12:03:46 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Nutrien Ltd
Symbol NTR
Shares Issued 569,850,584
Close 2020-08-10 C$ 49.00
Market Cap C$ 27,922,678,616
Recent Sedar Documents

Nutrien earns $765-million (U.S.) in Q2

2020-08-10 18:10 ET - News Release

Mr. Chuck Magro reports

NUTRIEN DEMONSTRATES STRENGTH & STABILITY: AG SOLUTIONS EBITDA UP 20 PERCENT & EXCELLENT OPERATIONAL RESULTS

Nutrien Ltd. has released its second quarter 2020 results, with net earnings of $765-million ($1.34 diluted earnings per share). Second quarter adjusted net earnings were $1.45 per share, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $1.72-billion. Adjusted net earnings per share and adjusted EBITDA, together with the related guidance, free cash flow, including changes in non-cash operating working capital, and cash cost of product manufactured, are non-international financial reporting standard measures.

"Nutrien delivered compelling second quarter and first half results supported by strong growth in our Retail Ag Solutions earnings and excellent operational performance across our potash and nitrogen business units. Nutrien's many competitive advantages were apparent this quarter, including the quality of our assets and impressive free cash flow generation, even at the bottom of the commodity cycle. Our digital platform continues to exceed expectations. We now expect to reach $1-billion in on-line orders by the end of the year, and are introducing new data-driven offerings to help farmers make quicker and more informed decisions for their business," commented Chuck Magro, Nutrien's president and chief executive officer.

Highlights:

  • Nutrien generated $1.6-billion in free cash flow, including improvement to its non-cash operating working capital in the second quarter.
  • The board of directors approved the quarterly dividend at 45 cents per share, maintaining its annualized payout at $1.80 per share, which is well within the company's targeted range.
  • Retail Ag Solutions delivered record EBITDA in the second quarter and the first half of 2020. First half EBITDA was up 20 per cent year over year as a result of double-digit growth in revenue and gross margin, and EBITDA margins surpassing 10 per cent. It continues to expand in the market, backed by its organic growth strategy, which includes increasing its proprietary product sales, as well as through accretive investments made over the past year.
  • Total sales through the company's leading digital retail platform exceeded $700-million in the first half of 2020, surpassing the company's annual goal of $500-million in just the first six months of the year. Second quarter on-line sales accounted for 45 per cent of North American sales of products that were available for purchase on-line.
  • Potash EBITDA was down 39 per cent in the second quarter and first half of 2020 compared with the same periods last year as strong sales volumes and lower cost of goods sold per tonne were more than offset by lower net realized selling prices. Potash cash cost of product manufactured was a record-low $52 per tonne in the second quarter of 2020.
  • Nitrogen EBITDA was 16 per cent lower in the first half and 17 per cent lower in the second quarter of 2020 compared with the same periods last year due to lower net realized selling prices. However, the company achieved higher sales volumes and lower cost of goods sold per tonne compared with the first half of last year, and its ammonia utilization reached a record high of 97 per cent in the second quarter of 2020.
  • Nutrien issued an aggregate of $1.5-billion in senior notes in the quarter with average coupon rates below 3 per cent.
  • Nutrien acquired Tec Agro Group, a leading Ag retailer in Goias, Brazil. Its Brazilian operations now include 30 retail locations, two large-scale fertilizer blenders, a premier soybean seed business, and specialty nutrition and plant health production facilities. With the addition of Tec Agro Group, its Brazilian operations are expected to generate over $500-million in revenue on a normalized annual run-rate basis.
  • Nutrien released its 2020 environmental, social and governance (ESG) report in April, and has since achieved significantly higher ratings by third party ESG organizations.
  • Nutrien's full-year 2020 adjusted net earnings per share and adjusted EBITDA guidance is $1.50 to $1.90 per share and $3.5-billion to $3.8-billion, respectively. The top end of the guidance range was lowered due to lower ammonia and UAN prices.

About Nutrien Ltd.

Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. It produces and distributes 25 million tonnes of potash, nitrogen and phosphate products worldwide. With this capability and its leading agriculture retail network, it is well positioned to supply the needs of its customers. It operates with a long-term view and is committed to working with its stakeholders as it addresses its economic, environmental and social priorities. The scale and diversity of the company's integrated portfolio provide a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

Selected financial data for download can be found in the company's data tool.

Such data are not incorporated by reference herein.

Nutrien will host a conference call on Aug. 11, 2020, at 10 a.m. Eastern Time.

  • To expedite access to the conference call, each participant will be required to preregister for the event:
    • On-line: at the Direct Event website;
    • By phone: 1-888-869-1189, conference ID 4497183.
  • Once the registration is complete, a confirmation will be sent, providing the dial-in number and both the Direct Event passcode and your unique registrant ID to join this call. For security reasons, please do not share your information with anyone else.
  • Live audio webcast: Visit the Nutrien website.

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