Good morning, dear investors. Good afternoon, dear investors. It is really a pleasure for me to invite you to this presentation for Q3 and first nine months of 2026. Today, we have Mr. Gaël Hili, the chairman, president, and CEO of ADAMA, and our incoming president and CEO, Mr. Zhigang Hao, who will take office next month. Mr. Sammy, our CFO, and Rivka, our investor relations and finance governance manager. They are all online from abroad to attend this presentation this afternoon.
We will first have a PPT presentation and next Q&A. We have also provided Chinese and English interpretations. If you need this function, you will see the button at the bottom and choose which language you are comfortable with. Moreover, you can also use the interactive buttons or the raise hand buttons to jump in whenever you can. You will also see that we have shared a PPT this afternoon.
For this slide, you will see the disclaimer. Now, I will hand over the floor to Mr. Gaël Hili, our chairman, president, and CEO. Gaël, the floor is yours.
Thank you. Thank you very much. Good afternoon, everyone. It is my pleasure to be here with you. I will start, as it has been just said, we will start by some short introductions of our new incoming CEO, Dr. Zhigang Hao, and our new also incoming CFO, Mr. Sammy Leibowitz. I will ask both Zhigang and Sammy to introduce themselves very quickly, and then we can move on to the usual agenda of this call. I will talk about the market situation, our performance, and obviously will answer your questions at the end of this presentation. Zhigang, maybe you want to introduce yourself quickly?
Okay. Thank you, Gaël. [Non-English content ] Thank you. Good afternoon, everyone. As decided by our BOD, I will be the president and CEO for ADAMA next month. Actually, after graduated with my doctor's degree in 2008, I was with Bluestar, which is under the ChemChina. After that, my position was with production plants or management teams, and I was also the chairman and CEO for China Bluestar. I was also the managing director for Adisseo. It is really a great pleasure for me to be part of ADAMA and to improve the financial performance of our company in the coming months. Thank you very much.
Hi.
Hi, everybody. Very excited to be here with you. My name is Sammy Leibowitz. I am originally from the U.S., but based in Israel. I come from an investing background, where I spent close to 10 years as an institutional investor, but then joined ADAMA in 2012. I have been in several different departments in the organization, seeing a broad range from mergers and acquisitions to multiple finance positions in our R&D and commercial units, as well as roles in marketing as a product manager, leading a product manager team, and also leading our strategy and communications efforts as part of our Fight Forward program that you have heard quite a lot about. I spent the last few months working in the Syngenta Group offices in Basel, Switzerland, also running transformation and strategic initiatives.
Well acquainted with both the ADAMA infrastructure as well as the industry, as well as the Syngenta Group larger network. Very excited to come back into this role and join you today in the call. Thank you.
Thank you, Sammy. Thank you, Zhigang. As of November 1st, so next week, I will be retaining the role of chairman and will be working with both Zhigang and Sammy to ensure the continuity first, and obviously continuous performance of the company. Moving to Q3 and the nine-month performance, I will start by saying that the trends that we see in the agrochemical market, the B2C agrochem part of the agrochemical market, have continued in Q3 what we have seen in the first half of the year. Two major factors are affecting our market in these first nine months of the year and in Q3. These are pressured grower economics, so the profit that growers are making are under pressure.
It has been true for the last nearly two years now, but it has continued with commodity prices that remain lower than historical averages and the cost of operating farms that are actually higher than historical averages. So, these two together are pressuring the profit of the grower, and this has continued very much in Q3 this year. The other thing that has happened in Q3 this year, which is especially impacting ADAMA, probably more than the average of the market, is the drought that has happened in Europe in June, July, and August. We are exposed to Europe. Europe is our biggest region, both in sales and in profit. The historical drought is the most intense, both in term of temperatures and lack of rain that has been seen since the meteorological forecast exists, has affected the markets significantly.
There's a market in Europe with double-digit drops of market value in Q3 for the key Western market like France, Germany, U.K. Because we are strong in Europe, it's our strongest region, it has also affected us. These are the two additional market events that was worth noting for Q3. The pricing pressure, because of those two elements, but especially the first one, the fact that the grower income is under pressure and that there's still very much overcapacity in our industry. This is an industry where the market is completely flooded of products, so the customers have ample choice of supply in front of them. Those two things resulted in continued price pressure in our industry. I say in our industry because it's true for us, but the results we're seeing of our competitors are confirming this trend.
