The United Nations estimates that global food production needs to increase 70 percent by 2050 if we are to meet the growing demand. To boost crop yields, nutrient management practices and fertilizer technologies must be used since fertilizer products are responsible for more than 50 percent of crop yields.
Nevada Organic Phosphate (CSE:NOP) embodies its straightforward business strategy, “Blow it up. Dig it up. Grind it up. Bag it up. And Ship it out by rail.” The company uses a direct-ship, pit-run system that brings truly organic, direct-application phosphorus to market. The company intends to produce certified raw rock organic phosphate eligible for organic farming in the United States, specifically targeting industrial farms and the US$59.28 billion organic food market.
The organic food market in the United States is growing because of factors such as increasing health awareness among consumers and increasing environmental concerns due to the heavy use of pesticides, chemical fertilizers, and other chemicals in conventional farming. As a reagent, raw rock organic phosphate from Murdock Mountain is perfectly suited to regenerate soil to serve the fast-growing organic food market.
The company’s Murdock Mountain Phosphate Project is located in Nevada, now covering more than 7,800 acres, which consist of an initial 1,813 acres and an additional 6,011 acres of potential phosphate resource. The property is a nearly flat lying sedimentary rock phosphate exploration target. The initial 1,813-acre application target is believed to host a potential 10 to 46 million tonnes ranging in grade from 3 to 15 percent phosphorus pentoxide (P2O5) based on an average thickness of 3.5 meters and a specific gravity of 2.6. These ranges are based on previous estimates,and have not been verified by NOP according to current 43-101 standards of disclosure.
Based on this geological model and historic ranges, the additional 6,011 acres from a recently accepted permit application, potentially add as much as 218 million tonnes of P2O5 to the Murdock property.
Raw phosphate ore suitable for direct application is exceedingly rare, with only 5 percent of the world’s phosphate ore having the necessary purity. The majority of raw phosphate must be processed to remove impurities that harm plant growth, such as uranium, thorium, cadmium and heavy metals. The phosphate from Murdock Mountain can be directly applied to crops without any processing due to the uncommon type of occurrence hosted by clean oolitic limestones.
An experienced management team leads the company towards producing its unique product. CEO and director Robin Dow has over 35 years of experience financing public resources companies and has raised over $150 million. Additional directors and consultants bring varied backgrounds to the project that builds confidence in the company.
Robin Dow has 35 years of financing public resource companies, raising over $150 million since 1998. CEO NOP, Dabros Mining Corp, and Ore Chimney Gold. NOP is Dow’s 20th company since 1988.
Paul Pitman is a field-hardened veteran with extensive experience in all areas of geological exploration for several metals and materials. He has over 55 years of experience as an exploration geologist. Since 1983 he acted as a geological consultant to over 70 clients; providing a full range of services (geological, corporate, and administrative); including being a former director, and officer (VP or president) of several junior resource companies. Pitman is semi-retired but directs his geological expertise as an advisor to several fertilizer companies.
Garry Smith has provided exploration management and services to mining companies for over 30 years and has served as president, vice-president of exploration, director, and consultant to numerous boards. Notable milestones were participating in the discovery of the Hemlo world-class gold mine, and co-founding the second junior to list on the TSE. Smith is a registered Professional Geoscientist of Ontario (PGO) and provides qualified person consulting on project acquisition, 43-101 technical reporting, resource estimation, general exploration contracting and reporting, computer-based 3D geological modelling and data compilation, and metal ion soil geochemistry.
Eric Szustak is a chartered public accountant with more than 38 years of financial service, business development, marketing, accounting, and CFO experience. Szustak has worked at both small and large accounting firms advising mid-sized businesses. His background includes 14 years with three national brokerage firms Midland Walwyn, Merrill Lynch and BMO Nesbitt Burns in various positions, including private client wealth group, management and securities compliance. Szustak holds a BA Honors chartered accountant studies and economics from the University of Waterloo and received his chartered accountant designation in 1985. Szustak is the former president and now chairman of the board of Quinsam Capital Corporation. Quinsam is a public merchant bank based in Canada. The merchant banking business encompasses a range of activities including acquisitions, advisory services, lending activities and portfolio investments. His experience in the public markets includes being a director of various public companies.
Keith Li is an experienced chartered professional accountant (CPA, CA) with over 15 years of corporate accounting, finance and financial reporting experience. He specializes in providing management advisory services, accounting and regulatory compliance services to both public and private companies in several industries including junior mining, cannabis, health and wellness, and merchant banking. Li began his career in the public accounting sector as an auditor and has also held a senior-level position at Sears Canada and multiple reporting issuers. He also holds a Bachelor of Commerce from McGill University.
Marco Montecinos has over 38 years of experience in mineral exploration and business development projects in the Americas and possesses considerable expertise and knowledge of the phosphate rich bed where NOP is engaged. He is president of Tigren, a Nevada-based exploration services company that has provided technical services to the mining industry for 28 years.
Nutrien Ltd. (TSX and NYSE: NTR) announced today plans to release second quarter 2024 results after market close on Wednesday, August 7. Nutrien will host a conference call to discuss its results and outlook at 10:00 a.m. EDT on Thursday, August 8.
Investors can access the call by dialing 1-289-514-5100 or 1-800-717-1738. A webcast of the call can be accessed by visiting Nutrien's website at nutrien.com/investors/events .
A recording will be available after the completion of the call by dialing 1-888-660-6264 and inputting the conference identification number 67773#. The recording will be available through November 6, 2024.
About Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716656095/en/
Investor Relations
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Media Relations
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015
Contact us at: www.nutrien.com
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Nutrien Ltd. (TSX and NYSE: NTR) today announced the pricing of US$400 million aggregate principal amount of 5.200 percent senior notes due June 21, 2027 and US$600 million aggregate principal amount of 5.400 percent senior notes due June 21, 2034 (together, the "senior notes"). The offering is expected to close on or about June 21, 2024, subject to customary closing conditions. The senior notes, registered under the multi-jurisdictional disclosure system in Canada and the United States, will not be offered in Canada or to any resident of Canada.
Nutrien intends to use the net proceeds from this offering to repay its US$500 million aggregate principal amount of 5.900% senior notes upon their maturity on November 7, 2024, to reduce outstanding indebtedness under its short-term credit facilities, to finance working capital and for general corporate purposes. The senior notes will be unsecured and rank equally with Nutrien's existing senior unsecured debt. The joint book-running managers for the offering are CIBC World Markets Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and RBC Capital Markets, LLC.
The offering will be made by way of a prospectus supplement dated June 17, 2024, to Nutrien's short form base shelf prospectus dated March 22, 2024, filed with the securities regulatory authorities in each of the provinces of Canada, which forms a part of and is included in Nutrien's registration statement on Form F-10, filed in the United States with the Securities and Exchange Commission (the "SEC") under the multijurisdictional disclosure system. A final prospectus supplement in respect of the offering of the senior notes will be filed with the same regulatory authorities in Canada and the SEC.
About Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals.
Advisory
The senior notes are being offered in the United States pursuant to an effective registration statement (including a base shelf prospectus) filed with the SEC. Nutrien has filed a preliminary prospectus supplement related to the offering of the senior notes. Before you invest, you should read the preliminary prospectus supplement, the accompanying base shelf prospectus and other documents that are incorporated by reference therein for more complete information about Nutrien and this offering.
The preliminary prospectus supplement and the accompanying base shelf prospectus are available for free on the SEC website at www.sec.gov . Alternatively, the documents may be obtained by contacting CIBC World Markets Corp., 300 Madison Avenue, 8 th Floor, New York, NY 10017, Attention: Execution Management, email at DLCIBUSEMG@cibc.com and toll-free at +1 (800) 282-0822; Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282-2198, Attention: Registration Department, email at registration-syndops@ny.email.gs.com and toll-free at +1 (866) 471-2526; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk, at +1 (212) 834-6081 and RBC Capital Markets, LLC, toll-free at +1 (866) 375-6829 .
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the senior notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Forward-Looking Statements
Certain statements and other information included in this press release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "should", "could", "expect", "may", "anticipate", "forecast", "believe", "intend", "estimate", "plan" or other similar words). All statements in this press release, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to, forecasts and statements as to management's expectations with respect to, among other things, the intended use of proceeds of the offering and the timing of closing of the offering. Such forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control, as well as various assumptions and business sensitivities, including those risk factors referred to in the preliminary prospectus supplement referenced in this press release and those referred to under the heading "Risk Factors" in Nutrien's annual information form for the year ended December 31, 2023 and under the heading "Key Enterprise Risks" in Nutrien's management's discussion and analysis for the year ended December 31, 2023, which may cause actual results, performance or achievements of Nutrien, which includes the offering being delayed or not completed, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this press release as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable U.S. federal securities law. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances. All of the forward-looking statements contained herein are qualified by these cautionary statements and by the assumptions that are stated or inherent in such forward-looking statements. Although we believe these assumptions are reasonable, undue reliance should not be placed on these assumptions and such forward-looking statements.
