SASKATOON, Saskatchewan–(BUSINESS WIRE)–Nutrien Ltd. (TSX and NYSE: NTR) announced today its first-quarter 2021 results, with net earnings of $133 million ($0.22 diluted earnings per share). First-quarter adjusted net earnings1 were $0.29 per share and adjusted EBITDA1 was $806 million.
“Our earnings and free cash flow1 results highlight the strength of our integrated business model, execution of strategic initiatives and the recovery in global agricultural markets. Nutrien delivered a record first quarter for Retail and strong fertilizer volumes and margins,” commented Mayo Schmidt, Nutrien’s President and CEO.
“Crop prices and cash margins are at multi-year highs and growers are responding accordingly with increased seeded acreage and a focus on maximizing yields and our team at Nutrien is supporting them at every level. We are delivering the end-to-end services and products they need including our full suite of crop inputs, digital tools and innovative and sustainable solutions that help achieve higher yields. This is a very exciting time for Nutrien, and the team is focused on executing Nutrien’s strategy and achieving operational excellence across our business,” added Mr. Schmidt.
Highlights:
- Nutrien generated $476 million in free cash flow in the first quarter of 2021, more than double that of the first quarter in 2020, while adjusted EBITDA increased by nearly 60 percent compared to the first quarter of 2020.
-
Nutrien Ag Solutions (“Retail”) delivered a record $109 million in adjusted EBITDA in the first quarter of 2021, reflecting strong business performance and supportive market conditions across virtually all product categories and key regions where we operate. Retail sales increased 12 percent and gross margin percentage was 22 percent in the first quarter of 2021 compared to 20 percent in the first quarter of 2020 due to strong sales performance, higher gross margin on proprietary products and the benefits of supply chain improvements and strategic procurement. Rolling four quarter Retail adjusted EBITDA to sales exceeded 10 percent and was more than 11 percent in the US.
Retail also improved its cash operating coverage ratio1 and lowered its adjusted average working capital1 by nearly $800 million compared to the first quarter of 2020. Retail adjusted EBITDA per US selling location1 surpassed $1.1 million and digital platform sales doubled compared to the first quarter of 2020, and accounted for nearly 20 percent of North American sales.
- Potash adjusted EBITDA increased 33 percent in the first quarter of 2021 compared to the same period in 2020, due to higher net realized selling prices and sales volumes. Our Potash sales volumes were near record levels for a first quarter due to continued strong demand in North American and offshore markets. Potash cash cost of product manufactured1 was $57 per tonne in the first quarter of 2021, down $3 per tonne from the same period in 2020, despite headwinds from a stronger Canadian dollar.
- Nitrogen adjusted EBITDA increased 27 percent in the first quarter of 2021 compared to the same quarter in 2020 primarily due to higher net realized selling prices. Sales volumes decreased due to lower opening inventories this year after a strong fall application season and reduced production in Trinidad.
- In April 2021, Nutrien released its “Feeding the Future Plan” and Environmental, Social and Governance (“ESG”) Report which includes aggressive long-term targets and commitments including an at least 30 percent2 reduction in greenhouse gas emissions (scope 1 and 2) intensity by 2030 and scaling our end-to-end and on-farm Carbon Program. Uptake of our Carbon Program pilot exceeded expectations and we will provide an update on the program and our broader ESG strategy and targets in June 2021.
- Nutrien raised full-year 2021 adjusted net earnings per share1 and adjusted EBITDA1 guidance to $2.55 to $3.25 per share and $4.4 billion to $4.9 billion, respectively. First-half 2021 guidance is provided at $2.00 to $2.20 adjusted net earnings per share.
______________________________
|
1 This financial measure including related guidance, if applicable, is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section for further information. |
|
2 From 2018 levels. |
Management’s Discussion and Analysis
The following management’s discussion and analysis (“MD&A”) is the responsibility of management and is dated as of May 3, 2021. The Board of Directors (“Board”) of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication approves this disclosure pursuant to the authority delegated to it by the Board. The term “Nutrien” refers to Nutrien Ltd. and the terms “we”, “us”, “our”, “Nutrien” and “the Company” refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A and our Annual Information Form, each for the year ended December 31, 2020, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. No update is provided to the disclosure in our annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission (“SEC”).
