Nutrien Reports Record Earnings and an Excellent Outlook

 

 Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2021 results, with net earnings of $1.1 billion ($1.94 diluted earnings per share). Second-quarter adjusted net earnings 1 were $2.08 per share and adjusted EBITDA 1 was $2.2 billion.

 

"We delivered record earnings across our global business for the second quarter and first half of 2021 and expect the remainder of the year to contribute to a full year record. We showcased Nutrien's unique competitive advantages, strong operating performance and the significant leverage to higher fertilizer prices as we focus on our purpose to help growers meet the ever-growing demand for increased food production in a sustainable manner," commented Mayo Schmidt, Nutrien's President and CEO.

 

"The outlook for global crop and fertilizer markets continues to be very strong and we are positioned to benefit from our structural advantages and as a global leader in agriculture. We increased our full year 2021 adjusted EBITDA guidance 1 by over $1.5 billion, supported in part by our quick actions to produce an additional one million tonnes of potash, illustrating the power of the Potash team's unparalleled flexible, reliable, and low-cost six-mine network," added Mr. Schmidt.

 

  Highlights:  

 
  • Nutrien generated record adjusted EBITDA of $3.0 billion and free cash flow 1 of $1.9 billion in the first half of 2021. This represents an increase of 36 percent and 40 percent, respectively, compared to the first half of 2020 and 17 percent and 12 percent, respectively higher than the previous record for the company in the first half of 2019.
  •  
  • Nutrien raised full-year 2021 adjusted EBITDA and adjusted net earnings per share 1 guidance to $6.0 to $6.4 billion and $4.60 to $5.10 per share, respectively. This reflects higher expected results across our business, as well as, the benefits of increasing our 2021 potash sales guidance by one million tonnes to address global demand in support of our grower customers around the world. By the fourth quarter of 2021, we expect to surge potash production to an annualized run-rate of approximately 17 million tonnes, due to our flexible mine network and the responsiveness of our dedicated employees.
  •  
  • Nutrien Ag Solutions ("Retail") delivered record adjusted EBITDA in the second quarter and first half of 2021. First-half adjusted EBITDA increased 24 percent compared to the same period in 2020 as a result of double-digit growth in revenue and gross margin, higher gross margin percentage and adjusted EBITDA margins surpassing 11 percent. The increase was primarily due to organic growth supported by strong demand for grains and oilseeds, continued growth in our proprietary product sales, optimization and efficiency initiatives, as well as, the ongoing commitment of our approximately 3,600 crop advisors to serve our grower customers.
  •  
  • Sales through our digitally-enabled retail platform were approximately $1.6 billion in the first half of 2021, nearly double the sales compared to the same period in 2020 and exceeding the full year 2020 results of $1.2 billion in just six months. In the first half of 2021, we processed nearly half-a-million individual grower payments through the digital platform.
  •  
  • Potash adjusted EBITDA was 48 percent higher in the second quarter and 41 percent higher in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices and sales volumes. We achieved record production and sales volumes of nearly 7 million tonnes in the first six months of 2021.
  •  
  • Nitrogen adjusted EBITDA was 45 percent higher in the second quarter and 38 percent higher in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices. Phosphate adjusted EBITDA increased 45 percent in the second quarter and 70 percent in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices.
  •  
  • Subsequent to the second quarter of 2021, Nutrien announced an agreement to purchase Terra Nova, a retail businesses in Brazil with EBITDA margins and acquisition multiples in line with similar transaction metrics for ag retail businesses acquired by Nutrien in the US. We also entered a collaboration agreement with EXMAR NV to jointly develop and build a low-carbon, ammonia-fueled vessel to further reduce maritime transportation emissions.
  •  

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

 

  Management's Discussion and Analysis  

 

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of August 9, 2021. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication approves this disclosure pursuant to the authority delegated to it by the Board. The term "Nutrien" refers to Nutrien Ltd. and the terms "we", "us", "our", "Nutrien" and "the Company" refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A, and our Annual Information Form, each for the year ended December 31, 2020, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . No update is provided to the disclosure in our annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission ("SEC").

 

This MD&A is based on the Company's unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 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  

 
  • Crop prices continue to be supported by strong global demand and less than expected supply, resulting in historically low global inventory and strong grower margins. We expect these market fundamentals to continue beyond this season and be supportive of crop prices and grower margins into 2022.
  •  
  • Growing conditions across North America vary with favorable crop conditions in the US South and East regions, and drought conditions in the Western US, US Northern Plains and Canadian Prairies. We expect this variability could impact regional crop protection and plant health product demand in the second half of 2021 as growers experiencing favorable conditions look to boost and protect yields, particularly given additional pest pressure in parts of the US this summer, while growers impacted by drought may reduce some applications. However, with the strong outlook for crop prices and assuming a normal window for fall application, we expect US fertilizer demand and post-harvest crop protection applications to be strong.
  •  
  • Brazil's safrinha corn crop production estimates are significantly below initial market expectations due to both drought and frost. However, Brazilian crop prices remain at near-record highs and growers are expected to increase soybean and safrinha corn area when the next growing seasons begin. In Australia, precipitation has supported favorable soil moisture levels, leading to the largest seeded area for winter crops in the country's history.
  •  

  Crop Nutrient Markets  

 
  • Global potash shipments are projected to reach a record 69 to 71 million tonnes in 2021 while inventory in key regions are expected to be historically low going into 2022. This is supported by strong potash consumption backed by favorable agricultural fundamentals, with further upside limited by global supply issues and most producers operating at peak rates.
  •  
  • We believe Latin America could reach new records for both potash consumption and imports in 2021, as applications for the last crop were strong and growers are proactively securing volumes for the upcoming season. In North America, increased crop area and normal application rates have supported historically high demand which we expect will continue in the fall.
  •  
  • Global nitrogen demand growth is expected to be approximately 3 percent in 2021 driven by strong agricultural fundamentals and a rebound in industrial demand. In addition, global supply is tight because of production outages and project delays, which together with higher global energy costs, have supported nitrogen prices.
  •  
  • Strong global urea prices and robust global import demand led Chinese urea exports to increase by over 40 percent during the first half of 2021 compared to depressed 2020 levels. However, as a result of high Chinese domestic prices and very strong demand, the Chinese government urged producers to prioritize the domestic market, which may limit China's exports through the second half of 2021. Meanwhile, strong Indian urea demand, lower domestic production and tight inventories have resulted in regular tenders.
  •  
  • Global phosphate demand remains robust in most key markets, which in combination with higher raw material costs and limited growth in export supply has continued to support phosphate prices. While inventories in India are tight, poor import economics create uncertainty for import demand in the second half of 2021.
  •  

  Financial Outlook and Guidance  

 

Based on market factors detailed above, we are raising full-year 2021 adjusted EBITDA guidance to $6.0 to $6.4 billion from $4.4 to $4.9 billion and full-year 2021 adjusted net earnings guidance to $4.60 to $5.10 per share from $2.55 to $3.25 per share.

 

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

 
                                                                                                                        
 

  2021 Guidance Ranges 1  

 
 

 

 
 

  Low  

 
 

 

 
 

 

 
 

 

 
 

  High  

 
 

 

 
 

Adjusted net earnings per share 2

 
 

$

 
 

4.60

 
 

 

 
 

 

 
 

$

 
 

5.10

 
 

 

 
 

Adjusted EBITDA (billions) 2

 
 

$

 
 

6.0

 
 

 

 
 

 

 
 

$

 
 

6.4

 
 

 

 
 

Retail Adjusted EBITDA (billions)

 
 

$

 
 

1.6

 
 

 

 
 

 

 
 

$

 
 

1.7

 
 

 

 
 

Potash Adjusted EBITDA (billions)

 
 

$

 
 

2.4

 
 

 

 
 

 

 
 

$

 
 

2.6

 
 

 

 
 

Nitrogen Adjusted EBITDA (billions)

 
 

$

 
 

1.85

 
 

 

 
 

 

 
 

$

 
 

2.05

 
 

 

 
 

Phosphate Adjusted EBITDA (millions)

 
 

$

 
 

400

 
 

 

 
 

 

 
 

$

 
 

500

 
 

 

 
 

Potash sales tonnes (millions) 3

 
 

 

 
 

13.5

 
 

 

 
 

 

 
 

 

 
 

13.9

 
 

 

 
 

Nitrogen sales tonnes (millions) 3

 
 

 

 
 

10.8

 
 

 

 
 

 

 
 

 

 
 

11.2

 
 

 

 
 

Depreciation and amortization (billions)

 
 

$

 
 

1.9

 
 

 

 
 

 

 
 

$

 
 

2.0

 
 

 

 
 

Effective tax rate on adjusted earnings

 
 

 

 
 

24

 
 

%

 
 

 

 
 

 

 
 

26

 
 

%

 
 

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 June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

(millions of US dollars)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

Sales 1

 
 

  9,763  

 
 

 

 
 

8,431

 
 

 

 
 

16

 
 

 

 
 

  14,421  

 
 

 

 
 

12,629

 
 

 

 
 

14

 
 

Freight, transportation and distribution

 
 

  222  

 
 

 

 
 

237

 
 

 

 
 

(6)

 
 

 

 
 

  433  

 
 

 

 
 

449

 
 

 

 
 

(4)

 
 

Cost of goods sold

 
 

  6,659  

 
 

 

 
 

6,024

 
 

 

 
 

11

 
 

 

 
 

  9,950  

 
 

 

 
 

9,125

 
 

 

 
 

9

 
 

Gross margin 1

 
 

  2,882  

 
 

 

 
 

2,170

 
 

 

 
 

33

 
 

 

 
 

