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ICL Group & AMP Holdings Sign $170M Fertilizer Agreement in China

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ICL Group Ltd (ICL - Free Report) , a leading global specialty minerals company, recently announced the signing of a five-year agreement with AMP Holdings Group Co. Ltd., one of China's leading agricultural distribution companies. Valued at nearly $170 million, this agreement will run until 2028 and aligns with ICL’s goal of expanding its Growing Solutions product offerings. This will position its business for further growth in key end markets.

The agreement focuses on specialty water-soluble fertilizers, which are primarily used in drip irrigation systems designed for high-value cash crops like apples, watermelons, vegetables, strawberries, ginger and grapes. It has a minimum purchase commitment, with specific exclusivity conditions based on brand and region.

The growing demand for specialty fertilizers in China has been driven by growth of high-value crops, which offer promising returns on investment. In recent years, China's agricultural practices have undergone significant shifts due to extreme weather fluctuations, diverse crop types and a shrinking agricultural workforce. As a result, there has been a substantial increase in the adoption of drip irrigation, boosting demand for specialty soluble fertilizers and making China the world's largest market for fertigation.

ICL is committed to continuous innovation, introducing new ideas and products to partners like AMP Holdings. This includes offerings such as a unique phosphate and potassium specialty suspension solution, specifically designed for drone application, which is gaining popularity in China’s booming agricultural sector.

ICL Group Ltd. Price and Consensus

 

ICL Group Ltd. Price and Consensus

ICL Group Ltd. price-consensus-chart | ICL Group Ltd. Quote

 

AMP Holdings has been a leader in the distribution of irrigation-based specialty products in China for more than a decade. It was among the first in the country to recognize the value of specialty water-soluble fertilizers and established a dedicated team of agronomists and sales professionals. It has been a strategic specialty fertilizer partner for ICL for several years and boasts significant distribution capabilities that outpace other companies in the Chinese market.

The company highlighted that its soluble fertilizer products are recognized as market leaders in China, a crucial region for the company. The new agreement with AMP Holdings further solidifies ICL’s position in the premium segment of China's specialty fertilizer market. It emphasized the mutual benefits and validation of its expertise in specialty soluble fertilizers by one of China's top agricultural distribution companies.

AMP Holdings stressed the importance of the partnership in introducing innovative specialty solutions to the country’s market. It also highlighted the partnership’s role in helping farmers optimize their investments and increase yields through the use of specialty irrigation-based fertilizers.

This partnership marks another significant advancement for ICL in enhancing its presence in the Chinese market. It also reaffirms its commitment to providing innovative agricultural solutions that meet the evolving needs of the region.

ICL’s shares have lost 24.2% in the past year compared with a 21.9% decline in the industry.

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Zacks Rank & Key Picks

ICL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Newmont Corporation (NEM - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Eldorado Gold Corporation (EGO - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago level. CRS’s earnings beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The stock has rallied nearly 127.5% in the past year.

The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have surged nearly 81.2% in the past year.

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