This MD&A is based on the Company’s unaudited interim condensed consolidated financial statements as at and for the three months ended March 31, 2021 (“interim financial statements”) based on International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” unless otherwise noted. This MD&A contains certain non-IFRS financial measures and forward-looking statements which are described in the “Non-IFRS Financial Measures” and the “Forward-Looking Statements” sections, respectively.
Market Outlook
Agriculture and Retail
- Crop prices are at multi-year highs supported by strong global demand and less than expected supply from major production regions. The rally in crop prices highlights the tightness in global supply and demand balances and the sensitivity to any potential supply risk in 2021. Planting is in full swing across much of North America and we expect US corn and soybean acreage combined could be approximately four million acres above the United States Department of Agriculture’s Prospective Plantings report.
- We anticipate crop input expenditures will increase more than three percent in key markets where we operate, supported by higher planted acreage and crop prices, as well as, higher crop protection and crop nutrient prices.
- We expect record Brazilian crop margins will drive further increases in acreage in the second half of 2021. Safrinha corn planting is complete, but yield potential may be constrained by planting delays and weather which could further tighten the supply and demand balance for corn.
- Soil moisture is favorable for Australian winter crop planting and production and growers are expected to increase their spend on all crop inputs due to increased income realized in 2020 and a strong outlook for 2021 crop prices.
Crop Nutrient Markets
- Robust agricultural fundamentals and favorable potash affordability continue to support potash use and prices, particularly for granular product. Given strong demand, we continue to expect record global potash shipments in 2021 of 68 to 70 million tonnes. Strong global demand led to recent potash contracts in India settling at $280 per tonne, which is $33 per tonne higher than the previous contract settled at the end of January.
- Global nitrogen prices were supported by strong agriculture fundamentals and a resurgence of industrial demand. Tampa ammonia contract prices have more than doubled since December 2020, as an already tight market was squeezed further by global production outages. US urea and UAN prices have also increased driven by the strong demand for the spring application season, coupled with production outages and slower than normal imports in the first half of the fertilizer year.
- We project Chinese urea exports in 2021 will be between 4.0 and 5.5 million tonnes, higher than previously anticipated but lower compared to 5.5 million tonnes in 2020. This is a result of higher expected operating rates, as increased urea prices more than offset elevated feedstock costs.
- High crop prices, tight availability and the final rulings on US countervailing duties supported phosphate prices but we anticipate some pressure on historically high production margins going forward due to the significant increase in raw material costs.
Financial Outlook and Guidance
Based on market factors detailed above, we are raising full-year 2021 adjusted net earnings guidance to $2.55 to $3.25 per share from $2.05 to $2.75 per share and full-year 2021 adjusted EBITDA guidance to $4.4 to $4.9 billion from $4.0 to $4.5 billion. First-half 2021 guidance is provided at $2.00 to $2.20 adjusted net earnings per share.
All guidance numbers, including those noted above are outlined in the tables below. Refer to page 57 of Nutrien’s 2020 Annual Report for related assumptions and sensitivities.
|
2021 Guidance Ranges 1 |
|
Low |
|
|
|
High |
|
|
Adjusted net earnings per share 2 |
$ |
2.55 |
|
|
$ |
3.25 |
|
|
Adjusted EBITDA (billions) 2 |
$ |
4.4 |
|
|
$ |
4.9 |
|
|
Retail Adjusted EBITDA (billions) |
$ |
1.55 |
|
|
$ |
1.65 |
|
|
Potash Adjusted EBITDA (billions) |
$ |
1.5 |
|
|
$ |
1.7 |
|
|
Nitrogen Adjusted EBITDA (billions) |
$ |
1.3 |
|
|
$ |
1.5 |
|
|
Phosphate Adjusted EBITDA (millions) |
$ |
275 |
|
|
$ |
375 |
|
|
Potash sales tonnes (millions) 3 |
|
12.5 |
|
|
|
13.0 |
|
|
Nitrogen sales tonnes (millions) 3 |