  4,038  

 
 

 

 
 

3,055

 
 

 

 
 

32

 
 

Expenses 1

 
 

  1,263  

 
 

 

 
 

1,031

 
 

 

 
 

23

 
 

 

 
 

  2,141  

 
 

 

 
 

1,834

 
 

 

 
 

17

 
 

Net earnings

 
 

  1,113  

 
 

 

 
 

765

 
 

 

 
 

45

 
 

 

 
 

  1,246  

 
 

 

 
 

730

 
 

 

 
 

71

 
 

Adjusted EBITDA 2

 
 

  2,215  

 
 

 

 
 

1,721

 
 

 

 
 

29

 
 

 

 
 

  3,021  

 
 

 

 
 

2,229

 
 

 

 
 

36

 
 

Cash provided by operating activities

 
 

  1,966  

 
 

 

 
 

1,756

 
 

 

 
 

12

 
 

 

 
 

  1,814  

 
 

 

 
 

1,230

 
 

 

 
 

47

 
 

Free cash flow ("FCF") 2

 
 

  1,413  

 
 

 

 
 

1,173

 
 

 

 
 

20

 
 

 

 
 

  1,889  

 
 

 

 
 

1,354

 
 

 

 
 

40

 
 

FCF including changes in non-cash operating working capital 2

 
 

  1,662  

 
 

 

 
 

1,611

 
 

 

 
 

3

 
 

 

 
 

  1,346  

 
 

 

 
 

922

 
 

 

 
 

46

 
 

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

 
 

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

 
 

Net earnings and adjusted EBITDA increased significantly in the second quarter and first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices, higher potash sales volumes and earnings growth in Nutrien Ag Solutions ("Retail"). Cash flow from operating activities increased in the second quarter and first half of 2021 compared to the same periods last year, which helped generate $1.9 billion in free cash flow in the first half of 2021, an increase of more than $0.5 billion compared to the amount generated in the same period in 2020. The COVID-19 pandemic had a limited impact on our results during the second quarter and first half 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 six months ended June 30, 2021 to the results for the three and six months ended June 30, 2020, unless otherwise noted.

 

  Nutrien Ag Solutions ("Retail")  

 
                                                                                                                                                                                                                                                                                                            
 

 

 
 

  Three Months Ended June 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

 
 

  3,045  

 
 

 

 
 

2,527

 
 

 

 
 

20

 
 

 

 
 

  703  

 
 

 

 
 

559

 
 

 

 
 

26

 
 

 

 
 

  23  

 
 

 

 
 

22

 
 

Crop protection products

 
 

  2,666  

 
 

 

 
 

2,436

 
 

 

 
 

9

 
 

 

 
 

  587  

 
 

 

 
 

547

 
 

 

 
 

7

 
 

 

 
 

  22  

 
 

 

 
 

22

 
 

Seed

 
 

  1,216  

 
 

 

 
 

1,141

 
 

 

 
 

7

 
 

 

 
 

  237  

 
 

 

 
 

219

 
 

 

 
 

8

 
 

 

 
 

  19  

 
 

 

 
 

19

 
 

Merchandise

 
 

  268  

 
 

 

 
 

253

 
 

 

 
 

6

 
 

 

 
 

  45  

 
 

 

 
 

45

 
 

 

 
 

-

 
 

 

 
 

  17  

 
 

 

 
 

18

 
 

Nutrien Financial 1

 
 

  59  

 
 

 

 
 

40

 
 

 

 
 

48

 
 

 

 
 

  59  

 
 

 

 
 

40

 
 

 

 
 

48

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
 

  335  

 
 

 

 
 

400

 
 

 

 
 

(16)

 
 

 

 
 

  279  

 
 

 

 
 

250

 
 

 

 
 

12

 
 

 

 
 

  83  

 
 

 

 
 

63

 
 

Nutrien Financial elimination 2

 
 

  (52)  

 
 

 

 
 

(33)

 
 

 

 
 

58

 
 

 

 
 

  (52)  

 
 

 

 
 

(33)

 
 

 

 
 

58

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
 

  7,537  

 
 

 

 
 

6,764

 
 

 

 
 

11

 
 

 

 
 

  1,858  

 
 

 

 
 

1,627

 
 

 

 
 

14

 
 

 

 
 

  25  

 
 

 

 
 

24

 
 

Cost of goods sold

 
 

  5,679  

 
 

 

 
 

5,137

 
 

 

 
 

11

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

  1,858  

 
 

 

 
 

1,627

 
 

 

 
 

14

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 1,3

 
 

  938  

 
 

 

 
 

826

 
 

 

 
 

14

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Earnings before finance costs and taxes ("EBIT")

 
 

  920  

 
 

 

 
 

801

 
 

 

 
 

15

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  169  

 
 

 

 
 

163

 
 

 

 
 

4

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  1,089  

 
 

 

 
 

964

 
 

 

 
 

13

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 4

 
 

  8  

 
 

 

 
 

-

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  1,097  

 
 

 

 
 

964

 
 

 

 
 

14

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

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

 
 

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

 
 

3 Includes selling expenses of $863 million (2020 – $764 million).

 
 

4 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                                                                                                                                                           
 

 

 
 

  Six Months Ended June 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

 
 

  4,061  

 
 

 

 
 

3,312

 
 

 

 
 

23

 
 

 

 
 

  923  

 
 

 

 
 

715

 
 

 

 
 

29

 
 

 

 
 

  23  

 
 

 

 
 

22

 
 

Crop protection products

 
 

  3,751  

 
 

 

 
 

3,446

 
 

 

 
 

9

 
 

 

 
 

  763  

 
 

 

 
 

704

 
 

 

 
 

8

 
 

 

 
 

  20  

 
 

 

 
 

20

 
 

Seed

 
 

  1,679  

 
 

 

 
 

1,535

 
 

 

 
 

9

 
 

 

 
 

  306  

 
 

 

 
 

278

 
 

 

 
 

10

 
 

 

 
 

  18  

 
 

 

 
 

18

 
 

Merchandise

 
 

  498  

 
 

 

 
 

469

 
 

 

 
 

6

 
 

 

 
 

  83  

 
 

 

 
 

79

 
 

 

 
 

5

 
 

 

 
 

  17  

 
 

 

 
 

17

 
 

Nutrien Financial 1

 
 

  84  

 
 

 

 
 

56

 
 

 

 
 

50

 
 

 

 
 

  84  

 
 

 

 
 

56

 
 

 

 
 

50

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
 

  508  

 
 

 

 
 

655

 
 

 

 
 

(22)

 
 

 

 
 

  423  

 
 

 

 
 

384

 
 

 

 
 

10

 
 

 

 
 

  83  

 
 

 

 
 

59

 
 

Nutrien Financial elimination

 
 

  (72)  

 
 

 

 
 

(48)

 
 

 

 
 

50

 
 

 

 
 

  (72)  

 
 

 

 
 

(48)

 
 

 

 
 

50

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
 

  10,509  

 
 

 

 
 

9,425

 
 

 

 
 

12

 
 

 

 
 

  2,510  

 
 

 

 
 

2,168

 
 

 

 
 

16

 
 

 

 
 

  24  

 
 

 

 
 

23

 
 

Cost of goods sold

 
 

  7,999  

 
 

 

 
 

7,257

 
 

 

 
 

10

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

  2,510  

 
 

 

 
 

2,168

 
 

 

 
 

16

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 1,2

 
 

  1,659  

 
 

 

 
 

1,515

 
 

 

 
 

10

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBIT

 
 

  851  

 
 

 

 
 

653

 
 

 

 
 

30

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  346  

 
 

 

 
 

318

 
 

 

 
 

9

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  1,197  

 
 

 

 
 

971

 
 

 

 
 

23

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  9  

 
 

 

 
 

-

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  1,206  

 
 

 

 
 

971

 
 

 

 
 

24

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Certain immaterial figures have been reclassified for the six months ended June 30, 2020.

 
 

2 Includes selling expenses of $1,530 million (2020 – $1,399 million).

 
 

3 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher sales, gross margin and gross margin percentages. This was supported by expanded planted acreage and strong agricultural market fundamentals in all regions in which we operate, as well as, supply chain improvements and strategic procurement. Our Retail cash operating coverage ratio 1 for the first half of 2021 declined to 60 percent.
  •  
  •   Crop nutrients sales increased significantly in the second quarter and first half of 2021 supported by higher prices and record North American and International first half sales volumes. Gross margin benefited from stronger margin per tonne due in part to strategic procurement in a rising price environment.
  •  
  •   Crop protection products sales increased in the second quarter and first half of 2021 due to market growth and favorable application conditions throughout most of the US. Gross margin percentages were stable as strategic procurement and strong proprietary product results more than offset higher costs for certain products caused by global supply chain issues.
  •  
  •   Seed sales increased in the second quarter and first half of 2021, supported by higher seeded acreage in key regions where we operate and strong agriculture fundamentals. Gross margin percentage was stable in the second quarter and first half of 2021.
  •  
  •   Merchandise sales increased in the second quarter and first half of 2021 primarily driven by growth in the Australian market due to higher animal health and management sales related to strong livestock prices. Gross margin was similar in both periods despite the shift in product mix.
  •  
  •   Nutrien Financial sales increased in the second quarter and first half of 2021 due to higher utilization and adoption of our programs.
  •  
  •   Services and other sales decreased 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, the impact to gross margin percentage was favorable for both the second quarter and first half 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 June 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

 
 

  326  

 
 

 

 
 

232

 
 

 

 
 

41

 
 

 

 
 

  1,172  

 
 

 

 
 

1,201

 
 

 

 
 

(2)

 
 

 

 
 

