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Q3 2022: continuous growth in revenues, margins negatively impacted by steep cost increase in Q3 Implementation of action plans to protect margins

Release time:2022-10-28


Safety and Sustainability

  • 9M 2022 TRIR at 0.42: reflecting on-going action plans to further improve safety
  • Initiatives on sustainability rolled out to revisit the global plans on energy saving and accelerating the progress toward carbon footprint reduction


9M 2022: +16% growth in revenues and -8.6% decrease in net profit attributable to shareholders.

In Q3 2022, continuous growth in revenues (+7%, CNY3.6 billion) despite demand slow-down and significant drop in net margin due to huge rise in energy and raw material cost:

  • Performance products: +5% revenue growth with gross margin at 20% in Q3
  1. 1)Slow-down in demand mainly due to inventory management of customers
  2. 2)Continuous pricing downwards pressure on Vitamin A
  3. 3)Proactive price management on methionine partially offsetting the drastic energy cost increase in Europe
  • Specialties: +8% revenue growth with gross margin at 42% in Q3
  1. 1)Continuous growth in ruminant, feed digestibility, health by nutrition and aqua
  2. 2)Price increase not totally offsetting the energy and raw material costs in Europe


Immediate measures are being implemented to best serve customers while protecting margins, which includes:

  • Temporary shutdown of one of the powder methionine lines in Europe
  • Adapted Vitamin A production plan
  • Tight resources management
  • Leverage Chinese competitive assets


Key projects

  • Successful start-up and ramp-up of new 180KT Nanjing Plant (BANC2 project)
  • Calysseo progressed towards start-up stage as planned
  • Specialty capacity expansion projects in China and Europe are progressing


2022 outlook

  • Safety and sustainability remain Adisseo’s top priorities.
  • Volatility and uncertainty are more than ever prevailing. Facing the serious challenges from raw material and energy supply condition in addition to on-going supply chain disruptions, Adisseo is taking strong and immediate actions to pursue growth and protect margins.
  • In Q4 2022 and beyond, market demand is expected to improve in Q4. Competitive environment will still be challenging. Energy and raw material costs will remain high even if moderately reduced.
  • In FY 2022, Adisseo is expecting to deliver strong revenue growth while protecting profitability at a solid level.



Jean-Marc Dublanc, Vice Chairman and CEO of Adisseo, said: “As we walked through the third quarter, market conditions deteriorated significantly –the energy and raw material supply condition worsened, leading to steep cost increases in Europe; market demand slowed down due to our customers’ margin pressure and inventory management.


Despite these major headwinds, Adisseo managed to deliver solid results with continuous revenue growth.


On 15 September, our new 180KT BANC2 project started up successfully, and the total capacity of our Nanjing production platform has now reached 350KT, making it one of the largest production platforms in the world offering the strongest cost advantage. Our expanded capacity across the globe will be fully leveraged to best serve our customers and further improve our cost competitiveness.


Key strong and immediate measures are being implemented to protect margins.


Looking ahead, we expect the business environment to remain challenging over the next quarter and beyond. I also believe that demand should gradually improve. In this context, I am confident that our on-going corrective action plans together with the full leverage of our global commercial and manufacturing footprint will allow us to address the challenge we are facing and to keep delivering solid performance for the company and for our shareholders.”


Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosed its Q3 2022 results.



I. Business Review: Revenues & Net Profit Contributed to Shareholders


Unit: CNY (100mil)

Q3 2022

Q3 2021

YoY variance

9M 2022

9M 2021



Operating revenue







  • Performance Products







  • Specialty Products







  • Other Products







Gross profit*

(in % of operating revenue)













  • Performance Products







  • Specialty Products







  • Other Products







Net profit attributable to the shareholders of the Company







*For comparable basis, 2021 figures restated per 2022 policy


Safety is and will remain Adisseo’s priority. The safety performance for 9M 2022 TRIR landed at 0.42, evidencing Adisseo’s on-going action plans to further improve safety.


Initiatives on sustainability are rolled out to revisit the global plans on energy saving and accelerating the progress toward carbon footprint reduction.


In Sept 2022, a major sustainability project in Nanjing plant has been approved with an ambitious objective to reduce wastewater discharge, greenhouse gas emissions, nitrous oxide emissions and energy consumption significantly by 2024.


