Makhteshim Agan Industries Ltd. (TASE: MAIN) today published its financial report for the first quarter of 2008. Revenue totaled $722 million, up 31% on the $553 million for the corresponding quarter of 2007. Net profit rose 28% to a record $90.9 million from $71.1 million for the corresponding quarter.
The company noted that agrochemicals sales were up 32% compared with the corresponding quarter of 2007. A breakdown by region showed $340 million in sales in Europe, up 32% on the corresponding quarter; 47% growth in South American sales to $147.4 million; and 70% growth in the rest of the world, primarily Australia, to $98.7 million.
Makhteshim Agan noted that its gross profit and profit margin increased due to volume growth and higher average selling prices, which were partly offset by higher costs for oil and raw materials.
Makhteshim Agan chairman and CEO Avraham Bigger noted that the positive trends in the crop protection market in 2007 were continuing. He attributed this to the increase in world population, and a rise in standard of living, particularly in growth markets, which combined to boost prices of agricultural outputs and planted acreage. He added, "The strong demand in the sector enables us to uphold our selling prices which, together with continued cost containment that results from our change and efficiency plan, led to an improvement of the company's gross profitability and continued improvement of its operating profitability. As reported by other companies in the sector part of the growth in the first quarter may result from advancement of sales from the following quarters.”
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2008
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