Unfortunately, it was the same last year. This is the second year in a row where we see price pressure in our industry, and quite significant price pressure, which is necessary to include into the analysis of our Q3 result and our nine-month. We still have some markets where our strategy of growing our business with differentiated product is working. I've mentioned some of them. Europe itself, despite the very difficult market condition, if we see how we're doing in market, we're gaining share, we're growing our position in Europe. Canada is another market we're doing very well. Mexico is another one. We have markets where our strategy is working, and we're growing profitably with the right range of products, the differentiated one.
That is shown, by the way, a key element of our strategy is to improve our mix, so the balance between differentiated products and commodities, and we've done it both in Q3 versus previous Q3 and the nine-month. The mix keep on improving, and that's a good sign that we are on track with our strategy. The other thing which continues, and this is something we built in term of capability in ADAMA over 2024 and 2025 as we were deploying the Fight Forward program, is cost discipline. We are in a difficult market, no question about this, and these are moments where cost discipline matters. We've been proving that by delivering an OpEx performance in Q3, which is the lowest in many, many years. Our Q3 OpEx was under $200 million, and this is despite the inflation and despite an adverse currency.
We delivered a proof of how strictly we are managing our costs, what we can control in a moment like this. We also see continuous decreased financial expenses and an improved debt profile. We continue, and that's important because before Fight Forward, that was not true, we continue to generate cash, okay? Even if we're generating less cash than last year because of the condition of the market I was mentioning a second ago, we continue to be a cash-generative company. That's important because this is also the result of the work we did over the Fight Forward program for the last two years. Next slide, please. In those conditions, let's look at Q3 first. In Q3, our sales were down by 4% to slightly below $900 million. This is a combination of lower volume and lower prices versus previous year.
The lower volume are coming mainly from the heatwave in Europe. Once again, Europe is very important for us, and we saw some significant volume drops in Europe. We are actually performing better than the market, so our volumes drop was less than what we saw in the market, but still, we couldn't be immune of that significant weaker demand in Europe over the quarter. The prices, they reflect what the industry is doing. Actually, with 2%, let's see what our competitor are doing once their results are all out, which is not the case yet. We have only a few that are already published. But with 2%, I believe we're actually better than the average of the industry in Q3. This pressure on sales and on prices, sorry, and on volumes for Q3 resulted in gross profit being down by 11%.
The gross margin is at 25.4% versus 27.6% the previous year. This is a direct consequence of what I was saying. It's also, and this is unfortunately new for Q3, the result of higher costs. This is the first quarter where, on top of the price pressure, we are hit by higher costs, which are the direct result of the war in the Middle East that started in February. Now, you may say, "Why now? Only now?" Because there is a lag between the time where our purchase, raw materials, our costs are increasing, and when we're seeing it in our cost. Because in the meantime, we've been selling our inventories, and now we're starting to sell, or in Q3, sorry, we started to sell the products that had those increased price raw material used to produce them.
It's a quarter where we see margin erosion through price and through cost. Once again, I see this is a phenomenon that is a market phenomenon. We're not the only ones suffering those cost increases, because obviously we're not the only one that had to deal for a few months, because then prices started coming down again, but had to deal with higher costs of raw materials, including active ingredients from China in February, March, and a little bit of April. We have, as I was saying, when you think of the EBITDA, the EBITDA is also down by 22%.
Despite lower OpEx, I said, when we saw the market that the market was going to be extremely difficult this year, and that was already the case, we saw that already in March, April, we decided to take all the possible measures to reduce our operating cost, and that is paying off. Unfortunately, not enough to compensate the price and volume trend, but OpEx were lower in Q3 versus Q3 2025. All this result in a net loss of $74 million versus $20 million loss last year, and this is despite lower financial expenses I was mentioning a moment ago. Next slide.
We are currently on the nine month. We are on the nine month.
Yeah, you moved the slide already.
Yeah, on the nine month.
Okay. On the nine month, as you can see, the picture is better than in the Q3. Q3 has been really a difficult quarter for us, especially because of what has happened in Europe. If we see the nine-month performance, which is meaningful for an industry like ours, which is very seasonal, you see sales down 1%. Actually, if you exclude the fact that we decided to produce some commodity chemicals out of China last year, we stopped a plant. If you exclude that, our volume are up, and our prices are down. So, volume is still, if you look at the 9 month, are still relatively healthy, both for ADAMA and the industry. Prices is the issue, with a price drop of 3% on the nine month, which again reflects very much what you see in the market.