|
10.9 |
|
|
|
11.4 |
|
|
Depreciation and amortization (billions) |
$ |
1.9 |
|
|
$ |
2.0 |
|
|
Effective tax rate on adjusted earnings |
|
23 |
% |
|
|
25 |
% |
|
Sustaining capital expenditures (billions) 2 |
$ |
1.1 |
|
|
$ |
1.2 |
|
|
1 See the “Forward-Looking Statements” section. |
|
2 See the “Non-IFRS Financial Measures” section. |
|
3 Manufactured products only. Nitrogen excludes ESN® and Rainbow products. |
Consolidated Results
|
|
Three Months Ended March 31 |
||||
|
(millions of US dollars) |
2021 |
|
2020 |
|
% Change |
|
Sales 1 |
4,658 |
|
4,198 |
|
11 |
|
Freight, transportation and distribution |
211 |
|
212 |
|
– |
|
Cost of goods sold |
3,291 |
|
3,101 |
|
6 |
|
Gross margin 1 |
1,156 |
|
885 |
|
31 |
|
Expenses 1 |
878 |
|
803 |
|
9 |
|
Net earnings (loss) |
133 |
|
(35) |
|
n/m |
|
Adjusted EBITDA 2 |
806 |
|
508 |
|
59 |
|
Cash used in operating activities |
(152) |
|
(526) |
|
71 |
|
Free cash flow (“FCF”) 2 |
476 |
|
181 |
|
163 |
|
FCF including changes in non-cash operating working capital 2 |
(316) |
|
(689) |
|
54 |
|
1 Certain immaterial figures have been reclassified for the three months ended March 31, 2020. |
|||||
|
2 See the “Non-IFRS Financial Measures” section. |
|||||
Net earnings and adjusted EBITDA increased significantly in the first quarter of 2021 compared to the same period in 2020 due to strong Nutrien Ag Solutions (“Retail”) earnings growth, higher crop nutrient net realized selling prices and higher North American potash sales. Cash flow from operating activities increased in the first quarter of 2021 compared to the first quarter of 2020 helping to generate $476 million in free cash flow, more than double compared to the amount generated in the first quarter of 2020. The COVID-19 pandemic had limited impact on our results during the periods.
Segment Results
Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2021 to the results for the three months ended March 31, 2020, unless otherwise noted.
Nutrien Ag Solutions (“Retail”)
|
|
Three Months Ended March 31 |
||||||||||||||
|
(millions of US dollars, except |
Dollars |
|
Gross Margin |
|
Gross Margin (%) |
||||||||||
|
as otherwise noted) |
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crop nutrients |
1,016 |
|
785 |
|
29 |
|
220 |
|
156 |
|
41 |
|
22 |
|
20 |
|
Crop protection products |
1,085 |
|
1,010 |
|
7 |
|
176 |
|
157 |
|
12 |
|
16 |
|
16 |
|
Seed |
463 |
|
394 |
|
18 |
|
69 |
|
59 |
|
17 |
|
15 |
|
15 |
|
Merchandise |
230 |
|
216 |
|
6 |
|
38 |
|
34 |
|
12 |
|
17 |
|
16 |
|
Nutrien Financial |
25 |
|
16 |
|
56 |
|
25 |
|
16 |
|
56 |
|
100 |
|
100 |
|
Services and other 1 |
173 |
|
255 |
|
(32) |
|
144 |
|
134 |
|
7 |
|
83 |
|
53 |
|
Nutrien Financial elimination 2 |
(20) |
|
(15) |
|
33 |
|
(20) |
|
(15) |
|
33 |
|
100 |
|
100 |
|
|
2,972 |
|
2,661 |
|
12 |
|
652 |
|
541 |
|
21 |
|
22 |
|
20 |
|
Cost of goods sold |
2,320 |
|
2,120 |
|
9 |
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
652 |
|
541 |
|
21 |
|
|
|
|
|
|
|
|
|
|
|
Expenses 1,3 |
721 |
|
689 |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before finance |
|||||||||||||||
|
costs and taxes (“EBIT”) |
(69) |
|
(148) |
|
(53) |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
177 |
|
155 |
|
14 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
108 |
|
7 |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
Integration and restructuring |
|||||||||||||||
|
related costs |
1 |
|
– |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
109 |
|
7 |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
1 Certain immaterial figures have been reclassified for the three months ended March 31, 2020. |
|||||||||||||||
|
2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches. |
|||||||||||||||
|
3 Includes selling expenses of $667 million (2020 – $635 million). |
|||||||||||||||
- Adjusted EBITDA increased in the first quarter of 2021 due to higher sales and margins across virtually all product categories and all key regions where we operate. This was supported by strong agricultural market fundamentals, expanded acreage expectations, as well as, supply chain improvements and strategic procurement. Gross margin increased due to strong sales and ongoing efficiency initiatives which also lowered our Retail cash operating coverage ratio1 to 60 percent from 62 percent.