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Investor Relations
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Media Relations
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015
Contact us at: www.nutrien.com
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Nutrien Ltd. (TSX and NYSE: NTR) today is hosting an Investor Day at the New York Stock Exchange beginning at 10:00 a.m. EDT. At the event, management will detail plans to fortify its leadership position across the ag value chain and position the Company to deliver long-term growth.
"Nutrien operates the most extensive crop inputs and services ecosystem with low-cost upstream production assets, global supply chain capabilities, and the leading downstream retail channel to the farmer. Our differentiated business model is centred on our ability to efficiently produce and distribute the products and services needed in key agriculture markets around the world," commented Ken Seitz, Nutrien's President and CEO.
"Today, we look forward to providing an update on the evolution of our strategy and establish new performance targets that we believe provide a clear pathway to deliver long-term value for our shareholders. Our simplified and focused plan prioritizes initiatives that enhance our ability to serve growers in our core markets, maintain the low-cost position and reliability of our assets, and improve the quality of our earnings and free cash flow," added Mr. Seitz.
Strategic Priorities and Performance Targets
Simplifying portfolio and focusing on core assets and markets to enhance earnings quality and free cash flow.
Driving operational improvements and network optimization opportunities to increase asset efficiency.
Utilizing competitive advantages to deliver scalable growth.
Maintaining disciplined approach to cost and capital management.
Nutrien will provide more detail on its strategic priorities, 2026 performance targets and capital allocation plans at its Investor Day this morning.
The event will begin at 10:00 a.m. EDT and conclude at approximately 12:30 p.m. EDT. To view the live webcast and access the presentation materials, visit the investor relations page of Nutrien's website at https://www.nutrien.com/investors/events/nutrien-2024-investor-day . A replay of the webcast will be available following the event.
Forward-Looking Statements
Certain statements in this news release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws including Nutrien's strategic priorities and performance targets; our expectations for quality of earnings and free cash flow; our intention to increase asset efficiency including our expectations for potash automation, nitrogen reliability and efficiency programs as well as optimizing our Retail network and margin improvement plans in Brazil; our targets for potash and nitrogen sales volumes and our target for Retail adjusted EBITDA by the end of 2026 as well as our goal of $1.4 billion in proprietary products gross margin by the end of 2026; our targets to reduce controllable costs by 2026 and to maintain annual average capital expenditures through 2026; and our expectations for cash flow through the cycle and capital deployment opportunities. Forward looking statements in this news release are based on certain key expectations and assumptions made by Nutrien, many of which are outside of our control including but not limited to: that future business, regulatory and industry conditions and global economic conditions will be within the parameters expected by us, including with respect to margins, demand, supply, energy and commodity prices, and availability and cost of labor and technology. Although Nutrien believes that the expectations and assumptions on which such forward looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Nutrien can give no assurance that they will prove to be correct. Forward looking statements are subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release including, but not limited to: general global economic, market, industry, and business conditions including supply, demand, energy and commodity prices; regulatory and stock exchange requirements; access and availability of technology; and performance of third parties. For additional information on the assumptions made, and the risks and uncertainties that could cause actual results to differ from the anticipated results, refer to our reports filed with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission.
The forward-looking statements in this news release are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this news release, except as may be required under applicable laws.
About Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611005416/en/
Investor Relations
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Media Relations
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015
Contact us at: www.nutrien.com
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Nutrien Ltd. (TSX and NYSE: NTR) announced today the results of its annual meeting of shareholders held on May 8, 2024 (the " Meeting "). A total of 369,251,444 common shares, representing 74.66% of common shares outstanding, were represented at the Meeting.
Results of the matters voted on at the Meeting are set out below.
Election of Directors
Nutrien's 12 director nominees were elected:
Votes For (percent) | Votes Against (percent) | |
Christopher M. Burley | 98.33% | 1.67% |
Maura J. Clark | 98.95% | 1.05% |
Russell K. Girling | 98.31% | 1.69% |
Michael J. Hennigan | 94.88% | 5.12% |
Miranda C. Hubbs | 98.48% | 1.52% |
Raj S. Kushwaha | 98.99% | 1.01% |
Julie A. Lagacy | 99.22% | 0.78% |
Consuelo E. Madere | 98.56% | 1.44% |
Keith G. Martell | 99.01% | 0.99% |
Aaron W. Regent | 97.69% | 2.31% |
Ken A. Seitz | 99.25% | 0.75% |
Nelson L.C. Silva | 99.01% | 0.99% |
Appointment of Auditors
KPMG LLP, Chartered Accountants, was re-appointed as auditor of Nutrien.
Votes For (percent): 99.45%
Votes Withheld (percent): 0.55%
Advisory Vote on Executive Compensation
A non-binding advisory vote to accept Nutrien's approach to executive compensation was approved.
Votes For (percent): 94.58%
Votes Against (percent): 5.42%
Full voting results on all matters voted on at the Meeting will be filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov .
About Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508956905/en/
Investor Relations
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Investors@nutrien.com
Media Relations
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015
Contact us at: www.nutrien.com
News Provided by Business Wire via QuoteMedia
Nutrien Ltd. (TSX and NYSE: NTR) announced today that its Board of Directors has declared a quarterly dividend of US$0.54 per share payable on July 19, 2024, to shareholders of record on June 28, 2024.
Registered shareholders who are residents of Canada as reflected in Nutrien's shareholders register, as well as beneficial holders (i.e., shareholders who hold their common shares through a broker or other intermediary) whose intermediary is a participant in CDS Clearing and Depositary Services Inc. or its nominee, CDS & Co., will receive their dividend in Canadian dollars, calculated based on the Bank of Canada daily average exchange rate on June 28, 2024. Registered shareholders resident outside of Canada as reflected in Nutrien's shareholders register, including the United States, as well as beneficial holders whose intermediary is a participant in The Depository Trust Company or its nominee, Cede & Co., will receive their dividend in US dollars. However, registered shareholders of Nutrien may elect to change the currency of their dividend payments to US dollars or Canadian dollars, as applicable. In addition, Nutrien offers registered shareholders direct deposit by electronic funds transfer for dividend payments.
Registered shareholders may elect to change the currency of their dividend and enroll for direct deposit by contacting, Nutrien's registrar and transfer agent, Computershare Investor Services Inc., directly (1-800-564-6253 or service@computershare.com ). Beneficial shareholders should contact their broker or other intermediary to determine the ability and necessary steps involved in an election to change the currency of their dividend payment. For further details, please visit www.nutrien.com/investors/shareholder-information/dividends .
All dividends paid by Nutrien are, pursuant to subsection 89(14) of the Income Tax Act (Canada), designated as eligible dividends.
About Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508129608/en/
Investor Relations
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Media Relations
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015
News Provided by Business Wire via QuoteMedia
All amounts are in US dollars except as otherwise noted
Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2024 results, with net earnings of $165 million ($0.32 diluted net earnings per share). First quarter 2024 adjusted EBITDA 1 was $1.1 billion and adjusted net earnings per share 1 was $0.46.
"We continued to see strong crop input demand, a normalization of product margins for our North American Retail business and increased global potash shipments in the first quarter. Our results highlighted the capabilities of our flexible, low-cost production assets and downstream distribution network to efficiently supply our customers' needs," commented Ken Seitz, Nutrien's President and CEO.
"We expect growth in Retail earnings and fertilizer sales volumes compared to the prior year and have maintained our 2024 guidance ranges. Our focus remains on strengthening our capability to serve growers and enhancing our core businesses to improve the quality of our earnings and free cash flow," added Mr. Seitz.
Highlights 2 :
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 8, 2024. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its Audit Committee, composed entirely 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 annual report dated February 22, 2024 ("2023 Annual Report"), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 22, 2024, each for the year ended December 31, 2023, can be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov . No update is provided to the disclosure in our 2023 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 (the "SEC").
This MD&A is based on and should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements as at and for the three months ended March 31, 2024 ("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 ("IAS") 34 "Interim Financial Reporting", unless otherwise noted. This MD&A contains certain non-GAAP financial measures and ratios and forward-looking statements, which are described in the "Non-GAAP Financial Measures" and the "Forward-Looking Statements" sections, respectively.
Market Outlook and Guidance
Agriculture and Retail Markets
Crop Nutrient Markets
Financial and Operational Guidance
All guidance numbers, including those noted above are outlined in the table below. Refer to page 65 of Nutrien's 2023 Annual Report for related assumptions and sensitivities.