In Q3 2022, despite lowering demand in the context of clients’ inventory management, Adisseo achieved continued yoy growth in revenue (+7%, CNY3.6 billion), thanks to:  

  • Continuous pricing management in methionine and specialties
  • Continued revenue growth in specialties led by continued growth in all species


The Q3 2022 gross margin dropped -13ppt yoy to 24%, heavily impacted by the huge rise in raw material and energy costs in the quarter. The immediate and adapted action plans were initiated and implemented to best serve the customers as well as to protect margins. 


Regarding the methionine business, Nanjing plant continued to deliver excellent production reliability. With the start-up of the new 180KT liquid methionine plant (BANC 2) in mid-September, Adisseo is able to accelerate continued penetration of liquid methionine in market and bring its cost competitiveness at Nanjing plant and global to a new level.


European operations have been adapted and optimized. Adisseo temporarily shut down one of the powder methionine production lines till the end of 2022. The reduced production plan will allow Adisseo to optimize production cost by fully leveraging the gas contracts in place.


On Vitamins, vitamin A experienced slow-down in demand and sharp drop in prices. An action plan is in place to reduce the production level of vitamin A temporarily and to reinforce cost management and competitiveness enhancement. Vitamin E price remained at a solid level.


In Q3 2022, specialties business continued its revenue growth (+8%) thanks to the growth in all species, mainly due to

  • Revenue growth in ruminant (+15%) driven by double-digit revenue growth in China, encouraging dynamics in the US market and penetration of new products such as RumenSmart
  • Continued double-digit growth in Health by Nutrition driven by key products such as Selisseo and Alterion, contributing to a historically best-quarter in Q3 2022
  • Solid growth in feed digestibility (Rovabio)
  • Continuous price adjustment across product lines


In the context of sharp increase in raw material costs, the gross margin decreased mainly due to:

  • Huge increase of energy and raw material costs in Europe
  • Global supply chain tension, despite signs of improvement
  • Product mix
  • Partly offset by ongoing product portfolio optimization


Nestor, a new Adisseo service, was launched to market in Q3, providing nutritional recommendations and nutritional values to customers, a step further in formulation accuracy for more sustainable production.


Adisseo keeps pursuing its success effort to develop its business and increase its growth in China:

  • Strong performance in China market (+32% Q3 revenue growth) driven by strong methionine business as well as continued growth in specialty business mainly driven by double-digit growth in ruminant, aqua and mycotoxin management despite COVID-19 resurgence  
  • Calysseo Chongqing plant, the world’s first industrial-scale FeedKind® facility, is well on track:
    • Seeding phase has been successfully completed
    • Inoculation was commenced in mid-October
    • First FeedKind® product was expected to be launched to Chinese market in early 2023
  • Digitalization Transformation of Nanjing plant in progress, focusing on operation efficiency, yield improvement, HSE management with a new data center to be established by 2022, enabling seamless data interfacing and application of big data technology


9M 2022 net profit attributable to shareholders (CNY1.14 billion) decreased -8.6% yoy with net margin still at a solid level (11%) mainly due to:

  • Decreased gross profit.
  • Global inflation
  • Selective investment in sales & marketing
  • Continuous investment in research & innovation


II. Cash-flow and Net Debt


Cash position as of 30th September 2022 stood at CNY1.6 billion, a reduction of CNY 0.5 billion compared to 31st December 2021, mainly driven by:

  • CAPEX financing
  • Working capital consumption in the context of supply challenges
  • Dividend payment and preferred shares redemption net of new financing


III. 2022 outlook


Safety and sustainability remain Adisseo’s top priorities.


Volatility and uncertainty are more than ever prevailing. Facing the serious challenges from raw material and energy supply shortage and cost increase in addition to on-going supply chain disruptions, Adisseo is taking strong and immediate actions to pursue growth and protect margins.


In Q4 2022 and beyond, market demand is expected to improve, while competitive environment will still be challenging.

In FY 2022, Adisseo is expected to deliver strong revenue growth, while protecting profitability at a solid level thanks to:

  • Acceleration of liquid methionine penetration supported by capacity expansion projects
  • Robust growth in specialties
  • Immediate action plans to manage margins and optimize cost
  • Leveraging global footprint and innovation capabilities


Adisseo is pursuing its long-term projects including innovation and external growth opportunities to support sustainable and profitable business growth in the future.






About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 8 research centers and its production sites based in Europe, USA, Thailand, and China to design, produce, and market nutritional solutions for sustainable animal feed. With more than 2,532 employees, it serves around 3,900 customers in over 110 different countries through its global distribution network.

Adisseo is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with nearly 20,000 employees and a turnover of CNY 71.5 billion in2021.

Adisseo is listed on the Shanghai Stock Exchange.


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Global: Patrick SETTELEN