Nutrien Delivers Record Third Quarter Results and Raises Full-Year Guidance

 

All amounts are in US dollars except as otherwise noted

 

 Nutrien Ltd. (TSX and NYSE: NTR) announced today its third quarter 2021 results, with net earnings of $726 million ($1.25 diluted earnings per share). Third-quarter adjusted net earnings 1 were $1.38 per share and adjusted EBITDA 1 was $1.6 billion.

 

"Nutrien delivered record earnings in the third quarter driven by the decisive actions we made across our business units and leveraging our competitive advantages to benefit from strong market fundamentals. The results demonstrate our ability to efficiently and reliably deliver crop inputs and services to our customers amid global supply uncertainties, and we remain focused on our essential role to support global food security and sustainable food production," commented Mayo Schmidt, Nutrien's President and CEO.

 

"We are raising full-year 2021 adjusted earnings guidance and expect this positive momentum to continue into 2022. We expect to generate significant free cash flow and to meaningfully strengthen our balance sheet through debt reduction, providing flexibility to deliver on future growth opportunities and return cash to shareholders," added Mr. Schmidt.

 

  Highlights:  

 
  • Nutrien generated record adjusted EBITDA of $4.7 billion and free cash flow 1 of $2.8 billion in the first nine months of 2021. We repurchased 2.4 million shares in the third quarter of 2021 and expect to reduce long-term debt by approximately $2 billion over the next six months.
  •  
  • Nutrien raised full-year 2021 adjusted EBITDA and adjusted net earnings per share 1 guidance to $6.9 to $7.1 billion and $5.85 to $6.10 per share. We expect strong demand for crop inputs in the fourth quarter and tight global fertilizer supply and demand fundamentals to carry into 2022.
  •  
  • Nutrien Ag Solutions ("Retail") delivered record adjusted EBITDA in the third quarter and first nine months of 2021 with 80 percent and 32 percent increases respectively compared to the same periods in 2020. Our Retail business delivered double digit revenue growth, which combined with the benefits of strategic procurement and proprietary products growth resulted in adjusted EBITDA margins increasing to 11 percent in the first nine months of 2021.

    Retail normalized comparable store sales 1 reached 5 percent in the first nine months of 2021 while rolling four quarter adjusted EBITDA per US selling location 1 was $1.4 million. Sales through our digitally-enabled retail platform were approximately $1.9 billion in the first nine months of 2021 and we are beginning to roll out the interface in Australia. We announced five transactions in Brazil since the start of 2020 and expect to generate over 30 percent of our Retail adjusted EBITDA from regions outside of the US in 2021.
  •  
  • Potash adjusted EBITDA increased 131 percent in the third quarter of 2021 and increased 74 percent in the first nine months of 2021 compared to the same periods in 2020. We achieved record sales volumes in the first nine months of 2021 due to our capability to quickly ramp up production from our flexible, low-cost network of six mines and expect to surge production to an annualized run-rate of 17 million tonnes during the fourth quarter.
  •  
  • Nitrogen adjusted EBITDA was 173 percent higher in the third quarter of 2021 and increased 70 percent in the first nine months of 2021 compared to the same periods in 2020. In the third quarter of 2021, we completed phase 1 of our nitrogen brownfield expansion projects and anticipate to fully benefit from this expanded capacity in 2022, which is expected to generate attractive returns on investment. We also started a second phase of brownfield projects that is expected to add approximately 500,000 tonnes of annualized, low-cost and environmentally efficient production capacity over the next few years. We progressed previously announced decarbonization projects that are expected to reduce CO 2 equivalent emissions by approximately one million tonnes by the end of 2023.
  •  
  • Phosphate adjusted EBITDA increased 193 percent in the third quarter of 2021 and 104 percent in the first nine months of 2021 compared to the same periods in 2020.
  •  
 
 

1 This financial measure, including related guidance, is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section for further information.

 
 

  Management's Discussion and Analysis  

 

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of November 1, 2021. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication approves this disclosure pursuant to the authority delegated to it by the Board. The term "Nutrien" refers to Nutrien Ltd. and the terms "we", "us", "our", "Nutrien" and "the Company" refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A, and our Annual Information Form, each for the year ended December 31, 2020, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . No update is provided to the disclosure in our annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission ("SEC").

 

This MD&A is based on and should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements as at and for the three and nine months ended September 30, 2021 ("interim financial statements") based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" unless otherwise noted. This MD&A contains certain non-IFRS financial measures and forward-looking statements which are described in the "Non-IFRS Financial Measures" and the "Forward-Looking Statements" sections, respectively.

 

  Market Outlook  

 

  Agriculture and Retail  

 
  • Global grain and oilseed inventory is well below historic levels and crop prices and grower margins remain strong, which is supportive of crop input spending in key regions where we operate.
  •  
  • The North American harvest progressed ahead of historic levels and grower sentiment is positive, which supported a strong start to the fall application season in most regions. We expect growers to maximize planted acreage and yields in 2022 as projected US grower corn and soybean margins are approximately 60 percent and 35 percent, respectively, above 10-year average levels.
  •  
  • Brazilian growers are expected to increase total plantings by 5 to 7 million acres due to record grower profitability and are planting soybeans at an above-average pace due to supportive rainfalls. This is expected to result in higher crop input spending through the growing season.
  •  
  • Growers in Australia started harvesting winter crops and we expect them to benefit from the combination of above-average yields and high prices for crops like wheat, barley and canola.
  •  
  • The availability of crop inputs, including fertilizer and certain herbicides, has been impacted by global production and supply-chain issues. Nutrien is strategically positioned to cover fall commitments and expects limited impact to its crop protection product availability in the first half of 2022.
  •  

  Crop Nutrient Markets  

 
  • Global potash prices continue to increase in all key spot markets driven by record global demand and strong grower margins. We maintain our 2021 global shipment forecast between 69 and 71 million tonnes.
  •  
  • Global supply of potash is tight caused by competitor mine flooding, new project delays and a limited ability of most producers to meaningfully increase production. US and European sanctions imposed on Belarus are causing additional supply concerns due to potential impacts to vessel chartering and transaction execution in US dollars. Potash inventories remain below historic levels in key markets with China accessing strategic reserves. Nutrien remains committed to providing a reliable supply for our customers through our world-class distribution network, including Canpotex.
  •  
  • Soaring energy prices in Europe and China triggered nitrogen capacity shutdowns and reduced operating rates, rapidly tightening global nitrogen supply and shifting trade flows. Furthermore, the Chinese government ordered fertilizer producers to halt exports until June 2022, which is expected to significantly reduce Chinese urea and phosphate trade volumes.
  •  
  • Phosphate prices have been supported by the expected reduction in supply from China due to export restrictions and reduced US supply, compounded by tight inventories as a result of robust demand throughout 2021.
  •  

  Financial Outlook and Guidance  

 

Based on market factors detailed above, we are raising full-year 2021 adjusted EBITDA guidance to $6.9 to $7.1 billion from $6.0 to $6.4 billion and full-year 2021 adjusted net earnings guidance to $5.85 to $6.10 per share from $4.60 to $5.10 per share.

 

All guidance numbers, including those noted above are outlined in the table below. Refer to page 57 of Nutrien's 2020 Annual Report for related assumptions and sensitivities.

 
                                                                                                                        
 

  2021 Guidance Ranges 1  

 
 

 

 
 

  Low  

 
 

 

 
 

 

 
 

 

 
 

  High  

 
 

 

 
 

Adjusted net earnings per share 2

 
 

$

 
 

5.85

 
 

 

 
 

 

 
 

$

 
 

6.10

 
 

 

 
 

Adjusted EBITDA (billions) 2

 
 

$

 
 

6.9

 
 

 

 
 

 

 
 

$

 
 

7.1

 
 

 

 
 

Retail Adjusted EBITDA (billions)

 
 

$

 
 

1.75

 
 

 

 
 

 

 
 

$

 
 

1.80

 
 

 

 
 

Potash Adjusted EBITDA (billions)

 
 

$

 
 

2.65

 
 

 

 
 

 

 
 

$

 
 

2.75

 
 

 

 
 

Nitrogen Adjusted EBITDA (billions)

 
 

$

 
 

2.3

 
 

 

 
 

 

 
 

$

 
 

2.4

 
 

 

 
 

Phosphate Adjusted EBITDA (millions)

 
 

$

 
 

490

 
 

 

 
 

 

 
 

$

 
 

540

 
 

 

 
 

Potash sales tonnes (millions) 3

 
 

 

 
 

13.6

 
 

 

 
 

 

 
 

 

 
 

13.9

 
 

 

 
 

Nitrogen sales tonnes (millions) 3

 
 

 

 
 

10.7

 
 

 

 
 

 

 
 

 

 
 

10.9

 
 

 

 
 

Depreciation and amortization (billions)

 
 

$

 
 

1.9

 
 

 

 
 

 

 
 

$

 
 

2.0

 
 

 

 
 

Effective tax rate on adjusted earnings

 
 

 

 
 

24

 
 

%

 
 

 

 
 

 

 
 

25

 
 

%

 
 

Sustaining capital expenditures (billions) 2

 
 

$

 
 

1.15

 
 

 

 
 

 

 
 

$

 
 

1.25

 
 

 

 
 

1 See the "Forward-Looking Statements" section.

 
 
 

2 See the "Non-IFRS Financial Measures" section.

 
 
 

3 Manufactured products only. Nitrogen excludes ESN® and Rainbow products.

 
 
 

  Consolidated Results  

 
                                                                                                                                          
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

Sales 1

 
 

  6,024  

 
 

 

 
 

4,227

 
 

 

 
 

43

 
 

 

 
 

  20,445  

 
 

 

 
 

16,856

 
 

 

 
 

21

 
 

Freight, transportation and distribution

 
 

  220  

 
 

 

 
 

204

 
 

 

 
 

8

 
 

 

 
 

  653  

 
 

 

 
 

653

 
 

 

 
 

-

 
 

Cost of goods sold

 
 

  3,639  

 
 

 

 
 

3,004

 
 

 

 
 

21

 
 

 

 
 

  13,589  

 
 

 

 
 

12,129

 
 

 

 
 

12

 
 

Gross margin 1

 
 

  2,165  

 
 

 

 
 

1,019

 
 

 

 
 

112

 
 

 

 
 

  6,203  

 
 

 

 
 

4,074

 
 

 

 
 

52

 
 

Expenses 1

 
 

  1,108  

 
 

 

 
 

1,741

 
 

 

 
 

(36)

 
 

 

 
 

  3,249  

 
 

 

 
 

3,575

 
 

 

 
 

(9)

 
 

Net earnings (loss)

 
 

  726  

 
 

 

 
 

(587)

 
 

 

 
 

n/m

 
 

 

 
 

  1,972  

 
 

 

 
 

143

 
 

 

 
 

n/m

 
 

Adjusted EBITDA 2

 
 

  1,642  

 
 

 

 
 

670

 
 

 

 
 

145

 
 

 

 
 

  4,663  

 
 

 

 
 

2,899

 
 

 

 
 

61

 
 

Cash (used in) provided by operating activities

 
 

  (1,565)  

 
 

 

 
 

(685)

 
 

 

 
 

128

 
 

 

 
 

  249  

 
 

 

 
 

545

 
 

 

 
 

(54)

 
 

Free cash flow ("FCF") 2

 
 

  862  

 
 

 

 
 

280

 
 

 

 
 

208

 
 

 

 
 

  2,751  

 
 

 

 
 

1,634

 
 

 

 
 

68

 
 

FCF including changes in non-cash operating working capital 2

 
 

  (1,890)  

 
 

 

 
 

(888)

 
 

 

 
 

113

 
 

 

 
 

  (544)  

 
 

 

 
 

34

 
 

 

 
 

n/m

 
 

1 Certain immaterial figures have been reclassified for the three and nine months ended September 30, 2020.

 
 

2 See the "Non-IFRS Financial Measures" section.

 
 

Net earnings and adjusted EBITDA increased significantly in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to higher net realized selling prices across our nutrient businesses, higher potash sales volumes and earnings growth in Nutrien Ag Solutions ("Retail"), as well as, the non-cash impairment in the third quarter of 2020 that was primarily related to our phosphate business. Cash flow from operating activities decreased in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to higher working capital requirements associated with much higher sales and higher value of fertilizers, while free cash flow increased by over $1 billion in the first nine months of 2021. The COVID-19 pandemic had a limited impact on our results during the third quarter and first nine months of 2021.

 

  Segment Results  

 

Our discussion of segment results set out on the following pages is a comparison of the results for the three and nine months ended September 30, 2021 to the results for the three and nine months ended September 30, 2020, unless otherwise noted.

 

  Nutrien Ag Solutions ("Retail")  

 
                                                                                                                                                                                                                                                                           
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Gross Margin  

 
 

 

 
 

  Gross Margin (%)  

 
 

as otherwise noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  1,194  

 
 

 

 
 

780

 
 

 

 
 

53

 
 

 

 
 

  246  

 
 

 

 
 

179

 
 

 

 
 

37

 
 

 

 
 

  21  

 
 

 

 
 

23

 
 

Crop protection products

 
 

  1,469  

 
 

 

 
 

1,328

 
 

 

 
 

11

 
 

 

 
 

  374  

 
 

 

 
 

256

 
 

 

 
 

46

 
 

 

 
 

  25  

 
 

 

 
 

19

 
 

Seed

 
 

  140  

 
 

 

 
 

103

 
 

 

 
 

36

 
 

 

 
 

  56  

 
 

 

 
 

27

 
 

 

 
 

107

 
 

 

 
 

  40  

 
 

 

 
 

26

 
 

Merchandise

 
 

  265  

 
 

 

 
 

234

 
 

 

 
 

13

 
 

 

 
 

  44  

 
 

 

 
 

37

 
 

 

 
 

19

 
 

 

 
 

  17  

 
 

 

 
 

16

 
 

Nutrien Financial 1

 
 

  54  

 
 

 

 
 

36

 
 

 

 
 

50

 
 

 

 
 

  54  

 
 

 

 
 

36

 
 

 

 
 

50

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
 

  276  

 
 

 

 
 

296

 
 

 

 
 

(7)

 
 

 

 
 

  194  

 
 

 

 
 

183

 
 

 

 
 

6

 
 

 

 
 

  70  

 
 

 

 
 

62

 
 

Nutrien Financial elimination 2

 
 

  (51)  

 
 

 

 
 

(35)

 
 

 

 
 

46

 
 

 

 
 

  (51)  

 
 

 

 
 

(35)

 
 

 

 
 

46

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
 

  3,347  

 
 

 

 
 

2,742

 
 

 

 
 

22

 
 

 

 
 

  917  

 
 

 

 
 

683

 
 

 

 
 

34

 
 

 

 
 

  27  

 
 

 

 
 

25

 
 

Cost of goods sold

 
 

  2,430  

 
 

 

 
 

2,059

 
 

 

 
 

18

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

  917  

 
 

 

 
 

683

 
 

 

 
 

34

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 1, 3

 
 

  808  

 
 

 

 
 

691

 
 

 

 
 

17

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Earnings (loss) before finance costs and taxes ("EBIT")

 
 

  109  

 
 

 

 
 

(8)

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  182  

 
 

 

 
 

170

 
 

 

 
 

7

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA / Adjusted EBITDA

 
 

  291  

 
 

 

 
 

162

 
 

 

 
 

80

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Certain immaterial figures have been reclassified for the three months ended September 30, 2020.

 
 

2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

 
 

3 Includes selling expenses of $746 million (2020 – $669 million).

 
 
                                                                                                                                                                                                                                                                                                           
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Gross Margin  

 
 

 

 
 

  Gross Margin (%)  

 
 

as otherwise noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  5,255  

 
 

 

 
 

4,092

 
 

 

 
 

28

 
 

 

 
 

  1,169  

 
 

 

 
 

894

 
 

 

 
 

31

 
 

 

 
 

  22  

 
 

 

 
 

22

 
 

Crop protection products

 
 

  5,220  

 
 

 

 
 

4,774

 
 

 

 
 

9

 
 

 

 
 

  1,137  

 
 

 

 
 

960

 
 

 

 
 

18

 
 

 

 
 

  22  

 
 

 

 
 

20

 
 

Seed

 
 

  1,819  

 
 

 

 
 

1,638

 
 

 

 
 

11

 
 

 

 
 

  362  

 
 

 

 
 

305

 
 

 

 
 

19

 
 

 

 
 

  20  

 
 

 

 
 

19

 
 

Merchandise

 
 

  763  

 
 

 

 
 

703

 
 

 

 
 

9

 
 

 

 
 

  127  

 
 

 

 
 

116

 
 

 

 
 

9

 
 

 

 
 

  17  

 
 

 

 
 

17

 
 

Nutrien Financial 1

 
 

  138  

 
 

 

 
 

92

 
 

 

 
 

50

 
 

 

 
 

  138  

 
 

 

 
 

92

 
 

 

 
 

50

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
 

  784  

 
 

 

 
 

951

 
 

 

 
 

(18)

 
 

 

 
 

  617  

 
 

 

 
 

567

 
 

 

 
 

9

 
 

 

 
 

  79  

 
 

 

 
 

60

 
 

Nutrien Financial elimination

 
 

  (123)  

 
 

 

 
 

(83)

 
 

 

 
 

48

 
 

 

 
 

  (123)  

 
 

 

 
 

(83)

 
 

 

 
 

48

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
 

  13,856  

 
 

 

 
 

12,167

 
 

 

 
 

14

 
 

 

 
 

  3,427  

 
 

 

 
 

2,851

 
 

 

 
 

20

 
 

 

 
 

  25  

 
 

 

 
 

23

 
 

Cost of goods sold

 
 

  10,429  

 
 

 

 
 

9,316

 
 

 

 
 

12

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

  3,427  

 
 

 

 
 

2,851

 
 

 

 
 

20

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 1, 2

 
 

  2,467  

 
 

 

 
 

2,206

 
 

 

 
 

12

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBIT

 
 

  960  

 
 

 

 
 

645

 
 

 

 
 

49

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  528  

 
 

 

 
 

488

 
 

 

 
 

8

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  1,488  

 
 

 

 
 

1,133

 
 

 

 
 

31

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  9  

 
 

 

 
 

-

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  1,497  

 
 

 

 
 

1,133

 
 

 

 
 

32

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Certain immaterial figures have been reclassified for the nine months ended September 30, 2020.