- Crop nutrients sales increased significantly in the first quarter of 2021 as sales volumes and gross margin per tonne both increased 19 percent. North American sales volumes were up 12 percent, supported by strong spring applications ahead of planting. Gross margin percentage increased in the first quarter of 2021 due to strategic procurement in a rising price environment.
- Crop protection products sales increased in the first quarter of 2021 due to our market growth and favorable application conditions. Gross margin percentage increased by 0.6 percent supported by strong proprietary product results, higher prices, supply chain improvements and the benefit of recent accretive acquisitions in Brazil.
- Seed sales in the first quarter of 2021 increased due to higher grower planting intentions in key regions where we operate, resulting from strong global crop prices and agriculture fundamentals. Gross margin percentage was stable with improved proprietary results offsetting an elevated competitive environment in the US.
- Merchandise sales and gross margin percentage increased in the first quarter of 2021 primarily driven by growth in the US market and strong results in Australia.
- Nutrien Financial sales increased due to higher utilization and adoption of our programs.
- Services and other sales decreased as the divestiture of an Australian livestock export business more than offset much higher North American custom application sales. Despite the change in revenue mix, gross margin increased in Australia and other key markets resulting in a much higher gross margin percentage in the first quarter of 2021.
_________________________________
|
1 This financial measure including related guidance, if applicable, is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section for further information. |
Potash
|
|
Three Months Ended March 31 |
||||||||||||||||
|
(millions of US dollars, except |
Dollars |
|
Tonnes (thousands) |
|
Average per Tonne |
||||||||||||
|
as otherwise noted) |
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|||
|
Manufactured product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
332 |
|
225 |
|
48 |
|
1,470 |
|
1,147 |
|
28 |
|
226 |
|
196 |
|
15 |
|
Offshore |
279 |
|
292 |
|
(4) |
|
1,687 |
|
1,730 |
|
(2) |
|
166 |
|
169 |
|
(2) |
|
|
611 |
|
517 |
|
18 |
|
3,157 |
|
2,877 |
|
10 |
|
194 |
|
180 |
|
8 |
|
Cost of goods sold |
291 |
|
265 |
|
10 |
|
|
|
|
|
|
|
92 |
|
92 |
|
– |
|
Gross margin – total |
320 |
|
252 |
|
27 |
|
|
|
|
|
|
|
102 |
|
88 |
|
16 |
|
Expenses 1 |
64 |
|
63 |
|
2 |
|
Depreciation and amortization |
|
39 |
|
33 |
|
18 |
||||
|
EBIT |
256 |
|
189 |
|
35 |
|
Gross margin excluding depreciation |
|
|
|
|
|
|||||
|
Depreciation and amortization |
124 |
|
96 |
|
29 |
|
and amortization – manufactured 2 |
141 |
|
121 |
|
17 |
|||||
|
|
|
|
|
|
|
|
Potash cash cost of product |
|
|
|
|
|
|
||||
|
EBITDA / Adjusted EBITDA |
380 |
|
285 |
|
33 |
|
manufactured 2 |
|
57 |
|
60 |
|
(5) |
||||
|
1 Includes provincial mining taxes of $58 million (2020 – $57 million). |
|||||||||||||||||
|
2 See the “Non-IFRS Financial Measures” section. |
|||||||||||||||||
- Adjusted EBITDA increased in the first quarter of 2021 due to the combination of stronger demand and higher net realized selling prices, particularly in the North American market, as momentum from the fourth quarter of 2020 carried into the first quarter of 2021. Demand from most offshore spot markets was also very strong and net realized selling prices reflected a significant strengthening in prices from the fourth quarter of 2020. Cost of goods sold per tonne, excluding the impact of depreciation and amortization decreased by $6 per tonne.
- Sales volumes in the first quarter of 2021 increased due to a continuation of exceptionally strong demand in North America and offshore spot markets. The expectation of higher planted acreage in the US, strong crop prices and compelling potash affordability have all supported sales volumes. Offshore sales volumes were slightly lower due to logistics challenges associated with shipping out of the West Coast of Canada due to extremely cold weather in February, which delayed shipment of approximately 300,000 tonnes of committed sales into the rest of 2021.
- Net realized selling price increased as strong demand led to higher prices in North America. Offshore net realized selling prices increased $10 per tonne from the fourth quarter of 2020 but were slightly lower than the first quarter of 2020.
