grows at a rate of five to six
percent. Despite this, the supply-demand situation and the prices of raw
materials still greatly affect the overall financial performance. Notably, most
of Bluestar Adisseo's raw materials were purchased under long-term contracts.
Adisseo
confirmed its leadership in methionine, especially in liquid methionine which
recorded a double-digit volume growth in the period under review although
facing with more and more fierce competition. The leading position will be
further strengthened with the commercialization of Rhodimet A-Dry+, and the
completion of capacity expansion on the European platform in 2018.
The
construction of the 180 kilotonnes liquid methionine plant in Nanjing has started
in March. The new plant will enable Adisseo to satisfy ever-increasing customer
needs and their growth as well as to improve Adisseo cost efficiency.
Speciality
products, consisting of enzymes, rumen-protected methionine, organic selenium
and probiotics additives, now further supplemented by Nutriad products,
achieved accelerated growth and has become a solid second business pillar of
Adisseo. The Business portfolio is becoming more balanced with the continued
growth momentum in new products including Rovabio Advance Phy, Alterion,
Selisseo and Nutriad offerings.
The
recently-completed acquisition of Nutriad, a global feed additives producer, is
part of Adisseo’ strategy to become one of the worldwide leaders of feed
speciality additives. Nutriad products range, the animal species addressed, and
its customers are highly complementary to Adisseo’s and will allow the combined
businesses to implement integrated solutions and to offer even further value to
its customers. With the integration project, Adisseo is expecting great synergy
impact to be extracted from 2018 onwards and first cross-selling synergies have
already been successfully implemented
Innovation
is the spirit of Adisseo, which will boost the further development of
speciality business with great vitality and strong sustainability. On-going
investment in speciality business is planned throughout 2018 and we are
expecting continued volume growth in speciality business thanks to the product
line expansion as well as new product development.
About the company
Adisseo
is a global player in animal nutrition with an annual revenue of USD1.55
billion. The company provides products and services for animal feed additives.
In
2006, they joined the Bluestar Group, the leading Chinese company for new
chemical materials and speciality chemicals, which represented the entering of
the Chinese market, the world’s largest growing market. Acquired by the
investment fund CVC and renamed Adisseo, the company regained its independence.
Through this alliance, it gained strategic support and the ideal launching pad
to take on the Asian market.
The
revenue from the sector of specialities was raised by 27% YoY in
2017. The gross profit margin was 56%, higher by six percentage points over
2016. In addition, Bluestar Adisseo realised an 11% YoY increase in sales
volume of methionine, higher by the industry's average of 6%. This offset the
decreases in price, making the company's decrease in sales value smaller than
the market's expectations.
About the article
The
information for this article comes from CCM, China’s leading market
intelligence provider for the fields of chemicals, agriculture, food and feed.
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