2024 Guidance Ranges 1 as of | ||||||||
May 8, 2024 | February 21, 2024 | |||||||
(billions of US dollars, except as otherwise noted) | Low | High | Low | High | ||||
Retail adjusted EBITDA | 1.65 | 1.85 | 1.65 | 1.85 | ||||
Potash sales volumes (million tonnes) 2 | 13.0 | 13.8 | 13.0 | 13.8 | ||||
Nitrogen sales volumes (million tonnes) 2 | 10.6 | 11.2 | 10.6 | 11.2 | ||||
Phosphate sales volumes (million tonnes) 2 | 2.6 | 2.8 | 2.6 | 2.8 | ||||
Depreciation and amortization | 2.2 | 2.3 | 2.2 | 2.3 | ||||
Finance costs | 0.75 | 0.85 | 0.75 | 0.85 | ||||
Effective tax rate on adjusted earnings (%) | 23.0 | 25.0 | 24.0 | 26.0 | ||||
Capital expenditures 3 | 2.2 | 2.3 | 2.2 | 2.3 | ||||
1 See the "Forward-Looking Statements" section. | ||||||||
2 Manufactured product only. | ||||||||
3 Comprised of sustaining capital expenditures, investing capital expenditures and mine development and pre-stripping capital expenditures which are supplementary financial measures. See the "Other Financial Measures" section. | ||||||||
Consolidated Results
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Sales | 5,389 | 6,107 | (12) | ||
Gross margin | 1,537 | 1,913 | (20) | ||
Expenses | 1,118 | 974 | 15 | ||
Net earnings | 165 | 576 | (71) | ||
Adjusted EBITDA 1 | 1,055 | 1,421 | (26) | ||
Diluted net earnings per share | 0.32 | 1.14 | (72) | ||
Adjusted net earnings per share 1 | 0.46 | 1.11 | (59) | ||
1 This is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section. | |||||
Net earnings and adjusted EBITDA decreased in the first quarter of 2024 compared to the same period in 2023, primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Expenses increased mainly due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments.
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, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted.
Nutrien Ag Solutions ("Retail")
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Sales | 3,308 | 3,422 | (3) | ||
Cost of goods sold | 2,561 | 2,807 | (9) | ||
Gross margin | 747 | 615 | 21 | ||
Adjusted EBITDA 1 | 77 | (34) | n/m | ||
1 See Note 2 to the interim financial statements. | |||||
Three Months Ended March 31 | |||||||
Sales | Gross Margin | ||||||
(millions of US dollars) | 2024 | 2023 | 2024 | 2023 | |||
Crop nutrients | 1,309 | 1,335 | 254 | 141 | |||
Crop protection products | 1,114 | 1,154 | 234 | 208 | |||
Seed | 485 | 507 | 59 | 72 | |||
Services and other | 156 | 148 | 125 | 118 | |||
Merchandise | 200 | 246 | 31 | 44 | |||
Nutrien Financial | 66 | 57 | 66 | 57 | |||
Nutrien Financial elimination | (22) | (25) | (22) | (25) | |||
Total | 3,308 | 3,422 | 747 | 615 | |||
Supplemental Data | Three Months Ended March 31 | ||||||
Gross Margin | % of Product Line 1 | ||||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | 2024 | 2023 | |||
Proprietary products | |||||||
Crop nutrients | 70 | 54 | 28 | 38 | |||
Crop protection products | 83 | 74 | 36 | 36 | |||
Seed | 17 | 30 | 29 | 42 | |||
Merchandise | 3 | 3 | 9 | 6 | |||
Total | 173 | 161 | 23 | 26 | |||
1 Represents percentage of proprietary product margins over total product line gross margin. | |||||||
Sales Volumes | Gross Margin / Tonne | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Crop nutrients | |||||||
North America | 1,464 | 1,195 | 139 | 94 | |||
International | 918 | 845 | 55 | 35 | |||
Total | 2,382 | 2,040 | 106 | 69 | |||
(percentages) | March 31, 2024 | December 31, 2023 | |||
Financial performance measures 1, 2 | |||||
Cash operating coverage ratio | 66 | 68 | |||
Adjusted average working capital to sales | 19 | 19 | |||
Adjusted average working capital to sales excluding Nutrien Financial | nil | 1 | |||
Nutrien Financial adjusted net interest margin | 5.2 | 5.2 | |||
1 Rolling four quarters. | |||||
2 These are non-GAAP financial measures. See the "Non-GAAP Financial Measures" section. | |||||
Potash
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Net sales | 813 | 1,002 | (19) | ||
Cost of goods sold | 358 | 305 | 17 | ||
Gross margin | 455 | 697 | (35) | ||
Adjusted EBITDA 1 | 530 | 676 | (22) | ||
1 See Note 2 to the interim financial statements. | |||||
Manufactured product | Three Months Ended | ||
($ / tonne, except as otherwise noted) | 2024 | 2023 | |
Sales volumes (tonnes - thousands) | |||
North America | 1,307 | 854 | |
Offshore | 2,106 | 1,782 | |
Total sales volumes | 3,413 | 2,636 | |
Net selling price | |||
North America | 310 | 401 | |
Offshore | 193 | 370 | |
Average selling price | 238 | 380 | |
Cost of goods sold | 105 | 115 | |
Gross margin | 133 | 265 | |
Depreciation and amortization | 43 | 37 | |
Gross margin excluding depreciation and amortization 1 | 176 | 302 | |
1 This is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section. | |||
Supplemental Data | Three Months Ended | ||
2024 | 2023 | ||
Production volumes (tonnes – thousands) | 3,565 | 3,088 | |
Potash controllable cash cost of product manufactured per tonne 1 | 56 | 62 | |
Canpotex sales by market (percentage of sales volumes) | |||
Latin America | 32 | 35 | |
Other Asian markets 2 | 33 | 38 | |
China | 20 | 12 | |
India | 3 | 2 | |
Other markets | 12 | 13 | |
Total | 100 | 100 | |
1 This is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section. | |||
2 All Asian markets except China and India. | |||
Nitrogen
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Net sales | 911 | 1,312 | (31) | ||
Cost of goods sold | 604 | 771 | (22) | ||
Gross margin | 307 | 541 | (43) | ||
Adjusted EBITDA 1 | 464 | 676 | (31) | ||
1 See Note 2 to the interim financial statements. | |||||
Manufactured product | Three Months Ended | ||
($ / tonne, except as otherwise noted) | 2024 | 2023 | |
Sales volumes (tonnes - thousands) | |||
Ammonia | 517 | 534 | |
Urea and ESN ® | 775 | 747 | |
Solutions, nitrates and sulfates | 1,215 | 1,076 | |
Total sales volumes | 2,507 | 2,357 | |
Net selling price | |||
Ammonia | 403 | 721 | |
Urea and ESN ® | 432 | 617 | |
Solutions, nitrates and sulfates | 226 | 310 | |
Average net selling price | 326 | 500 | |
Cost of goods sold | 207 | 275 | |
Gross margin | 119 | 225 | |
Depreciation and amortization | 54 | 57 | |
Gross margin excluding depreciation and amortization 1 | 173 | 282 | |
1 This is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section. | |||
Supplemental Data | Three Months Ended | ||
2024 | 2023 | ||
Sales volumes (tonnes – thousands) | |||
Fertilizer | 1,423 | 1,248 | |
Industrial and feed | 1,084 | 1,109 | |
Production volumes (tonnes – thousands) | |||
Ammonia production – total 1 | 1,452 | 1,431 | |
Ammonia production – adjusted 1, 2 | 1,018 | 1,037 | |
Ammonia operating rate (%) 2 | 92 | 95 | |
Natural gas costs (US dollars per MMBtu) | |||
Overall natural gas cost excluding realized derivative impact | 3.16 | 4.85 | |
Realized derivative impact 3 | 0.04 | ‐ | |
Overall natural gas cost | 3.20 | 4.85 | |
1 All figures are provided on a gross production basis in thousands of product tonnes. | |||
2 Excludes Trinidad and Joffre. | |||
3 Includes realized derivative impacts recorded as part of cost of goods sold or other income and expenses. Refer to Note 3 to the interim financial statements. | |||
Phosphate
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Net sales | 437 | 514 | (15) | ||
Cost of goods sold | 372 | 427 | (13) | ||
Gross margin | 65 | 87 | (25) | ||
Adjusted EBITDA 1 | 121 | 137 | (12) | ||
1 See Note 2 to the interim financial statements. | |||||
Manufactured product | Three Months Ended | ||
($ / tonne, except as otherwise noted) | 2024 | 2023 | |
Sales volumes (tonnes - thousands) | |||
Fertilizer | 447 | 388 | |
Industrial and feed | 173 | 160 | |
Total sales volumes | 620 | 548 | |
Net selling price | |||
Fertilizer | 627 | 682 | |
Industrial and feed | 848 | 1,136 | |
Average net selling price | 689 | 814 | |
Cost of goods sold | 580 | 651 | |
Gross margin | 109 | 163 | |
Depreciation and amortization | 113 | 122 | |
Gross margin excluding depreciation and amortization 1 | 222 | 285 | |
1 This is a non-GAAP financial measure. See the "Non-GAAP Financial Measures" section. | |||
Supplemental Data | Three Months Ended | ||
2024 | 2023 | ||
Production volumes (P 2 O 5 tonnes – thousands) | 352 | 341 | |
P 2 O 5 operating rate (%) | 83 | 81 | |
Corporate and Others and Eliminations
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Corporate and Others | |||||
Selling expenses (recovery) | (2) | (2) | ‐ | ||
General and administrative expenses | 89 | 84 | 6 | ||
Share-based compensation expense | 6 | 15 | (60) | ||
Other expenses (income) | 97 | (81) | n/m | ||
Adjusted EBITDA 1 | (101) | (13) | 677 | ||
Eliminations | |||||
Gross margin | (37) | (27) | 37 | ||
Adjusted EBITDA 1 | (36) | (21) | 71 | ||
1 See Note 2 to the interim financial statements. | |||||
Finance Costs, Income Taxes and Other Comprehensive (Loss) Income
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Finance costs | 179 | 170 | 5 | ||
Income tax expense | 75 | 193 | (61) | ||
Actual effective tax rate including discrete items (%) | 31 | 25 | 24 | ||
Other comprehensive (loss) income | (102) | 2 | n/m | ||
Liquidity and Capital Resources
Sources and Uses of Liquidity
We continued to manage our capital in accordance with our capital allocation strategy. We believe that our internally generated cash flow, supplemented by available borrowings under new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, and other cash requirements for the foreseeable future. Refer to the "Capital Structure and Management" section for details on our existing long-term debt and credit facilities.