  278  

 
 

 

 
 

194

 
 

 

 
 

43

 
 

Offshore

 
 

  491  

 
 

 

 
 

356

 
 

 

 
 

38

 
 

 

 
 

  2,449  

 
 

 

 
 

2,414

 
 

 

 
 

1

 
 

 

 
 

  200  

 
 

 

 
 

147

 
 

 

 
 

36

 
 

 

 
 

  817  

 
 

 

 
 

588

 
 

 

 
 

39

 
 

 

 
 

  3,621  

 
 

 

 
 

3,615

 
 

 

 
 

-

 
 

 

 
 

  226  

 
 

 

 
 

163

 
 

 

 
 

39

 
 

Cost of goods sold

 
 

  317  

 
 

 

 
 

310

 
 

 

 
 

2

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  88  

 
 

 

 
 

86

 
 

 

 
 

2

 
 

Gross margin - total

 
 

  500  

 
 

 

 
 

278

 
 

 

 
 

80

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  138  

 
 

 

 
 

77

 
 

 

 
 

79

 
 

Expenses 1

 
 

  123  

 
 

 

 
 

52

 
 

 

 
 

137

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  32  

 
 

 

 
 

30

 
 

 

 
 

7

 
 

EBIT

 
 

  377  

 
 

 

 
 

226

 
 

 

 
 

67

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  116  

 
 

 

 
 

109

 
 

 

 
 

6

 
 

 

 
 

and amortization - manufactured 2

 
 

  170  

 
 

 

 
 

107

 
 

 

 
 

59

 
 

EBITDA

 
 

  493  

 
 

 

 
 

335

 
 

 

 
 

47

 
 

 

 
 

Potash cash cost of product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  2  

 
 

 

 
 

-

 
 

 

 
 

n/m

 
 

 

 
 

manufactured 2

 
 

 

 
 

  59  

 
 

 

 
 

52

 
 

 

 
 

13

 
 

Adjusted EBITDA

 
 

  495  

 
 

 

 
 

335

 
 

 

 
 

48

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes provincial mining taxes of $107 million (2020 – $46 million).

 
 

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

 
 

3 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                                                                                             
 

 

 
 

  Six Months Ended June 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

 
 

  658  

 
 

 

 
 

457

 
 

 

 
 

44

 
 

 

 
 

  2,642  

 
 

 

 
 

2,348

 
 

 

 
 

13

 
 

 

 
 

  249  

 
 

 

 
 

195

 
 

 

 
 

28

 
 

Offshore

 
 

  770  

 
 

 

 
 

648

 
 

 

 
 

19

 
 

 

 
 

  4,136  

 
 

 

 
 

4,144

 
 

 

 
 

-

 
 

 

 
 

  186  

 
 

 

 
 

156

 
 

 

 
 

19

 
 

 

 
 

  1,428  

 
 

 

 
 

1,105

 
 

 

 
 

29

 
 

 

 
 

  6,778  

 
 

 

 
 

6,492

 
 

 

 
 

4

 
 

 

 
 

  211  

 
 

 

 
 

170

 
 

 

 
 

24

 
 

Cost of goods sold

 
 

  608  

 
 

 

 
 

575

 
 

 

 
 

6

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  90  

 
 

 

 
 

88

 
 

 

 
 

2

 
 

Gross margin - total

 
 

  820  

 
 

 

 
 

530

 
 

 

 
 

55

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  121  

 
 

 

 
 

82

 
 

 

 
 

48

 
 

Expenses 1

 
 

  187  

 
 

 

 
 

115

 
 

 

 
 

63

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  35  

 
 

 

 
 

32

 
 

 

 
 

9

 
 

EBIT

 
 

  633  

 
 

 

 
 

415

 
 

 

 
 

53

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  240  

 
 

 

 
 

205

 
 

 

 
 

17

 
 

 

 
 

and amortization - manufactured

 
 

  156  

 
 

 

 
 

114

 
 

 

 
 

37

 
 

EBITDA

 
 

  873  

 
 

 

 
 

620

 
 

 

 
 

41

 
 

 

 
 

Potash cash cost of product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  2  

 
 

 

 
 

-

 
 

 

 
 

n/m

 
 

 

 
 

manufactured

 
 

 

 
 

  58  

 
 

 

 
 

56

 
 

 

 
 

4

 
 

Adjusted EBITDA

 
 

  875  

 
 

 

 
 

620

 
 

 

 
 

41

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes provincial mining taxes of $165 million (2020 – $103 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices and record sales volumes.
  •  
  •   Sales volumes were the highest of any second quarter or first half on record. Demand was strong in both North America and Offshore markets, supported by high crop prices and good affordability, allowing us to leverage our structurally advantaged, flexible, low-cost network of six mines and integrated transportation and logistics system.
  •  
  •   Net realized selling price increased in the second quarter and first half of 2021 due to strong global demand and very tight supply.
  •  
  •   Cost of goods sold per tonne in the second quarter and first half of 2021 was slightly higher compared to the same periods in 2020, primarily due to the stronger Canadian dollar and mine production mix. These factors also led to a higher potash cash cost of product manufactured per tonne in the second quarter and first half of 2021.
  •  

  Canpotex Sales by Market  

 
                                                                    
 

(percentage of sales volumes, except as

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

otherwise noted)

 
 

  2021  

 
 

2020

 
 

Change

 
 

 

 
 

  2021  

 
 

2020

 
 

Change

 
 

Other Asian markets 1

 
 

  41  

 
 

26

 
 

15

 
 

 

 
 

  39  

 
 

28

 
 

11

 
 

Latin America

 
 

  35  

 
 

36

 
 

(1)

 
 

 

 
 

  33  

 
 

31

 
 

2

 
 

China

 
 

  11  

 
 

19

 
 

(8)

 
 

 

 
 

  12  

 
 

22

 
 

(10)

 
 

Other markets

 
 

  10  

 
 

7

 
 

3

 
 

 

 
 

  11  

 
 

7

 
 

4

 
 

India

 
 

  3  

 
 

12

 
 

(9)

 
 

 

 
 

  5  

 
 

12

 
 

(7)

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

1 All Asian markets except China and India.

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Nitrogen  

 
                                                                                                                                                                                                                                                                                                    
 

 

 
 

  Three Months Ended June 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

 
 

  346  

 
 

 

 
 

229

 
 

 

 
 

51

 
 

 

 
 

  836  

 
 

 

 
 

935

 
 

 

 
 

(11)

 
 

 

 
 

  416  

 
 

 

 
 

244

 
 

 

 
 

70

 
 

Urea

 
 

  346  

 
 

 

 
 

273

 
 

 

 
 

27

 
 

 

 
 

  819  

 
 

 

 
 

1,000

 
 

 

 
 

(18)

 
 

 

 
 

  421  

 
 

 

 
 

273

 
 

 

 
 

54

 
 

Solutions, nitrates and sulfates

 
 

  290  

 
 

 

 
 

194

 
 

 

 
 

49

 
 

 

 
 

  1,311  

 
 

 

 
 

1,255

 
 

 

 
 

4

 
 

 

 
 

  221  

 
 

 

 
 

154

 
 

 

 
 

44

 
 

 

 
 

  982  

 
 

 

 
 

696

 
 

 

 
 

41

 
 

 

 
 

  2,966  

 
 

 

 
 

3,190

 
 

 

 
 

(7)

 
 

 

 
 

  331  

 
 

 

 
 

218

 
 

 

 
 

52

 
 

Cost of goods sold

 
 

  597  

 
 

 

 
 

508

 
 

 

 
 

18

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  201  

 
 

 

 
 

159

 
 

 

 
 

26

 
 

Gross margin - manufactured

 
 

  385  

 
 

 

 
 

188

 
 

 

 
 

105

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  130  

 
 

 

 
 

59

 
 

 

 
 

120

 
 

Gross margin - other 1

 
 

  31  

 
 

 

 
 

20

 
 

 

 
 

55

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  52  

 
 

 

 
 

54

 
 

 

 
 

(4)

 
 

Gross margin - total

 
 

  416  

 
 

 

 
 

208

 
 

 

 
 

100

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses (income)

 
 

  17  

 
 

 

 
 

(3)

 
 

 

 
 

n/m

 
 

 

 
 

and amortization - manufactured

 
 

  182  

 
 

 

 
 

113

 
 

 

 
 

61

 
 

EBIT

 
 

  399  

 
 

 

 
 

211

 
 

 

 
 

89

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  155  

 
 

 

 
 

172

 
 

 

 
 

(10)

 
 

 

 
 

product manufactured 2

 
 

 

 
 

  51  

 
 

 

 
 

40

 
 

 

 
 

28

 
 

EBITDA

 
 

  554  

 
 

 

 
 

383

 
 

 

 
 

45

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  1  

 
 

 

 
 

  -  

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  555  

 
 

 

 
 

383

 
 

 

 
 

45

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $197 million (2020 – $157 million) less cost of goods sold of $166 million (2020 – $137 million).

