Bluestar Adisseo Company 2017 Q1 Results

Release time:2017-04-30

Bluestar Adisseo Company ('Adisseo' or 'the Company',600299.SH), a global leader in nutrition & health feed solution, today announces its 2017Q1financial results.

Despite a challenging market environment, Adisseo managed to achieve anoperating marginaligned with 2017 targets, a result of rigorous cost control and increased efficiency of the plants.

1. Key Figures: · Operating revenueis at 24.7 (100 million) Yuan. · Net profitreaches the level of 4 (100 million) Yuan, representing a net margin of 16%.· Net cash flowfrom operating activities is amounting to 6.1 (100 million) Yuan.2. Business highlights

Specialty products see significant growth

Specialty products achieve significant growth, of which ruminants product Smartamine grows more than 58%, compared with last quarter (2016 Q4).

This demonstrates the improvement of the dairy market after a year of global crisis as well as Adisseo leading position and ability to capture the rebound.

Enzymes grew as expected, especially the new product Rovabio® Advance, whichis progressing steadily, contributing to 40% of total Rovabio sales (vs 2016 Q4: 20%).

Introduced in June 2016, Rovabio® Advance is the latest innovation from Adisseo's feed enzyme Rovabio® range.

Rovabio® Advance is technically described by Adisseo as a Feedase.

It is available in different forms, powder and granulated or liquid to fit various feed mill applications. The product has strongly impacted overall feed digestibility, with its efficient combination of enzymes that can improve the digestibility of all feed nutrients, which leads to a reduction of costs and a reduction of nutrient losses.

Other specialty productsSelisseo®and Alterion® also recorded steady increase in sales volume.

Performance products: Consolidate its leadership in a growing market demand

Global market demand for methionineremains strong, continuing to grow at a pace of around 5-6% per year.

Margins remain under pressure, due to the short-term change in demand and supply dynamics.

Adisseo foresees methionine market price to enter into a stabilization period in the course of 2017.

In the view of a continuous increase of methionine demand in the long run, Adisseo announced the Polar project early this year to add another 50 KT on the European plants, which is expected to be completed at the end of 2018.

Adisseo also introduced a truly innovative product - Rhodimet® A-Dry+ - early this year.

This product is expected to be commercialized early 2018.

It is a brand new powder methionine product, based on the liquid methionine ('HMTBA') technology which offers the benefits of this molecule to customers whose manufacturing process does not allow the use of liquid form.

In order to ensure the state-of-the-art quality of methionine products and under the condition that clients' demands are well satisfied, methionine plants have been successfully shutdown and restarted for major technical planned maintenance.

Vitamins

After an exceptional year in 2016, Adisseo records lower marginson Vitamins, due to price decrease, partly offseted by cost optimization.

3. Looking forward

Adisseo remains confident for 2017 in the context of a strong US dollar and relatively low energy and raw materials costs although these costs are higher than in 2016.

Its leadership in methionine market will be further enhanced with the incomparable quality and innovative product offerings.

The company also sees great growth potential for its specialty products, its second business pillar.

About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 7 research centers and its production sites based in Europe and China to design, produce and market nutritional solutions for sustainable animal feed. With more than1,900 employees, it serves around 2,600 customers in over 100 different countries through its global distribution network.

Adisseo is listed on the Shanghai Stock Exchange and is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with nearly 25,000 employees and a turnover of 6.4 billion euros.

Adisseo Corporate website:http://www.adisseo.com

About Adisseo products and services

Adisseo offers its customers 4 forms of an essential amino acid, methionine for poultry and swine (Rhodimet AT88 and Rhodimet NP99) and protected methionine for ruminants (Smartamine M and MetaSmart), a complete range of vitamins (Microvit), multi-activities enzymes (Rovabio) and the specialty (Selisseo).

Adisseo supports the development of its customers by providing valuable and innovative services such as PNE - Precise Nutrition Evaluation.

Adisseo Brands website:http://feedsolutions.adisseo.com/en/

ADISSEO press contact

In China: Citigate Dewe Rogerson - Grace Xu: +86 21 53530303; grace.xu@citigate.com.cn

In France: Scenarii - Jihane Teretal: +33 1 40 22 66 45 / +33 6 08 27 68 85 -jteretal@scenarii.fr

Bluestar Adisseo Nutrition Group Limited published this content on 30 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 April 2017 03:14:19 UTC.

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