In April 2016, Adisseo announced rise in net
profit in its full-year 2015 financial figures, thanks to the exchange of
major assets and company restructuring. Meanwhile, its animal nutrition
business also recorded YoY rise, due to the lower production cost and rising
market price of methionine. In 2016, the company’s larger sales contributed to
its upward financial performance, despite the falling market price of
methionine. Thus, Adisseo plans to take its advantages in supply for larger
sales in the later period.
On 14 April, 2016, Bluestar Adisseo Company (Adisseo)
released its financial figures in full-year 2015.
-
Revenue: USD2.35 billion (RMB15.17 billion), down by 22% YoY
-
Net profit: USD236.69 million (RMB1.53 billion), up by 4% YoY
The rises were mainly
attributed to Adisseo’s exchange of major assets and company restructuring.
On July 27, 2015, the company:
1. Acquired 85% of the shares
in Bluestar Adisseo Nutrition Group Ltd. (Bluestar Adisseo)
2. Transferred all Bluestar
New Chemical Materials Co., Ltd. (Bluestar New Chemical, predecessor of
Adisseo)’s rights and obligations of assets to China National Bluestar (Group)
Co., Ltd. (Bluestar Group), deducting the assets sold and other dues (USD258.73
million – RMB1.67 million)
This asset exchange enhanced
Adisseo’s profitability. Bluestar New Chemical’s new chemical material business
recorded severe financial loss: nearly -USD123.87 million (RMB800 million),
with 0% gross profit margin in H1 2015 (all its businesses after 30 June 2015
were exchanged out). The acquisition of the shares in Bluestar Adisseo eased
these losses. Finally, Adisseo realized a turnaround in financial performance
in 2015, thanks to its health and nutrition business.
After this restructuring,
Adisseo’s main businesses transformed from new chemical materials to the
R&D, production and sales of feed additives for animal nutrition, main
products covering functional products, specialty products, and other animal
feed additives.
Adisseo's financial performance by product, 2015
|
Product
|
Revenue, million USD
|
YoY change, %
|
Operating costs, million USD
|
YoY change, %
|
Gross profit margin, %
|
YoY change, percentage point
|
|
Functional products
|
1,596.50
|
28
|
771.21
|
-4
|
52
|
+17
|
|
Specialty products
|
213.81
|
10
|
95.37
|
-8
|
55
|
+9
|
|
Others
|
79.07
|
-12
|
53.39
|
-13
|
32
|
+1
|
|
Subtotal
|
1,889.38
|
23
|
919.97
|
-5
|
51
|
+14
|
|
New chemical materials
|
432.48
|
-66
|
430.63
|
-65
|
0
|
-1
|
Note: Functional products:
mainly methionine, vitamins, ammonium sulfate and sodium sulfate;
Specialty products: mainly
enzymes preparation, rumenprotected methionine and organic selenium additives;
Others: mainly carbon
disulfide, sulfuric acid and services of processing powder.
Source: Bluestar Adisseo
Company
In 2015, Adisseo’s health and nutrition business
recorded YoY rises.
-
Revenue: USD1.89 billion (RMB12.20 billion), up by 23% YoY
-
Net profit: USD433.90 million (RMB2.80 billion)
-
Gross profit margin: 51%, up by 14.5 percentage points YoY
“These rises were mainly
because the shortage in methionine boosted its market price to an
extraordinarily high level, while the fall in oil price reduced the production
costs,” analyzed Adisseo.
Functional products, including
vitamin A and methionine (65%+ of the total), are the leading part in the
overall health and nutrition business:
-
Revenue: USD1.60 billion (RMB10.31 billion), up by 28% YoY
Methionine was the vital
contributor for this rise. In H1 2015, the short supply of methionine boosted
the market price, and further, the sales of Adisseo’s functional products.
According to CCM’s price monitoring, China’s market price of methionine reached
USD11,394/t in April, hitting a record high.
Meanwhile, thanks to the
falling price of oil (raw material for methionine) and strict control, Adisseo’s
operating costs fell by 4% to US.
Adisseo's sales distribution of health and nutrition
business, 2015
Source: Bluestar Adisseo
Company
Global production capacity distribution of methionine,
2015
Note: Evonik short for Evonik
Industries AG;
Bluestar Adisseo short for
Bluestar Adisseo Nutrition Group Ltd.;
Novus short for Novus
International, Inc.;
Sumitomo short for Sumitomo
Chemical Co., Ltd.;
CJ short for CJ Group Co.,
Ltd.;
NUTM short for Ningxia
Unisplendour Gas Chemical Co., Ltd.
Source: Bluestar Adisseo Company
Notably, in Q1 2016, Adisseo continued its upward
financial performance, despite the falling market price of methionine.
According to CCM’s price monitoring, China’s average market price of powder
methionine decreased by 38% YoY to USD4,547/t in Q1. However, the company’s net
profit was reported a YoY increase of 16% to USD86.81 million (RMB561 million).
This increase was mainly
thanks to its larger sales.
According to the annual
report, Adisseo has been the second largest methionine producer in the world,
with its global market share rose from 23% in 2012 to 27% in 2015. In 2016, the
company’s 140,000 t/a liquid methionine project has been capable of producing
at full capacity, which will be favorable for its further market expansion.
At present, Adisseo’s total
production capacity of methionine achieved 360,000 t/a. In particular, its
140,000 t/a liquid methionine project was constructed in Nanjing, China.
Altogether, the company has 6 production bases, located in France (Commentry,
Les Roches, Roussillon, and La Rochelle), Spain (Burgos) and China (Nanjing)
respectively.
* This article comes from Amino Acids China News 1604, CCM.
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Tag: methionine, Adisseo