Sources and Uses of Cash
Three Months Ended March 31 | |||||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | % Change | ||
Cash used in operating activities | (487) | (858) | (43) | ||
Cash used in investing activities | (494) | (694) | (29) | ||
Cash provided by financing activities | 548 | 2,129 | (74) | ||
Cash used for dividends and share repurchases 1 | (261) | (1,143) | (77) | ||
1 This is a supplementary financial measure. See the "Other Financial Measures" section. | |||||
Cash used in |
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Cash used in |
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Cash provided by |
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Cash used for |
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Financial Condition Review
The following is a comparison of balance sheet categories that are considered material:
As at | |||||||
(millions of US dollars, except as otherwise noted) | March 31, 2024 | December 31, 2023 | $ Change | % Change | |||
Assets | |||||||
Cash and cash equivalents | 496 | 941 | (445) | (47) | |||
Receivables | 5,561 | 5,398 | 163 | 3 | |||
Inventories | 8,188 | 6,336 | 1,852 | 29 | |||
Prepaid expenses and other current assets | 905 | 1,495 | (590) | (39) | |||
Property, plant and equipment | 22,410 | 22,461 | (51) | ‐ | |||
Liabilities and Equity | |||||||
Short-term debt | 2,835 | 1,815 | 1,020 | 56 | |||
Payables and accrued charges | 9,431 | 9,467 | (36) | ‐ | |||
Retained earnings | 11,423 | 11,531 | (108) | (1) | |||
Capital Structure and Management
Principal Debt Instruments
As part of the normal course of business, we closely monitor our liquidity position. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We continually evaluate various financing arrangements and may seek to engage in transactions from time to time when market and other conditions are favorable. We were in compliance with our debt covenants and did not have any changes to our credit ratings for the three months ended March 31, 2024.
Capital Structure (Debt and Equity)
(millions of US dollars) | March 31, 2024 | December 31, 2023 | ||
Short-term debt | 2,835 | 1,815 | ||
Current portion of long-term debt | 513 | 512 | ||
Current portion of lease liabilities | 346 | 327 | ||
Long-term debt | 8,910 | 8,913 | ||
Lease liabilities | 1,034 | 999 | ||
Shareholders' equity | 24,996 | 25,201 |
Commercial Paper, Credit Facilities and Other Debt
We have several credit facilities available in the jurisdictions where we operate. We also have a commercial paper program, which is limited to the undrawn amount under our $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. As at March 31, 2024, we had $1,963 million of commercial paper outstanding.
As at March 31, 2024, $240 million in letters of credit were outstanding and committed, with $118 million of remaining credit available under our dedicated letter of credit facilities.
On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility, under which we drew borrowings of $100 million as at March 31, 2024. See Note 6 to the interim financial statements for a further description of this facility.
In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024.
Outstanding Share Data
As at May 7, 2024 | |
Common shares | 494,628,434 |
Options to purchase common shares | 3,752,004 |
For more information on our capital structure and management, see Note 24 to the consolidated financial statements in our 2023 Annual Report.
Quarterly Results
(millions of US dollars, except as otherwise noted) | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | |||||||
Sales | 5,389 | 5,664 | 5,631 | 11,654 | 6,107 | 7,533 | 8,188 | 14,506 | |||||||
Net earnings | 165 | 176 | 82 | 448 | 576 | 1,118 | 1,583 | 3,601 | |||||||
Net earnings attributable to equity holders of Nutrien | 158 | 172 | 75 | 440 | 571 | 1,112 | 1,577 | 3,593 | |||||||
Net earnings per share attributable to equity holders of Nutrien | |||||||||||||||
Basic | 0.32 | 0.35 | 0.15 | 0.89 | 1.14 | 2.15 | 2.95 | 6.53 | |||||||
Diluted | 0.32 | 0.35 | 0.15 | 0.89 | 1.14 | 2.15 | 2.94 | 6.51 |
Our quarterly earnings are significantly affected by the seasonality of our business, fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather. See Note 8 to the interim financial statements.
The following table describes certain items that impacted our quarterly earnings:
Quarter | Transaction or Event |
Q2 2023 | $698 million non-cash impairment of assets comprised of a $233 million non-cash impairment of our Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates which lowered our forecasted earnings. |
Q3 2022 | $330 million reversal of non-cash impairment of our Phosphate White Springs property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. |
Q2 2022 | $450 million reversal of non-cash impairment of our Phosphate Aurora property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. |
Critical Accounting Estimates
Our significant accounting policies are disclosed in our 2023 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the Audit Committee of the Board. Our critical accounting estimates are discussed on pages 72 to 74 of our 2023 Annual Report. There were no material changes to our critical accounting estimates for the three months ended March 31, 2024.
Controls and Procedures
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings . Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.
There has been no change in our internal control over financial reporting during the three months ended March 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Forward-Looking Statements
Certain statements and other information included in this document, including within the "Market Outlook and Guidance" section, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "anticipate", "forecast", "expect", "believe", "may", "will", "should", "estimate", "project", "intend" or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to:
Nutrien's business strategies, plans, prospects and opportunities; Nutrien's 2024 full-year guidance, including expectations regarding Retail adjusted EBITDA, Potash sales volumes, Nitrogen sales volumes, Phosphate sales volumes, depreciation and amortization, finance costs, effective tax rate and capital expenditures; our projections to generate strong cash from operations; expectations regarding our capital allocation intentions and strategies; our ability to advance strategic initiatives and high value growth investments, including expectations regarding our ability to serve growers, maintain a low-cost position of fertilizer production assets and increase free cash flow; capital spending expectations for 2024 and beyond; expectations regarding our ability to generate and enhance free cash flow; expectations regarding performance of our operating segments in 2024, including increased fertilizer sales volumes and growth in Retail earnings; our operating segment market outlooks and our expectations for market conditions and fundamentals in 2024 and beyond, and the anticipated supply and demand for our products and services, expected market, industry and growing conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, including the need to replenish soil nutrient levels, production volumes and expenses, shipments, natural gas costs and availability, consumption, prices, operating rates and the impact of seasonality, import and export volumes, economic sanctions and restrictions, operating rates, inventories, crop development and natural gas curtailments; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders.
These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.
All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.
The additional key assumptions that have been made in relation to the operation of our business as currently planned and our ability to achieve our business objectives include, among other things, assumptions with respect to: our ability to successfully implement our business strategies, growth and capital allocation investments and initiatives that we will conduct our operations and achieve results of operations as anticipated; our ability to successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions and divestitures, and that we will be able to implement our standards, controls, procedures and policies in respect of any acquired businesses and to realize the expected synergies on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions, including the current El Niño weather pattern, supplier agreements, product distribution agreements, inventory levels, exports, crop development and cost of labor and interest, exchange and effective tax rates; potash demand growth in offshore markets and normalization of Canpotex port operations; global economic conditions and the accuracy of our market outlook expectations for 2024 and in the future; assumptions related to our assessment of recoverable amount estimates of our assets, including in relation to our Retail - South America group of CGUs goodwill and intangible asset impairments; assumptions related to the calculation of recoverable amount of our Aurora and White Springs CGUs, including internal sales and input price forecasts, discount rate, long-term growth rate and end of expected mine life; our intention to complete share repurchases under our normal course issuer bid programs, including Toronto Stock Exchange approval, the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies and assumptions related to our ability to fund our dividends at the current level; our expectations regarding the impacts, direct and indirect, of certain geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East on, among other things, global supply and demand, including for crop nutrients, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; assumptions regarding future markets for clean ammonia; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales and other contracts and our ability to successfully implement new initiatives and programs.
Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general global economic, market and business conditions; failure to achieve expected results of our business strategy, capital allocation initiatives or results of operations; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change and weather conditions, including the current El Niño weather pattern (and transition to El Niña weather pattern), including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax, antitrust and other laws or regulations and the interpretation thereof; political or military risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism and industrial espionage; our ability to access sufficient, cost-effective and timely transportation, distribution and storage of products (including potential rail transportation and port disruptions due to labor strikes and/or work stoppages or other similar actions); the occurrence of a major environmental or safety incident or becoming subject to legal or regulatory proceedings; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities or challenges related to our major facilities that are out of our control; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain of our cash generating units; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East, and their potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States.
The purpose of our Retail adjusted EBITDA, depreciation and amortization, finance costs, effective tax rate and capital expenditures guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.
The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws.