- Cost of goods sold per tonne in the first quarter of 2021 was similar to the same quarter last year primarily due to lower cash production costs offsetting higher depreciation and amortization per tonne associated with production mix. Potash cash cost of product manufactured was $57 per tonne, down from $60 per tonne in the same quarter in 2020, despite the stronger Canadian dollar.
Canpotex Sales by Market
|
|
Three Months Ended March 31 |
||
|
(percentage of sales volumes, except as otherwise noted) |
2021 |
2020 |
Change |
|
Other Asian markets 1 |
37 |
29 |
8 |
|
Latin America |
30 |
25 |
5 |
|
China |
15 |
27 |
(12) |
|
Other markets |
12 |
7 |
5 |
|
India |
6 |
12 |
(6) |
|
|
100 |
100 |
|
|
1 All Asian markets except China and India. |
|
|
|
Nitrogen
|
|
Three Months Ended March 31 |
||||||||||||||||
|
(millions of US dollars, except |
Dollars |
|
Tonnes (thousands) |
|
Average per Tonne |
||||||||||||
|
as otherwise noted) |
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|||
|
Manufactured product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ammonia |
160 |
|
130 |
|
23 |
|
572 |
|
567 |
|
1 |
|
278 |
|
229 |
|
21 |
|
Urea |
249 |
|
237 |
|
5 |
|
757 |
|
856 |
|
(12) |
|
329 |
|
277 |
|
19 |
|
Solutions, nitrates and sulfates |
164 |
|
163 |
|
1 |
|
1,074 |
|
1,105 |
|
(3) |
|
153 |
|
148 |
|
3 |
|
|
573 |
|
530 |
|
8 |
|
2,403 |
|
2,528 |
|
(5) |
|
238 |
|
210 |
|
13 |
|
Cost of goods sold |
440 |
|
444 |
|
(1) |
|
|
|
|
|
|
|
183 |
|
176 |
|
4 |
|
Gross margin – manufactured |
133 |
|
86 |
|
55 |
|
|
|
|
|
|
|
55 |
|
34 |
|
62 |
|
Gross margin – other 1 |
17 |
|
11 |
|
55 |
|
Depreciation and amortization |
|
54 |
|
59 |
|
(8) |
||||
|
Gross margin – total |
150 |
|
97 |
|
55 |
|
Gross margin excluding depreciation |
|
|
|
|
|
|||||
|
(Income) expenses |
(17) |
|
11 |
|
n/m |
|
and amortization – manufactured |
109 |
|
93 |
|
17 |
|||||
|
EBIT |
167 |
|
86 |
|
94 |
|
Ammonia controllable cash cost of |
|
|
|
|
|
|
||||
|
Depreciation and amortization |
129 |
|
150 |
|
(14) |
|
product manufactured 2 |
|
52 |
|
47 |
|
11 |
||||
|
EBITDA |
296 |
|
236 |
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets |
4 |
|
– |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
300 |
|
236 |
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $187 million (2020 – $148 million) less cost of goods sold of $170 million (2020 – $137 million). |
|||||||||||||||||
|
2 See the “Non-IFRS Financial Measures” section. |
|||||||||||||||||
- Adjusted EBITDA increased in the first quarter of 2021 due to higher net realized selling prices and a $30 million benefit in income related to natural gas price arbitrage during the cold weather events in February.
- Sales volumes were slightly lower in the first quarter of 2021 due to reduced production in Trinidad and lower starting inventories in 2021, resulting from the robust fall application season in 2020 compared to 2019. Our ammonia operating rate reached 97 percent in the first quarter of 2021, matching our highest level on record.
- Net realized selling price of nitrogen was higher due to higher benchmark prices resulting from the strength in global agriculture markets and a recovery in industrial nitrogen demand.
- Cost of goods sold per tonne increased as a result of higher natural gas prices, plant outages and a stronger Canadian dollar which more than offset lower depreciation and amortization. These factors also led to a higher ammonia controllable cash cost of product manufactured per tonne in the first quarter of 2021.