 
 

2 Includes selling expenses of $2,276 million (2020 – $2,068 million).

 
 

3 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2021 due to significantly higher sales and gross margin. Higher sales were achieved through market share growth and strong agriculture fundamentals. Gross margin increased due to improved proprietary product results and from strategic procurement of crop nutrients and crop protection products in a rising price environment. Retail cash operating coverage ratio 1 declined to 59 percent for the rolling four quarters ended September 30, 2021 due to significantly higher gross margin.
  •  
  •   Crop nutrients sales increased in the third quarter and first nine months of 2021 as a result of record sales volumes and higher selling prices. Gross margin per tonne increased significantly due to strategic purchasing in a rising price environment and higher proprietary product sales. Gross margin percentage decreased slightly in the third quarter of 2021 due to the magnitude of per tonne selling price increases but was slightly higher in the first nine months of 2021.
  •  
  •   Crop protection products sales increased in the third quarter and first nine months of 2021 due to higher selling prices, market share growth and higher proprietary product sales. The reliability of our supply chain and strategic procurement allowed us to deliver on strong grower demand and generate higher gross margin percentages.
  •  
  •   Seed sales increased in the third quarter and first nine months of 2021 due to strategic acquisitions in Brazil, strong grower purchasing in the US and higher planted acreage in key regions where we operate. Gross margin percentage increased in the third quarter and first nine-months of 2021 due to the timing and mix of seed sales and a greater proportion of higher margin proprietary product sales.
  •  
  •   Merchandise sales and gross margin percentage increased in the third quarter and first nine months of 2021 primarily driven by strong grower and rancher purchasing in Australia.
  •  
  •   Nutrien Financial sales increased in the third quarter and first nine months of 2021 due to higher utilization and adoption of our programs, including from the expansion of Nutrien Financial into Australia in the fourth quarter of 2020. At the end of the third quarter of 2021 net receivables in the programs were $2.8 billion, an increase of $1.1 billion compared to the same time last year, while net credit loss was minimal in the first nine months of 2021 and 2020 due to strong credit evaluation and collection.
  •  
  •   Services and other sales decreased in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset higher US custom application sales. Despite the change in revenue mix, gross margin increased and the impact to gross margin percentage was favorable for both the third quarter and first nine months of 2021.
  •  
 
 

1 This financial measure is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section for further information

 
 

  Potash  

 
                                                                                                                                                                         
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  483  

 
 

252

 
 

92

 
 

 

 
 

  1,515  

 
 

1,426

 
 

6

 
 

 

 
 

  319  

 
 

176

 
 

81

 
 

Offshore

 
 

  705  

 
 

339

 
 

108

 
 

 

 
 

  2,276  

 
 

2,252

 
 

1

 
 

 

 
 

  310  

 
 

151

 
 

105

 
 

 

 
 

  1,188  

 
 

591

 
 

101

 
 

 

 
 

  3,791  

 
 

3,678

 
 

3

 
 

 

 
 

  313  

 
 

161

 
 

94

 
 

Cost of goods sold

 
 

  372  

 
 

303

 
 

23

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  98  

 
 

83

 
 

18

 
 

Gross margin - total

 
 

  816  

 
 

288

 
 

183

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  215  

 
 

78

 
 

176

 
 

Expenses 1

 
 

  146  

 
 

84

 
 

74

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  35  

 
 

34

 
 

2

 
 

EBIT

 
 

  670  

 
 

204

 
 

228

 
 

 

 
 

Gross margin excluding depreciation

 
  

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  131  

 
 

124

 
 

6

 
 

 

 
 

and amortization - manufactured 2

 
  

  250  

 
 

112

 
 

123

 
 

EBITDA

 
 

  801  

 
 

328

 
 

144

 
 

 

 
 

Potash cash cost of product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  7  

 
 

22

 
 

(68)

 
 

 

 
 

manufactured 2

 
 

 

 
 

  66  

 
 

53

 
 

25

 
 

Adjusted EBITDA

 
 

  808  

 
 

350

 
 

131

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes provincial mining taxes of $128 million (2020 – $58 million).

 
 

2 See the "Non-IFRS Financial Measures" section.

 
 

3 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                        
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  1,141  

 
 

709

 
 

61

 
 

 

 
 

  4,157  

 
 

3,774

 
 

10

 
 

 

 
 

  275  

 
 

188

 
 

46

 
 

Offshore

 
 

  1,475  

 
 

987

 
 

49

 
 

 

 
 

  6,412  

 
 

6,396

 
 

-

 
 

 

 
 

  230  

 
 

154

 
 

49

 
 

 

 
 

  2,616  

 
 

1,696

 
 

54

 
 

 

 
 

  10,569  

 
 

10,170

 
 

4

 
 

 

 
 

  248  

 
 

167

 
 

49

 
 

Cost of goods sold

 
 

  980  

 
 

878

 
 

12

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  93  

 
 

87

 
 

7

 
 

Gross margin - total

 
 

  1,636  

 
 

818

 
 

100

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  155  

 
 

80

 
 

94

 
 

Expenses 1

 
 

  333  

 
 

199

 
 

67

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  35  

 
 

32

 
 

9

 
 

EBIT

 
 

  1,303  

 
 

619

 
 

111

 
 

 

 
 

Gross margin excluding depreciation

 
  

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  371  

 
 

329

 
 

13

 
 

 

 
 

and amortization - manufactured

 
  

  190  

 
 

112

 
 

69

 
 

EBITDA

 
 

  1,674  

 
 

948

 
 

77

 
 

 

 
 

Potash cash cost of product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  9  

 
 

22

 
 

(59)

 
 

 

 
 

manufactured

 
 

 

 
 

  61  

 
 

55

 
 

11

 
 

Adjusted EBITDA

 
 

  1,683  

 
 

970

 
 

74

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes provincial mining taxes of $293 million (2020 – $161 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2021 due to higher net realized selling prices and record sales volumes in the first nine months of 2021.
  •  
  •   Sales volumes increased in the third quarter and first nine months of 2021 and were the highest of any first nine-month period on record underpinned by the reliable supply from our flexible, low-cost network of six mines and integrated transportation and logistics system.
  •  
  •   Net realized selling price increased in the third quarter and first nine months of 2021 due to strong global demand supported by higher crop prices and impacts to global supply caused by competitor outages and project delays.
  •  
  •   Cost of goods sold per tonne in the third quarter and first nine months of 2021 increased primarily due to a stronger Canadian dollar, the timing of mine maintenance activity and higher royalties resulting from increased selling prices.
  •  

  Canpotex Sales by Market  

 
                                                                    
 

(percentage of sales volumes, except as

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

otherwise noted)

 
 

  2021  

 
 

2020

 
 

Change

 
 

 

 
 

  2021  

 
 

2020

 
 

Change

 
 

Latin America

 
 

  48  

 
 

36

 
 

12

 
 

 

 
 

  38  

 
 

33

 
 

5

 
 

Other Asian markets 1

 
 

  28  

 
 

20

 
 

8

 
 

 

 
 

  35  

 
 

25

 
 

10

 
 

India

 
 

  9  

 
 

14

 
 

(5)

 
 

 

 
 

  6  

 
 

13

 
 

(7)

 
 

China

 
 

  7  

 
 

23

 
 

(16)

 
 

 

 
 

  11  

 
 

22

 
 

(11)

 
 

Other markets

 
 

  8  

 
 

7

 
 

1

 
 

 

 
 

  10  

 
 

7

 
 

3

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

1 All Asian markets except China and India.

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Nitrogen  

 
                                                                                                                                                                                                             
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  368  

 
 

105

 
 

250

 
 

 

 
 

  721  

 
 

546

 
 

32

 
 

 

 
 

  509  

 
 

193

 
 

164

 
 

Urea

 
 

  316  

 
 

193

 
 

64

 
 

 

 
 

  659  

 
 

766

 
 

(14)

 
 

 

 
 

  480  

 
 

251

 
 

91

 
 

Solutions, nitrates and sulfates

 
 

  289  

 
 

143

 
 

102

 
 

 

 
 

  1,141  

 
 

1,091

 
 

5

 
 

 

 
 

  253  

 
 

131

 
 

93

 
 

 

 
 

  973  

 
 

441

 
 

121

 
 

 

 
 

  2,521  

 
 

2,403

 
 

5

 
 

 

 
 

  386  

 
 

184

 
 

110

 
 

Cost of goods sold

 
 

  591  

 
 

392

 
 

51

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  234  

 
 

164

 
 

43

 
 

Gross margin - manufactured

 
 

  382  

 
 

49

 
 

680

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  152  

 
 

20

 
 

660

 
 

Gross margin - other 1

 
 

  24  

 
 

9

 
 

167

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  50  

 
 

55

 
 

(9)

 
 

Gross margin - total

 
 

  406  

 
 

58

 
 

600

 
 

 

 
 

Gross margin excluding depreciation

 
  

 

 
 

 

 
 

 

 
 

(Income) expenses

 
 

  (1)  

 
 

21

 
 

n/m

 
 

 

 
 

and amortization - manufactured

 
  

  202  

 
 

75

 
 

171

 
 

EBIT

 
 

  407  

 
 

37

 
 

1,000

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  125  

 
 

131

 
 

(5)

 
 

 

 
 

product manufactured 2

 
 

 

 
 

  53  

 
 

47

 
 

13

 
 

EBITDA

 
 

  532  

 
 

168

 
 

217

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  -  

 
 

27

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  532  

 
 

195

 
 

173

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $128 million (2020 – $99 million) less cost of goods sold of $104 million (2020 – $90 million).

 
 

2 See the "Non-IFRS Financial Measures" section.

 
 

3 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                                                            
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  874  

 
 

464

 
 

88

 
 

 

 
 

  2,129  

 
 

2,048

 
 

4

 
 

 

 
 

  411  

 
 

227

 
 

81

 
 

Urea

 
 

  911  

 
 

703

 
 

30

 
 

 

 
 

  2,235  

 
 

2,622

 
 

(15)

 
 

 

 
 

  407  

 
 

268

 
 

52

 
 

Solutions, nitrates and sulfates

 
 

  743  

 
 

500

 
 

49

 
 

 

 
 

  3,526  

 
 

3,451

 
 

2

 
 

 

 
 

  211  

 
 

145

 
 

46

 
 

 

 
 

  2,528  

 
 

1,667

 
 

52

 
 

 

 
 

  7,890  

 
 

8,121

 
 

(3)

 
 

 

 
 

  320  

 
 

205

 
 

56

 
 

Cost of goods sold

 
 

  1,628  

 
 

1,344

 
 

21

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  206  

 
 

165

 
 

25

 
 

Gross margin - manufactured

 
 

  900  

 
 

323

 
 

179

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  114  

 
 

40

 
 

185

 
 

Gross margin - other 1

 
 

  72  

 
 

40

 
 

80

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  52  

 
 

56

 
 

(7)

 
 

Gross margin - total

 
 

  972  

 
 

363

 
 

168

 
 

 

 
 

Gross margin excluding depreciation

 
  

 

 
 

 

 
 

 

 
 

(Income) expenses

 
 

  (1)  

 
 

29

 
 

n/m

 
 

 

 
 

and amortization - manufactured

 
  

  166  

 
 

96

 
 

73

 
 

EBIT

 
 

  973  

 
 

334

 
 

191

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  409  

 
 

453

 
 

(10)

 
 

 

 
 

product manufactured

 
 

 

 
 

  52  

 
 

44

 
 

18

 
 

EBITDA

 
 

  1,382  

 
 

787

 
 

76

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  5  

 
 

27

 
 

(81)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  1,387  

 
 

814

 
 

70

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $512 million (2020 – $404 million) less cost of goods sold of $440 million (2020 – $364 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2021 primarily due to higher net realized selling prices which more than offset higher natural gas costs.
  •  
  •   Sales volumes increased in the third quarter of 2021 due to strong market demand and higher availability from our facility in Trinidad. Sales volumes in the first nine months of 2021 decreased compared to the same period in 2020 due to more planned turnaround activity, temporary production outages and lower inventory volumes at the beginning of 2021 compared to the same period in 2020.
  •  
  •   Net realized selling price in the third quarter and first nine months of 2021 was higher due to higher benchmark prices resulting from the strength in global agriculture markets, a recovery in industrial nitrogen demand, global production outages and higher energy prices in key nitrogen exporting regions.
  •  
  •   Cost of goods sold per tonne increased during the third quarter and first nine months of 2021 due to higher natural gas costs, production outages at our lower-cost North American facilities and a stronger Canadian dollar.
  •  

  Natural Gas Prices in Cost of Production  

 
                                                            
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(US dollars per MMBtu, except as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Overall gas cost excluding realized derivative impact

 
 

  4.77  

 
 

2.18

 
 

119

 
 

 

 
 

  3.92  

 
 

2.17

 
 

81

 
 

Realized derivative impact

 
 

  0.01  

 
 

0.06

 
 

(83)

 
 

 

 
 

  0.02  

 
 

0.06

 
 

(67)

 
 

Overall gas cost

 
 

  4.78  

 
 

2.24

 
 

113

 
 

 

 
 

  3.94  

 
 

2.23

 
 

77

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average NYMEX

 
 

  4.01  

 
 

1.98

 
 

103

 
 

 

 
 

  3.18  

 
 

1.88

 
 

69

 
 

Average AECO

 
 

  2.83  

 
 

1.62

 
 

75

 
 

 

 
 

  2.48  

 
 

1.54

 
 

61

 
 
  •   Natural gas prices   in our cost of production increased in the third quarter and first nine months of 2021 as a result of higher North American gas index prices and increased gas costs in Trinidad, where our gas prices are linked to ammonia benchmark prices.
  •  

  Phosphate  

 
                                                                                                                                                                                                    
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  269  

 
 

172

 
 

56

 
 

 

 
 

  428  

 
 

542

 
 

(21)

 
 

 

 
 

  628  

 
 

317

 
 

98

 
 

Industrial and feed

 
 

  132  

 
 

94

 
 

40

 
 

 

 
 

  192  

 
 

166

 
 

16

 
 

 

 
 

  689  

 
 

563

 
 

22

 
 

 

 
 

  401  

 
 

266

 
 

51

 
 

 

 
 

  620  

 
 

708

 
 

(12)

 
 

 

 
 

  648  

 
 

375

 
 

73

 
 

Cost of goods sold

 
 

  300  

 
 

268

 
 

12

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  484  

 
 

379

 
 

28

 
 

Gross margin - manufactured

 
 

  101  

 
 

(2)

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  164  

 
 

(4)

 
 

n/m

 
 

Gross margin - other 1

 
 

  7  

 
 

1

 
 

600

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  63  

 
 

85

 
 

(26)

 
 

Gross margin - total

 
 

  108  

 
 

(1)

 
 

n/m

 
 

 

 
 

Gross margin excluding depreciation

 
  

 

 
 

 

 
 

 

 
 

Expenses

 
 

  12  

 
 

782

 
 

(98)

 
 

 

 
 

and amortization - manufactured

 
  

  227  

 
 

81

 
 

181

 
 

EBIT

 
 

  96  

 
 

(783)

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  39  

 
 

60

 
 

(35)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  135  

 
 

(723)

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  -  

 
 

769

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  135  

 
 

46

 
 

193

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other phosphate and purchased products and is comprised of net sales of $47 million (2020 – $26 million) less cost of goods sold of $40 million (2020 – $25 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                                                    
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  731  

 
 

491

 
 

49

 
 

 

 
 

  1,331  

 
 

1,582

 
 

(16)

 
 

 

 
 

  549  

 
 

310

 
 

77

 
 

Industrial and feed

 
 

  365  

 
 

304

 
 

20

 
 

 

 
 

  577  

 
 

551

 
 

5

 
 

 

 
 

  633  

 
 

552

 
 

15

 
 

 

 
 

  1,096  

 
 

795

 
 

38

 
 

 

 
 

  1,908  

 
 

2,133

 
 

(11)

 
 

 

 
 

  575  

 
 

373

 
 

54

 
 

Cost of goods sold

 
 

  853  

 
 

779

 
 

9

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  448  

 
 

366

 
 

22

 
 

Gross margin - manufactured

 
 

  243  

 
 

16

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  127  

 
 

7

 
 

n/m

 
 

Gross margin - other 1

 
 

  15  

 
 

4

 
 

275

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  59  

 
 

84

 
 

(30)

 
 

Gross margin - total

 
 

  258  

 
 

20

 
 

n/m

 
 

 

 
 

Gross margin excluding depreciation

 
  

 

 
 

 

 
 

 

 
 

Expenses

 
 

  26  

 
 

799

 
 

(97)

 
 

 

 
 

and amortization - manufactured

 
  

  186  

 
 

91

 
 

104

 
 

EBIT

 
 

  232  

 
 

(779)

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  112  

 
 

179

 
 

(37)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  344  

 
 

(600)

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  -  

 
 

769

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  344  

 
 

169

 
 