Terms and Definitions
For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the "Terms & Definitions" section of our 2023 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, "n/m" indicates information that is not meaningful, and all financial amounts are stated in millions of US dollars, unless otherwise noted.
About Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals.
More information about Nutrien can be found at www.nutrien.com .
Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool
Such data is not incorporated by reference herein.
Nutrien will host a Conference Call on Thursday, May 9, 2024 at 10:00 a.m. Eastern Time.
Telephone conference dial-in numbers:
Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2024-q1-earnings-conference-call
Non-GAAP Financial Measures
We use both International Financial Reporting Standards ("IFRS") measures and certain non-GAAP financial measures to assess performance. Non-GAAP financial measures are financial measures disclosed by the Company that (a) depict historical or expected future financial performance, financial position or cash flow of the Company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the Company, (c) are not disclosed in the financial statements of the Company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by the Company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the Company.
These non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-GAAP financial measures and non-GAAP ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.
The following section outlines our non-GAAP financial measures and non-GAAP ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-GAAP financial measures and non-GAAP ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations.
Adjusted EBITDA (Consolidated)
Most directly comparable IFRS financial measure: Net earnings (loss).
Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, asset retirement obligations ("ARO") and accrued environmental costs ("ERL") related to our non-operating sites, and loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps).
Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations and as a component of employee remuneration calculations.
Three Months Ended March 31 | |||
(millions of US dollars) | 2024 | 2023 | |
Net earnings | 165 | 576 | |
Finance costs | 179 | 170 | |
Income tax expense | 75 | 193 | |
Depreciation and amortization | 565 | 496 | |
EBITDA 1 | 984 | 1,435 | |
Adjustments: | |||
Share-based compensation expense | 6 | 15 | |
Foreign exchange loss (gain), net of related derivatives | 43 | (34) | |
ARO/ERL expense for non-operating sites | 3 | ‐ | |
Loss on Blue Chip Swaps | 19 | ‐ | |
Integration and restructuring related costs | ‐ | 5 | |
Adjusted EBITDA | 1,055 | 1,421 | |
1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization. | |||
Adjusted Net Earnings and Adjusted Net Earnings Per Share
Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share.
Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps), change in recognition of tax losses and deductible temporary differences related to impairments and certain changes to tax declarations (e.g., "Swiss Tax Reform adjustment"). We generally apply the annual forecasted effective tax rate to specific adjustments during the year, and at year-end, we apply the actual effective tax rate.
Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations.
Three Months Ended | |||||
Per | |||||
Increases | Diluted | ||||
(millions of US dollars, except as otherwise noted) | (Decreases) | Post-Tax | Share | ||
Net earnings attributable to equity holders of Nutrien | 158 | 0.32 | |||
Adjustments: | |||||
Share-based compensation expense | 6 | 5 | 0.01 | ||
Foreign exchange loss, net of related derivatives | 43 | 46 | 0.09 | ||
ARO/ERL expense for non-operating sites | 3 | 2 | ‐ | ||
Loss on Blue Chip Swaps | 19 | 19 | 0.04 | ||
Adjusted net earnings | 230 | 0.46 | |||
Three Months Ended | |||||
Per | |||||
Increases | Diluted | ||||
(millions of US dollars, except as otherwise noted) | (Decreases) | Post-Tax | Share | ||
Net earnings attributable to equity holders of Nutrien | 571 | 1.14 | |||
Adjustments: | |||||
Share-based compensation expense | 15 | 11 | 0.01 | ||
Foreign exchange gain, net of related derivatives | (34) | (25) | (0.05) | ||
Integration and restructuring related costs | 5 | 4 | 0.01 | ||
Adjusted net earnings | 561 | 1.11 | |||
Gross Margin Excluding Depreciation and Amortization Per Tonne – Manufactured Product
Most directly comparable IFRS financial measure: Gross margin.
Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the "Segment Results" section.
Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.
Potash Controllable Cash Cost of Product Manufactured ("COPM") Per Tonne
Most directly comparable IFRS financial measure: Cost of goods sold ("COGS") for the Potash segment.
Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes.
Why we use the measure and why it is useful to investors: To assess operational performance. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions, supporting a focus on the performance of our day-to-day operations. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions.
Three Months Ended March 31 | |||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | |
Total COGS – Potash | 358 | 305 | |
Change in inventory | 28 | 40 | |
Other adjustments 1 | (3) | (8) | |
COPM | 383 | 337 | |
Depreciation and amortization in COPM | (153) | (100) | |
Royalties in COPM | (19) | (31) | |
Natural gas costs and carbon taxes in COPM | (12) | (16) | |
Controllable cash COPM | 199 | 190 | |
Production tonnes (tonnes – thousands) | 3,565 | 3,088 | |
Potash controllable cash COPM per tonne | 56 | 62 | |
1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances. | |||
Nutrien Financial Adjusted Net Interest Margin
Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net receivables outstanding for the last four rolling quarters.
Why we use the measure and why it is useful to investors: Used by credit rating agencies and others to evaluate the financial performance of Nutrien Financial.
Rolling four quarters ended March 31, 2024 | ||||||||||
(millions of US dollars, except as otherwise noted) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Total/Average | |||||
Nutrien Financial revenue | 122 | 73 | 70 | 66 | ||||||
Deemed interest expense 1 | (39) | (41) | (36) | (27) | ||||||
Net interest | 83 | 32 | 34 | 39 | 188 | |||||
Average Nutrien Financial net receivables | 4,716 | 4,353 | 2,893 | 2,489 | 3,613 | |||||
Nutrien Financial adjusted net interest margin (%) | 5.2 | |||||||||
Rolling four quarters ended December 31, 2023 | ||||||||||
(millions of US dollars, except as otherwise noted) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Total/Average | |||||
Nutrien Financial revenue | 57 | 122 | 73 | 70 | ||||||
Deemed interest expense 1 | (20) | (39) | (41) | (36) | ||||||
Net interest | 37 | 83 | 32 | 34 | 186 | |||||
Average Nutrien Financial net receivables | 2,283 | 4,716 | 4,353 | 2,893 | 3,561 | |||||
Nutrien Financial adjusted net interest margin (%) | 5.2 | |||||||||
1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial. | ||||||||||
Retail Cash Operating Coverage Ratio
Definition: Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters.
Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.
Rolling four quarters ended March 31, 2024 | ||||||||||
(millions of US dollars, except as otherwise noted) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Total | |||||
Selling expenses | 971 | 798 | 841 | 790 | 3,400 | |||||
General and administrative expenses | 55 | 57 | 55 | 52 | 219 | |||||
Other expenses | 29 | 37 | 77 | 22 | 165 | |||||
Operating expenses | 1,055 | 892 | 973 | 864 | 3,784 | |||||
Depreciation and amortization in operating expenses | (185) | (186) | (199) | (190) | (760) | |||||
Operating expenses excluding depreciation and amortization | 870 | 706 | 774 | 674 | 3,024 | |||||
Gross margin | 1,931 | 895 | 989 | 747 | 4,562 | |||||
Depreciation and amortization in cost of goods sold | 3 | 3 | 2 | 4 | 12 | |||||
Gross margin excluding depreciation and amortization | 1,934 | 898 | 991 | 751 | 4,574 | |||||
Cash operating coverage ratio (%) | 66 | |||||||||
Rolling four quarters ended December 31, 2023 | ||||||||||
(millions of US dollars, except as otherwise noted) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Total | |||||
Selling expenses | 765 | 971 | 798 | 841 | 3,375 | |||||
General and administrative expenses | 50 | 55 | 57 | 55 | 217 | |||||
Other expenses | 15 | 29 | 37 | 77 | 158 | |||||
Operating expenses | 830 | 1,055 | 892 | 973 | 3,750 | |||||
Depreciation and amortization in operating expenses | (179) | (185) | (186) | (199) | (749) | |||||
Operating expenses excluding depreciation and amortization | 651 | 870 | 706 | 774 | 3,001 | |||||
Gross margin | 615 | 1,931 | 895 | 989 | 4,430 | |||||
Depreciation and amortization in cost of goods sold | 2 | 3 | 3 | 2 | 10 | |||||
Gross margin excluding depreciation and amortization | 617 | 1,934 | 898 | 991 | 4,440 | |||||
Cash operating coverage ratio (%) | 68 | |||||||||
Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial
Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital.
Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio.