 
 

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

 
 

3 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                                                                                                                                                   
 

 

 
 

  Six Months Ended June 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

 
 

  506  

 
 

 

 
 

359

 
 

 

 
 

41

 
 

 

 
 

  1,408  

 
 

 

 
 

1,502

 
 

 

 
 

(6)

 
 

 

 
 

  360  

 
 

 

 
 

239

 
 

 

 
 

51

 
 

Urea

 
 

  595  

 
 

 

 
 

510

 
 

 

 
 

17

 
 

 

 
 

  1,576  

 
 

 

 
 

1,856

 
 

 

 
 

(15)

 
 

 

 
 

  377  

 
 

 

 
 

275

 
 

 

 
 

37

 
 

Solutions, nitrates and sulfates

 
 

  454  

 
 

 

 
 

357

 
 

 

 
 

27

 
 

 

 
 

  2,385  

 
 

 

 
 

2,360

 
 

 

 
 

1

 
 

 

 
 

  190  

 
 

 

 
 

151

 
 

 

 
 

26

 
 

 

 
 

  1,555  

 
 

 

 
 

1,226

 
 

 

 
 

27

 
 

 

 
 

  5,369  

 
 

 

 
 

5,718

 
 

 

 
 

(6)

 
 

 

 
 

  290  

 
 

 

 
 

214

 
 

 

 
 

36

 
 

Cost of goods sold

 
 

  1,037  

 
 

 

 
 

952

 
 

 

 
 

9

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  194  

 
 

 

 
 

166

 
 

 

 
 

17

 
 

Gross margin - manufactured

 
 

  518  

 
 

 

 
 

274

 
 

 

 
 

89

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  96  

 
 

 

 
 

48

 
 

 

 
 

100

 
 

Gross margin - other 1

 
 

  48  

 
 

 

 
 

31

 
 

 

 
 

55

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  53  

 
 

 

 
 

56

 
 

 

 
 

(5)

 
 

Gross margin - total

 
 

  566  

 
 

 

 
 

305

 
 

 

 
 

86

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses

 
 

  -  

 
 

 

 
 

8

 
 

 

 
 

(100)

 
 

 

 
 

and amortization - manufactured

 
 

  149  

 
 

 

 
 

104

 
 

 

 
 

43

 
 

EBIT

 
 

  566  

 
 

 

 
 

297

 
 

 

 
 

91

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  284  

 
 

 

 
 

322

 
 

 

 
 

(12)

 
 

 

 
 

product manufactured

 
 

 

 
 

  51  

 
 

 

 
 

43

 
 

 

 
 

19

 
 

EBITDA

 
 

  850  

 
 

 

 
 

619

 
 

 

 
 

37

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  5  

 
 

 

 
 

  -  

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  855  

 
 

 

 
 

619

 
 

 

 
 

38

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $384 million (2020 – $305 million) less cost of goods sold of $336 million (2020 – $274 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher natural gas costs, lower equity earnings and lower sales volumes.
  •  
  •   Sales volumes were lower in the second quarter and first half of 2021 due to higher turnaround activities, temporary production outages and lower inventories at the beginning of 2021. Our ammonia operating rate was 87 percent and 92 percent respectively in the second quarter and first half of 2021.
  •  
  •   Net realized selling price of nitrogen in the second quarter and first half of 2021 was higher due to higher benchmark prices resulting from the strength in global agriculture markets and a recovery in industrial nitrogen demand.
  •  
  •   Cost of goods sold per tonne increased during the second quarter and first half of 2021 due to higher natural gas costs, a stronger Canadian dollar and lower nitrogen production. The stronger Canadian dollar combined with lower production volumes led to a higher ammonia controllable cash cost of product manufactured per tonne in the second quarter and first half of 2021.
  •  

  Natural Gas Prices in Cost of Production  

 
                                                                                        
 

 

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

(US dollars per MMBtu, except as otherwise noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

Overall gas cost excluding realized derivative impact

 
 

  3.86  

 
 

 

 
 

2.09

 
 

 

 
 

85

 
 

 

 
 

  3.51  

 
 

 

 
 

2.16

 
 

 

 
 

63

 
 

Realized derivative impact

 
 

  0.03  

 
 

 

 
 

0.06

 
 

 

 
 

(50)

 
 

 

 
 

  0.03  

 
 

 

 
 

0.06

 
 

 

 
 

(50)

 
 

Overall gas cost

 
 

  3.89  

 
 

 

 
 

2.15

 
 

 

 
 

81

 
 

 

 
 

  3.54  

 
 

 

 
 

2.22

 
 

 

 
 

59

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average NYMEX

 
 

  2.83  

 
 

 

 
 

1.72

 
 

 

 
 

65

 
 

 

 
 

  2.76  

 
 

 

 
 

1.83

 
 

 

 
 

51

 
 

Average AECO

 
 

  2.32  

 
 

 

 
 

1.37

 
 

 

 
 

69

 
 

 

 
 

  2.31  

 
 

 

 
 

1.50

 
 

 

 
 

54

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

  Phosphate  

 
                                                                                                                                                                                                                                                    
 

 

 
 

  Three Months Ended June 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

 
 

  232  

 
 

 

 
 

146

 
 

 

 
 

59

 
 

 

 
 

  394  

 
 

 

 
 

472

 
 

 

 
 

(17)

 
 

 

 
 

  588  

 
 

 

 
 

309

 
 

 

 
 

90

 
 

Industrial and feed

 
 

  119  

 
 

 

 
 

104

 
 

 

 
 

14

 
 

 

 
 

  192  

 
 

 

 
 

194

 
 

 

 
 

(1)

 
 

 

 
 

  621  

 
 

 

 
 

538

 
 

 

 
 

15

 
 

 

 
 

  351  

 
 

 

 
 

250

 
 

 

 
 

40

 
 

 

 
 

  586  

 
 

 

 
 

666

 
 

 

 
 

(12)

 
 

 

 
 

  598  

 
 

 

 
 

375

 
 

 

 
 

59

 
 

Cost of goods sold

 
 

  271  

 
 

 

 
 

224

 
 

 

 
 

21

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  463  

 
 

 

 
 

335

 
 

 

 
 

38

 
 

Gross margin - manufactured

 
 

  80  

 
 

 

 
 

26

 
 

 

 
 

208

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  135  

 
 

 

 
 

40

 
 

 

 
 

238

 
 

Gross margin - other 1

 
 

  4  

 
 

 

 
 

2

 
 

 

 
 

100

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  60  

 
 

 

 
 

84

 
 

 

 
 

(29)

 
 

Gross margin - total

 
 

  84  

 
 

 

 
 

28

 
 

 

 
 

200

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses

 
 

  7  

 
 

 

 
 

7

 
 

 

 
 

-

 
 

 

 
 

and amortization - manufactured

 
 

  195  

 
 

 

 
 

124

 
 

 

 
 

57

 
 

EBIT

 
 

  77  

 
 

 

 
 

21

 
 

 

 
 

267

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  35  

 
 

 

 
 

56

 
 

 

 
 

(38)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA / Adjusted EBITDA

 
 

  112  

 
 

 

 
 

77

 
 

 

 
 

45

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other phosphate and purchased products and is comprised of net sales of $52 million (2020 - $27 million) less cost of goods sold of $48 million (2020 - $25 million).

 
 
                                                                                                                                                                                                                                                    
 

 

 
 

  Six Months Ended June 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

 
 

  462  

 
 

 

 
 

319

 
 

 

 
 

45

 
 

 

 
 

  903  

 
 

 

 
 

1,040

 
 

 

 
 

(13)

 
 

 

 
 

  511  

 
 

 

 
 

307

 
 

 

 
 

66

 
 

Industrial and feed

 
 

  233  

 
 

 

 
 

210

 
 

 

 
 

11

 
 

 

 
 

  385  

 
 

 

 
 

385

 
 

 

 
 

-

 
 

 

 
 

  605  

 
 

 

 
 

546

 
 

 

 
 

11

 
 

 

 
 

  695  

 
 

 

 
 

529

 
 

 

 
 

31

 
 

 

 
 

  1,288  

 
 

 

 
 

1,425

 
 

 

 
 

(10)

 
 

 

 
 

  539  

 
 

 

 
 

372

 
 

 

 
 

45

 
 

Cost of goods sold

 
 

  553  

 
 

 

 
 

511

 
 

 

 
 

8

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  429  

 
 

 

 
 

359

 
 

 

 
 

19

 
 

Gross margin - manufactured

 
 

  142  

 
 

 

 
 

18

 
 

 

 
 

689

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  110  

 
 

 

 
 

13

 
 

 

 
 

746

 
 

Gross margin - other 1

 
 

  8  

 
 

 

 
 

3

 
 

 

 
 

167

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  57  

 
 

 

 
 

84

 
 

 

 
 

(32)

 
 

Gross margin - total

 
 

  150  

 
 

 

 
 

21

 
 

 

 
 

614

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses

 
 

  14  

 
 

 

 
 

17

 
 

 

 
 

(18)

 
 

 

 
 

and amortization - manufactured

 
 

  167  

 
 

 

 
 

97

 
 

 

 
 

72

 
 

EBIT

 
 

  136  

 
 

 

 
 

4

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  73  

 
 

 

 
 

119

 
 

 

 
 

(39)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA / Adjusted EBITDA

 
 

  209  

 
 

 

 
 

123

 
 

 

 
 

70

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other phosphate and purchased products and is comprised of net sales of $93 million (2020 - $61 million) less cost of goods sold of $85 million (2020 - $58 million).