Gross profit is, on the nine month, is down 2%, so you see slightly better than what we saw on the Q3. The mix is helping there, as I was explaining before. The EBITDA is lower 8%. The OpEx, if you look at the H1, were slightly higher than previous H1, because the measure that we took to cut costs and reduce our expenses started taking, have an impact in the end of Q2 and for Q3, as we just saw. If we look at adjusted, at the net income, we are talking about an adjusted net loss for the first nine months of the year of $11 million, versus an income last year of $29 million.
But again, this is reflecting, the main reason for that is coming from what I was explaining before, which is the pressure on price in H1, and then the pressure on price and cost in Q3. Next slide, please. Now, if we look at the regional sales performance for Q3, you see what I was This is nine month?
Yes, this is nine month.
Okay, let's go to nine month, which is more reflective of the season. If you look at how we are doing, we are still growing our sales in Europe, despite the very, very difficult Q3. This is really a proof that we are not only resilient in Europe, but growing share. You see our sales in North America also improving. We have been capturing new opportunities at some new customers in North America, especially in U.S. agriculture. Very strong performance in Canada. I was mentioning Canada as one of the countries where our differentiated strategy, innovation strategy is working very well. Latin America is down, and this is mainly Brazil, because it is a combination of Brazil being significantly down and Argentina doing actually pretty well.
Argentina and Mexico are doing well, but the prices in Brazil are affecting significantly the performance there. Prices and volume in Q3. Asia Pacific, if we exclude China, is growing. This is the rebound of our Indian business. So, our Indian business is now doing better after two years of difficulties. So, slowly we are rebounding in India. It is progressive. It still needs to improve, but these are good signs. Then China. China, frankly, I would look at the lowest one, because then it compares apples to apples. As I said before, we closed in Anpon, in our site of Anpon in China, we closed some assets in 2025, which were still bringing some income last year, and obviously are not bringing any income this year.
If you exclude that, we see an increase of sales of 1% in USD in China, which again, in the current market condition, is actually, I believe, a very strong performance. So, summarizing the geographical performance, we are doing well in Europe, actually very well in Europe and Middle East Africa. We are progressing in North America. Latin America is very difficult. Rebound in India and China is also very resilient in the current market condition. Next slide. I will leave it to Sammy for the bridges.
Thank you, Gaël. Just jumping into some of the specifics, putting some figures behind the points that Gaël already mentioned. As you can see in our three-month waterfall of sales, you can see the 4% decline in volumes, mainly coming from the European markets, as well as some delayed sales in the Brazilian market. You can see pricing coming down around 2%, again, reflecting some of the ongoing trends that have happened throughout this year, as pricing pressure has been maintained through the year and increased competition in the markets. For this quarter, most of the pricing declines have been mitigated by exchange rate effects, which have pretty much neutralized the pricing declines, remaining in a net volume driver for our quarterly sales. Jumping into the next slide, we can see how this affects our gross profit and our EBITDA for the quarter.
On the top, in terms of gross profit, we see that actually the decline in volumes was mitigated on a gross profit level due to a better mix, as Gaël had mentioned, as we continue to focus on our differentiated portfolio. The pricing decline that you saw on the previous slide is still there. However, we are seeing cost increases, as Gaël had mentioned, as the disruptions in the Middle East from the first half of the year have made their way through our supply chain and into our P&L. We see that effect coming through to bring us to the gross profit levels that we are at now, reflecting around the 2% decline in our gross margin percentage.
Looking at the EBITDA level from the quarter, again, seeing those same trends coming through, but seeing that the company and the management has responded quickly and in an agile way to mitigate some of these headwinds that have been coming through, as we've limited our OpEx and even saved on our OpEx expenditures versus last year to mitigate some of these headwinds that have come through. However, still seeing a significant decline in EBITDA through the year versus last year. If we zoom out to the nine months and go into the next slide, we can see how some of these trends have continued and some of them have not. As a reminder, from the three months, we had a 4% decline in volume.
Here on the nine-month level, taking a more broad look outside of the severe weather effects of the quarter, we see that volumes have remained relatively flat in a challenging market. The real trend that we've seen that has been more deteriorating to our results has been the increased pressure in the market causing price declines, and not allowing our sales to grow to the levels that we would like, even versus last year. Moving into the gross profits waterfall for the nine months, again, we can see how the volumes have actually been accretive, have been supportive of our EBITDA as they go up due to the increased mix that we've had. Of course, as we see, we just mentioned the pricing levels have come down. Most of the cost deterioration that we see in the nine months actually happened in Q3.