Rolling four quarters ended March 31, 2024 | ||||||||||
(millions of US dollars, except as otherwise noted) | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Average/Total | |||||
Current assets | 11,983 | 10,398 | 10,498 | 11,821 | ||||||
Current liabilities | (8,246) | (5,228) | (8,210) | (8,401) | ||||||
Working capital | 3,737 | 5,170 | 2,288 | 3,420 | 3,654 | |||||
Working capital from certain recent acquisitions | ‐ | ‐ | ‐ | ‐ | ||||||
Adjusted working capital | 3,737 | 5,170 | 2,288 | 3,420 | 3,654 | |||||
Nutrien Financial working capital | (4,716) | (4,353) | (2,893) | (2,489) | ||||||
Adjusted working capital excluding Nutrien Financial | (979) | 817 | (605) | 931 | 41 | |||||
Sales | 9,128 | 3,490 | 3,502 | 3,308 | ||||||
Sales from certain recent acquisitions | ‐ | ‐ | ‐ | ‐ | ||||||
Adjusted sales | 9,128 | 3,490 | 3,502 | 3,308 | 19,428 | |||||
Nutrien Financial revenue | (122) | (73) | (70) | (66) | ||||||
Adjusted sales excluding Nutrien Financial | 9,006 | 3,417 | 3,432 | 3,242 | 19,097 | |||||
Adjusted average working capital to sales (%) | 19 | |||||||||
Adjusted average working capital to sales excluding Nutrien Financial (%) | nil | |||||||||
Rolling four quarters ended December 31, 2023 | ||||||||||
(millions of US dollars, except as otherwise noted) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Average/Total | |||||
Current assets | 13,000 | 11,983 | 10,398 | 10,498 | ||||||
Current liabilities | (8,980) | (8,246) | (5,228) | (8,210) | ||||||
Working capital | 4,020 | 3,737 | 5,170 | 2,288 | 3,804 | |||||
Working capital from certain recent acquisitions | ‐ | ‐ | ‐ | ‐ | ||||||
Adjusted working capital | 4,020 | 3,737 | 5,170 | 2,288 | 3,804 | |||||
Nutrien Financial working capital | (2,283) | (4,716) | (4,353) | (2,893) | ||||||
Adjusted working capital excluding Nutrien Financial | 1,737 | (979) | 817 | (605) | 243 | |||||
Sales | 3,422 | 9,128 | 3,490 | 3,502 | ||||||
Sales from certain recent acquisitions | ‐ | ‐ | ‐ | ‐ | ||||||
Adjusted sales | 3,422 | 9,128 | 3,490 | 3,502 | 19,542 | |||||
Nutrien Financial revenue | (57) | (122) | (73) | (70) | ||||||
Adjusted sales excluding Nutrien Financial | 3,365 | 9,006 | 3,417 | 3,432 | 19,220 | |||||
Adjusted average working capital to sales (%) | 19 | |||||||||
Adjusted average working capital to sales excluding Nutrien Financial (%) | 1 | |||||||||
Other Financial Measures
Selected Additional Financial Data
Nutrien Financial | As at March 31, 2024 | As at | ||||||||
(millions of US dollars) | Current | Past Due | 31–90 | >90 Days | Gross | Allowance 1 | Net | Net | ||
North America | 1,275 | 91 | 254 | 146 | 1,766 | (48) | 1,718 | 2,206 | ||
International | 598 | 47 | 78 | 58 | 781 | (10) | 771 | 687 | ||
Nutrien Financial receivables | 1,873 | 138 | 332 | 204 | 2,547 | (58) | 2,489 | 2,893 | ||
1 Bad debt expense on the above receivables for the three months ended March 31, 2024 and 2023 were $9 million and $1 million, respectively, in the Retail segment. | ||||||||||
Supplementary Financial Measures
Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios.
The following section provides an explanation of the composition of those supplementary financial measures if not previously provided.
Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds.
Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees.
Mine development and pre-stripping capital expenditures: Represents capital expenditures that are required for activities to open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore.
Cash used for dividends and share repurchases (shareholder returns): Calculated as dividends paid to Nutrien's shareholders plus repurchase of common shares as reflected in the unaudited condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders.
Condensed Consolidated Financial Statements
Unaudited
Condensed Consolidated Statements of Earnings
Three Months Ended | ||||||
March 31 | ||||||
(millions of US dollars, except as otherwise noted) | Note | 2024 | 2023 | |||
SALES | 2, 9 | 5,389 | 6,107 | |||
Freight, transportation and distribution | 238 | 199 | ||||
Cost of goods sold | 3,614 | 3,995 | ||||
GROSS MARGIN | 1,537 | 1,913 | ||||
Selling expenses | 794 | 770 | ||||
General and administrative expenses | 154 | 145 | ||||
Provincial mining taxes | 68 | 119 | ||||
Share-based compensation expense | 6 | 15 | ||||
Other expenses (income) | 3 | 96 | (75) | |||
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES | 419 | 939 | ||||
Finance costs | 179 | 170 | ||||
EARNINGS BEFORE INCOME TAXES | 240 | 769 | ||||
Income tax expense | 4 | 75 | 193 | |||
NET EARNINGS | 165 | 576 | ||||
Attributable to | ||||||
Equity holders of Nutrien | 158 | 571 | ||||
Non-controlling interest | 7 | 5 | ||||
NET EARNINGS | 165 | 576 | ||||
NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS") | ||||||
Basic | 0.32 | 1.14 | ||||
Diluted | 0.32 | 1.14 | ||||
Weighted average shares outstanding for basic EPS | 494,570,000 | 501,175,000 | ||||
Weighted average shares outstanding for diluted EPS | 494,792,000 | 502,220,000 | ||||
Condensed Consolidated Statements of Comprehensive Income
Three Months Ended | ||||
March 31 | ||||
(millions of US dollars) | 2024 | 2023 | ||
NET EARNINGS | 165 | 576 | ||
Other comprehensive (loss) income | ||||
Items that will not be reclassified to net earnings: | ||||
Net actuarial loss on defined benefit plans | ‐ | (3) | ||
Net fair value (loss) gain on investments | (18) | 5 | ||
Items that have been or may be subsequently reclassified to net earnings: | ||||
(Loss) gain on currency translation of foreign operations | (66) | 1 | ||
Other | (18) | (1) | ||
OTHER COMPREHENSIVE (LOSS) INCOME | (102) | 2 | ||
COMPREHENSIVE INCOME | 63 | 578 | ||
Attributable to | ||||
Equity holders of Nutrien | 57 | 573 | ||
Non-controlling interest | 6 | 5 | ||
COMPREHENSIVE INCOME | 63 | 578 | ||
(See Notes to the Condensed Consolidated Financial Statements) | ||||
Condensed Consolidated Statements of Cash Flows
Three Months Ended | ||||||
March 31 | ||||||
(millions of US dollars) | Note | 2024 | 2023 | |||
Note 1 | ||||||
OPERATING ACTIVITIES | ||||||
Net earnings | 165 | 576 | ||||
Adjustments for: | ||||||
Depreciation and amortization | 565 | 496 | ||||
Share-based compensation expense | 6 | 15 | ||||
Provision for deferred income tax | 28 | 21 | ||||
Net (undistributed) distributed earnings of equity-accounted investees | (50) | 163 | ||||
Gain on amendments to other post-retirement pension plans | 3 | ‐ | (80) | |||
Loss on Blue Chip Swaps | 3 | 19 | ‐ | |||
Long-term income tax receivables and payables | 43 | (72) | ||||
Other long-term assets, liabilities and miscellaneous | 64 | 7 | ||||
Cash from operations before working capital changes | 840 | 1,126 | ||||
Changes in non-cash operating working capital: | ||||||
Receivables | (257) | 535 | ||||
Inventories and prepaid expenses and other current assets | (1,330) | (1,493) | ||||
Payables and accrued charges | 260 | (1,026) | ||||
CASH USED IN OPERATING ACTIVITIES | (487) | (858) | ||||
INVESTING ACTIVITIES | ||||||
Capital expenditures 1 | (373) | (465) | ||||
Business acquisitions, net of cash acquired | ‐ | (111) | ||||
Proceeds from sales of Blue Chip Swaps, net of purchases | 3 | (19) | ‐ | |||
Net changes in non-cash working capital | (90) | (100) | ||||
Other | (12) | (18) | ||||
CASH USED IN INVESTING ACTIVITIES | (494) | (694) | ||||
FINANCING ACTIVITIES | ||||||
Proceeds from debt with maturity periods within three months, net | 926 | 1,873 | ||||
Proceeds from debt | ‐ | 1,500 | ||||