 
 
  •   Adjusted EBITDA increased in the second quarter and first half 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 second quarter and first half of 2021 due to the timing of turnaround activity this year and higher inventory tonnes in 2020 which supported higher sales in the second quarter and first half of 2020.
  •  
  •   Net realized selling price of phosphate fertilizer increased in the second quarter and first half of 2021 as a result of the increase in benchmark fertilizer prices resulting from the strength in global agriculture markets and higher global raw material costs. Industrial and feed prices also increased, 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 due to significantly higher raw material input costs and a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020. This was partially offset by lower depreciation and amortization following the non-cash impairment of assets in the third quarter of 2020.
  •  

  Corporate and Others  

 
                                                                                                                                                                  
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

Sales 1

 
 

  -  

 
 

 

 
 

20

 
 

 

 
 

(100)

 
 

 

 
 

  -  

 
 

 

 
 

47

 
 

 

 
 

(100)

 
 

Cost of goods sold

 
 

  -  

 
 

 

 
 

18

 
 

 

 
 

(100)

 
 

 

 
 

  -  

 
 

 

 
 

43

 
 

 

 
 

(100)

 
 

Gross margin

 
 

  -  

 
 

 

 
 

2

 
 

 

 
 

(100)

 
 

 

 
 

  -  

 
 

 

 
 

4

 
 

 

 
 

(100)

 
 

Selling expenses

 
 

  (9)  

 
 

 

 
 

(8)

 
 

 

 
 

13

 
 

 

 
 

  (15)  

 
 

 

 
 

(13)

 
 

 

 
 

15

 
 

General and administrative expenses

 
 

  66  

 
 

 

 
 

65

 
 

 

 
 

2

 
 

 

 
 

  124  

 
 

 

 
 

125

 
 

 

 
 

(1)

 
 

Share-based compensation expense (recovery)

 
 

  38  

 
 

 

 
 

12

 
 

 

 
 

217

 
 

 

 
 

  61  

 
 

 

 
 

(20)

 
 

 

 
 

n/m

 
 

Other expenses

 
 

  83  

 
 

 

 
 

80

 
 

 

 
 

4

 
 

 

 
 

  111  

 
 

 

 
 

87

 
 

 

 
 

28

 
 

EBIT

 
 

  (178)  

 
 

 

 
 

(147)

 
 

 

 
 

21

 
 

 

 
 

  (281)  

 
 

 

 
 

(175)

 
 

 

 
 

61

 
 

Depreciation and amortization

 
 

  10  

 
 

 

 
 

17

 
 

 

 
 

(41)

 
 

 

 
 

  22  

 
 

 

 
 

26

 
 

 

 
 

(15)

 
 

EBITDA

 
 

  (168)  

 
 

 

 
 

(130)

 
 

 

 
 

29

 
 

 

 
 

  (259)  

 
 

 

 
 

(149)

 
 

 

 
 

74

 
 

Adjustments 2

 
 

  100  

 
 

 

 
 

65

 
 

 

 
 

54

 
 

 

 
 

  143  

 
 

 

 
 

18

 
 

 

 
 

694

 
 

Adjusted EBITDA

 
 

  (68)  

 
 

 

 
 

(65)

 
 

 

 
 

5

 
 

 

 
 

  (116)  

 
 

 

 
 

(131)

 
 

 

 
 

(11)

 
 

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   (recovery) – In the second quarter of 2021, the expense was higher as a result of the increase in our share price. We also had a higher number of share-based awards that vested in 2021.

    We had an expense in the first half of 2021 due to an increase in our share price, while a recovery was recorded in the first half of 2020 as our share price decreased as a result of market volatility caused by the COVID-19 pandemic.
  •  
  •   Other expenses were higher in the second quarter and first half of 2021 compared to the same periods in 2020 as we recognized additional cloud computing related expenses from our change in accounting policy (refer to Note 3). This was partially offset by lower foreign exchange losses as Canadian and Australian dollars improved relative to the US dollar in the second quarter of 2021.
  •  

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

 
                                                    
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

Finance costs

 
 

  125  

 
 

 

 
 

139

 
 

 

 
 

(10)

 
 

 

 
 

  245  

 
 

 

 
 

272

 
 

 

 
 

(10)

 
 

Income tax expense

 
 

  381  

 
 

 

 
 

235

 
 

 

 
 

62

 
 

 

 
 

  406  

 
 

 

 
 

219

 
 

 

 
 

85

 
 

Other comprehensive income (loss)

 
 

  61  

 
 

 

 
 

201

 
 

 

 
 

(70)

 
 

 

 
 

  85  

 
 

 

 
 

(157)

 
 

 

 
 

n/m

 
 
  •   Finance costs in the second quarter and first half of 2021 were lower 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 second quarter and first half of 2021 was higher as a result of higher earnings before income taxes compared to the same periods in 2020.
  •  
  •   Other comprehensive income (loss) is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. ("Sinofert"). In 2020, the COVID-19 pandemic resulted in increased market volatility that affected share prices and foreign exchange rates. This resulted in fair value losses on our investment in Sinofert as well as a significant translation gain in the second quarter of 2020 and a significant translation loss in the first quarter of 2020. In the first half of 2021, Sinofert share price increased while the Canadian and Australian dollars relative to the US dollar were less volatile.
  •  

  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 June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

% Change

 
 

Cash provided by operating activities

 
 

  1,966  

 
 

 

 
 

1,756

 
 

 

 
 

12

 
 

 

 
 

  1,814  

 
 

 

 
 

1,230

 
 

 

 
 

47

 
 

Cash used in investing activities

 
 

  (431)  

 
 

 

 
 

(408)

 
 

 

 
 

6

 
 

 

 
 

  (819)  

 
 

 

 
 

(853)

 
 

 

 
 

(4)

 
 

Cash (used in) provided by financing activities

 
 

  (449)  

 
 

 

 
 

(3,139)

 
 

 

 
 

(86)

 
 

 

 
 

  (640)  

 
 

 

 
 

380

 
 

 

 
 

n/m

 
 

Effect of exchange rate changes on cash and cash equivalents

 
 

  (4)  

 
 

 

 
 

24

 
 

 

 
 

n/m

 
 

 

 
 

  (15)  

 
 

 

 
 

(13)

 
 

 

 
 

15

 
 

Increase (decrease) in cash and cash equivalents

 
 

  1,082  

 
 

 

 
 

(1,767)

 
 

 

 
 

n/m

 
 

 

 
 

  340  

 
 

 

 
 

744

 
 

 

 
 

(54)

 
 
      
 

  Cash provided by
operating activities
 

 
 
  • Higher cash provided by operating activities in the second quarter and first half of 2021 compared to the same periods in 2020 was primarily due to strong global crop and fertilizer markets, which resulted in higher earnings, combined with improvements to working capital management, the most significant of which was an increase in payables and accrued charges related to a shift in timing of supplier payments.
  •  
 

  Cash used in
investing activities
 

 
 
  • Higher cash used in investing activities in the second quarter was primarily due to higher additions to our property, plant and equipment from higher turnaround activities compared to the same period in 2020.
  •  
  • Lower cash used in investing activities for the first half of 2021 was primarily due to lower acquisitions compared to the same period in 2020.
  •  
 

  Cash (used in)
provided by
financing activities
 

 
 
  • Lower cash used in financing activities for the second quarter of 2021 compared to the second quarter of 2020 was due to minimal debt repayments in 2021. In 2020, as we managed our liquidity needs during the initial period of the COVID-19 pandemic, we repaid $4.3 billion of short-term debt and issued $1.5 billion of notes.
  •  
  • Cash used in financing activities for the first half of 2021 compared to cash provided by financing activities in the first half of 2020 was primarily due to the issuance of $1.5 billion of notes and a note repayment of $500 million in the first half of 2020. We did not issue or repay notes in the first half 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)

 
 

  June 30, 2021  

 
 

 

 
 

December 31, 2020

 
 

 

 
 

$ Change

 
 

 

 
 

% Change

 
 

  Assets  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  1,794  

 
 

 

 
 

1,454

 
 

 

 
 

340

 
 

 

 
 

23

 
 

Receivables

 
 

  6,683  

 
 

 

 
 

3,626

 
 

 

 
 

3,057

 
 

 

 
 

84

 
 

Prepaid expenses and other current assets

 
 

  524  

 
 

 

 
 

1,460

 
 

 

 
 

(936)

 
 

 

 
 

(64)

 
 

Other assets

 
 

  664  

 
 

 

 
 

914

 
 

 

 
 

(250)

 
 

 

 
 

(27)

 
 

  Liabilities and Equity  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Payables and accrued charges

 
 

  9,367  

 
 

 

 
 

8,058

 
 

 

 
 

1,309

 
 

 

 
 

16

 
 

Retained earnings

 
 

  7,315  

 
 

 

 
 

6,606

 
 

 

 
 

709

 
 

 

 
 

11

 
 
  • 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 demand for crop inputs, as well as higher Retail vendor rebates receivables. Certain income tax receivables previously classified as non-current are currently realizable within one year.
  •  
  •   Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventory (primarily seed and crop protection) during the spring planting and application seasons.
  •  
  •   Other assets decreased due to a reclassification of certain income tax receivables as current receivables, which will be realized within one year.
  •  
  •   Payables and accrued charges increased due to a shift in timing of supplier payments and higher inventory purchases to meet strong seasonal demand, which were partially offset by lower customer prepayments in North America as Retail customers took delivery of prepaid sales.
  •  
  •   Retained earnings increased as net earnings in the first half 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 six months ended June 30, 2021.

 
                                          
 

 

 
 

  As at June 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

 
 

0.9 - 7.5

 
 

630

 
 

  115  

 
 

  73  

 
 

Other

 
 

n/a

 
 

 

 
 

  95  

 
 

  -  

 
 

Total

 
 

 

 
 

 

 
 

  210  

 
 

  73  

 
 

  1 Other credit facilities are unsecured and consist of South American facilities with debt of $167 million and interest rates ranging from 1.5 percent to 7.5 percent and other facilities with debt of $21 million and interest rates ranging from 0.9 percent to 4.1 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. There is no outstanding balance as of June 30, 2021.

 

We extended the maturity date of the unsecured revolving term credit facility from 2023 to 2026 in the three months ended June 30, 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.

