Bluestar Adisseo announces 22 percent revenue growth in Q1 2018

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Publish time:5/7/2018 12:00:00 AM      Source: CCM
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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.


For regular and exclusive updates in China’s amino acid market, please have a look at CCM’s monthly published Amino Acids China News.


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