104

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other phosphate and purchased products and is comprised of net sales of $140 million (2020 – $87 million) less cost of goods sold of $125 million (2020 – $83 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2021 due to higher net realized selling prices which more than offset higher raw material costs and lower sales volumes.
  •  
  •   Sales volumes were lower in the third quarter of 2021 due to the timing of sales and a greater proportion of certain fertilizer and industrial products with a higher P 2 O 5 content. Sales volumes in the first nine months of 2021 were also impacted by lower inventory volumes at the beginning of 2021 compared to the same period in 2020.
  •  
  •   Net realized selling price increased in the third quarter and first nine months of 2021 as a result of higher fertilizer benchmark prices driven by robust global phosphate demand, tight inventories and higher global raw material costs. Industrial and feed prices also increased in the third quarter and first nine months of 2021, but to a lesser extent than fertilizer, due to a lag in price realizations relative to spot prices.
  •  
  •   Cost of goods sold per tonne increased in the third quarter and first nine months of 2021 due to significantly higher raw material input costs and a favorable non-cash inventory adjustment in the third quarter of 2020, partially offset by lower depreciation and amortization. Results for the first nine months of 2020 were also impacted by a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020.
  •  

  Corporate and Others  

 
                                                                                                                      
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Sales 1

 
 

  -  

 
 

23

 
 

(100)

 
 

 

 
 

  -  

 
 

70

 
 

(100)

 
 

Cost of goods sold

 
 

  -  

 
 

20

 
 

(100)

 
 

 

 
 

  -  

 
 

63

 
 

(100)

 
 

Gross margin

 
 

  -  

 
 

3

 
 

(100)

 
 

 

 
 

  -  

 
 

7

 
 

(100)

 
 

Selling expenses

 
 

  (9)  

 
 

(4)

 
 

125

 
 

 

 
 

  (24)  

 
 

(17)

 
 

41

 
 

General and administrative expenses

 
 

  58  

 
 

66

 
 

(12)

 
 

 

 
 

  182  

 
 

191

 
 

(5)

 
 

Share-based compensation expense

 
 

  64  

 
 

29

 
 

121

 
 

 

 
 

  125  

 
 

9

 
 

n/m

 
 

Impairment of assets

 
 

  -  

 
 

5

 
 

(100)

 
 

 

 
 

  -  

 
 

5

 
 

(100)

 
 

Other expenses

 
 

  30  

 
 

67

 
 

(55)

 
 

 

 
 

  141  

 
 

154

 
 

(8)

 
 

EBIT

 
 

  (143)  

 
 

(160)

 
 

(11)

 
 

 

 
 

  (424)  

 
 

(335)

 
 

27

 
 

Depreciation and amortization

 
 

  12  

 
 

15

 
 

(20)

 
 

 

 
 

  34  

 
 

41

 
 

(17)

 
 

EBITDA

 
 

  (131)  

 
 

(145)

 
 

(10)

 
 

 

 
 

  (390)  

 
 

(294)

 
 

33

 
 

Adjustments 2

 
 

  89  

 
 

74

 
 

20

 
 

 

 
 

  232  

 
 

92

 
 

152

 
 

Adjusted EBITDA

 
 

  (42)  

 
 

(71)

 
 

(41)

 
 

 

 
 

  (158)  

 
 

(202)

 
 

(22)

 
 

1 Primarily relates to our non-core Canadian business that was sold in 2020.

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Share-based compensation expense was higher in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to an increase in our share price. We also had a higher number of share-based awards that vested in 2021.
  •  
  •   Other expenses were lower in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to lower information technology project related costs and lower foreign exchange losses. This was partially offset by additional cloud computing related expenses recognized in the first nine months of 2021 from our change in accounting policy (refer to Note 3 to the interim financial statements).
  •  

  Eliminations  

 

Eliminations of gross margin between operating segments in the third quarter of 2021 were $(82) million compared to $(12) million for the third quarter of 2020 and $(90) million in the first nine months of 2021 compared to a $15 million gross margin recovery for the same period in 2020. Eliminations increased due to higher margin inventories held by our Retail segment. Eliminations are not part of the Corporate and Others segment.

 

  Finance Costs, Income Tax Expense (Recovery) and   Other Comprehensive (Loss) Income  

 
                                    
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Finance costs

 
 

  122  

 
 

129

 
 

(5)

 
 

 

 
 

  367  

 
 

401

 
 

(8)

 
 

Income tax expense (recovery)

 
 

  209  

 
 

(264)

 
 

n/m

 
 

 

 
 

  615  

 
 

(45)

 
 

n/m

 
 

Other comprehensive (loss) income

 
 

  (79)  

 
 

71

 
 

n/m

 
 

 

 
 

  6  

 
 

(86)

 
 

n/m

 
 
  •   Finance costs in the third quarter and first nine months of 2021 were lower compared to the same periods in 2020 due to lower interest rates and a lower short-term debt balance, more than offsetting a higher long-term debt balance resulting from the $1.5 billion in notes issued in the second quarter of 2020.
  •  
  •   Income tax expense in the third quarter and first nine months of 2021 was higher as a result of higher earnings before income taxes compared to the same periods in 2020. Income tax recoveries were recorded in 2020 due to an impairment of assets and discrete tax recoveries related to US legislative changes.
  •  
  •   Other comprehensive (loss) income is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. ("Sinofert"). The Australian dollar depreciated as at September 30, 2021 relative to June 30, 2021 and December 31, 2020 levels which led to translation losses in the third quarter and first nine months of 2021. This was partially offset by an increase in the fair value of our investment in Sinofert.
  •  

  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 our existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures 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  

 
                                                    
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

noted)

 
 

  2021  

 
 

2020

 
 

% Change

 
 

 

 
 

  2021  

 
 

2020

 
 

% Change

 
 

Cash (used in) provided by operating activities

 
 

  (1,565)  

 
 

(685)

 
 

128

 
 

 

 
 

  249  

 
 

545

 
 

(54)

 
 

Cash used in investing activities

 
 

  (523)  

 
 

(356)

 
 

47

 
 

 

 
 

  (1,342)  

 
 

(1,209)

 
 

11

 
 

Cash provided by financing activities

 
 

  757  

 
 

85

 
 

791

 
 

 

 
 

  117  

 
 

465

 
 

(75)

 
 

Effect of exchange rate changes on cash and cash equivalents

 
 

  (20)  

 
 

6

 
 

n/m

 
 

 

 
 

  (35)  

 
 

(7)

 
 

400

 
 

Decrease in cash and cash equivalents

 
 

  (1,351)  

 
 

(950)

 
 

42

 
 

 

 
 

  (1,011)  

 
 

(206)

 
 

391

 
 
      
 

  Cash (used in)
provided by
operating activities
 

 
 
  • Higher cash used in operating activities in the third quarter of 2021 and lower cash provided by operating activities in the first nine months of 2021 compared to the same periods in 2020 were due to higher seasonal working capital requirements offsetting higher earnings due to strong demand for crop inputs and tight fertilizer supply.
  •  
 

  Cash used in
investing activities
 

 
 
  • Higher cash used in investing activities in the third quarter and first nine months of 2021 was due to an increase in capital expenditures caused by higher turnaround and maintenance activities, and nitrogen brownfield expansion costs compared to the same periods in 2020.
  •  
 

  Cash provided by
financing activities
 

 
 
  • Higher cash provided by financing activities for the third quarter of 2021 compared to the same period in 2020 was due to increased commercial paper drawdowns to temporarily finance working capital requirements.
  •  
  • Lower cash provided by financing activities for the first nine months of 2021 was due to the issuance of $1.5 billion of notes and a note repayment of $500 million in the same period in 2020 with no similar activities in 2021. This was offset by increased commercial paper drawdowns in the first nine months of 2021.
  •  
 

  Financial Condition Review  

 

The following balance sheet categories contained variances that were considered significant:

 
                                                                                                      
 

 

 
 

  As at  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(millions of US dollars, except as otherwise noted)

 
 

  September 30, 2021  

 
 

 

 
 

December 31, 2020

 
 

 

 
 

$ Change

 
 

 

 
 

% Change

 
 

  Assets  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  443  

 
 

 

 
 

1,454

 
 

 

 
 

(1,011)

 
 

 

 
 

(70)

 
 

Receivables

 
 

  6,911  

 
 

 

 
 

3,626

 
 

 

 
 

3,285

 
 

 

 
 

91

 
 

Inventories

 
 

  4,674  

 
 

 

 
 

4,930

 
 

 

 
 

(256)

 
 

 

 
 

(5)

 
 

Prepaid expenses and other current assets

 
 

  654  

 
 

 

 
 

1,460

 
 

 

 
 

(806)

 
 

 

 
 

(55)

 
 

Other assets

 
 

  679  

 
 

 

 
 

914

 
 

 

 
 

(235)

 
 

 

 
 

(26)

 
 

  Liabilities and Equity  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Short-term debt

 
 

  1,255  

 
 

 

 
 

159

 
 

 

 
 

1,096

 
 

 

 
 

689

 
 

Payables and accrued charges

 
 

  6,930  

 
 

 

 
 

8,058

 
 

 

 
 

(1,128)

 
 

 

 
 

(14)

 
 

Share capital

 
 

  15,818  

 
 

 

 
 

15,673

 
 

 

 
 

145

 
 

 

 
 

1

 
 

Retained earnings

 
 

  7,735  

 
 

 

 
 

6,606

 
 

 

 
 

1,129

 
 

 

 
 

17

 
 
  • Explanations for changes in Cash and cash equivalents are in the "Sources and Uses of Cash" section.
  •  
  •   Receivables increased due to higher sales across all of our segments. This was a result of increased crop nutrient net realized selling prices and strong demand for crop inputs, seasonal Retail sales and higher Retail vendor rebates receivables. Certain income tax receivables previously classified as non-current are currently realizable within one year.
  •  
  •   Inventories decreased due to the seasonality of our Retail segment. Generally, we carry higher inventory levels at year-end and during the early part of the year in preparation for the upcoming planting and application seasons. Throughout the year, inventory levels decrease as we sell to our customers. As at September 30, 2021, we held higher than average levels of inventory compared to the same period in 2020 due to the higher cost to produce or purchase inventory and held higher volumes of Retail inventory to meet anticipated demand.
  •  
  •   Prepaid expenses and other current assets decreased due to the drawdown of prepaid inventory where Retail typically prepays for products at year-end and takes possession of inventory throughout the year.
  •  
  •   Other assets decreased due to a reclassification of certain income tax receivables as current receivables, which will be realized within one year.
  •  
  •   Short-term debt increased from commercial paper issuances as part of our seasonal working capital management.
  •  
  •   Payables and accrued charges decreased due to the seasonality of our Retail segment. Similar to the movement of our inventories and prepaid expenses, we generally enter into vendor arrangements at year-end. Throughout the year, we settle our vendor obligations and customer prepayments decrease as drawdowns occur. As at September 30, 2021, we had higher payables balances compared to the same period in 2020 due to rising inventory costs, customer prepayments and higher income tax payable from increased earnings.
  •  
  •   Share capital increased from exercise of stock options partially offset by shares repurchased.
  •  
  •   Retained earnings increased as net earnings in the first nine months of 2021 exceeded dividends declared.
  •  

  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 were in compliance with our debt covenants and did not have any changes to our credit ratings in the nine months ended September 30, 2021.

 
                                               
 

 

 
 

  As at September 30, 2021  

 
 

 

 
 

 

 
 

 

 
 

  Outstanding and Committed  

 
 

(millions of US dollars)

 
 

Rate of Interest (%)

 
 

Total Facility Limit

 
 

  Short-term debt  

 
 

  Long-term debt  

 
 

Credit facilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Unsecured revolving term credit facility

 
 

n/a

 
 

4,500

 
 

  -  

 
 

  -  

 
 

Uncommitted revolving demand facility

 
 

n/a

 
 

500

 
 

  -  

 
 

  -  

 
 

Other credit facilities 1

 
 

1.8 - 11.4

 
 

635

 
 

  128  

 
 

  156  

 
 

Other short-term debt

 
 

n/a

 
 

 

 
 

  88  

 
 

  -  

 
 

Commercial Paper

 
 

0.2 - 0.3

 
 

 

 
 

  1,039  

 
 

  -  

 
 

Total

 
 

 

 
 

 

 
 

  1,255  

 
 

  156  

 
 

  1 Other credit facilities are unsecured and consist of South American facilities with debt of $261 million and interest rates ranging from 1.8 percent to 11.4 percent and other facilities with debt of $23 million and interest rates ranging from 2.3 percent to 3.9 percent.  

 
 

We also have a commercial paper program, which is limited to the availability of backup funds under the $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities.

 

We extended the maturity date of the unsecured revolving term credit facility from 2023 to 2026 in the second quarter of 2021. There was no change to the total facility limit or the significant agreement terms from those we disclosed in our 2020 Annual Report.

 

Our long-term debt consists primarily of notes. See the "Capital Structure and Management" section of our 2020 Annual Report for information on balances, rates and maturities for our notes. We expect to reduce our long-term debt by approximately $2 billion in the next six months by using cash on hand and proceeds from the issuance of commercial paper.

 

  Outstanding Share Data  

 
      
 

 

 
 

  As at October 29, 2021  

 
 

Common shares

 
 

  570,785,966  

 
 

Options to purchase common shares

 
 

  7,182,599  

 
 

For more information on our capital structure and management, see Note 24 to our 2020 annual financial statements.

 

  Quarterly Results  

 
                                                                         
 

(millions of US dollars, except as otherwise noted)

 
 

  Q3 2021  

 
 

Q2 2021

 
 

Q1 2021

 
 

Q4 2020

 
 

Q3 2020

 
 

Q2 2020

 
 

Q1 2020

 
 

Q4 2019

 
 

Sales 1

 
 

  6,024  

 
 

9,763

 
 

4,658

 
 

4,052

 
 

4,227

 
 

8,431

 
 

4,198

 
 

3,462

 
 

Net earnings (loss)

 
 

  726  

 
 

1,113

 
 

133

 
 

316

 
 

(587)

 
 

765

 
 

(35)

 
 

(48)

 
 

Net earnings (loss) attributable to equity holders of Nutrien

 
 

  717  

 
 

1,108

 
 

127

 
 

316

 
 

(587)

 
 

765

 
 

(35)

 
 

(48)

 
 

Adjusted EBITDA

 
 

  1,642  

 
 

2,215

 
 

806

 
 

768

 
 

670

 
 

1,721

 
 

508

 
 

664

 
 

Net earnings (loss) per share attributable to equity holders of Nutrien

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Basic

 
 

  1.26  

 
 

1.94

 
 

0.22

 
 

0.55

 
 

(1.03)

 
 

1.34

 
 

(0.06)

 
 

(0.08)

 
 

Diluted

 
 

  1.25  

 
 

1.94

 
 

0.22

 
 

0.55

 
 

(1.03)

 
 

1.34

 
 

(0.06)

 
 

(0.08)

 
 

1 Certain immaterial figures have been reclassified in the first three quarters of 2020.

 
 

Seasonality in our business results from increased demand for products during the planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are 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.

 

In the third quarter of 2020, earnings were impacted by an $823 million non-cash impairment of assets primarily in the Phosphate segment as a result of lower forecasted global phosphate prices. In the fourth quarter of 2020, earnings were impacted by a $250 million net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E. ("MOPCO").

 

  Critical Accounting Estimates  

 

Our significant accounting policies are disclosed in our 2020 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 page 53 of our 2020 Annual Report. There were no significant changes in the nine months ended September 30, 2021 to our critical accounting estimates.

 

  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 September 30, 2021 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 "Financial 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", "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 full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies; capital spending expectations for 2021; expectations regarding our ability to reduce our long term debt; expectations regarding performance of our operating segments in 2021, including our operating segment market outlooks and market conditions for 2021, and the anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, crop mix, prices and the impact of import and export volumes; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; expected benefits from our brownfield expansion projects; and acquisitions and divestitures. 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 an 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 include, among other things, assumptions with respect to 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; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2021 and in the future; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; 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 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 complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; climate change and weather conditions, 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 and other laws or regulations and the interpretation thereof; political risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism; the occurrence of a major environmental or safety incident; 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; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; 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; the COVID-19 pandemic, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, including government-imposed vaccine mandates, fiscal and monetary responses by governments and financial institutions and disruptions to global supply chains; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the SEC in the United States.

 

The purpose of our expected adjusted net earnings per share, adjusted EBITDA (consolidated and by segment) and sustaining 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 and Definitions" section of our 2020 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 the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

 

Selected financial data for download can be found in 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 Tuesday, November 2, 2021 at 10:00 am Eastern Time.  