Natural Gas Prices in Cost of Production
|
|
Three Months Ended March 31 |
||||
|
(US dollars per MMBtu, except as otherwise noted) |
2021 |
|
2020 |
|
% Change |
|
Overall gas cost excluding realized derivative impact |
3.17 |
|
2.24 |
|
42 |
|
Realized derivative impact |
0.02 |
|
0.05 |
|
(60) |
|
Overall gas cost |
3.19 |
|
2.29 |
|
39 |
|
|
|
|
|
|
|
|
Average NYMEX |
2.69 |
|
1.95 |
|
38 |
|
Average AECO |
2.30 |
|
1.62 |
|
42 |
- Natural gas prices in our cost of production increased in the first quarter of 2021 as a result of higher North American gas index prices and increased gas costs in Trinidad, which are linked to ammonia benchmark prices.
Phosphate
|
|
Three Months Ended March 31 |
||||||||||||||||
|
(millions of US dollars, except |
Dollars |
|
Tonnes (thousands) |
|
Average per Tonne |
||||||||||||
|
as otherwise noted) |
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|
2021 |
|
2020 |
% Change |
|||
|
Manufactured product |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fertilizer |
230 |
|
173 |
|
33 |
|
509 |
|
568 |
|
(10) |
|
453 |
|
305 |
|
49 |
|
Industrial and feed |
114 |
|
106 |
|
8 |
|
193 |
|
191 |
|
1 |
|
589 |
|
556 |
|
6 |
|
|
344 |
|
279 |
|
23 |
|
702 |
|
759 |
|
(8) |
|
490 |
|
368 |
|
33 |
|
Cost of goods sold |
282 |
|
287 |
|
(2) |
|
|
|
|
|
|
|
401 |
|
379 |
|
6 |
|
Gross margin – manufactured |
62 |
|
(8) |
|
n/m |
|
|
|
|
|
|
|
89 |
|
(11) |
|
n/m |
|
Gross margin – other 1 |
4 |
|
1 |
|
300 |
|
Depreciation and amortization |
|
54 |
|
83 |
|
(35) |
||||
|
Gross margin – total |
66 |
|
(7) |
|
n/m |
|
Gross margin excluding depreciation |
|
|
|
|
|
|||||
|
Expenses |
7 |
|
10 |
|
(30) |
|
and amortization – manufactured |
143 |
|
72 |
|
99 |
|||||
|
EBIT |
59 |
|
(17) |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
38 |
|
63 |
|
(40) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA / Adjusted EBITDA |
97 |
|
46 |
|
111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes other phosphate and purchased products and is comprised of net sales of $41 million (2020 – $34 million) less cost of goods sold of $37 million (2020 – $33 million). |
|||||||||||||||||
- Adjusted EBITDA increased in the first quarter of 2021 due to higher net realized selling prices compared to the first quarter of 2020.
- Sales volumes were slightly lower in the first quarter of 2021 due to the timing of fertilizer shipments.
- Net realized selling price of phosphate fertilizer increased in the first quarter of 2021 in connection with the increase in global benchmark prices. Industrial and feed prices also increased, some of which were based on contract prices that result in a lag in price realization relative to spot prices.
- Cost of goods sold per tonne increased due to significantly higher raw material input costs. This was partially offset by lower depreciation and amortization following the non-cash impairment of assets in the third quarter of 2020.
Corporate and Others
|
Three Months Ended March 31 |
|||||
|
(millions of US dollars, except as otherwise noted) |
2021 |
|
2020 |
|
% Change |
|
Sales 1 |
– |
|
27 |
|
(100) |
|
Cost of goods sold |
– |
|
25 |
|
(100) |
|
Gross margin |
– |
|
2 |
|
(100) |
|
Selling expenses |
(6) |
|
(5) |
|
20 |
|
General and administrative expenses |
58 |
|
60 |
|
(3) |
|
Share-based compensation expense (recovery) |
23 |
|
(32) |
|
n/m |
|
Other expenses |
28 |
|
7 |
|
300 |
|
EBIT |
(103) |
|
(28) |
|
268 |
|
Depreciation and amortization |
12 |
|
9 |
|
33 |
|
EBITDA |
(91) |
|
(19) |
|
379 |
|
Adjustments 2 |
43 |
|
(47) |
|
n/m |
|
Adjusted EBITDA |
(48) |
|
(66) |
|
(27) |
|
1 Primarily relates to our non-core Canadian business that was sold in 2020. |
|||||
|
2 See Note 2 to the interim financial statements. |
|||||
Contacts
Investor Relations:
Richard Downey
Vice President, Investor Relations
(403) 225-7357
Investors@nutrien.com
Tim Mizuno
Director, Investor Relations
(306) 933-8548
Media Relations:
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015