Repayment of debt | (14) | (17) | ||||
Repayment of principal portion of lease liabilities | (96) | (87) | ||||
Dividends paid to Nutrien's shareholders | (261) | (246) | ||||
Repurchase of common shares | ‐ | (897) | ||||
Issuance of common shares | 1 | 28 | ||||
Other | (8) | (25) | ||||
CASH PROVIDED BY FINANCING ACTIVITIES | 548 | 2,129 | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (12) | (5) | ||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (445) | 572 | ||||
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 941 | 901 | ||||
CASH AND CASH EQUIVALENTS – END OF PERIOD | 496 | 1,473 | ||||
Cash and cash equivalents is composed of: | ||||||
Cash | 422 | 361 | ||||
Short-term investments | 74 | 1,112 | ||||
496 | 1,473 | |||||
SUPPLEMENTAL CASH FLOWS INFORMATION | ||||||
Interest paid | 132 | 98 | ||||
Income taxes paid | 50 | 1,319 | ||||
Total cash outflow for leases | 131 | 119 | ||||
1 Includes additions to property, plant and equipment, and intangible assets for the three months ended March 31, 2024 of $338 million and $35 million (2023 – $422 million and $43 million). | ||||||
(See Notes to the Condensed Consolidated Financial Statements) | ||||||
Condensed Consolidated Statements of Changes in Shareholders' Equity
Accumulated Other Comprehensive | ||||||||||||||||||||
(Loss) Income ("AOCI") | ||||||||||||||||||||
(Loss) Gain | ||||||||||||||||||||
on Currency | Equity | |||||||||||||||||||
Number of | Translation | Holders | Non- | |||||||||||||||||
Common | Share | Contributed | of Foreign | Total | Retained | of | Controlling | Total | ||||||||||||
(millions of US dollars, except as otherwise noted) | Shares | Capital | Surplus | Operations | Other | AOCI | Earnings | Nutrien | Interest | Equity | ||||||||||
BALANCE – DECEMBER 31, 2022 | 507,246,105 | 14,172 | 109 | (374) | (17) | (391) | 11,928 | 25,818 | 45 | 25,863 | ||||||||||
Net earnings | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 571 | 571 | 5 | 576 | ||||||||||
Other comprehensive income | ‐ | ‐ | ‐ | 1 | 1 | 2 | ‐ | 2 | ‐ | 2 | ||||||||||
Shares repurchased | (11,751,290) | (328) | ‐ | ‐ | ‐ | ‐ | (571) | (899) | ‐ | (899) | ||||||||||
Dividends declared - $0.53/share | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | (265) | (265) | ‐ | (265) | ||||||||||
Non-controlling interest transactions | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | (6) | (6) | ||||||||||
Effect of share-based compensation including issuance of | ||||||||||||||||||||
common shares | 579,208 | 34 | (3) | ‐ | ‐ | ‐ | ‐ | 31 | ‐ | 31 | ||||||||||
Transfer of net loss on cash flow hedges | ‐ | ‐ | ‐ | ‐ | 5 | 5 | ‐ | 5 | ‐ | 5 | ||||||||||
Transfer of net actuarial loss on defined benefit plans | ‐ | ‐ | ‐ | ‐ | 3 | 3 | (3) | ‐ | ‐ | ‐ | ||||||||||
Other | ‐ | ‐ | ‐ | (2) | ‐ | (2) | ‐ | (2) | ‐ | (2) | ||||||||||
BALANCE – MARCH 31, 2023 | 496,074,023 | 13,878 | 106 | (375) | (8) | (383) | 11,660 | 25,261 | 44 | 25,305 | ||||||||||
BALANCE – DECEMBER 31, 2023 | 494,551,730 | 13,838 | 83 | (286) | (10) | (296) | 11,531 | 25,156 | 45 | 25,201 | ||||||||||
Net earnings | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 158 | 158 | 7 | 165 | ||||||||||
Other comprehensive loss | ‐ | ‐ | ‐ | (65) | (36) | (101) | ‐ | (101) | (1) | (102) | ||||||||||
Dividends declared - $0.54/share | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | (266) | (266) | ‐ | (266) | ||||||||||
Non-controlling interest transactions | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | (8) | (8) | ||||||||||
Effect of share-based compensation including issuance of | ||||||||||||||||||||
common shares | 37,199 | 2 | 2 | ‐ | ‐ | ‐ | ‐ | 4 | ‐ | 4 | ||||||||||
Transfer of net loss on cash flow hedges | ‐ | ‐ | ‐ | ‐ | 2 | 2 | ‐ | 2 | ‐ | 2 | ||||||||||
BALANCE – MARCH 31, 2024 | 494,588,929 | 13,840 | 85 | (351) | (44) | (395) | 11,423 | 24,953 | 43 | 24,996 | ||||||||||
(See Notes to the Condensed Consolidated Financial Statements) | ||||||||||||||||||||
Condensed Consolidated Balance Sheets
March 31 | December 31 | ||||||||
As at (millions of US dollars) | Note | 2024 | 2023 | 2023 | |||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 496 | 1,473 | 941 | ||||||
Receivables | 6, 9 | 5,561 | 6,009 | 5,398 | |||||
Inventories | 8,188 | 9,852 | 6,336 | ||||||
Prepaid expenses and other current assets | 905 | 937 | 1,495 | ||||||
15,150 | 18,271 | 14,170 | |||||||
Non-current assets | |||||||||
Property, plant and equipment | 22,410 | 21,832 | 22,461 | ||||||
Goodwill | 12,083 | 12,433 | 12,114 | ||||||
Intangible assets | 2,165 | 2,292 | 2,217 | ||||||
Investments | 768 | 686 | 736 | ||||||
Other assets | 999 | 1,078 | 1,051 | ||||||
TOTAL ASSETS | 53,575 | 56,592 | 52,749 | ||||||
LIABILITIES | |||||||||
Current liabilities | |||||||||
Short-term debt | 6 | 2,835 | 4,013 | 1,815 | |||||
Current portion of long-term debt | 513 | 545 | 512 | ||||||
Current portion of lease liabilities | 346 | 306 | 327 | ||||||
Payables and accrued charges | 9,431 | 10,611 | 9,467 | ||||||
13,125 | 15,475 | 12,121 | |||||||
Non-current liabilities | |||||||||
Long-term debt | 8,910 | 9,510 | 8,913 | ||||||
Lease liabilities | 1,034 | 880 | 999 | ||||||
Deferred income tax liabilities | 3,601 | 3,603 | 3,574 | ||||||
Pension and other post-retirement benefit liabilities | 246 | 242 | 252 | ||||||
Asset retirement obligations and accrued environmental costs | 1,485 | 1,389 | 1,489 | ||||||
Other non-current liabilities | 178 | 188 | 200 | ||||||
TOTAL LIABILITIES | 28,579 | 31,287 | 27,548 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Share capital | 13,840 | 13,878 | 13,838 | ||||||
Contributed surplus | 85 | 106 | 83 | ||||||
Accumulated other comprehensive loss | (395) | (383) | (296) | ||||||
Retained earnings | 11,423 | 11,660 | 11,531 | ||||||
Equity holders of Nutrien | 24,953 | 25,261 | 25,156 | ||||||
Non-controlling interest | 43 | 44 | 45 | ||||||
TOTAL SHAREHOLDERS' EQUITY | 24,996 | 25,305 | 25,201 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 53,575 | 56,592 | 52,749 | ||||||
(See Notes to the Condensed Consolidated Financial Statements) | |||||||||
Notes to the Condensed Consolidated Financial Statements
As at and for the Three Months Ended March 31, 2024
Note 1 Basis of presentation
Nutrien Ltd. (collectively with its subsidiaries, "Nutrien", "we", "us", "our" or "the Company") is a leading provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner.
These unaudited interim condensed consolidated financial statements ("interim financial statements") are based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and have been prepared in accordance with IAS 34, "Interim Financial Reporting". The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2023 annual audited consolidated financial statements, as well as any amended standards adopted in 2024 that we previously disclosed. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2023 annual audited consolidated financial statements. Certain immaterial 2023 figures have been reclassified in the condensed consolidated statements of cash flows.
In management's opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year. These interim financial statements were authorized by the Audit Committee of the Board of Directors for issue on May 8, 2024.
Note 2 Segment information
We have four reportable operating segments: Nutrien Ag Solutions ("Retail"), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise. Retail provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces.