 
  • In order to expedite access to our conference call, each participant will be required to   pre-register   for the event:
    • Online: https://www.directeventreg.com/registration/event/7287304 .
    •  
    • Via Phone: 1-888-869-1189 Conference ID 7287304.  
    •  
  •  
  • Once the registration is complete, a confirmation will be sent providing the dial in number and both the Direct Event Passcode and your unique Registrant ID to join this call. For security reasons, please do not share your information with anyone else.
  •  
  • Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2021-q3-earnings-conference-call  
  •  

  Appendix A - Selected Additional Financial Data  

 
                                                                                                                                                               
 

  Selected Retail measures  

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

 

 
 

  2021  

 
 

  2020  

 
 

 

 
 

  2021  

 
 

  2020  

 
 

  Proprietary products margin as a percentage of product line margin (%)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Crop nutrients  

 
 

  26  

 
 

33

 
 

 

 
 

  24  

 
 

27

 
 

  Crop protection products  

 
 

  41  

 
 

43

 
 

 

 
 

  41  

 
 

40

 
 

  Seed  

 
 

  48  

 
 

n/m

 
 

 

 
 

  45  

 
 

43

 
 

  All products 1  

 
 

  27  

 
 

24

 
 

 

 
 

  27  

 
 

27

 
 

  Crop nutrients sales volumes (tonnes - thousands)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  North America  

 
 

  1,112  

 
 

1,159

 
 

 

 
 

  7,729  

 
 

7,683

 
 

  International  

 
 

  898  

 
 

741

 
 

 

 
 

  2,833  

 
 

2,364

 
 

  Total  

 
 

  2,010  

 
 

1,900

 
 

 

 
 

  10,562  

 
 

10,047

 
 

  Crop nutrients selling price per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  North America  

 
 

  602  

 
 

413

 
 

 

 
 

  510  

 
 

423

 
 

  International  

 
 

  585  

 
 

407

 
 

 

 
 

  464  

 
 

356

 
 

  Total  

 
 

  595  

 
 

411

 
 

 

 
 

  498  

 
 

407

 
 

  Crop nutrients gross margin per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  North America  

 
 

  147  

 
 

116

 
 

 

 
 

  127  

 
 

102

 
 

  International  

 
 

  95  

 
 

61

 
 

 

 
 

  67  

 
 

47

 
 

  Total  

 
 

  124  

 
 

94

 
 

 

 
 

  111  

 
 

89

 
 

  1 Certain immaterial figures have been reclassified for the three months ended September 30, 2020.  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Financial performance measures  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

  Retail adjusted EBITDA to sales ("Retail adjusted EBITDA margin") (%) 1  

 
 

 

 
 

 

 
 

  11  

 
 

  Retail adjusted average working capital to sales (%) 1, 2  

 
 

 

 
 

 

 
 

 

 
 

  12  

 
 

  Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 2  

 
 

 

 
 

 

 
 

  (1)  

 
 

  Retail cash operating coverage ratio (%) 1, 2  

 
 

 

 
 

 

 
 

 

 
 

  59  

 
 

  Retail normalized comparable store sales (%) 2  

 
 

 

 
 

 

 
 

 

 
 

  5  

 
 

  Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2  

 
 

 

 
 

 

 
 

  1,362  

 
 

  Nutrien Financial net interest margin (%) 1, 2  

 
 

 

 
 

 

 
 

 

 
 

  6.4  

 
 

  1 Rolling four quarters ended September 30, 2021.  

 
 

  2 See the "Non-IFRS Financial Measures" section.  

 
 
                                   
 

  Nutrien Financial  

 
 

  As at September 30, 2021  

 
 

  (millions of US dollars)  

 
 

  Current  

 
 

    past due  

 
 

  31-90 days
  past due  

 
 

  >90 days
  past due  

 
 

  Gross
Receivables
 

 
 

  Allowance 1  

 
 

  Net
Receivables
 

 
 

  North America  

 
 

2,351

 
 

47

 
 

36

 
 

62

 
 

2,496

 
 

(28)

 
 

  2,468  

 
 

  International  

 
 

258

 
 

15

 
 

17

 
 

64

 
 

354

 
 

(2)

 
 

  352  

 
 

  Nutrien Financial receivables  

 
 

2,609

 
 

62

 
 

53

 
 

126

 
 

2,850

 
 

(30)

 
 

  2,820  

 
 

  1 Bad debt expense on the above receivables for the nine months ended September 30, 2021 was $9 million (2020 - $20 million) in the Retail segment.  

 
 
                                                                
 

  Selected Nitrogen measures  

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

 

 
 

  2021  

 
 

  2020  

 
 

 

 
 

  2021  

 
 

  2020  

 
 

  Sales volumes (tonnes - thousands)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Fertilizer  

 
 

  1,320  

 
 

1,426

 
 

 

 
 

  4,450  

 
 

5,010

 
 

  Industrial and feed  

 
 

  1,201  

 
 

977

 
 

 

 
 

  3,440  

 
 

3,111

 
 

  Net sales (millions of US dollars)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Fertilizer  

 
 

  533  

 
 

280

 
 

 

 
 

  1,503  

 
 

1,108

 
 

  Industrial and feed  

 
 

  440  

 
 

161

 
 

 

 
 

  1,025  

 
 

559

 
 

  Net selling price per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Fertilizer  

 
 

  404  

 
 

196

 
 

 

 
 

  338  

 
 

221

 
 

  Industrial and feed  

 
 

  366  

 
 

166

 
 

 

 
 

  298  

 
 

180

 
 
                                                       
 

  Production measures  

 
 

  Three Months Ended September 30  

 
  

  Nine Months Ended September 30  

 
 

 

 
 

  2021  

 
 

  2020  

 
  

  2021  

 
 

  2020  

 
 

  Potash production (Product tonnes - thousands)  

 
 

  3,199  

 
 

3,430

 
  

  10,149  

 
 

9,811

 
 

  Potash shutdown weeks 1  

 
 

  10  

 
 

4

 
  

  14  

 
 

38

 
 

  Ammonia production - total 2  

 
 

  1,414  

 
 

1,413

 
  

  4,355  

 
 

4,479

 
 

  Ammonia production - adjusted 2, 3  

 
 

  856  

 
 

1,009

 
  

  2,863  

 
 

3,067

 
 

  Ammonia operating rate (%) 3  

 
 

  77  

 
 

91

 
  

  87  

 
 

93

 
 

  P 2 O 5 production (P 2 O 5 tonnes - thousands)  

 
 

  384  

 
 

354

 
  

  1,109  

 
 

1,083

 
 

  P 2 O 5 operating rate (%)  

 
 

  90  

 
 

83

 
  

  87  

 
 

85

 
 

  1 Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance shutdowns and announced workforce reductions.  

 
 

  2 All figures are provided on a gross production basis in thousands of product tonnes.  

 
 

  3 Excludes Trinidad and Joffre.  

 
 

  Appendix B - Non-IFRS Financial Measures  

 

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company's historical or future financial performance, financial position or cash flow that are not specified, defined or determined under IFRS, and are not presented in our interim financial statements. Non-IFRS measures either exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure specified, defined or determined in accordance with IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

 

Management believes the non-IFRS financial measures 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-IFRS financial measures 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-IFRS financial measures, their definitions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As non-recurring or unusual items arise, we generally exclude these items in our calculation of the applicable non-IFRS financial measure.

 

  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, certain integration and restructuring related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, cloud computing transition adjustment, loss on disposal of business, and net gain on disposal of investment in MOPCO. COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs and costs related to construction delays from access limitations and other government restrictions. Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

 

  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.

 
                                                                                        
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars)

 
 

  2021  

 
 

2020

 
 

 

 
 

  2021  

 
 

2020

 
 

Net earnings (loss)

 
 

  726  

 
 

(587)

 
 

 

 
 

  1,972  

 
 

143

 
 

Finance costs

 
 

  122  

 
 

129

 
 

 

 
 

  367  

 
 

401

 
 

Income tax expense (recovery)

 
 

  209  

 
 

(264)

 
 

 

 
 

  615  

 
 

(45)

 
 

Depreciation and amortization

 
 

  489  

 
 

500

 
 

 

 
 

  1,454  

 
 

1,490

 
 

EBITDA

 
 

  1,546  

 
 

(222)

 
 

 

 
 

  4,408  

 
 

1,989

 
 

Integration and restructuring related costs

 
 

  8  

 
 

10

 
 

 

 
 

  47  

 
 

38

 
 

Share-based compensation expense

 
 

  64  

 
 

29

 
 

 

 
 

  125  

 
 

9

 
 

Impairment of assets

 
 

  7  

 
 

823

 
 

 

 
 

  12  

 
 

823

 
 

COVID-19 related expenses

 
 

  16  

 
 

11

 
 

 

 
 

  34  

 
 

30

 
 

Foreign exchange loss, net of related derivatives

 
 

  1  

 
 

13

 
 

 

 
 

  1  

 
 

4

 
 

Loss on disposal of business

 
 

  -  

 
 

6

 
 

 

 
 

  -  

 
 

6

 
 

Cloud computing transition adjustment

 
 

  -  

 
 

-

 
 

 

 
 

  36  

 
 

-

 
 

Adjusted EBITDA

 
 

  1,642  

 
 

670

 
 

 

 
 

  4,663  

 
 

2,899

 
 

  Adjusted EBITDA (Consolidated), Adjusted Net Earnings Per Share and Sustaining Capital Expenditures Guidance  

 

Adjusted EBITDA, adjusted net earnings per share and sustaining capital expenditures guidance are forward-looking non-IFRS financial measures. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine, without unreasonable efforts. Guidance for adjusted EBITDA and adjusted net earnings per share excludes the impacts of integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, and cloud computing transition adjustment. Guidance for sustaining capital expenditures includes anticipated expenditures required to sustain operations at existing levels and includes major repairs and maintenance and plant turnarounds.

 

  Adjusted Net Earnings and Adjusted Net Earnings Per Share  

 

  Most directly comparable IFRS financial measure: Net earnings (loss) and net earnings (loss) per share.

 

  Definition: Net earnings (loss) before certain integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses (including those recorded under finance costs for managing our liquidity position in response to the COVID-19 pandemic in 2020), cloud computing transition adjustment, loss on disposal of business, net gain on disposal of investment in MOPCO and impairment of assets, net of tax. We generally apply the annual forecasted effective tax rate to our adjustments during the year and, at year-end, we apply the actual effective tax rate. If the effective tax rate is significantly different from our forecasted effective tax rate due to adjustments or discrete tax impacts, we apply a tax rate that excludes those items. For material adjustments, we apply a tax rate specific to the adjustment. In 2021, we amended our calculation of adjusted net earnings to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

 

  Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations excluding the effects of non-operating items.

 
                                                                                                                                                    
 

 

 
 

  Three Months Ended
  September 30, 2021  

 
 

 

 
 

  Nine Months Ended
  September 30, 2021  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Per  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Per  

 
 

(millions of US dollars, except as otherwise

 
 

  Increases  

 
 

 

 
 

 

 
 

 

 
 

  Diluted  

 
 

 

 
 

  Increases  

 
 

 

 
 

 

 
 

 

 
 

  Diluted  

 
 

noted)

 
 

  (Decreases)  

 
 

 

 
 

  Post-Tax  

 
 

 

 
 

  Share  

 
 

 

 
 

  (Decreases)  

 
 

 

 
 

  Post-Tax  

 
 

 

 
 

  Share  

 
 

Net earnings attributable to equity holders of Nutrien

 
 

 

 
 

 

 
 

717

 
 

 

 
 

1.25

 
 

 

 
 

 

 
 

 

 
 

1,952

 
 

 

 
 

3.41

 
 

Adjustments:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Integration and restructuring related costs

 
 

8

 
 

 

 
 

6

 
 

 

 
 

0.01

 
 

 

 
 

47

 
 

 

 
 

35

 
 

 

 
 

0.06

 
 

Share-based compensation expense

 
 

64

 
 

 

 
 

48

 
 

 

 
 

0.09

 
 

 

 
 

125

 
 

 

 
 

94

 
 

 

 
 

0.16

 
 

Impairment of assets

 
 

7

 
 

 

 
 

5

 
 

 

 
 

0.01

 
 

 

 
 

12

 
 

 

 
 

9

 
 

 

 
 

0.02

 
 

COVID-19 related expenses

 
 

16

 
 

 

 
 

12

 
 

 

 
 

0.02

 
 

 

 
 

34

 
 

 

 
 

26

 
 

 

 
 

0.05

 
 

Foreign exchange loss, net of related derivatives

 
 

1

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

1

 
 

 

 
 

1

 
 

 

 
 

-

 
 

Cloud computing transition adjustment

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

36

 
 

 

 
 

27

 
 

 

 
 

0.05

 
 

Adjusted net earnings

 
 

 

 
 

 

 
 

  789  

 
 

 

 
 

  1.38  

 
 

 

 
 

 

 
 

 

 
 

  2,144  

 
 

 

 
 

  3.75  

 
 

  Free Cash Flow and Free Cash Flow Including Changes in Non-Cash Operating Working Capital  

 

  Most directly comparable IFRS financial measure: Cash from operations before working capital changes.

 

  Definition: Cash from operations before working capital changes less sustaining capital expenditures. We also calculate a similar measure that includes changes in non-cash operating working capital.

 

  Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength. These are also useful as indicators of our ability to service debt, meet other payment obligations and make strategic investments. These do not represent residual cash flow available for discretionary expenditures.

 
                                        
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars)

 
 

  2021  

 
 

2020

 
 

 

 
 

  2021  

 
 

2020

 
 

Cash from operations before working capital changes

 
 

  1,187  

 
 

483

 
 

 

 
 

  3,544  

 
 

2,145

 
 

Sustaining capital expenditures

 
 

  (325)  

 
 

(203)

 
 

 

 
 

  (793)  

 
 

(511)

 
 

Free cash flow

 
 

  862  

 
 

280

 
 

 

 
 

  2,751  

 
 

1,634

 
 

Changes in non-cash operating working capital

 
 

  (2,752)  

 
 

(1,168)

 
 

 

 
 

  (3,295)  

 
 

(1,600)

 
 

Free cash flow including changes in non-cash operating working capital

 
 

  (1,890)  

 
 

(888)

 
 

 

 
 

  (544)  

 
 

34

 
 

  Potash Cash Cost of Product Manufactured ("COPM")  

 

  Most directly comparable IFRS financial measure: Cost of goods sold ("COGS") for the Potash segment.

 

  Definition: Potash COGS for the period excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period.

 

  Why we use the measure and why it is useful to investors: To assess operational performance. Potash cash COPM excludes the effects of production from other periods and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

 
                                                          
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2021  

 
 

2020

 
 

 

 
 

  2021  

 
 

2020

 
 

Total COGS - Potash

 
 

  372  

 
 

303

 
 

 

 
 

  980  

 
 

878

 
 

Change in inventory

 
 

  (58)  

 
 

4

 
 

 

 
 

  (42)  

 
 

(28)

 
 

Other adjustments

 
 

  (1)  

 
 

-

 
 

 

 
 

  (7)  

 
 

(5)

 
 

COPM

 
 

  313  

 
 

307

 
 

 

 
 

  931  

 
 

845

 
 

Depreciation and amortization included in COPM

 
 

  (101)  

 
 

(124)

 
 

 

 
 

  (315)  

 
 

(305)

 
 

Cash COPM

 
 

  212  

 
 

183

 
 

 

 
 

  616  

 
 

540

 
 

Production tonnes (tonnes - thousands)

 
 

  3,199  

 
 

3,430

 
 

 

 
 

  10,149  

 
 

9,811

 
 

Potash cash COPM per tonne

 
 

  66  

 
 

53

 
 

 

 
 

  61  

 
 

55

 
 

  Ammonia Controllable Cash COPM  

 

  Most directly comparable IFRS financial measure: COGS for the Nitrogen segment.

 

  Definition: The total of COGS for the Nitrogen segment excluding depreciation and amortization expense included in COGS, cash COGS for products other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.

 

  Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

 
                                                                              
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2021  

 
 

2020

 
 

 

 
 

  2021  

 
 

2020

 
 

Total COGS - Nitrogen

 
 

  695  

 
 

482

 
 

 

 
 

  2,068  

 
 

1,708

 
 

Depreciation and amortization in COGS

 
 

  (105)  

 
 

(113)

 
 

 

 
 

  (347)  

 
 

(395)

 
 

Cash COGS for products other than ammonia

 
 

  (380)  

 
 

(287)

 
 

 

 
 

  (1,221)  

 
 

(1,017)

 
 

Ammonia

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Total cash COGS before other adjustments

 
 

  210  

 
 

82

 
 

 

 
 

  500  

 
 

296

 
 

Other adjustments 1

 
 

  (36)  

 
 

(11)

 
 

 

 
 

  (66)  

 
 

(46)

 
 

Total cash COPM

 
 

  174  

 
 

71

 
 

 

 
 

  434  

 
 

250

 
 

Natural gas and steam costs

 
 

  (137)  

 
 

(45)

 
 

 

 
 

  (329)  

 
 

(164)

 
 

Controllable cash COPM

 
 

  37  

 
 

26

 
 

 

 
 

  105  

 
 

86

 
 

Production tonnes (net tonnes 2 - thousands)

 
 

  706  

 
 

557

 
 

 

 
 

  2,011  

 
 

1,945

 
 

Ammonia controllable cash COPM per tonne

 
 

  53  

 
 

47

 
 

 

 
 

  52  

 
 

44

 
 

1 Includes changes in inventory balances and other adjustments.

 
 

2 Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

 
 

  Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured  

 

  Most directly comparable IFRS financial measure: Gross margin.

 

  Definition: Gross margin from manufactured products per tonne less depreciation and amortization per tonne. 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.

 

  Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial  

 

  Most directly comparable IFRS financial measure: (Current assets minus current liabilities for Retail) divided by Retail sales.

 

  Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the working capital and sales of certain acquisitions during the first year following the acquisition. We amended our calculation to adjust for the sales of certain recently acquired businesses. We also look at this metric excluding the sales and working capital of Nutrien Financial.

 

  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 September 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Q3 2021  

 
 

 

 
 

  Average/Total  

 
 

Working capital

 
 

1,157

 
 

 

 
 

1,630

 
 

 

 
 

1,348

 
 

 

 
 

3,883

 
 

 

 
 

 

 
 

Working capital from certain recent acquisitions

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

 

 
 

Adjusted working capital

 
 

1,157

 
 

 

 
 

1,630

 
 

 

 
 

1,348

 
 

 

 
 

3,883

 
 

 

 
 

  2,005  

 
 

Nutrien Financial working capital

 
 

(1,392)

 
 

 

 
 

(1,221)

 
 

 

 
 

(3,072)

 
 

 

 
 

(2,820)

 
 

 

 
 

 

 
 

Adjusted working capital excluding Nutrien Financial

 
 

(235)

 
 

 

 
 

409

 
 

 

 
 

(1,724)

 
 

 

 
 

1,063

 
 

 

 
 

  (121)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales

 
 

2,618

 
 

 

 
 

2,972

 
 

 

 
 

7,537

 
 

 

 
 

3,347

 
 

 

 
 

 

 
 

Sales from certain recent acquisitions

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

 

 
 

Adjusted sales

 
 

2,618

 
 

 

 
 

2,972

 
 

 

 
 

7,537

 
 

 

 
 

3,347

 
 

 

 
 

  16,474  

 
 

Nutrien Financial revenue

 
 

(37)

 
 

 

 
 

(25)

 
 

 

 
 

(59)

 
 

 

 
 

(54)

 
 

 

 
 

 

 
 

Adjusted sales excluding Nutrien Financial

 
 

2,581

 
 

 

 
 

2,947

 
 

 

 
 

7,478

 
 

 

 
 

3,293

 
 

 

 
 

  16,299  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Adjusted average working capital to sales (%)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  12  

 
 

  Adjusted average working capital to sales excluding Nutrien Financial (%)  

 
 

 

 
 

 

 
 

 

 
 

  (1)  

 
 

  Nutrien Financial Net Interest Margin  

 

  Most directly comparable IFRS financial measure: Nutrien Financial gross margin divided by average Nutrien Financial receivables.