 

  Outstanding Share Data  

 
      
 

 

 
 

  As at August 6, 2021  

 
 

Common shares

 
 

  570,688,867  

 
 

Options to purchase common shares

 
 

  9,877,776  

 
 

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

 

  Quarterly Results  

 
                                                                                                          
 

(millions of US dollars, except as otherwise noted)

 
 

  Q2 2021  

 
 

Q1 2021

 
 

Q4 2020

 
 

Q3 2020

 
 

Q2 2020

 
 

Q1 2020

 
 

Q4 2019

 
 

Q3 2019

 
 

Sales 1

 
 

  9,763  

 
 

 

 
 

4,658

 
 

 

 
 

4,052

 
 

 

 
 

4,227

 
 

 

 
 

8,431

 
 

 

 
 

4,198

 
 

 

 
 

3,462

 
 

 

 
 

4,185

 
 

Net earnings (loss) attributable to equity holders of Nutrien

 
 

  1,108  

 
 

 

 
 

127

 
 

 

 
 

316

 
 

 

 
 

(587)

 
 

 

 
 

765

 
 

 

 
 

(35)

 
 

 

 
 

(48)

 
 

 

 
 

141

 
 

Adjusted EBITDA

 
 

  2,215  

 
 

 

 
 

806

 
 

 

 
 

768

 
 

 

 
 

670

 
 

 

 
 

1,721

 
 

 

 
 

508

 
 

 

 
 

664

 
 

 

 
 

787

 
 

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

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Basic

 
 

  1.94  

 
 

 

 
 

0.22

 
 

 

 
 

0.55

 
 

 

 
 

(1.03)

 
 

 

 
 

1.34

 
 

 

 
 

(0.06)

 
 

 

 
 

(0.08)

 
 

 

 
 

0.25

 
 

Diluted

 
 

  1.94  

 
 

 

 
 

0.22

 
 

 

 
 

0.55

 
 

 

 
 

(1.03)

 
 

 

 
 

1.34

 
 

 

 
 

(0.06)

 
 

 

 
 

(0.08)

 
 

 

 
 

0.24

 
 

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 $824 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 six months ended June 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 June 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 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; 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, 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, August 10, 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/3792844 .
    •  
    • Via Phone: 1-888-869-1189 Conference ID 3792844.  
    •  
  •  
  • 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-q2-earnings-conference-call  
  •  

  Appendix A - Selected Additional Financial Data  

 
                                                                                                                                                                                                         
 

  Selected Retail measures  

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

  2020  

 
 

 

 
 

  2021  

 
 

 

 
 

  2020  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Crop nutrients  

 
 

  24  

 
 

 

 
 

24

 
 

 

 
 

  23  

 
 

 

 
 

26

 
 

  Crop protection products  

 
 

  43  

 
 

 

 
 

42

 
 

 

 
 

  42  

 
 

 

 
 

42

 
 

  Seed  

 
 

  46  

 
 

 

 
 

47

 
 

 

 
 

  43  

 
 

 

 
 

44

 
 

  All products  

 
 

  29  

 
 

 

 
 

29

 
 

 

 
 

  27  

 
 

 

 
 

28

 
 

  Crop nutrients sales volumes (tonnes - thousands)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  North America  

 
 

  5,020  

 
 

 

 
 

5,098

 
 

 

 
 

  6,617  

 
 

 

 
 

6,524

 
 

  International  

 
 

  1,132  

 
 

 

 
 

1,024

 
 

 

 
 

  1,935  

 
 

 

 
 

1,623

 
 

  Total  

 
 

  6,152  

 
 

 

 
 

6,122

 
 

 

 
 

  8,552  

 
 

 

 
 

8,147

 
 

  Crop nutrients selling price per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  North America  

 
 

  506  

 
 

 

 
 

427

 
 

 

 
 

  494  

 
 

 

 
 

425

 
 

  International  

 
 

  445  

 
 

 

 
 

340

 
 

 

 
 

  408  

 
 

 

 
 

332

 
 

  Total  

 
 

  495  

 
 

 

 
 

413

 
 

 

 
 

  475  

 
 

 

 
 

406

 
 

  Crop nutrients gross margin per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  North America  

 
 

  127  

 
 

 

 
 

101

 
 

 

 
 

  123  

 
 

 

 
 

100

 
 

  International  

 
 

  57  

 
 

 

 
 

42

 
 

 

 
 

  54  

 
 

 

 
 

40

 
 

  Total  

 
 

  114  

 
 

 

 
 

91

 
 

 

 
 

  108  

 
 

 

 
 

88

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Financial performance measures  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

  10  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

  12  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

  -  

 
 

  Retail cash operating coverage ratio (%) 1, 2  

 
 

 

 
 

 

 
 

 

 
 

  60  

 
 

  Retail normalized comparable store sales (%) 2  

 
 

 

 
 

 

 
 

 

 
 

  1  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

  1,267  

 
 

  Nutrien Financial net interest margin (%) 1, 2  

 
 

 

 
 

 

 
 

 

 
 

  6.2  

 
 

  1 Rolling four quarters ended June 30, 2021.  

 
 

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

 
 
                                   
 

  Nutrien Financial  

 
 

  As at June 30, 2021  

 
 

  (millions of US dollars)  

 
 

  Current  

 
 

    past due  

 
 

  31-90 days
  past due  

 
 

  >90 days
  past due  

 
 

  Gross
Receivables
 

 
 

  Allowance 1  

 
 

  Total  

 
 

  North America  

 
 

2,530

 
 

152

 
 

56

 
 

48

 
 

2,786

 
 

(31)

 
 

  2,755  

 
 

  International  

 
 

230

 
 

12

 
 

14

 
 

63

 
 

319

 
 

(2)

 
 

  317  

 
 

  Nutrien Financial receivables  

 
 

2,760

 
 

164

 
 

70

 
 

111

 
 

3,105

 
 

(33)

 
 

  3,072  

 
 

  1 Bad debt expense on the above receivables for the three months ended June 30, 2021 was $11 million (2020 - $12 million) in the Retail segment.  

 
 
                                                                                    
 

  Selected Nitrogen measures  

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

  2020  

 
 

 

 
 

  2021  

 
 

 

 
 

  2020  

 
 

  Sales volumes (tonnes - thousands)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Fertilizer  

 
 

  1,825  

 
 

 

 
 

2,173

 
 

 

 
 

  3,130  

 
 

 

 
 

3,584

 
 

  Industrial and feed  

 
 

  1,141  

 
 

 

 
 

1,017

 
 

 

 
 

  2,239  

 
 

 

 
 

2,134

 
 

  Net sales (millions of US dollars)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Fertilizer  

 
 

  638  

 
 

 

 
 

510

 
 

 

 
 

  970  

 
 

 

 
 

828

 
 

  Industrial and feed  

 
 

  344  

 
 

 

 
 

186

 
 

 

 
 

  585  

 
 

 

 
 

398

 
 

  Net selling price per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Fertilizer  

 
 

  350  

 
 

 

 
 

235

 
 

 

 
 

  310  

 
 

 

 
 

231

 
 

  Industrial and feed  

 
 

  302  

 
 

 

 
 

182

 
 

 

 
 

  261  

 
 

 

 
 

186

 
 
                                                                       
 

  Production measures  

 
 

  Three Months Ended June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

  2020  

 
 

 

 
 

  2021  

 
 

 

 
 

  2020  

 
 

  Potash production (Product tonnes - thousands)  

 
 

  3,414  

 
 

 

 
 

3,346

 
 

 

 
 

  6,950  

 
 

 

 
 

6,381

 
 

  Potash shutdown weeks 1  

 
 

  4  

 
 

 

 
 

22

 
 

 

 
 

  4  

 
 

 

 
 

34

 
 

  Ammonia production - total 2  

 
 

  1,492  

 
 

 

 
 

1,619

 
 

 

 
 

  2,941  

 
 

 

 
 

3,066

 
 

  Ammonia production - adjusted 2, 3  

 
 

  954  

 
 

 

 
 

1,067

 
 

 

 
 

  2,007  

 
 

 

 
 

2,058

 
 

  Ammonia operating rate (%) 3  

 
 

  87  

 
 

 

 
 

97

 
 

 

 
 

  92  

 
 

 

 
 

94

 
 

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

 
 

  347  

 
 

 

 
 

357

 
 

 

 
 

  725  

 
 

 

 
 

729

 
 

  P 2 O 5 operating rate (%)  

 
 

  82  

 
 

 

 
 

84

 
 

 

 
 

  86  

 
 

 

 
 

86

 
 

  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 under 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 June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

(millions of US dollars)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Net earnings

 
 

  1,113  

 
 

 

 
 

765

 
 

 

 
 

  1,246  

 
 

 

 
 

730

 
 

Finance costs

 
 

  125  

 
 

 

 
 

139

 
 

 

 
 

  245  

 
 

 

 
 

272

 
 

Income tax expense

 
 

  381  

 
 

 

 
 

235

 
 

 

 
 

  406  

 
 

 

 
 

219

 
 

Depreciation and amortization

 
 

  485  

 
 

 

 
 

517

 
 

 

 
 

  965  

 
 

 

 
 

990

 
 

EBITDA

 
 

  2,104  

 
 

 

 
 

1,656

 
 

 

 
 

  2,862  

 
 

 

 
 

2,211

 
 

Integration and restructuring related costs

 
 

  29  

 
 

 

 
 

18

 
 

 

 
 

  39  

 
 

 

 
 

28

 
 

Share-based compensation expense (recovery)

 
 

  38  

 
 

 

 
 

12

 
 

 

 
 

  61  

 
 

 

 
 

(20)

 
 

Impairment of assets

 
 

  1  

 
 

 

 
 

-

 
 

 

 
 

  5  

 
 

 

 
 

-

 
 