Just as a reminder, the Q3 number was $16, so $16 million out of that $22 million decline was happening actually just in this quarter. Again, we're seeing that how the FX is able to mitigate some of the pricing headwinds that we've had to bring us to a slightly lower gross profit level. Again, at the EBITDA level, we're seeing that the containment of OpEx throughout the year has allowed us to mitigate some of the effects that have come through. However, we are seeing an 8% decline in the EBITDA levels, as well as a deterioration in the margins, that we plan to pull through as we go through it. Jumping into the next slide, seeing how this translates into cash flow. On the left side, we can see our operating cash flow.
Again, as Gaël had mentioned, we are still producing cash despite this difficult market. The differential that we see between last year's very strong performance and this year is created not by the fundamentals of the business, rather by some one-time effects that happened both this year and last year. One being a large movement of payments from the fourth quarter of 2024 into the first quarter of 2025, creating an inflated benchmark, as well as the decrease in sales of the basic chemicals that Gaël mentioned earlier have lowered our operating cash flow. That gap has been significantly diminished as we look across to the free cash flow and get down to the free cash flow line.
We've had some one-off disposals and control of our procurement, in both cases that have allowed us to mitigate that gap, but also allow us to produce free cash flow despite a very challenging market, both on the sales side and on the margin side. We're happy with our $87 million of free cash flow through the year, and we plan to continue to push this measure as we go through the rest of the season. Thank you very much for the presentation, and we look forward to your questions.
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Thanks, Bill. Thanks, Sammy. Thanks for your introduction. Now, let's come to Q&A. Everyone, every friend here know, we have the special sections for you to put in your questions. Everyone know that Dr. Hao Zhigang will become our CEO and President, and he is also the first Chinese to be our head. The first question goes to Dr. Hao. What is the consideration behind this appointment?
Let me answer this one as the Chairman of the Board. Dr. Hao brings significant experience of global leadership. He's certainly qualified to run a company like ADAMA. He has experience of first operational leading of international business of a similar size to ADAMA, with transformation experience as a CEO. I'm completely convinced that he has the credential to be successful leading the company. He comes also with a very good understanding and very strong ties to the Sinochem Group. As you say, all the company he was the CEO of previously, it also has also Sinochem as a majority shareholder. He's also listed. He comes with all the relevant experiences to be successful in this role.
Now, as he comes in, his initial focus will be obviously to understand the business, the people, the culture of the company, while working with the leadership team to strengthen the performance of the company. I've been working with Dr. Hao for the last couple of months on his transition to make sure that it is a smooth and successful transition. I'm convinced that this will bring value to the company. He will be actively supporting the strategic direction that we've been putting together over the last years, and obviously taking the necessary decision to maintain or even improve the performance of the company. I have no doubt that Dr. Hao is qualified for the role.
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Let's see the second question. The three-year Fight Forward transformation program is due to conclude this year. How will you comment on its outcome and effectiveness? What will be the core objectives of your next stage in 2027?
Fight Forward, which is a program that lasted for two years, actually, or a little bit more than two years, started in 2023, then covered the full years of 2024 and 2025 , is what allowed us to strengthen the foundation of the company, to bring back the profitability to an acceptable level, to create the foundation to operate a company for growth again. It included, as you know, a significant amount of restructuring. We reduced the size of our organization. We evolved our operating model, optimized our geography. We went out of certain markets to focus on the one where we believe we can extract value. We also did the same with our portfolio. Overall, we improved the operational efficiency of the company, and this shows in our result in 2025.
Now, when we enter 2026, we're building, and beyond for 2027, we're building of the objective of the next strategic phase is to turn this stable platform into growth. But growth that is profitable, growth that comes from the right part of our portfolio. We have a balanced portfolio between commodities and differentiated product, about 50/50, and we need that growth to come from both, not only from the commodities. The improved mix that we see in the nine-month performance and in the Q3 performance is giving us confidence that we can do it. Now, the market conditions this year, and especially in the last quarter, did not really help with that, significant headwinds.
But in those headwinds, in some very strategic markets like Europe, like Canada, like Australia, like Mexico, like Argentina, we are actually showing or seeing the results of this strategy on building on the healthy base that Fight Forward has delivered.