 

  Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial 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 other users to evaluate financial performance of Nutrien Financial.

 
                                                                         
 

 

 
 

  Rolling four quarters ended September 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Q3 2021  

 
 

 

 
 

  Total/Average  

 
 

Nutrien Financial revenue

 
 

37

 
 

 

 
 

25

 
 

 

 
 

59

 
 

 

 
 

54

 
 

 

 
 

 

 
 

Deemed interest expense 1

 
 

(14)

 
 

 

 
 

(6)

 
 

 

 
 

(8)

 
 

 

 
 

(10)

 
 

 

 
 

 

 
 

Net interest

 
 

23

 
 

 

 
 

19

 
 

 

 
 

51

 
 

 

 
 

44

 
 

 

 
 

  137  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average Nutrien Financial receivables

 
 

1,392

 
 

 

 
 

1,221

 
 

 

 
 

3,072

 
 

 

 
 

2,820

 
 

 

 
 

  2,126  

 
 

Nutrien Financial net interest margin (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  6.4  

 
 

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  

 

  Most directly comparable IFRS financial measure: Retail operating expenses as a percentage of Retail gross margin.

 

  Definition: Retail operating expenses, 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 September 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Q3 2021  

 
 

 

 
 

  Total  

 
 

Operating expenses 1

 
 

768

 
 

 

 
 

721

 
 

 

 
 

938

 
 

 

 
 

808

 
 

 

 
 

  3,235  

 
 

Depreciation and amortization in operating expenses

 
 

(177)

 
 

 

 
 

(175)

 
 

 

 
 

(166)

 
 

 

 
 

(180)

 
 

 

 
 

  (698)  

 
 

Operating expenses excluding depreciation and amortization

 
 

591

 
 

 

 
 

546

 
 

 

 
 

772

 
 

 

 
 

628

 
 

 

 
 

  2,537  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

885

 
 

 

 
 

652

 
 

 

 
 

1,858

 
 

 

 
 

917

 
 

 

 
 

  4,312  

 
 

Depreciation and amortization in cost of goods sold

 
 

3

 
 

 

 
 

2

 
 

 

 
 

3

 
 

 

 
 

2

 
 

 

 
 

  10  

 
 

Gross margin excluding depreciation and amortization

 
 

888

 
 

 

 
 

654

 
 

 

 
 

1,861

 
 

 

 
 

919

 
 

 

 
 

  4,322  

 
 

Cash operating coverage ratio (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  59  

 
 

1 Includes Retail expenses below gross margin including selling expenses, general and administrative expenses and other (income) expenses.

 
 

  Retail Adjusted EBITDA per US Selling Location  

 

  Most directly comparable IFRS financial measure: Retail US adjusted EBITDA.

 

  Definition: Total Retail US adjusted EBITDA for the last four rolling quarters, adjusted for acquisitions in those quarters, divided by the number of US locations that have generated sales in the last four rolling quarters, adjusted for acquired locations.

 

  Why we use the measure and why it is useful to investors: To assess our US Retail operating performance. This measure includes locations we have owned for more than 12 months.

 
                                                              
 

 

 
 

  Rolling four quarters ended September 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Q3 2021  

 
 

 

 
 

  Total  

 
 

Adjusted US EBITDA

 
 

177

 
 

 

 
 

29

 
 

 

 
 

847

 
 

 

 
 

146

 
 

 

 
 

  1,199  

 
 

Adjustments for acquisitions

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  (5)  

 
 

Adjusted US EBITDA adjusted for acquisitions

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  1,194  

 
 

Number of US selling locations adjusted for acquisitions

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  877  

 
 

Adjusted EBITDA per US selling location (thousands of US dollars)

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  1,362  

 
 

  Retail Normalized Comparable Store Sales  

 

  Most directly comparable IFRS financial measure: Retail sales from comparable base as a component of total Retail sales.

 

  Definition: Prior year comparable store sales adjusted for published potash, nitrogen and phosphate benchmark prices and foreign exchange rates used in the current year. We retain sales of closed locations in the comparable base if the closed location is in close proximity to an existing location, unless we plan to exit the market area or are unable to economically or logistically serve it. We do not adjust for temporary closures, expansions or renovations of stores.

 

  Why we use the measure and why it is useful to investors: To evaluate sales growth by adjusting for fluctuations in commodity prices and foreign exchange rates. Includes locations we have owned for more than 12 months.

 
                 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2021  

 
 

Sales from comparable base

 
 

 

 
 

Current period

 
 

  13,671  

 
 

Prior period 1

 
 

  11,783  

 
 

Comparable store sales (%)

 
 

  16  

 
 

Prior period normalized for benchmark prices and foreign exchange rates 1

 
 

  12,988  

 
 

Normalized comparable store sales (%)

 
 

  5  

 
 

1 Restated by $384 million to reflect the impacts of the Australian livestock export business divestiture and a change in revenue recognition treatment as a result of certain contract term revisions.

 
 

  Condensed Consolidated Financial Statements  

 

  Unaudited in millions of US dollars except as otherwise noted  

 

  Condensed Consolidated Statements of Earnings (Loss)  

 
                                                                                                                                                                                                                                                             
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

Note

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

  SALES  

 
 

2

 
 

  6,024  

 
 

 

 
 

4,227

 
 

 

 
 

  20,445  

 
 

 

 
 

16,856

 
 

Freight, transportation and distribution

 
 

 

 
 

  220  

 
 

 

 
 

204

 
 

 

 
 

  653  

 
 

 

 
 

653

 
 

Cost of goods sold

 
 

 

 
 

  3,639  

 
 

 

 
 

3,004

 
 

 

 
 

  13,589  

 
 

 

 
 

12,129

 
 

  GROSS MARGIN  

 
 

 

 
 

  2,165  

 
 

 

 
 

1,019

 
 

 

 
 

  6,203  

 
 

 

 
 

4,074

 
 

Selling expenses

 
 

 

 
 

  749  

 
 

 

 
 

676

 
 

 

 
 

  2,287  

 
 

 

 
 

2,081

 
 

General and administrative expenses

 
 

 

 
 

  110  

 
 

 

 
 

107

 
 

 

 
 

  329  

 
 

 

 
 

312

 
 

Provincial mining taxes

 
 

 

 
 

  128  

 
 

 

 
 

58

 
 

 

 
 

  293  

 
 

 

 
 

163

 
 

Share-based compensation expense

 
 

 

 
 

  64  

 
 

 

 
 

29

 
 

 

 
 

  125  

 
 

 

 
 

9

 
 

Impairment of assets

 
 

2

 
 

  7  

 
 

 

 
 

823

 
 

 

 
 

  12  

 
 

 

 
 

823

 
 

Other expenses

 
 

3

 
 

  50  

 
 

 

 
 

48

 
 

 

 
 

  203  

 
 

 

 
 

187

 
 

  EARNINGS (LOSS) BEFORE FINANCE COSTS AND INCOME TAXES  

 
 

  1,057  

 
 

 

 
 

(722)

 
 

 

 
 

  2,954  

 
 

 

 
 

499

 
 

Finance costs

 
 

 

 
 

  122  

 
 

 

 
 

129

 
 

 

 
 

  367  

 
 

 

 
 

401

 
 

  EARNINGS (LOSS) BEFORE INCOME TAXES  

 
 

 

 
 

  935  

 
 

 

 
 

(851)

 
 

 

 
 

  2,587  

 
 

 

 
 

98

 
 

Income tax expense (recovery)

 
 

4

 
 

  209  

 
 

 

 
 

(264)

 
 

 

 
 

  615  

 
 

 

 
 

(45)

 
 

  NET EARNINGS (LOSS)  

 
 

 

 
 

  726  

 
 

 

 
 

(587)

 
 

 

 
 

  1,972  

 
 

 

 
 

143

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

 

 
 

  717  

 
 

 

 
 

(587)

 
 

 

 
 

  1,952  

 
 

 

 
 

143

 
 

Non-controlling interest

 
 

 

 
 

  9  

 
 

 

 
 

-

 
 

 

 
 

  20  

 
 

 

 
 

-

 
 

  NET EARNINGS (LOSS)  

 
 

 

 
 

  726  

 
 

 

 
 

(587)

 
 

 

 
 

  1,972  

 
 

 

 
 

143

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  NET EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")  

 
 

Basic

 
 

 

 
 

  1.26  

 
 

 

 
 

(1.03)

 
 

 

 
 

  3.42  

 
 

 

 
 

0.25

 
 

Diluted

 
 

 

 
 

  1.25  

 
 

 

 
 

(1.03)

 
 

 

 
 

  3.41  

 
 

 

 
 

0.25

 
 

Weighted average shares outstanding for basic EPS

 
 

 

 
 

  570,627,000  

 
 

 

 
 

569,146,000

 
 

 

 
 

  570,216,000  

 
 

 

 
 

569,818,000

 
 

Weighted average shares outstanding for diluted EPS

 
 

 

 
 

  572,224,000  

 
 

 

 
 

569,146,000

 
 

 

 
 

  571,735,000  

 
 

 

 
 

569,818,000

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Condensed Consolidated Statements of Comprehensive Income (Loss)  

 
                                                                                                                                         
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

(Net of related income taxes)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

  NET EARNINGS (LOSS)  

 
 

  726  

 
 

 

 
 

(587)

 
 

 

 
 

  1,972  

 
 

 

 
 

143

 
 

Other comprehensive (loss) income

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Items that will not be reclassified to net earnings (loss):

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net actuarial gain on defined benefit plans

 
 

  -  

 
 

 

 
 

-

 
 

 

 
 

  -  

 
 

 

 
 

3

 
 

Net fair value gain (loss) on investments

 
 

  46  

 
 

 

 
 

(4)

 
 

 

 
 

  116  

 
 

 

 
 

(25)

 
 

Items that have been or may be subsequently reclassified to net earnings (loss):

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Loss) gain on currency translation of foreign operations

 
 

  (124)  

 
 

 

 
 

69

 
 

 

 
 

  (129)  

 
 

 

 
 

(52)

 
 

Other

 
 

  (1)  

 
 

 

 
 

6

 
 

 

 
 

  19  

 
 

 

 
 

(12)

 
 

  OTHER COMPREHENSIVE (LOSS) INCOME  

 
 

  (79)  

 
 

 

 
 

71

 
 

 

 
 

  6  

 
 

 

 
 

(86)

 
 

  COMPREHENSIVE INCOME (LOSS)  

 
 

  647  

 
 

 

 
 

(516)

 
 

 

 
 

  1,978  

 
 

 

 
 

57

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

  638  

 
 

 

 
 

(516)

 
 

 

 
 

  1,959  

 
 

 

 
 

57

 
 

Non-controlling interest

 
 

  9  

 
 

 

 
 

-

 
 

 

 
 

  19  

 
 

 

 
 

-

 
 

  COMPREHENSIVE INCOME (LOSS)  

 
 

  647  

 
 

 

 
 

(516)

 
 

 

 
 

  1,978  

 
 

 

 
 

57

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Cash Flows  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                           
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

Note

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  OPERATING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net earnings (loss)

 
 

 

 
 

  726  

 
 

 

 
 

(587)

 
 

 

 
 

  1,972  

 
 

 

 
 

143

 
 

Adjustments for:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  489  

 
 

 

 
 

500

 
 

 

 
 

  1,454  

 
 

 

 
 

1,490

 
 

Share-based compensation expense

 
 

 

 
 

  64  

 
 

 

 
 

29

 
 

 

 
 

  125  

 
 

 

 
 

9

 
 

Impairment of assets

 
 

2

 
 

  7  

 
 

 

 
 

823

 
 

 

 
 

  12  

 
 

 

 
 

823

 
 

Recovery of deferred income tax

 
 

 

 
 

  (87)  

 
 

 

 
 

(161)

 
 

 

 
 

  (97)  

 
 

 

 
 

(99)

 
 

Cloud computing transition adjustment

 
 

3

 
 

  -  

 
 

 

 
 

-

 
 

 

 
 

  36  

 
 

 

 
 

-

 
 

Other long-term assets, liabilities and miscellaneous

 
 

 

 
 

  (12)  

 
 

 

 
 

(121)

 
 

 

 
 

  42  

 
 

 

 
 

(221)

 
 

Cash from operations before working capital changes

 
 

 

 
 

  1,187  

 
 

 

 
 

483

 
 

 

 
 

  3,544  

 
 

 

 
 

2,145

 
 

Changes in non-cash operating working capital:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Receivables

 
 

 

 
 

  (266)  

 
 

 

 
 

692

 
 

 

 
 

  (3,101)  

 
 

 

 
 

(1,455)

 
 

Inventories

 
 

 

 
 

  130  

 
 

 

 
 

407

 
 

 

 
 

  193  

 
 

 

 
 

1,153

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  (133)  

 
 

 

 
 

(77)

 
 

 

 
 

  865  

 
 

 

 
 

936

 
 

Payables and accrued charges

 
 

 

 
 

  (2,483)  

 
 

 

 
 

(2,190)

 
 

 

 
 

  (1,252)  

 
 

 

 
 

(2,234)

 
 

  CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES  

 
 

 

 
 

  (1,565)  

 
 

 

 
 

(685)

 
 

 

 
 

  249  

 
 

 

 
 

545

 
 

  INVESTING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Capital expenditures 1

 
 

 

 
 

  (474)  

 
 

 

 
 

(285)

 
 

 

 
 

  (1,215)  

 
 

 

 
 

(1,014)

 
 

Business acquisitions, net of cash acquired

 
 

 

 
 

  (30)  

 
 

 

 
 

(43)

 
 

 

 
 

  (70)  

 
 

 

 
 

(216)

 
 

Other

 
 

 

 
 

  (19)  

 
 

 

 
 

(28)

 
 

 

 
 

  (57)  

 
 

 

 
 

21

 
 

  CASH USED IN INVESTING ACTIVITIES  

 
 

 

 
 

  (523)  

 
 

 

 
 

(356)

 
 

 

 
 

  (1,342)  

 
 

 

 
 

(1,209)

 
 

  FINANCING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Transaction costs related to debt

 
 

 

 
 

  -  

 
 

 

 
 

-

 
 

 

 
 

  (7)  

 
 

 

 
 

(15)

 
 

Proceeds from short-term debt, net

 
 

 

 
 

  1,040  

 
 

 

 
 

397

 
 

 

 
 

  1,037  

 
 

 

 
 

601

 
 

Proceeds from long-term debt

 
 

 

 
 

  81  

 
 

 

 
 

14

 
 

 

 
 

  89  

 
 

 

 
 

1,520

 
 

Repayment of long-term debt

 
 

 

 
 

  -  

 
 

 

 
 

-

 
 

 

 
 

  (5)  

 
 

 

 
 

(507)

 
 

Repayment of principal portion of lease liabilities

 
 

 

 
 

  (78)  

 
 

 

 
 

(69)

 
 

 

 
 

  (242)  

 
 

 

 
 

(203)

 
 

Dividends paid to Nutrien's shareholders

 
 

6

 
 

  (261)  

 
 

 

 
 

(257)

 
 

 

 
 

  (779)  

 
 

 

 
 

(771)

 
 

Repurchase of common shares

 
 

6

 
 

  (148)  

 
 

 

 
 

-

 
 

 

 
 

  (150)  

 
 

 

 
 

(160)

 
 

Issuance of common shares

 
 

 

 
 

  125  

 
 

 

 
 

-

 
 

 

 
 

  188  

 
 

 

 
 

-

 
 

Other

 
 

 

 
 

  (2)  

 
 

 

 
 

-

 
 

 

 
 

  (14)  

 
 

 

 
 

-

 
 

  CASH PROVIDED BY FINANCING ACTIVITIES  

 
 

 

 
 

  757  

 
 

 

 
 

85

 
 

 

 
 

  117  

 
 

 

 
 

465

 
 

  EFFECT OF EXCHANGE RATE CHANGES ON CASH AND   CASH EQUIVALENTS  

 
 

 

 
 

  (20)  

 
 

 

 
 

6

 
 

 

 
 

  (35)  

 
 

 

 
 

(7)

 
 

  DECREASE IN CASH AND CASH EQUIVALENTS  

 
 

 

 
 

  (1,351)  

 
 

 

 
 

(950)

 
 

 

 
 

  (1,011)  

 
 

 

 
 

(206)

 
 

  CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD  

 
 

 

 
 

  1,794  

 
 

 

 
 

1,415

 
 

 

 
 

  1,454  

 
 

 

 
 

671

 
 

  CASH AND CASH EQUIVALENTS – END OF PERIOD  

 
 

 

 
 

  443  

 
 

 

 
 

465

 
 

 

 
 

  443  

 
 

 

 
 

465

 
 

Cash and cash equivalents comprised of:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash

 
 

 

 
 

  315  

 
 

 

 
 

328

 
 

 

 
 

  315  

 
 

 

 
 

328

 
 

Short-term investments

 
 

 

 
 

  128  

 
 

 

 
 

137

 
 

 

 
 

  128  

 
 

 

 
 

137

 
 

 

 
 

 

 
 

  443  

 
 

 

 
 

465

 
 

 

 
 

  443  

 
 

 

 
 

465

 
 

  SUPPLEMENTAL CASH FLOWS INFORMATION  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Interest paid

 
 

 

 
 

  81  

 
 

 

 
 

85

 
 

 

 
 

  319  

 
 

 

 
 

334

 
 

Income taxes paid

 
 

 

 
 

  212  

 
 

 

 
 

27

 
 

 

 
 

  356  

 
 

 

 
 

92

 
 

Total cash outflow for leases

 
 

 

 
 

  91  

 
 

 

 
 

78

 
 

 

 
 

  299  

 
 

 

 
 

266

 
 

1 Includes additions to property, plant and equipment and intangible assets for the three months ended September 30, 2021 of $445 and $29 (2020 - $266 and $19), respectively, and for the nine months ended September 30, 2021 of $1,148 and $67 (2020 - $927 and $87), respectively.