COVID-19 related expenses

 
 

  9  

 
 

 

 
 

17

 
 

 

 
 

  18  

 
 

 

 
 

19

 
 

Foreign exchange (gain) loss, net of related derivatives

 
 

  (2)  

 
 

 

 
 

18

 
 

 

 
 

  -  

 
 

 

 
 

(9)

 
 

Cloud computing transition adjustment

 
 

  36  

 
 

 

 
 

-

 
 

 

 
 

  36  

 
 

 

 
 

-

 
 

Adjusted EBITDA

 
 

  2,215  

 
 

 

 
 

1,721

 
 

 

 
 

  3,021  

 
 

 

 
 

2,229

 
 

  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 expected 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
  June 30, 2021  

 
 

 

 
 

  Six Months Ended
  June 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

 
 

 

 
 

 

 
 

1,108

 
 

 

 
 

1.94

 
 

 

 
 

 

 
 

 

 
 

1,235

 
 

 

 
 

2.16

 
 

Adjustments:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Integration and restructuring related costs

 
 

29

 
 

 

 
 

22

 
 

 

 
 

0.03

 
 

 

 
 

39

 
 

 

 
 

30

 
 

 

 
 

0.05

 
 

Share-based compensation expense

 
 

38

 
 

 

 
 

29

 
 

 

 
 

0.05

 
 

 

 
 

61

 
 

 

 
 

46

 
 

 

 
 

0.08

 
 

Impairment of assets

 
 

1

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

5

 
 

 

 
 

4

 
 

 

 
 

0.01

 
 

COVID-19 related expenses

 
 

9

 
 

 

 
 

7

 
 

 

 
 

0.01

 
 

 

 
 

18

 
 

 

 
 

14

 
 

 

 
 

0.02

 
 

Foreign exchange gain, net of related derivatives

 
 

(2)

 
 

 

 
 

(2)

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

Cloud computing transition adjustment

 
 

36

 
 

 

 
 

27

 
 

 

 
 

0.05

 
 

 

 
 

36

 
 

 

 
 

27

 
 

 

 
 

0.05

 
 

Adjusted net earnings

 
 

 

 
 

 

 
 

  1,192  

 
 

 

 
 

  2.08  

 
 

 

 
 

 

 
 

 

 
 

  1,356  

 
 

 

 
 

  2.37  

 
 

  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 June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

(millions of US dollars)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Cash from operations before working capital changes

 
 

  1,717  

 
 

 

 
 

1,318

 
 

 

 
 

  2,357  

 
 

 

 
 

1,662

 
 

Sustaining capital expenditures

 
 

  (304)  

 
 

 

 
 

(145)

 
 

 

 
 

  (468)  

 
 

 

 
 

(308)

 
 

Free cash flow

 
 

  1,413  

 
 

 

 
 

1,173

 
 

 

 
 

  1,889  

 
 

 

 
 

1,354

 
 

Changes in non-cash operating working capital

 
 

  249  

 
 

 

 
 

438

 
 

 

 
 

  (543)  

 
 

 

 
 

(432)

 
 

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

 
 

  1,662  

 
 

 

 
 

1,611

 
 

 

 
 

  1,346  

 
 

 

 
 

922

 
 

  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 June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Total COGS - Potash

 
 

  317  

 
 

 

 
 

310

 
 

 

 
 

  608  

 
 

 

 
 

575

 
 

Change in inventory

 
 

  (11)  

 
 

 

 
 

(40)

 
 

 

 
 

  16  

 
 

 

 
 

(32)

 
 

Other adjustments

 
 

  (2)  

 
 

 

 
 

(3)

 
 

 

 
 

  (6)  

 
 

 

 
 

(5)

 
 

COPM

 
 

  304  

 
 

 

 
 

267

 
 

 

 
 

  618  

 
 

 

 
 

538

 
 

Depreciation and amortization included in COPM

 
 

  (103)  

 
 

 

 
 

(92)

 
 

 

 
 

  (214)  

 
 

 

 
 

(181)

 
 

Cash COPM

 
 

  201  

 
 

 

 
 

175

 
 

 

 
 

  404  

 
 

 

 
 

357

 
 

Production tonnes (tonnes - thousands)

 
 

  3,414  

 
 

 

 
 

3,346

 
 

 

 
 

  6,950  

 
 

 

 
 

6,381

 
 

Potash cash COPM per tonne

 
 

  59  

 
 

 

 
 

52

 
 

 

 
 

  58  

 
 

 

 
 

56

 
 

  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 June 30  

 
 

 

 
 

  Six Months Ended June 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Total COGS - Nitrogen

 
 

  763  

 
 

 

 
 

645

 
 

 

 
 

  1,373  

 
 

 

 
 

1,226

 
 

Depreciation and amortization in COGS

 
 

  (134)  

 
 

 

 
 

(152)

 
 

 

 
 

  (242)  

 
 

 

 
 

(282)

 
 

Cash COGS for products other than ammonia

 
 

  (448)  

 
 

 

 
 

(369)

 
 

 

 
 

  (841)  

 
 

 

 
 

(730)

 
 

Ammonia

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Total cash COGS before other adjustments

 
 

  181  

 
 

 

 
 

124

 
 

 

 
 

  290  

 
 

 

 
 

214

 
 

Other adjustments 1

 
 

  (27)  

 
 

 

 
 

(46)

 
 

 

 
 

  (30)  

 
 

 

 
 

(35)

 
 

Total cash COPM

 
 

  154  

 
 

 

 
 

78

 
 

 

 
 

  260  

 
 

 

 
 

179

 
 

Natural gas and steam costs

 
 

  (118)  

 
 

 

 
 

(53)

 
 

 

 
 

  (192)  

 
 

 

 
 

(119)

 
 

Controllable cash COPM

 
 

  36  

 
 

 

 
 

25

 
 

 

 
 

  68  

 
 

 

 
 

60

 
 

Production tonnes (net tonnes 2 - thousands)

 
 

  703  

 
 

 

 
 

644

 
 

 

 
 

  1,305  

 
 

 

 
 

1,388

 
 

Ammonia controllable cash COPM per tonne

 
 

  51  

 
 

 

 
 

40

 
 

 

 
 

  51  

 
 

 

 
 

43

 
 

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 (such as Ruralco) 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 June 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q3 2020  

 
 

 

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Average/Total  

 
 

Working capital

 
 

3,216

 
 

 

 
 

1,157

 
 

 

 
 

1,630

 
 

 

 
 

1,348

 
 

 

 
 

 

 
 

Working capital from certain recent acquisitions

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

 

 
 

Adjusted working capital

 
 

3,216

 
 

 

 
 

1,157

 
 

 

 
 

1,630

 
 

 

 
 

1,348

 
 

 

 
 

  1,838  

 
 

Nutrien Financial working capital

 
 

(1,711)

 
 

 

 
 

(1,392)

 
 

 

 
 

(1,221)

 
 

 

 
 

(3,072)

 
 

 

 
 

 

 
 

Adjusted working capital excluding Nutrien Financial

 
 

1,505

 
 

 

 
 

(235)

 
 

 

 
 

409

 
 

 

 
 

(1,724)

 
 

 

 
 

  (11)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales 1

 
 

2,742

 
 

 

 
 

2,618

 
 

 

 
 

2,972

 
 

 

 
 

7,537

 
 

 

 
 

 

 
 

Sales from certain recent acquisitions

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

 

 
 

Adjusted sales

 
 

2,742

 
 

 

 
 

2,618

 
 

 

 
 

2,972

 
 

 

 
 

7,537

 
 

 

 
 

  15,869  

 
 

Nutrien Financial revenue 1

 
 

(36)

 
 

 

 
 

(37)

 
 

 

 
 

(25)

 
 

 

 
 

(59)

 
 

 

 
 

 

 
 

Adjusted sales excluding Nutrien Financial

 
 

2,706

 
 

 

 
 

2,581

 
 

 

 
 

2,947

 
 

 

 
 

7,478

 
 

 

 
 

  15,712  

 
 

1 Certain immaterial figures have been reclassified for the third quarter of 2020.

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Adjusted average working capital to sales (%)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  12  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

  -  

 
 

  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 June 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q3 2020  

 
 

 

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Total/Average  

 
 

Nutrien Financial revenue

 
 

36

 
 

 

 
 

37

 
 

 

 
 

25

 
 

 

 
 

59

 
 

 

 
 

 

 
 

Deemed interest expense 1

 
 

(15)

 
 

 

 
 

(14)

 
 

 

 
 

(6)

 
 

 

 
 

(8)

 
 

 

 
 

 

 
 

Net interest

 
 

21

 
 

 

 
 

23

 
 

 

 
 

19

 
 

 

 
 

51

 
 

 

 
 

  114  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average Nutrien Financial receivables

 
 

1,711

 
 

 

 
 

1,392

 
 

 

 
 

1,221

 
 

 

 
 

3,072

 
 

 

 
 

  1,849  

 
 

Nutrien Financial net interest margin (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  6.2  

 
 

1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

 
 

  Retail Cash Operating Coverage Ratio  

 

  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 June 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q3 2020  

 
 

 

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Total  

 
 

Operating expenses 1, 2

 
 

691

 
 

 

 
 

768

 
 

 

 
 

721

 
 

 

 
 

938

 
 

 

 
 

  3,118  

 
 

Depreciation and amortization in operating expenses

 
 

(167)

 
 

 

 
 

(177)

 
 

 

 
 

(175)

 
 

 

 
 

(166)

 
 

 

 
 

  (685)  

 
 

Operating expenses excluding depreciation and amortization

 
 

524

 
 

 

 
 

591

 
 

 

 
 