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Question number three. Based on actual weather conditions and crop protection product usage across major regions to date, in which regions has El Niño already had a tangible impact on the timing of the company's sales or on its product mix? Has the impact been positive or negative? Looking ahead to 2027, how does the company view which regions are most likely to be the first to see a recovery in both volume and pricing?
That's a good question. Obviously, it's very difficult to forecast the impact of El Niño, but if we look back at what we've seen already in 2026, two things. First, the Europe drought. I'm not sure it's actually related to El Niño. As far as I understand, El Niño is not hitting Europe. Still, if we talk about weather, the heat wave this summer in Europe, as I was explaining earlier, in a company like ADAMA, which is, unfortunate for us in that case, overexposed to the European market, which represented about a quarter of our profit, only Europe. Well, this didn't help, for sure, this heat wave. It's not El Niño-related, it's weather-related, but I wanted to mention that. Coming to El Niño itself, if we look at what has happened so far in 2026, it's a mix.
We see both positive impacts in some markets and negative ones in others. If I take two examples, for example, in India, we saw a significant drought and lack of moisture, water, and monsoon in half of the country, which resulted in challenges or headwinds to our business in India. If I take Argentina, we saw a lot of rain in Argentina, more than usual. That's also El Niño-related, and that has increased the use of fungicides in some crops in Argentina, which is, in that case, a positive impact of El Niño. At this stage, if I make an overall average, I would say that for the time being, it's a wash, the impact of El Niño for ADAMA this year. I don't want to make any forward-looking comment on what it will be in 2027. We frankly don't know.
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Question number four. ADAMA previously noted that pricing in the second quarter fell short of its early expectations, and it planned to have a price increase in Q1, Q3. Did the pricing in this quarter deliver expected results, and how did pricing perform in each of the four regions, namely Latin America, Asia Pacific, EAME, and North America?
Yes, you are absolutely right. We had every intention to increase prices in Q3, and we actually went with the market with price increases. Our list prices increased in Q3, the one we put outside as a reference to the market. But these prices did not stick. As you saw in the performance of the quarter, we still had to decline on prices, which means we tried to increase prices, but the market did not take it. And the market did not take it because our competitors did not follow. No one wanted to take the risk to impose those price increases to the market in a situation, once again, where the market is full of product. We are in an overcapacity situation, and at the end, distributors, channel, sometimes growers, where we sell directly to grower, have ample choices.
They wait the last minute, and we have to make trade-offs between volume and price in order to continue to generate cash. Sammy Leibowitz talked about the cash flow situation a minute ago or a moment ago. We are still cash generative, and that is thanks to those decisions we made to protect our volumes in some cases by having to take some risk on the price. I think it is very clearly a market trend. I do not think there is any company in the industry who will declare price increases in Q3 of this year, unfortunately. Now, your question about regional trends, it is across the regions. The phenomenon I am describing applies to all the regions in which we operate with different level of intensity.
For example, the most intense competition and the most intense price pressure being, for us at least, for the part of the market where we operate, the off-patent, is in Brazil, definitely. Has been the case last year, it is still the case this year. You go to the U.S., we see also some price decline, but less than in Brazil. But overall, it is in every single market that we see those price declines. And once again, it is not ADAMA, it is everyone in the industry who is seeing those price erosion.
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Thank you. Question number five. In Q3, sales grew in the rest of the Latin American countries, but Brazil remained under pressure due to factors including more intense market competition and lower farmer profitability. What specific measures will ADAMA take to address such challenges in Brazil?
Yeah. Brazil, as I was saying a minute ago, is a very complex market to operate in if you're selling off-patent mixture these days. The competition is very, very fierce. Significant number of new entrants. This is something I mentioned in previous calls. We see a lot of new entrants in Brazil coming from both China and India, who are trying to take their space in the market, and this is increasing even the level of competition in that market compared to others. What we're doing? First thing, we've been putting, just like the rest of the company, to be honest, we've been putting our costs under strict control. So, in Brazil, we've been reducing the number of employees. We are managing our costs the best we can. This is the first obvious thing we can control when the market is so complicated.