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Changes in Shareholders' Equity  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 

 

 
  

 

 
   

 

 
  

 

 
   

Accumulated Other Comprehensive (Loss) Income ("AOCI")

 
   

 

 
   

 

 
  

 

 
  

 

 
 

 

 
  

 

 
   

 

 
  

 

 
   

 

 
 

Net

 
 

 

 
   

 

 
   

 

 
  

 

 
  

 

 
 

 

 
  

 

 
   

 

 
  

 

 
   

 

 
 

Actuarial

 
 

Loss on

 
 

 

 
   

 

 
   

 

 
  

Equity

 
 

 

 
  

 

 
 

 

 
  

 

 
   

 

 
  

 

 
   

Net Fair Value

 
 

Gain on

 
 

Currency

 
 

 

 
   

 

 
   

 

 
  

Holders

 
 

Non-

 
  

 

 
 

 

 
  

Number of

 
   

 

 
  

 

 
   

(Loss) Gain

 
 

Defined

 
 

Translation

 
 

 

 
   

 

 
   

 

 
  

of

 
 

Controlling

 
  

 

 
 

 

 
  

Common

 
   

Share

 
  

Contributed

 
   

on

 
 

Benefit

 
 

of Foreign

 
 

 

 
   

Total

 
   

Retained

 
  

Nutrien

 
 

Interest

 
  

Total

 
 

 

 
 

Shares

 
 

Capital

 
 

Surplus

 
 

Investments

 
 

Plans 1

 
 

Operations

 
 

Other

 
 

AOCI

 
 

Earnings

 
 

(Note 1)

 
 

(Note 1)

 
 

Equity

 
 

  BALANCE – DECEMBER 31, 2019  

 
  

572,942,809

 
   

15,771

 
  

248

 
   

(29)

 
  

-

 
  

(204)

 
  

(18)

 
   

(251)

 
   

7,101

 
   

22,869

 
  

38

 
  

22,907

 
 

Net earnings

 
  

-

 
   

-

 
  

-

 
   

-

 
  

-

 
  

-

 
  

-

 
   

-

 
   

143

 
   

143

 
  

-

 
  

143

 
 

Other comprehensive (loss) income

 
  

-

 
   

-

 
  

-

 
   

(25)

 
  

3

 
  

(52)

 
  

(12)

 
   

(86)

 
   

-

 
   

(86)

 
  

-

 
  

(86)

 
 

Shares repurchased (Note 6)

 
  

(3,832,580)

 
   

(105)

 
  

(55)

 
   

-

 
  

-

 
  

-

 
  

-

 
   

-

 
   

-

 
   

(160)

 
  

-

 
  

(160)

 
 

Dividends declared

 
  

-

 
   

-

 
  

-

 
   

-

 
  

-

 
  

-

 
  

-

 
   

-

 
   

(770)

 
   

(770)

 
  

-

 
  

(770)

 
 

Effect of share-based

 
 
 

compensation including

 
 
 

issuance of common shares

 
  

35,706

 
   

1

 
  

10

 
   

-

 
  

-

 
  

-

 
  

-

 
   

-

 
   

-

 
   

11

 
  

-

 
  

11

 
 

Transfer of net loss on

 
 
 

cash flow hedges

 
  

-

 
   

-

 
  

-

 
   

-

 
  

-

 
  

-

 
  

13

 
   

13

 
   

-

 
   

13

 
  

-

 
  

13

 
 

Transfer of net actuarial gain

 
 
 

on defined benefit plans

 
  

-

 
   

-

 
  

-

 
   

-

 
  

(3)

 
  

-

 
  

-

 
   

(3)

 
   

3

 
   

-

 
  

-

 
  

-

 
 

  BALANCE – SEPTEMBER 30, 2020  

 
  

569,145,935

 
   

15,667

 
  

203

 
   

(54)

 
  

-

 
  

(256)

 
  

(17)

 
   

(327)

 
   

6,477

 
   

22,020

 
  

38

 
  

22,058

 
 

  BALANCE – DECEMBER 31, 2020  

 
  

  569,260,406  

 
   

  15,673  

 
  

  205  

 
   

  (36)  

 
  

  -  

 
  

  (62)  

 
  

  (21)  

 
   

  (119)  

 
   

  6,606  

 
   

  22,365  

 
  

  38  

 
  

  22,403  

 
 

Net earnings

 
  

  -  

 
   

  -  

 
  

  -  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  -  

 
   

  -  

 
   

  1,952  

 
   

  1,952  

 
  

  20  

 
  

  1,972  

 
 

Other comprehensive income (loss)

 
  

  -  

 
   

  -  

 
  

  -  

 
   

  116  

 
  

  -  

 
  

  (128)  

 
  

  19  

 
   

  7  

 
   

  -  

 
   

  7  

 
  

  (1)  

 
  

  6  

 
 

Shares repurchased (Note 6)

 
  

  (2,460,097)  

 
   

  (68)  

 
  

  (46)  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  -  

 
   

  -  

 
   

  (36)  

 
   

  (150)  

 
  

  -  

 
  

  (150)  

 
 

Dividends declared

 
  

  -  

 
   

  -  

 
  

  -  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  -  

 
   

  -  

 
   

  (786)  

 
   

  (786)  

 
  

  -  

 
  

  (786)  

 
 

Non-controlling interest transactions

 
  

  -  

 
   

  -  

 
  

  -  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  -  

 
   

  -  

 
   

  (1)  

 
   

  (1)  

 
  

  (14)  

 
  

  (15)  

 
 

Effect of share-based

 
 
 

compensation including

 
 
 

issuance of common shares

 
  

  4,166,620  

 
   

  213  

 
  

  (12)  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  -  

 
   

  -  

 
   

  -  

 
   

  201  

 
  

  -  

 
  

  201  

 
 

Transfer of net gain on

 
 
 

cash flow hedges

 
  

  -  

 
   

  -  

 
  

  -  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  (10)  

 
   

  (10)  

 
   

  -  

 
   

  (10)  

 
  

  -  

 
  

  (10)  

 
 

Share cancellation (Note 6)

 
  

  (210,173)  

 
   

  -  

 
  

  -  

 
   

  -  

 
  

  -  

 
  

  -  

 
  

  -  

 
   

  -  

 
   

  -  

 
   

  -  

 
  

  -  

 
  

  -  

 
 

  BALANCE – SEPTEMBER 30, 2021  

 
  

  570,756,756  

 
   

  15,818  

 
  

  147  

 
   

  80  

 
  

  -  

 
  

  (190)  

 
  

  (12)  

 
   

  (122)  

 
   

  7,735  

 
   

  23,578  

 
  

  43  

 
  

  23,621  

 
 

1 Any amounts incurred during a period were transferred to retained earnings at each period-end. Therefore, no balance exists at the beginning or end of period.

 
 

 

 
  

 

 
   

 

 
  

 

 
   

 

 
  

 

 
  

 

 
  

 

 
   

 

 
   

 

 
   

 

 
  

 

 
  

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Balance Sheets  

 
                                                                                                                                                                                                                                                                                                     
 

 

 
 

 

 
 

  September 30  

 
 

 

 
 

December 31

 
 

As at

 
 

Note

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

 

 
 

Note 1

 
 

  ASSETS  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

 

 
 

  443  

 
 

 

 
 

465

 
 

 

 
 

1,454

 
 

Receivables

 
 

 

 
 

  6,911  

 
 

 

 
 

5,087

 
 

 

 
 

3,626

 
 

Inventories

 
 

 

 
 

  4,674  

 
 

 

 
 

3,829

 
 

 

 
 

4,930

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  654  

 
 

 

 
 

500

 
 

 

 
 

1,460

 
 

 

 
 

 

 
 

  12,682  

 
 

 

 
 

9,881

 
 

 

 
 

11,470

 
 

Non-current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Property, plant and equipment

 
 

 

 
 

  19,704  

 
 

 

 
 

19,308

 
 

 

 
 

19,660

 
 

Goodwill

 
 

 

 
 

  12,220  

 
 

 

 
 

12,179

 
 

 

 
 

12,198

 
 

Other intangible assets

 
 

 

 
 

  2,349  

 
 

 

 
 

2,352

 
 

 

 
 

2,388

 
 

Investments

 
 

 

 
 

  682  

 
 

 

 
 

809

 
 

 

 
 

562

 
 

Other assets

 
 

 

 
 

  679  

 
 

 

 
 

742

 
 

 

 
 

914

 
 

  TOTAL ASSETS  

 
 

 

 
 

  48,316  

 
 

 

 
 

45,271

 
 

 

 
 

47,192

 
 

  LIABILITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Short-term debt

 
 

 

 
 

  1,255  

 
 

 

 
 

1,644

 
 

 

 
 

159

 
 

Current portion of long-term debt

 
 

 

 
 

  46  

 
 

 

 
 

-

 
 

 

 
 

14

 
 

Current portion of lease liabilities

 
 

 

 
 

  281  

 
 

 

 
 

230

 
 

 

 
 

249

 
 

Payables and accrued charges

 
 

 

 
 

  6,930  

 
 

 

 
 

5,239

 
 

 

 
 

8,058

 
 

 

 
 

 

 
 

  8,512  

 
 

 

 
 

7,113

 
 

 

 
 

8,480

 
 

Non-current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Long-term debt

 
 

 

 
 

  10,094  

 
 

 

 
 

10,041

 
 

 

 
 

10,047

 
 

Lease liabilities

 
 

 

 
 

  896  

 
 

 

 
 

847

 
 

 

 
 

891

 
 

Deferred income tax liabilities

 
 

4

 
 

  3,043  

 
 

 

 
 

3,053

 
 

 

 
 

3,149

 
 

Pension and other post-retirement benefit liabilities

 
 

 

 
 

  451  

 
 

 

 
 

446

 
 

 

 
 

454

 
 

Asset retirement obligations and accrued environmental costs

 
 

 

 
 

  1,523  

 
 

 

 
 

1,575

 
 

 

 
 

1,597

 
 

Other non-current liabilities

 
 

 

 
 

  176  

 
 

 

 
 

138

 
 

 

 
 

171

 
 

  TOTAL LIABILITIES  

 
 

 

 
 

  24,695  

 
 

 

 
 

23,213

 
 

 

 
 

24,789

 
 

  SHAREHOLDERS' EQUITY  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share capital

 
 

6

 
 

  15,818  

 
 

 

 
 

15,667

 
 

 

 
 

15,673

 
 

Contributed surplus

 
 

 

 
 

  147  

 
 

 

 
 

203

 
 

 

 
 

205

 
 

Accumulated other comprehensive loss

 
 

 

 
 

  (122)  

 
 

 

 
 

(327)

 
 

 

 
 

(119)

 
 

Retained earnings

 
 

 

 
 

  7,735  

 
 

 

 
 

6,477

 
 

 

 
 

6,606

 
 

Equity holders of Nutrien

 
 

 

 
 

  23,578  

 
 

 

 
 

22,020

 
 

 

 
 

22,365

 
 

Non-controlling interest

 
 

 

 
 

  43  

 
 

 

 
 

38

 
 

 

 
 

38

 
 

  TOTAL SHAREHOLDERS' EQUITY  

 
 

 

 
 

  23,621  

 
 

 

 
 

22,058

 
 

 

 
 

22,403

 
 

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  

 
 

 

 
 

  48,316  

 
 

 

 
 

45,271

 
 

 

 
 

47,192

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Notes to the Condensed Consolidated Financial Statements  

 

  As at and for the Three and Nine Months Ended September 30, 2021  

 

  NOTE 1   BASIS OF PRESENTATION  

 

Nutrien Ltd. (collectively with its subsidiaries, known as "Nutrien", "we", "us", "our" or "the Company") is the world's largest 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 International Accounting Standard 34, "Interim Financial Reporting". The accounting policies and methods of computation used in preparing these interim financial statements are consistent with those used in the preparation of our 2020 annual consolidated financial statements except as disclosed in Note 3. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with our 2020 annual consolidated financial statements.

 

Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of earnings, condensed consolidated statements of changes in shareholders' equity, condensed consolidated balance sheets and segment information.

 

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.

 

We prepare our interim financial statements in accordance with IFRS, which requires us to make judgments, assumptions and estimates in applying accounting policies. We have assessed our accounting estimates and other matters that require the use of forecasted financial information for the impacts arising from the novel coronavirus ("COVID-19") pandemic. The future assessment of these estimates, including expectations about the severity, duration and scope of the COVID-19 pandemic, could differ materially in future reporting periods. As a result of the COVID-19 pandemic, we incurred directly attributable and incremental COVID-19 related expenses in other expenses (Note 3).

 

These interim financial statements were authorized by the audit committee of the Board of Directors for issue on November 1, 2021.

 

  NOTE 2   SEGMENT INFORMATION  

 

The Company has four reportable operating segments: Nutrien Ag Solutions ("Retail"), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and it 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 produce.

 
                                                                                                                                                                                                                                                                                                                                                                       
 

 

 
 

 

 
 

  Three Months Ended September 30, 2021  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

  Sales  

 
 

  – third party  

 
 

  3,336  

 
 

 

 
 

  1,188  

 
 

 

 
 

  1,037  

 
 

 

 
 

  463  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  6,024  

 
 

 

 
 

  – intersegment  

 
 

  11  

 
 

 

 
 

  107  

 
 

 

 
 

  162  

 
 

 

 
 

  39  

 
 

 

 
 

  -  

 
 

 

 
 

  (319)  

 
 

 

 
 

  -  

 
 

  Sales  

 
 

  – total  

 
 

  3,347  

 
 

 

 
 

  1,295  

 
 

 

 
 

  1,199  

 
 

 

 
 

  502  

 
 

 

 
 

  -  

 
 

 

 
 

  (319)  

 
 

 

 
 

  6,024  

 
 

  Freight, transportation and distribution  

 
 

  -  

 
 

 

 
 

  107  

 
 

 

 
 

  98  

 
 

 

 
 

  54  

 
 

 

 
 

  -  

 
 

 

 
 

  (39)  

 
 

 

 
 

  220  

 
 

  Net sales  

 
 

  3,347  

 
 

 

 
 

  1,188  

 
 

 

 
 

  1,101  

 
 

 

 
 

  448  

 
 

 

 
 

  -  

 
 

 

 
 

  (280)  

 
 

 

 
 

  5,804  

 
 

  Cost of goods sold  

 
 

  2,430  

 
 

 

 
 

  372  

 
 

 

 
 

  695  

 
 

 

 
 

  340  

 
 

 

 
 

  -  

 
 

 

 
 

  (198)  

 
 

 

 
 

  3,639  

 
 

  Gross margin  

 
 

  917  

 
 

 

 
 

  816  

 
 

 

 
 

  406  

 
 

 

 
 

  108  

 
 

 

 
 

  -  

 
 

 

 
 

  (82)  

 
 

 

 
 

  2,165  

 
 

  Selling expenses  

 
 

  746  

 
 

 

 
 

  3  

 
 

 

 
 

  7  

 
 

 

 
 

  2  

 
 

 

 
 

  (9)  

 
 

 

 
 

  -  

 
 

 

 
 

  749  

 
 

  General and administrative expenses  

 
 

  45  

 
 

 

 
 

  1  

 
 

 

 
 

  3  

 
 

 

 
 

  3  

 
 

 

 
 

  58  

 
 

 

 
 

  -  

 
 

 

 
 

  110  

 
 

  Provincial mining taxes  

 
 

  -  

 
 

 

 
 

  128  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  128  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  64  

 
 

 

 
 

  -  

 
 

 

 
 

  64  

 
 

  Impairment of assets  

 
 

  -  

 
 

 

 
 

  7  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  7  

 
 

  Other expenses (income)  

 
 

  17  

 
 

 

 
 

  7  

 
 

 

 
 

  (11)  

 
 

 

 
 

  7  

 
 

 

 
 

  30  

 
 

 

 
 

  -  

 
 

 

 
 

  50  

 
 

  Earnings (loss) before finance costs and   income taxes  

 
 

  109  

 
 

 

 
 

  670  

 
 

 

 
 

  407  

 
 

 

 
 

  96  

 
 

 

 
 

  (143)  

 
 

 

 
 

  (82)  

 
 

 

 
 

  1,057  

 
 

  Depreciation and amortization  

 
 

  182  

 
 

 

 
 

  131  

 
 

 

 
 

  125  

 
 

 

 
 

  39  

 
 

 

 
 

  12  

 
 

 

 
 

  -  

 
 

 

 
 

  489  

 
 

  EBITDA 1  

 
 

  291  

 
 

 

 
 

  801  

 
 

 

 
 

  532  

 
 

 

 
 

  135  

 
 

 

 
 

  (131)  

 
 

 

 
 

  (82)  

 
 

 

 
 

  1,546  

 
 

  Integration and restructuring related costs  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  8  

 
 

 

 
 

  -  

 
 

 

 
 

  8  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  64  

 
 

 

 
 

  -  

 
 

 

 
 

  64  

 
 

  Impairment of assets  

 
 

  -  

 
 

 

 
 

  7  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  7  

 
 

  COVID-19 related expenses  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  16  

 
 

 

 
 

  -  

 
 

 

 
 

  16  

 
 

  Foreign exchange loss, net of   related derivatives  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  1  

 
 

 

 
 

  -  

 
 

 

 
 

  1  

 
 

  Adjusted EBITDA  

 
 

  291  

 
 

 

 
 

  808  

 
 

 

 
 

  532  

 
 

 

 
 

  135  

 
 

 

 
 

  (42)  

 
 

 

 
 

  (82)  

 
 

 

 
 

  1,642  

 
 

  Assets – at September 30, 2021  

 
 

  21,389  

 
 

 

 
 

  12,412  

 
 

 

 
 

  10,464  

 
 

 

 
 

  1,503  

 
 

 

 
 

  3,094  

 
 

 

 
 

  (546)  

 
 

 

 
 

  48,316  

 
 

  1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.  

