Agrochemicals maker Makhteshim Agan Industries Ltd. today reported its financial results for the third quarter of 2012. Net profit rose 30% to $13.1 million (2% of sales) for the third quarter from $10.1 million (1.6% of sales) for the corresponding quarter of 2011. Net profit rose to $144.4 million (6.4% of sales) in January-September from $147.2 million (6.9% of sales) in the corresponding months of last year.
Revenue totaled $643.5 million in the third quarter, compared with $638.5 million in the corresponding quarter. In January-September, revenue totaled $2.25 billion, compared with $2.14 million in the corresponding period of 2011, an increase of $112.9 million.
Makhteshim said that the increase in sales derived from higher selling prices and increased quantities sold in Asia and Europe, which compensated for negative exchange rate fluctuations, which were partly offset by hedging transactions.
Gross profit rose to $199.3 million (31% of sales) for the third quarter from $197.7 million ($31 of sales) for the corresponding quarter. Operating profit rose to $52.8 million (8.2% of sales for the third quarter from $50.1 million (7.8% of sales) for the corresponding quarter. Operating profit in January-September rose to $278.6 million (12.4% of sales) from $249.3 million (11.6% of sales) in the corresponding period of 2011.
Makhteshim chairman Yang Xingqiang said, “We are pleased to report a strong quarter with double digit sales growth in the Asia Pacific and Africa region, as well as improvement in all our financial indicators for the first nine months, including EBITDA, operating profit and net income. We continue to implement the company’s strategic initiatives, including the integration of MAI with ChemChina's agrochemicals activities. In parallel, we are executing on our operational work plan that will allow us to strengthen our ability to create simplicity in agriculture for farmers around the globe.”
Makhteshim president and CEO Erez Vigodman said, “The continued improvement in our quarterly results proves Makhteshim's ability to expand and grow while strengthening our operational discipline and our customer focus over time. I am pleased with our ability to significantly grow our operating profit, EBITDA and net income for both the quarter and first nine months of the year, despite the quarter’s unfavorable foreign exchange environment and challenging weather in the US, Russia and Eastern Europe. We continued to introduce new differentiated off-patent solutions in many of our territories while compensating for higher raw material prices. Our strengths in market reach and product registration allowed us to cement our market positioning and will continue to play a pivotal role in our strategy going forward."
Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2012
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