Three Months Ended March 31, 2024 | |||||||||||||||
Corporate | |||||||||||||||
(millions of US dollars) | Retail | Potash | Nitrogen | Phosphate | and Others | Eliminations | Consolidated | ||||||||
Sales | – third party | 3,308 | 821 | 846 | 414 | ‐ | ‐ | 5,389 | |||||||
– intersegment | ‐ | 106 | 182 | 85 | ‐ | (373) | ‐ | ||||||||
Sales | – total | 3,308 | 927 | 1,028 | 499 | ‐ | (373) | 5,389 | |||||||
Freight, transportation and distribution 1 | ‐ | 114 | 117 | 62 | ‐ | (55) | 238 | ||||||||
Net sales | 3,308 | 813 | 911 | 437 | ‐ | (318) | 5,151 | ||||||||
Cost of goods sold | 2,561 | 358 | 604 | 372 | ‐ | (281) | 3,614 | ||||||||
Gross margin | 747 | 455 | 307 | 65 | ‐ | (37) | 1,537 | ||||||||
Selling expenses | 790 | 3 | 7 | 2 | (2) | (6) | 794 | ||||||||
General and administrative expenses | 52 | 4 | 5 | 4 | 89 | ‐ | 154 | ||||||||
Provincial mining taxes | ‐ | 68 | ‐ | ‐ | ‐ | ‐ | 68 | ||||||||
Share-based compensation expense | ‐ | ‐ | ‐ | ‐ | 6 | ‐ | 6 | ||||||||
Other expenses (income) | 22 | (3) | (33) | 8 | 97 | 5 | 96 | ||||||||
(Loss) earnings before finance costs and income taxes | (117) | 383 | 328 | 51 | (190) | (36) | 419 | ||||||||
Depreciation and amortization | 194 | 147 | 136 | 70 | 18 | ‐ | 565 | ||||||||
EBITDA 2 | 77 | 530 | 464 | 121 | (172) | (36) | 984 | ||||||||
Share-based compensation expense | ‐ | ‐ | ‐ | ‐ | 6 | ‐ | 6 | ||||||||
ARO/ERL expense for non-operating sites 3 | ‐ | ‐ | ‐ | ‐ | 3 | ‐ | 3 | ||||||||
Foreign exchange loss, net of related derivatives | ‐ | ‐ | ‐ | ‐ | 43 | ‐ | 43 | ||||||||
Loss on Blue Chip Swaps | ‐ | ‐ | ‐ | ‐ | 19 | ‐ | 19 | ||||||||
Adjusted EBITDA | 77 | 530 | 464 | 121 | (101) | (36) | 1,055 | ||||||||
Assets – as at March 31, 2024 | 24,273 | 13,562 | 11,606 | 2,420 | 2,326 | (612) | 53,575 | ||||||||
1 Potash freight, transportation and distribution only applies to our North American potash sales volumes. | |||||||||||||||
2 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization. | |||||||||||||||
3 ARO/ERL refers to asset retirement obligations and accrued environmental costs. | |||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||
Corporate | ||||||||||||||
(millions of US dollars) | Retail | Potash | Nitrogen | Phosphate | and Others | Eliminations | Consolidated | |||||||
Sales | – third party | 3,422 | 1,023 | 1,154 | 508 | ‐ | ‐ | 6,107 | ||||||
– intersegment | ‐ | 54 | 264 | 64 | ‐ | (382) | ‐ | |||||||
Sales | – total | 3,422 | 1,077 | 1,418 | 572 | ‐ | (382) | 6,107 | ||||||
Freight, transportation and distribution | ‐ | 75 | 106 | 58 | ‐ | (40) | 199 | |||||||
Net sales | 3,422 | 1,002 | 1,312 | 514 | ‐ | (342) | 5,908 | |||||||
Cost of goods sold | 2,807 | 305 | 771 | 427 | ‐ | (315) | 3,995 | |||||||
Gross margin | 615 | 697 | 541 | 87 | ‐ | (27) | 1,913 | |||||||
Selling expenses | 765 | 3 | 8 | 2 | (2) | (6) | 770 | |||||||
General and administrative expenses | 50 | 3 | 5 | 3 | 84 | ‐ | 145 | |||||||
Provincial mining taxes | ‐ | 119 | ‐ | ‐ | ‐ | ‐ | 119 | |||||||
Share-based compensation expense | ‐ | ‐ | ‐ | ‐ | 15 | ‐ | 15 | |||||||
Other expenses (income) | 15 | (7) | (14) | 12 | (81) | ‐ | (75) | |||||||
(Loss) earnings before finance costs and income taxes | (215) | 579 | 542 | 70 | (16) | (21) | 939 | |||||||
Depreciation and amortization | 181 | 97 | 134 | 67 | 17 | ‐ | 496 | |||||||
EBITDA | (34) | 676 | 676 | 137 | 1 | (21) | 1,435 | |||||||
Integration and restructuring related costs | ‐ | ‐ | ‐ | ‐ | 5 | ‐ | 5 | |||||||
Share-based compensation expense | ‐ | ‐ | ‐ | ‐ | 15 | ‐ | 15 | |||||||
Foreign exchange gain, net of related derivatives | ‐ | ‐ | ‐ | ‐ | (34) | ‐ | (34) | |||||||
Adjusted EBITDA | (34) | 676 | 676 | 137 | (13) | (21) | 1,421 | |||||||
Assets – as at December 31, 2023 | 23,056 | 13,571 | 11,466 | 2,438 | 2,818 | (600) | 52,749 | |||||||
Three Months Ended | |||
March 31 | |||
(millions of US dollars) | 2024 | 2023 | |
Retail sales by product line | |||
Crop nutrients | 1,309 | 1,335 | |
Crop protection products | 1,114 | 1,154 | |
Seed | 485 | 507 | |
Services and other | 156 | 148 | |
Merchandise | 200 | 246 | |
Nutrien Financial | 66 | 57 | |
Nutrien Financial elimination 1 | (22) | (25) | |
3,308 | 3,422 | ||
Potash sales by geography | |||
Manufactured product | |||
North America | 520 | 417 | |
Offshore 2 | 407 | 660 | |
927 | 1,077 | ||
Nitrogen sales by product line | |||
Manufactured product | |||
Ammonia | 244 | 416 | |
Urea and ESN ® | 366 | 491 | |
Solutions, nitrates and sulfates | 319 | 371 | |
Other nitrogen and purchased products | 99 | 140 | |
1,028 | 1,418 | ||
Phosphate sales by product line | |||
Manufactured product | |||
Fertilizer | 321 | 302 | |
Industrial and feed | 167 | 195 | |
Other phosphate and purchased products | 11 | 75 | |
499 | 572 | ||
1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. | |||
2 Relates to Canpotex Limited ("Canpotex") (see Note 9) and includes provisional pricing adjustments for the three months ended March 31, 2024 of $12 million (2023 – $(147) million). | |||
Note 3 Other expenses (income)
Three Months Ended | |||
March 31 | |||
(millions of US dollars) | 2024 | 2023 | |
Integration and restructuring related costs | ‐ | 5 | |
Foreign exchange loss (gain), net of related derivatives | 43 | (34) | |
Earnings of equity-accounted investees | (51) | (37) | |
Bad debt expense | 13 | 9 | |
Project feasibility costs | 15 | 13 | |
Customer prepayment costs | 16 | 14 | |
Loss on natural gas derivatives not designated as hedge ¹ | 3 | ‐ | |
Loss on Blue Chip Swaps | 19 | ‐ | |
ARO/ERL expense for non-operating sites | 3 | ‐ | |
Gain on amendments to other post-retirement pension plans | ‐ | (80) | |
Other expenses | 35 | 35 | |
96 | (75) | ||
1 Relates to unrealized loss for the three months ended March 31, 2024 (2023 – $nil). | |||
Argentina has certain currency controls in place that limit our ability to settle our foreign currency-denominated obligations or remit cash out of Argentina. A Blue Chip Swap is a financial mechanism in Argentina that effectively allows companies to transact in US dollars. In the first quarter of 2024, we incurred a loss on these transactions due to the significant divergence between the Blue Chip Swap market exchange rate and the official Argentinian Central Bank rate.
Note 4 Income taxes
A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction.
Three Months Ended | |||
March 31 | |||
(millions of US dollars, except as otherwise noted) | 2024 | 2023 | |
Actual effective tax rate on earnings (%) | 30 | 23 | |
Actual effective tax rate including discrete items (%) | 31 | 25 | |
Discrete tax adjustments that impacted the tax rate | 3 | 18 | |
Note 5 Financial instruments
Natural Gas Derivatives
In 2024, we increased our use of natural gas derivatives to lock-in commodity prices. Our risk management strategies and accounting policies for derivatives that are designated and qualify as cash flow hedges are consistent with those disclosed in Note 10 and Note 30 of our annual consolidated financial statements, respectively. For derivatives that do not quality as cash flow hedges, any gains or losses are recorded in net earnings in the current period.
We assess whether our derivative hedging transactions are expected to be or were highly effective, both at the hedge's inception and on an ongoing basis, in offsetting changes in fair values of hedged items.
Hedging Transaction | Measurement of Ineffectiveness | Potential Sources of Ineffectiveness | ||
New York Mercantile | Assessed on a prospective and retrospective basis using regression analyses | Changes in: • timing of forecast transactions • volume delivered • our credit risk or the credit risk of a counterparty |
As at March 31, 2024 | ||||||||
Maturities | Average | Fair Value of | ||||||
(millions of US dollars, except as otherwise noted) | Notional 1 | (year) | Contract Price 2 | Assets (Liabilities) | ||||
Derivatives not designated as hedges | ||||||||
NYMEX call options | 43 | 2024 | 2.77 | 7 | ||||
Derivatives designated as hedges | ||||||||
NYMEX swaps | 36 | 2024 | 2.64 | (9) | ||||
1 In millions of Metric Million British Thermal Units ("MMBtu"). | ||||||||
2 US dollars per MMBtu. | ||||||||
Note 6 Short-term debt
On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility (the "repurchase facility"), where we may sell certain receivables from customers to a financial institution and agree to repurchase those receivables at a future date. When we draw under this repurchase facility, the receivables from customers remain on our condensed consolidated balance sheet as we control and retain substantially all of the risks and rewards associated with the receivables. As at March 31, 2024, $111 million in receivables from customers were pledged to the repurchase facility and $100 million of borrowings were included in short-term debt with variable interest accruing based on a margin and the Secured Overnight Financing Rate.
Note 7 Capital management
In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to the approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024.
Note 8 Seasonality
Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets, and trade payables. Our short-term debt also fluctuates during the year to meet working capital requirements. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.
Note 9 Related party transactions
We sell potash outside Canada and the US exclusively through Canpotex. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed upon prices. Our total revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex.
As at (millions of US dollars) | March 31, 2024 | December 31, 2023 | ||
Receivables from Canpotex | 148 | 162 |
Note 10 Accounting policies, estimates and judgments
IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18"), which was issued on April 9, 2024, would supersede IAS 1, "Presentation of Financial Statements" and increase the comparability of financial statements by enhancing principles on aggregation and disaggregation. IFRS 18 will be effective January 1, 2027, and will also apply to comparative information. We are reviewing the standard to determine the potential impact.
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