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 

 

 
 

 

 
 

Three Months Ended September 30, 2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
 

2,734

 
 

 

 
 

634

 
 

 

 
 

524

 
 

 

 
 

312

 
 

 

 
 

23

 
 

 

 
 

-

 
 

 

 
 

4,227

 
 

 

 
 

– intersegment

 
 

8

 
 

 

 
 

63

 
 

 

 
 

103

 
 

 

 
 

40

 
 

 

 
 

-

 
 

 

 
 

(214)

 
 

 

 
 

-

 
 

Sales

 
 

– total

 
 

2,742

 
 

 

 
 

697

 
 

 

 
 

627

 
 

 

 
 

352

 
 

 

 
 

23

 
 

 

 
 

(214)

 
 

 

 
 

4,227

 
 

Freight, transportation and distribution

 
 

-

 
 

 

 
 

106

 
 

 

 
 

87

 
 

 

 
 

60

 
 

 

 
 

-

 
 

 

 
 

(49)

 
 

 

 
 

204

 
 

Net sales

 
 

2,742

 
 

 

 
 

591

 
 

 

 
 

540

 
 

 

 
 

292

 
 

 

 
 

23

 
 

 

 
 

(165)

 
 

 

 
 

4,023

 
 

Cost of goods sold

 
 

2,059

 
 

 

 
 

303

 
 

 

 
 

482

 
 

 

 
 

293

 
 

 

 
 

20

 
 

 

 
 

(153)

 
 

 

 
 

3,004

 
 

Gross margin

 
 

683

 
 

 

 
 

288

 
 

 

 
 

58

 
 

 

 
 

(1)

 
 

 

 
 

3

 
 

 

 
 

(12)

 
 

 

 
 

1,019

 
 

Selling expenses

 
 

669

 
 

 

 
 

3

 
 

 

 
 

7

 
 

 

 
 

1

 
 

 

 
 

(4)

 
 

 

 
 

-

 
 

 

 
 

676

 
 

General and administrative expenses

 
 

34

 
 

 

 
 

2

 
 

 

 
 

3

 
 

 

 
 

2

 
 

 

 
 

66

 
 

 

 
 

-

 
 

 

 
 

107

 
 

Provincial mining taxes

 
 

-

 
 

 

 
 

58

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

58

 
 

Share-based compensation expense

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

29

 
 

 

 
 

-

 
 

 

 
 

29

 
 

Impairment of assets

 
 

-

 
 

 

 
 

22

 
 

 

 
 

27

 
 

 

 
 

769

 
 

 

 
 

5

 
 

 

 
 

-

 
 

 

 
 

823

 
 

Other (income) expenses

 
 

(12)

 
 

 

 
 

(1)

 
 

 

 
 

(16)

 
 

 

 
 

10

 
 

 

 
 

67

 
 

 

 
 

-

 
 

 

 
 

48

 
 

(Loss) earnings before finance costs and income taxes

 
 

(8)

 
 

 

 
 

204

 
 

 

 
 

37

 
 

 

 
 

(783)

 
 

 

 
 

(160)

 
 

 

 
 

(12)

 
 

 

 
 

(722)

 
 

Depreciation and amortization

 
 

170

 
 

 

 
 

124

 
 

 

 
 

131

 
 

 

 
 

60

 
 

 

 
 

15

 
 

 

 
 

-

 
 

 

 
 

500

 
 

EBITDA

 
 

162

 
 

 

 
 

328

 
 

 

 
 

168

 
 

 

 
 

(723)

 
 

 

 
 

(145)

 
 

 

 
 

(12)

 
 

 

 
 

(222)

 
 

Integration and restructuring related costs

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

10

 
 

 

 
 

-

 
 

 

 
 

10

 
 

Share-based compensation expense

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

29

 
 

 

 
 

-

 
 

 

 
 

29

 
 

Impairment of assets

 
 

-

 
 

 

 
 

22

 
 

 

 
 

27

 
 

 

 
 

769

 
 

 

 
 

5

 
 

 

 
 

-

 
 

 

 
 

823

 
 

COVID-19 related expenses

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

11

 
 

 

 
 

-

 
 

 

 
 

11

 
 

Foreign exchange loss, net of related derivatives

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

13

 
 

 

 
 

-

 
 

 

 
 

13

 
 

Loss on disposal of business

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

6

 
 

 

 
 

-

 
 

 

 
 

6

 
 

Adjusted EBITDA

 
 

162

 
 

 

 
 

350

 
 

 

 
 

195

 
 

 

 
 

46

 
 

 

 
 

(71)

 
 

 

 
 

(12)

 
 

 

 
 

670

 
 

Assets – at December 31, 2020 ¹

 
 

20,526

 
 

 

 
 

11,707

 
 

 

 
 

10,077

 
 

 

 
 

1,388

 
 

 

 
 

3,917

 
 

 

 
 

(423)

 
 

 

 
 

47,192

 
 

1 In 2021, certain assets related to transportation, distribution and logistics were reclassified under Corporate and Others as these are centrally managed. Comparative figures have been restated to reflect this change. Depreciation expense related to these assets are allocated to the rest of the segments based on usage.

 
 
 

 

 
 

 

 
 

  Nine Months Ended September 30, 2021  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

  Sales  

 
 

  – third party  

 
 

  13,818  

 
 

 

 
 

  2,663  

 
 

 

 
 

  2,740  

 
 

 

 
 

  1,224  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  20,445  

 
 

 

 
 

  – intersegment  

 
 

  38  

 
 

 

 
 

  258  

 
 

 

 
 

  629  

 
 

 

 
 

  171  

 
 

 

 
 

  -  

 
 

 

 
 

  (1,096)  

 
 

 

 
 

  -  

 
 

  Sales  

 
 

  – total  

 
 

  13,856  

 
 

 

 
 

  2,921  

 
 

 

 
 

  3,369  

 
 

 

 
 

  1,395  

 
 

 

 
 

  -  

 
 

 

 
 

  (1,096)  

 
 

 

 
 

  20,445  

 
 

  Freight, transportation and distribution  

 
 

  -  

 
 

 

 
 

  305  

 
 

 

 
 

  329  

 
 

 

 
 

  159  

 
 

 

 
 

  -  

 
 

 

 
 

  (140)  

 
 

 

 
 

  653  

 
 

  Net sales  

 
 

  13,856  

 
 

 

 
 

  2,616  

 
 

 

 
 

  3,040  

 
 

 

 
 

  1,236  

 
 

 

 
 

  -  

 
 

 

 
 

  (956)  

 
 

 

 
 

  19,792  

 
 

  Cost of goods sold  

 
 

  10,429  

 
 

 

 
 

  980  

 
 

 

 
 

  2,068  

 
 

 

 
 

  978  

 
 

 

 
 

  -  

 
 

 

 
 

  (866)  

 
 

 

 
 

  13,589  

 
 

  Gross margin  

 
 

  3,427  

 
 

 

 
 

  1,636  

 
 

 

 
 

  972  

 
 

 

 
 

  258  

 
 

 

 
 

  -  

 
 

 

 
 

  (90)  

 
 

 

 
 

  6,203  

 
 

  Selling expenses  

 
 

  2,276  

 
 

 

 
 

  8  

 
 

 

 
 

  22  

 
 

 

 
 

  5  

 
 

 

 
 

  (24)  

 
 

 

 
 

  -  

 
 

 

 
 

  2,287  

 
 

  General and administrative expenses  

 
 

  125  

 
 

 

 
 

  6  

 
 

 

 
 

  8  

 
 

 

 
 

  8  

 
 

 

 
 

  182  

 
 

 

 
 

  -  

 
 

 

 
 

  329  

 
 

  Provincial mining taxes  

 
 

  -  

 
 

 

 
 

  293  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  293  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  125  

 
 

 

 
 

  -  

 
 

 

 
 

  125  

 
 

  Impairment of assets  

 
 

  -  

 
 

 

 
 

  7  

 
 

 

 
 

  5  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  12  

 
 

  Other expenses (income)  

 
 

  66  

 
 

 

 
 

  19  

 
 

 

 
 

  (36)  

 
 

 

 
 

  13  

 
 

 

 
 

  141  

 
 

 

 
 

  -  

 
 

 

 
 

  203  

 
 

  Earnings (loss) before finance costs and   income taxes  

 
 

  960  

 
 

 

 
 

  1,303  

 
 

 

 
 

  973  

 
 

 

 
 

  232  

 
 

 

 
 

  (424)  

 
 

 

 
 

  (90)  

 
 

 

 
 

  2,954  

 
 

  Depreciation and amortization  

 
 

  528  

 
 

 

 
 

  371  

 
 

 

 
 

  409  

 
 

 

 
 

  112  

 
 

 

 
 

  34  

 
 

 

 
 

  -  

 
 

 

 
 

  1,454  

 
 

  EBITDA  

 
 

  1,488  

 
 

 

 
 

  1,674  

 
 

 

 
 

  1,382  

 
 

 

 
 

  344  

 
 

 

 
 

  (390)  

 
 

 

 
 

  (90)  

 
 

 

 
 

  4,408  

 
 

  Integration and restructuring related costs  

 
 

  8  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  39  

 
 

 

 
 

  -  

 
 

 

 
 

  47  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  125  

 
 

 

 
 

  -  

 
 

 

 
 

  125  

 
 

  Impairment of assets  

 
 

  -  

 
 

 

 
 

  7  

 
 

 

 
 

  5  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  12  

 
 

  COVID-19 related expenses  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  34  

 
 

 

 
 

  -  

 
 

 

 
 

  34  

 
 

  Foreign exchange loss, net of   related derivatives  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  1  

 
 

 

 
 

  -  

 
 

 

 
 

  1  

 
 

  Cloud computing transition adjustment  

 
 

  1  

 
 

 

 
 

  2  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  33  

 
 

 

 
 

  -  

 
 

 

 
 

  36  

 
 

  Adjusted EBITDA  

 
 

  1,497  

 
 

 

 
 

  1,683  

 
 

 

 
 

  1,387  

 
 

 

 
 

  344  

 
 

 

 
 

  (158)  

 
 

 

 
 

  (90)  

 
 

 

 
 

  4,663  

 
 

  Assets – at September 30, 2021  

 
 

  21,389  

 
 

 

 
 

  12,412  

 
 

 

 
 

  10,464  

 
 

 

 
 

  1,503  

 
 

 

 
 

  3,094  

 
 

 

 
 

  (546)  

 
 

 

 
 

  48,316  

 
 
                                                                                                                                                                                                                                                                                                                                                                                    
 

 

 
 

 

 
 

Nine Months Ended September 30, 2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
 

12,140

 
 

 

 
 

1,798

 
 

 

 
 

1,925

 
 

 

 
 

923

 
 

 

 
 

70

 
 

 

 
 

-

 
 

 

 
 

16,856

 
 

 

 
 

– intersegment

 
 

27

 
 

 

 
 

191

 
 

 

 
 

481

 
 

 

 
 

146

 
 

 

 
 

-

 
 

 

 
 

(845)

 
 

 

 
 

-

 
 

Sales

 
 

– total

 
 

12,167

 
 

 

 
 

1,989

 
 

 

 
 

2,406

 
 

 

 
 

1,069

 
 

 

 
 

70

 
 

 

 
 

(845)

 
 

 

 
 

16,856

 
 

Freight, transportation and distribution

 
 

-

 
 

 

 
 

293

 
 

 

 
 

335

 
 

 

 
 

187

 
 

 

 
 

-

 
 

 

 
 

(162)

 
 

 

 
 

653

 
 

Net sales

 
 

12,167

 
 

 

 
 

1,696

 
 

 

 
 

2,071

 
 

 

 
 

882

 
 

 

 
 

70

 
 

 

 
 

(683)

 
 

 

 
 

16,203

 
 

Cost of goods sold

 
 

9,316

 
 

 

 
 

878

 
 

 

 
 

1,708

 
 

 

 
 

862

 
 

 

 
 

63

 
 

 

 
 

(698)

 
 

 

 
 

12,129

 
 

Gross margin

 
 

2,851

 
 

 

 
 

818

 
 

 

 
 

363

 
 

 

 
 

20

 
 

 

 
 

7

 
 

 

 
 

15

 
 

 

 
 

4,074

 
 

Selling expenses

 
 

2,068

 
 

 

 
 

7

 
 

 

 
 

19

 
 

 

 
 

4

 
 

 

 
 

(17)

 
 

 

 
 

-

 
 

 

 
 

2,081

 
 

General and administrative expenses

 
 

102

 
 

 

 
 

5

 
 

 

 
 

7

 
 

 

 
 

7

 
 

 

 
 

191

 
 

 

 
 

-

 
 

 

 
 

312

 
 

Provincial mining taxes

 
 

-

 
 

 

 
 

161

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

163

 
 

Share-based compensation expense

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

9

 
 

 

 
 

-

 
 

 

 
 

9

 
 

Impairment of assets

 
 

-

 
 

 

 
 

22

 
 

 

 
 

27

 
 

 

 
 

769

 
 

 

 
 

5

 
 

 

 
 

-

 
 

 

 
 

823

 
 

Other expenses (income)

 
 

36

 
 

 

 
 

4

 
 

 

 
 

(25)

 
 

 

 
 

19

 
 

 

 
 

153

 
 

 

 
 

-

 
 

 

 
 

187

 
 

Earnings (loss) before finance costs and income taxes

 
 

645

 
 

 

 
 

619

 
 

 

 
 

334

 
 

 

 
 

(779)

 
 

 

 
 

(335)

 
 

 

 
 

15

 
 

 

 
 

499

 
 

Depreciation and amortization

 
 

488

 
 

 

 
 

329

 
 

 

 
 

453

 
 

 

 
 

179

 
 

 

 
 

41

 
 

 

 
 

-

 
 

 

 
 

1,490

 
 

EBITDA

 
 

1,133

 
 

 

 
 

948

 
 

 

 
 

787

 
 

 

 
 

(600)

 
 

 

 
 

(294)

 
 

 

 
 

15

 
 

 

 
 

1,989

 
 

Integration and restructuring related costs

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

38

 
 

 

 
 

-

 
 

 

 
 

38

 
 

Share-based compensation expense

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

9

 
 

 

 
 

-

 
 

 

 
 

9

 
 

Impairment of assets

 
 

-

 
 

 

 
 

22

 
 

 

 
 

27

 
 

 

 
 

769

 
 

 

 
 

5

 
 

 

 
 

-

 
 

 

 
 

823

 
 

COVID-19 related expenses

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

30

 
 

 

 
 

-

 
 

 

 
 

30

 
 

Foreign exchange loss, net of related derivatives

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

4

 
 

 

 
 

-

 
 

 

 
 

4

 
 

Loss on disposal of business

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

6

 
 

 

 
 

-

 
 

 

 
 

6

 
 

Adjusted EBITDA

 
 

1,133

 
 

 

 
 

970

 
 

 

 
 

814

 
 

 

 
 

169

 
 

 

 
 

(202)

 
 

 

 
 

15

 
 

 

 
 

2,899

 
 

Assets – at December 31, 2020

 
 

20,526

 
 

 

 
 

11,707

 
 

 

 
 

10,077

 
 

 

 
 

1,388

 
 

 

 
 

3,917

 
 

 

 
 

(423)

 
 

 

 
 

47,192

 
 

During the three and nine months ended September 30, 2020, we recorded an impairment to our property, plant and equipment of $545 and $215 at our Aurora and White Springs cash-generating units ("CGUs"), respectively, due to lower long-term forecasted global phosphate prices. The Aurora CGU recoverable value was based on fair value less costs of disposal (a level 3 measurement) using after-tax discounted cash flows (using a five-year projection and a terminal year thereafter to the expected mine life), while the White Springs CGU recoverable value was based on value in use using pre-tax discounted cash flows until the end of the mine life. For additional information relating to the impairment see Note 13 of the 2020 annual consolidated financial statements.

 

During the nine months ended September 30, 2021, we recorded $12 (2020 – $63) of impairment losses relating to other non-current assets.

 

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment.