We continue to invest in our portfolio in Brazil, because we continue to believe that the name of the game is the ability to differentiate ourselves versus all these new entrants that I was mentioning earlier. So, this is something we're keeping doing. We also There is a clear need in Brazil to strengthen our commercial capabilities. This is another priority for Has been a priority for during 2026 and will continue to be in the near future. We've been moving also into We're doing what is necessary to make our supply chain more flexible, to be able to take decision as late as possible in Brazil. The channel, the customers, both growers, because in Brazil, we sell both to growers and to distributors, they're taking their decisions later and later and later. This is a trend that has been going on since 2024, and it's not changing.
We see really decision-making at the last minute. The reason being, those customer assume that there is product available on the market, and that they can wait the last minute to get the best price. So, we've been adapting our supply chain also to be able to navigate in condition like this, in order to remain flexible without taking too much inventory and cash risks.
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Question number six. What measures does ADAMA plan to take in terms of value enhancement, as its share price has been low, below equity per share for very long time?
ADAMA's board of directors had approved a announced a value and enhancement plan back in March of 2025 to address this specific issue, according to the CSRC requirements. The plan aims at improving business quality and profitability, as well as maintaining and improving our investor relations efforts and our market capital management. ADAMA continues to stay on this path in order to help and support the share price, despite the declines that have been going on throughout the past days. However, ADAMA's management, and we feel that sticking to our strategy and maintaining the profitability in the markets that we are able to grow in and learning from our successes in the markets that we have not yet seen the strong growth, is the best path towards coming back towards net profitability and increasing market share, market capital, and value for our investors.
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Question number four. How is the health of cash flow of distributors in major markets?
I will take this one. It depends. Market generally still, the growers, I was saying, their P&L is under pressure. Now, depending on market, the cash flow can be more or less under pressure. But generally speaking, in market like Brazil is where we see the most pressure on growers' cash flow, which, by the way, is one of the reason why we have to be careful in Brazil of what we sell to whom. And we are being very deliberate in how we manage that, our credit in Brazil. In other part of the world, it is more a P&L pressure. The distributors, the channel, have been very careful since, in the last couple of years actually, they have been very which explains some of the volume pressure that happened in 2024 and 2025. They have been very careful with their cash flow.
Obviously, the interest rates have increased, so you see the just-in-time patterns I was describing a minute ago. This is a phenomenon we see all over the world. And as I said, in some markets, Brazil namely, we see some liquidity concerns. But in Q3, frankly, with the way we are operating in Q3 and for the first nine months of the year, we did not see major credit risk for the customer we are selling to. So, we are being very deliberate who we sell to.
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Question number eight. What are the main reasons to the significant drop in ADAMA's sales expenses in Q3?
I will take this one. If we look at our operating expenses, we have employed significant control on these expenses, as they are the kind of expenses that we do have control over. This was a decision deliberately made by the management, as we went through the first half of the year and saw the challenges in the market. What we see is that we were able to hold onto the costs that we can control to bring our operating expenses down to a level below $200 million. This is a milestone for the company, as we have not seen this level of efficiency being below $200 million in a quarter since 2018. It is a very long time since we are able to achieve this level of discipline. It is a disciplined mindset that we have put into the company. We have limited travel.
We have almost stopped entirely on any new hires and just in general, kind of put a discipline into where we spend money and how we spend money. It was also helpful that volumes were down, which also helped in terms of expenses, where our transportation costs were down. This was all to mitigate around $25 million of headwinds coming from currencies. The drop that we see is quite a significant act of restraint coming from the management and through the company itself.
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Thank you. Thank you very much for all the questions. That concludes our Q&A session. Lastly, I will hand over to Gaël for a wrap-up before saying goodbye.
Yes. Thank you. The market conditions are what they are, and they are complicated, to say the least. I think in those conditions, we are focusing on what we can control, and that starts with the cost, our OpEx, which, as I said, in Q3 are down for the first time, or are down compared year-on-year, which is, knowing the inflation and the currency, is quite an achievement. Our strategy of using the base we built in Fight Forward to grow profitably is working in some markets already. We believe it is the right strategy. It is not working in some other markets where, especially the one where we see the highest pressure right now on price and volume, it is like Brazil. But it is the right path. We continue to believe that the differentiation is the right path for an off-patent company like ADAMA.
The management, the leadership team of today, and the leadership team of tomorrow, under the leadership of Dr. Hao, will continue to look for this profitable growth in a market condition that are difficult today. We remain focused and committed to that. Thank you very much for your time and your attention this afternoon.
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Thank you. That is the end of today's presentation. Let us keep in touch, and please follow closely, and with your continued support to ADAMA. Thank you very much again for your attention.