 
                                                                                                                                                                                                                                          
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

  Retail sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  1,194  

 
 

 

 
 

780

 
 

 

 
 

  5,255  

 
 

 

 
 

4,092

 
 

Crop protection products

 
 

  1,469  

 
 

 

 
 

1,328

 
 

 

 
 

  5,220  

 
 

 

 
 

4,774

 
 

Seed

 
 

  140  

 
 

 

 
 

103

 
 

 

 
 

  1,819  

 
 

 

 
 

1,638

 
 

Merchandise

 
 

  265  

 
 

 

 
 

234

 
 

 

 
 

  763  

 
 

 

 
 

703

 
 

Nutrien Financial

 
 

  54  

 
 

 

 
 

36

 
 

 

 
 

  138  

 
 

 

 
 

92

 
 

Services and other

 
 

  276  

 
 

 

 
 

296

 
 

 

 
 

  784  

 
 

 

 
 

951

 
 

Nutrien Financial elimination 1

 
 

  (51)  

 
 

 

 
 

(35)

 
 

 

 
 

  (123)  

 
 

 

 
 

(83)

 
 

 

 
 

  3,347  

 
 

 

 
 

2,742

 
 

 

 
 

  13,856  

 
 

 

 
 

12,167

 
 

  Potash sales by geography  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  590  

 
 

 

 
 

358

 
 

 

 
 

  1,446  

 
 

 

 
 

1,002

 
 

Offshore 2

 
 

  705  

 
 

 

 
 

339

 
 

 

 
 

  1,475  

 
 

 

 
 

987

 
 

 

 
 

  1,295  

 
 

 

 
 

697

 
 

 

 
 

  2,921  

 
 

 

 
 

1,989

 
 

  Nitrogen sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  401  

 
 

 

 
 

129

 
 

 

 
 

  994  

 
 

 

 
 

576

 
 

Urea

 
 

  339  

 
 

 

 
 

214

 
 

 

 
 

  985  

 
 

 

 
 

780

 
 

Solutions, nitrates and sulfates

 
 

  326  

 
 

 

 
 

177

 
 

 

 
 

  852  

 
 

 

 
 

606

 
 

Other nitrogen and purchased products

 
 

  133  

 
 

 

 
 

107

 
 

 

 
 

  538  

 
 

 

 
 

444

 
 

 

 
 

  1,199  

 
 

 

 
 

627

 
 

 

 
 

  3,369  

 
 

 

 
 

2,406

 
 

  Phosphate sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  306  

 
 

 

 
 

216

 
 

 

 
 

  836  

 
 

 

 
 

622

 
 

Industrial and feed

 
 

  146  

 
 

 

 
 

105

 
 

 

 
 

  405  

 
 

 

 
 

342

 
 

Other phosphate and purchased products

 
 

  50  

 
 

 

 
 

31

 
 

 

 
 

  154  

 
 

 

 
 

105

 
 

 

 
 

  502  

 
 

 

 
 

352

 
 

 

 
 

  1,395  

 
 

 

 
 

1,069

 
 

1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

 
 

2 Relates to Canpotex Limited ("Canpotex") (Note 8).

 
 

  NOTE 3   OTHER EXPENSES (INCOME)  

 
                                                                                        
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Integration and restructuring related costs

 
 

  8  

 
 

 

 
 

10

 
 

 

 
 

  47  

 
 

 

 
 

38

 
 

Foreign exchange loss, net of related derivatives

 
 

  1  

 
 

 

 
 

14

 
 

 

 
 

  4  

 
 

 

 
 

1

 
 

Earnings of equity-accounted investees

 
 

  (21)  

 
 

 

 
 

(23)

 
 

 

 
 

  (43)  

 
 

 

 
 

(46)

 
 

Bad debt expense (recovery)

 
 

  7  

 
 

 

 
 

(18)

 
 

 

 
 

  22  

 
 

 

 
 

9

 
 

COVID-19 related expenses

 
 

  16  

 
 

 

 
 

11

 
 

 

 
 

  34  

 
 

 

 
 

30

 
 

Loss on disposal of business

 
 

  -  

 
 

 

 
 

6

 
 

 

 
 

  -  

 
 

 

 
 

6

 
 

Cloud computing transition adjustment

 
 

  -  

 
 

 

 
 

-

 
 

 

 
 

  36  

 
 

 

 
 

-

 
 

Other expenses

 
 

  39  

 
 

 

 
 

48

 
 

 

 
 

  103  

 
 

 

 
 

149

 
 

 

 
 

  50  

 
 

 

 
 

48

 
 

 

 
 

  203  

 
 

 

 
 

187

 
 

In the second quarter of 2021, the IFRS Interpretations Committee published a final agenda decision clarifying how to recognize certain configuration and customization expenditures related to cloud computing with retrospective application. Costs that do not meet the capitalization criteria should be expensed as incurred. We changed our accounting policy to align with the interpretation and previously capitalized costs that no longer qualify for capitalization were expensed in the current period since they were not material.

 

  NOTE 4   INCOME TAXES  

 

A separate estimated average annual effective income tax rate was determined for each taxing jurisdiction and applied individually to the interim period pre-tax earnings for each jurisdiction.

 
                                                
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Income tax expense (recovery)

 
 

  209  

 
 

 

 
 

(264)

 
 

 

 
 

  615  

 
 

 

 
 

(45)

 
 

Actual effective tax rate on earnings (loss) (%)

 
 

  23  

 
 

 

 
 

26

 
 

 

 
 

  24  

 
 

 

 
 

14

 
 

Actual effective tax rate including discrete items (%)

 
 

  22  

 
 

 

 
 

31

 
 

 

 
 

  24  

 
 

 

 
 

(47)

 
 

Discrete tax adjustments that impacted the tax rate

 
 

  (10)  

 
 

 

 
 

(48)

 
 

 

 
 

  (13)  

 
 

 

 
 

(59)

 
 

Income tax balances within the condensed consolidated balance sheets were comprised of the following:

 
                                                       
 

Income Tax Assets and Liabilities

 
 

Balance Sheet Location

 
 

  As at September 30, 2021  

 
 

 

 
 

As at December 31, 2020

 
 

Income tax assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current

 
 

Receivables

 
 

  343  

 
 

 

 
 

83

 
 

Non-current

 
 

Other assets

 
 

  88  

 
 

 

 
 

305

 
 

Deferred income tax assets

 
 

Other assets

 
 

  233  

 
 

 

 
 

242

 
 

Total income tax assets

 
 

 

 
 

  664  

 
 

 

 
 

630

 
 

Income tax liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current

 
 

Payables and accrued charges

 
 

  418  

 
 

 

 
 

48

 
 

Non-current

 
 

Other non-current liabilities

 
 

  43  

 
 

 

 
 

40

 
 

Deferred income tax liabilities

 
 

Deferred income tax liabilities

 
 

  3,043  

 
 

 

 
 

3,149

 
 

Total income tax liabilities

 
 

  3,504  

 
 

 

 
 

3,237

 
 

  NOTE 5   FINANCIAL INSTRUMENTS  

 

   Fair Value   

 

Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in a current arm's-length transaction between knowledgeable, willing parties. The valuation policies and procedures for financial reporting purposes are determined by our finance department. There have been no changes to our valuation methods presented in Note 10 of the 2020 annual consolidated financial statements and those valuation methods have been applied in these interim financial statements.

 

The following table presents our fair value hierarchy for financial instruments carried at fair value on a recurring basis or measured at amortized cost:

 
                                                                                                                                                                                                           
 

 

 
 

  September 30, 2021  

 
 

 

 
 

December 31, 2020

 
 

 

 
 

  Carrying  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Carrying

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Financial assets (liabilities) measured at  

 
 

  Amount  

 
 

 

 
 

  Level 1 1  

 
 

 

 
 

  Level 2 1  

 
 

 

 
 

  Level 3  

 
 

 

 
 

Amount

 
 

 

 
 

Level 1 1

 
 

 

 
 

Level 2 1

 
 

  Fair value on a recurring basis  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  443  

 
 

 

 
 

  -  

 
 

 

 
 

  443  

 
 

 

 
 

  -  

 
 

 

 
 

1,454

 
 

 

 
 

-

 
 

 

 
 

1,454

 
 

Derivative instrument assets

 
 

  29  

 
 

 

 
 

  -  

 
 

 

 
 

  29  

 
 

 

 
 

  -  

 
 

 

 
 

45

 
 

 

 
 

-

 
 

 

 
 

45

 
 

Other current financial assets - marketable securities 2

 
 

  226  

 
 

 

 
 

  32  

 
 

 

 
 

  194  

 
 

 

 
 

  -  

 
 

 

 
 

161

 
 

 

 
 

24

 
 

 

 
 

137

 
 

Investments at FVTOCI 3

 
 

  279  

 
 

 

 
 

  269  

 
 

 

 
 

  -  

 
 

 

 
 

  10  

 
 

 

 
 

153

 
 

 

 
 

153

 
 

 

 
 

-

 
 

Derivative instrument liabilities

 
 

  (23)  

 
 

 

 
 

  -  

 
 

 

 
 

  (23)  

 
 

 

 
 

  -  

 
 

 

 
 

(48)

 
 

 

 
 

-

 
 

 

 
 

(48)

 
 

  Amortized cost  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current portion of long-term debt

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fixed and floating rate debt

 
 

  (46)  

 
 

 

 
 

  -  

 
 

 

 
 

  (46)  

 
 

 

 
 

  -  

 
 

 

 
 

(14)

 
 

 

 
 

-

 
 

 

 
 

(14)

 
 

Long-term debt

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Notes and debentures

 
 

  (9,984)  

 
 

 

 
 

  (5,368)  

 
 

 

 
 

  (6,059)  

 
 

 

 
 

  -  

 
 

 

 
 

(9,994)

 
 

 

 
 

(3,801)

 
 

 

 
 

(7,955)

 
 

Fixed and floating rate debt

 
 

  (110)  

 
 

 

 
 

  -  

 
 

 

 
 

  (110)  

 
 

 

 
 

  -  

 
 

 

 
 

(53)

 
 

 

 
 

-

 
 

 

 
 

(53)

 
 

1 During the periods ended September 30, 2021 and December 31, 2020, there were no transfers between Level 1 and Level 2 for financial instruments measured at fair value on a recurring basis.

 
 

2 Marketable securities consist of equity and fixed income securities. We determine the fair value of equity securities based on the bid price of identical instruments in active markets. We value fixed income securities using quoted prices of instruments with similar terms and credit risk.

 
 

3 Investments at fair value through other comprehensive income ("FVTOCI") is primarily comprised of shares in Sinofert Holdings Ltd.

 
 

  NOTE 6   SHARE CAPITAL  

 

   Share repurchase programs   

 
                                                             
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Maximum  

 
 

 

 
 

  Maximum  

 
 

 

 
 

  Number of  

 
 

 

 
 

  Commencement  

 
 

 

 
 

 

 
 

 

 
 

  Shares for  

 
 

 

 
 

  Shares for  

 
 

 

 
 

  Shares  

 
 

 

 
 

  Date  

 
 

 

 
 

  Expiry  

 
 

 

 
 

  Repurchase  

 
 

 

 
 

  Repurchase (%)  

 
 

 

 
 

  Repurchased  

 
 

2019 Normal Course Issuer Bid

 
 

February 27, 2019

 
 

 

 
 

February 26, 2020

 
 

 

 
 

42,164,420

 
 

 

 
 

7

 
 

 

 
 

33,256,668

 
 

2020 Normal Course Issuer Bid

 
 

February 27, 2020

 
 

 

 
 

February 26, 2021

 
 

 

 
 

28,572,458

 
 

 

 
 

5

 
 

 

 
 

710,100

 
 

2021 Normal Course Issuer Bid 1

 
 

March 1, 2021

 
 

 

 
 

February 28, 2022

 
 

 

 
 

28,468,448

 
 

 

 
 

5

 
 

 

 
 

2,460,097

 
 

1 The 2021 normal course issuer bid will expire earlier than the date above if we acquire the maximum number of common shares allowable or otherwise decide not to make any further repurchases.

 
 

Purchases under the normal course issuer bids were, or may be, made through open market purchases at market prices as well as by other means permitted by applicable securities regulatory authorities, including private agreements.

 

The following table summarizes our share repurchase activities during the period:

 
                                        
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Number of common shares repurchased for cancellation

 
 

  2,427,369  

 
 

 

 
 

-

 
 

 

 
 

  2,460,097  

 
 

 

 
 

3,832,580

 
 

Average price per share (US dollars)

 
 

  61.18  

 
 

 

 
 

-

 
 

 

 
 

  61.07  

 
 

 

 
 

41.96

 
 

Total cost

 
 

  148  

 
 

 

 
 

-

 
 

 

 
 

  150  

 
 

 

 
 

160

 
 

   Dividends declared   

 

We declared a dividend per share of $0.46 (2020 – $0.45) during the three months ended September 30, 2021, payable on October 15, 2021 to shareholders of record on September 30, 2021 and total dividends of $1.38 (2020 – $1.35) during the nine months ended September 30, 2021.

 

   Share cancellation   

 

Effective September 1, 2021, we cancelled 210,173 shares due to the expiration of the period when legacy companies' (Potash Corporation of Saskatchewan Inc. and Agrium Inc.) shares could be exchanged under the plan of arrangement, wherein Nutrien became the parent company of the legacy companies.

 

  NOTE 7   SEASONALITY  

 

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall application seasons. Crop nutrient 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 needs. 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 8   RELATED PARTY TRANSACTIONS  

 

We sell potash outside Canada and the United States exclusively through Canpotex. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Our revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are shown in Note 2.

 
        
 

As at

 
 

  September 30, 2021  

 
 

 

 
 

December 31, 2020

 
 

Receivables from Canpotex

 
 

  593  

 
 

 

 
 

122

 
 

 

 

  

  

  Investor Relations:  
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Investors@nutrien.com  

Tim Mizuno
Director, Investor Relations
(306) 933-8548

Media Relations:  
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015

Contact us at: www.nutrien.com  

 

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Nutrien Ltd.

Nutrien Ltd.

Nutrien Ltd was created in 2018 as a result of the merger between PotashCorp and Agrium, Nutrien is the world's largest fertilizer producer by capacity. Nutrien produces the three main crop nutrients--nitrogen, potash, and phosphate--although its main focus is potash, where it is the global leader in installed capacity with roughly 20% share. The company is also the largest agricultural retailer in the United States, selling fertilizers, crop chemicals, seeds, and services directly to farm customers through both its physical stores and online platforms.

Nutrien Announces Ken Seitz and Jeff Tarsi as Speakers at the BofA Investor Conference

 

 Nutrien Ltd. (TSX and NYSE: NTR) announced today that Mr. Ken Seitz, Nutrien's President and Chief Executive Officer, and Mr. Jeff Tarsi, Nutrien's Executive Vice President and President, Global Retail, will be speaking at the 2025 BofA Global Agriculture and Materials Conference on Wednesday, February 26 at 10:30am EST.

 

The fireside chat will be video cast and available on the Company's website at https://www.nutrien.com/investors/events  

News Provided by Business Wire via QuoteMedia

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Phosphate is mainly used in the form of fertilizer for crops and animal feed supplements. Only 5 percent of world phosphate production is used for other applications, such as corrosion prevention and detergents.

Demand for phosphate fertilizers had created a US$54.6 billion market by 2023, and that figure is expected to grow at a compound annual growth rate of 5.3 percent through 2030 to reach US$78.4 billion.

"One of the primary factors influencing the worldwide market for phosphate fertilizers is the increasing focus on sustainable agriculture," according to Persistence Market Research. "Phosphate fertilizers, which are widely recognized for their ability to augment soil fertility and enhance crop productivity, are crucial for the pursuit of sustainability objectives in the agricultural industry."

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9 Phosphate Stocks to Watch

Demand for both phosphate and potash fertilizers is anticipated to continue growing as the world’s population increases and the amount of arable land decreases.

The phosphate market is expected to witness a compound annual growth rate of 5.3 percent between 2023 and 2030 to reach US$78.4 billion. Driving this growth will be increasing pressure on global food supply brought on by rising populations and climate change, as well as inflation and downstream costs. Phosphate is also increasingly becoming a sought-after battery material for the electric vehicle industry due to its use in lithium-iron-phosphate (LFP) batteries.

Thankfully, phosphate-mining production around the globe is expected to increase, with the largest areas of growth being Africa and the Middle East. Phosphate mining companies with project developments in Brazil, Kazakhstan, Mexico, Peru and Russia are all expected to contribute to increased phosphate rock production as well.

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How to Invest in Phosphate (Updated 2024)

Discovering ways to invest in phosphate begins with understanding its primary uses.

Notably, about 90 percent of phosphate is consumed by the agriculture sector. Because of its essential properties, and since there is no known substitute for it, phosphate can be found in fertilizer products all over the world as a way to aid plant growth. It is also used as a supplement in animal feed, as a food preservative and for several other chemical purposes.

As the world's population grows and demand for food increases, the need for phosphate fertilizer is only expected to increase. For that reason, some believe phosphate investing is compelling. Read on for a brief overview of the phosphate market, including supply and demand dynamics and investing options.

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5 Top Weekly TSXV Stocks: Arianne Phosphate Grows with Nearly 80 Percent Gain

The S&P/TSX Venture Composite Index (INDEXTSI:JX) dropped 1.1 points this past week to close at 551.23.

The Bank of Canada held steady, announcing on Wednesday (January 24) that it will be maintaining a 5 percent target for its key overnight rate. It based its decision on year-end inflation figures that peg inflation at 3.4 percent for December.

The central bank expects inflation to remain in the 3 percent range for the first six months of 2024, before easing toward its 2 percent target in 2025. Meanwhile, the Bank of Canada projects that the country's gross domestic product (GDP) will remain relatively flat in 2024; it is projecting a 0.8 percent increase for the year, with a 2.4 percent increase in 2025.

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Understanding Raw Rock Phosphate: What Investors Need to Know

Phosphate is an essential component in global food production, with nearly 90 percent of all production going to the agriculture sector.

In addition to being a core ingredient in much of the world's fertilizer, the mineral is also used as a food preservative, to supplement animal feed and in products such as lithium iron phosphate batteries.

As the world's population continues to grow, demand for phosphate will only increase. While this trend can make phosphate a very attractive investment, it is not something one should dive into without research.

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