546

 
 

 

 
 

772

 
 

 

 
 

  2,433  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin 2

 
 

683

 
 

 

 
 

885

 
 

 

 
 

652

 
 

 

 
 

1,858

 
 

 

 
 

  4,078  

 
 

Depreciation and amortization in cost of goods sold

 
 

3

 
 

 

 
 

3

 
 

 

 
 

2

 
 

 

 
 

3

 
 

 

 
 

  11  

 
 

Gross margin excluding depreciation and amortization

 
 

686

 
 

 

 
 

888

 
 

 

 
 

654

 
 

 

 
 

1,861

 
 

 

 
 

  4,089  

 
 

Cash operating coverage ratio (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  60  

 
 

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

 
 

2 Certain immaterial figures have been reclassified for the third quarter of 2020.

 
 

  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 June 30, 2021  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q3 2020  

 
 

 

 
 

  Q4 2020  

 
 

 

 
 

  Q1 2021  

 
 

 

 
 

  Q2 2021  

 
 

 

 
 

  Total  

 
 

Adjusted US EBITDA

 
 

86

 
 

 

 
 

177

 
 

 

 
 

29

 
 

 

 
 

847

 
 

 

 
 

  1,139  

 
 

Adjustments for acquisitions

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  (5)  

 
 

Adjusted US EBITDA adjusted for acquisitions

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  1,134  

 
 

Number of US selling locations adjusted for acquisitions

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  895  

 
 

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

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  1,267  

 
 

  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.

 
                               
 

 

 
 

  Six Months Ended June 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2021  

 
 

 

 
 

2020

 
 

Sales from comparable base

 
 

 

 
 

 

 
 

 

 
 

Current period

 
 

  10,405  

 
 

 

 
 

8,602

 
 

Prior period 1

 
 

  9,425  

 
 

 

 
 

8,551

 
 

Comparable store sales (%)

 
 

  10  

 
 

 

 
 

1

 
 

Prior period normalized for benchmark prices and foreign exchange rates 1

 
 

  10,351  

 
 

 

 
 

8,104

 
 

Normalized comparable store sales (%)

 
 

  1  

 
 

 

 
 

6

 
 

1 Certain immaterial figures have been reclassified in 2020.

 
 

  Condensed Consolidated Financial Statements  

 

  Unaudited in millions of US dollars except as otherwise noted  

 

  Condensed Consolidated Statements of Earnings  

 
                                                                                                                                                                                                                                                    
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

 

 
 

Note

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

  SALES  

 
 

2

 
 

  9,763  

 
 

 

 
 

8,431

 
 

 

 
 

  14,421  

 
 

 

 
 

12,629

 
 

Freight, transportation and distribution

 
 

 

 
 

  222  

 
 

 

 
 

237

 
 

 

 
 

  433  

 
 

 

 
 

449

 
 

Cost of goods sold

 
 

 

 
 

  6,659  

 
 

 

 
 

6,024

 
 

 

 
 

  9,950  

 
 

 

 
 

9,125

 
 

  GROSS MARGIN  

 
 

 

 
 

  2,882  

 
 

 

 
 

2,170

 
 

 

 
 

  4,038  

 
 

 

 
 

3,055

 
 

Selling expenses

 
 

 

 
 

  865  

 
 

 

 
 

763

 
 

 

 
 

  1,538  

 
 

 

 
 

1,405

 
 

General and administrative expenses

 
 

 

 
 

  116  

 
 

 

 
 

101

 
 

 

 
 

  219  

 
 

 

 
 

205

 
 

Provincial mining taxes

 
 

 

 
 

  107  

 
 

 

 
 

48

 
 

 

 
 

  165  

 
 

 

 
 

105

 
 

Share-based compensation expense (recovery)

 
 

 

 
 

  38  

 
 

 

 
 

12

 
 

 

 
 

  61  

 
 

 

 
 

(20)

 
 

Other expenses

 
 

3

 
 

  137  

 
 

 

 
 

107

 
 

 

 
 

  158  

 
 

 

 
 

139

 
 

  EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES  

 
 

  1,619  

 
 

 

 
 

1,139

 
 

 

 
 

  1,897  

 
 

 

 
 

1,221

 
 

Finance costs

 
 

 

 
 

  125  

 
 

 

 
 

139

 
 

 

 
 

  245  

 
 

 

 
 

272

 
 

  EARNINGS BEFORE INCOME TAXES  

 
 

 

 
 

  1,494  

 
 

 

 
 

1,000

 
 

 

 
 

  1,652  

 
 

 

 
 

949

 
 

Income tax expense

 
 

4

 
 

  381  

 
 

 

 
 

235

 
 

 

 
 

  406  

 
 

 

 
 

219

 
 

  NET EARNINGS  

 
 

 

 
 

  1,113  

 
 

 

 
 

765

 
 

 

 
 

  1,246  

 
 

 

 
 

730

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

 

 
 

  1,108  

 
 

 

 
 

765

 
 

 

 
 

  1,235  

 
 

 

 
 

730

 
 

Non-controlling interest

 
 

 

 
 

  5  

 
 

 

 
 

-

 
 

 

 
 

  11  

 
 

 

 
 

-

 
 

  NET EARNINGS  

 
 

 

 
 

  1,113  

 
 

 

 
 

765

 
 

 

 
 

  1,246  

 
 

 

 
 

730

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

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

 
 

Basic

 
 

 

 
 

  1.94  

 
 

 

 
 

1.34

 
 

 

 
 

  2.17  

 
 

 

 
 

1.28

 
 

Diluted

 
 

 

 
 

  1.94  

 
 

 

 
 

1.34

 
 

 

 
 

  2.16  

 
 

 

 
 

1.28

 
 

Weighted average shares outstanding for basic EPS

 
 

 

 
 

  570,352,000  

 
 

 

 
 

569,146,000

 
 

 

 
 

  570,007,000  

 
 

 

 
 

570,157,000

 
 

Weighted average shares outstanding for diluted EPS

 
 

 

 
 

  571,972,000  

 
 

 

 
 

569,146,000

 
 

 

 
 

  571,453,000  

 
 

 

 
 

570,157,000

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Condensed Consolidated Statements of Comprehensive Income  

 
                                                                                                                                                 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

(Net of related income taxes)

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

  NET EARNINGS  

 
 

  1,113  

 
 

 

 
 

765

 
 

 

 
 

  1,246  

 
 

 

 
 

730

 
 

Other comprehensive income (loss)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Items that will not be reclassified to net earnings:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net actuarial gain on defined benefit plans

 
 

  -  

 
 

 

 
 

-

 
 

 

 
 

  -  

 
 

 

 
 

3

 
 

Net fair value gain (loss) on investments

 
 

  22  

 
 

 

 
 

(2)

 
 

 

 
 

  70  

 
 

 

 
 

(21)

 
 

Items that have been or may be subsequently reclassified to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

net earnings:

 
 

Gain (loss) on currency translation of foreign operations

 
 

  25  

 
 

 

 
 

194

 
 

 

 
 

  (5)  

 
 

 

 
 

(121)

 
 

Other

 
 

  14  

 
 

 

 
 

9

 
 

 

 
 

  20  

 
 

 

 
 

(18)

 
 

  OTHER COMPREHENSIVE INCOME (LOSS)  

 
 

  61  

 
 

 

 
 

201

 
 

 

 
 

  85  

 
 

 

 
 

(157)

 
 

  COMPREHENSIVE INCOME  

 
 

  1,174  

 
 

 

 
 

966

 
 

 

 
 

  1,331  

 
 

 

 
 

573

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

  1,170  

 
 

 

 
 

966

 
 

 

 
 

  1,321  

 
 

 

 
 

573

 
 

Non-controlling interest

 
 

  4  

 
 

 

 
 

-

 
 

 

 
 

  10  

 
 

 

 
 

-

 
 

  COMPREHENSIVE INCOME  

 
 

  1,174  

 
 

 

 
 

966

 
 

 

 
 

  1,331  

 
 

 

 
 

573

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Cash Flows  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

 

 
 

Note

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  OPERATING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net earnings

 
 

 

 
 

  1,113  

 
 

 

 
 

765

 
 

 

 
 

  1,246  

 
 

 

 
 

730

 
 

Adjustments for:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  485  

 
 

 

 
 

517

 
 

 

 
 

  965  

 
 

 

 
 

990

 
 

Share-based compensation expense (recovery)

 
 

 

 
 

  38  

 
 

 

 
 

12

 
 

 

 
 

  61  

 
 

 

 
 

(20)

 
 

Impairment of assets

 
 

 

 
 

  1  

 
 

 

 
 

-

 
 

 

 
 

  5  

 
 

 

 
 

-

 
 

(Recovery of) provision for deferred income tax

 
 

 

 
 

  (20)  

 
 

 

 
 

84

 
 

 

 
 

  (10)  

 
 

 

 
 

62

 
 

Cloud computing transition adjustment

 
 

3

 
 

  36  

 
 

 

 
 

-

 
 

 

 
 

  36  

 
 

 

 
 

-

 
 

Other long-term assets, liabilities and miscellaneous

 
 

 

 
 

  64  

 
 

 

 
 

(60)

 
 

 

 
 

  54  

 
 

 

 
 

(100)

 
 

Cash from operations before working capital changes

 
 

 

 
 

  1,717  

 
 

 

 
 

1,318

 
 

 

 
 

  2,357  

 
 

 

 
 

1,662

 
 

Changes in non-cash operating working capital:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Receivables

 
 

 

 
 

  (2,443)  

 
 

 

 
 

(1,824)

 
 

 

 
 

  (2,835)  

 
 

 

 
 

(2,147)

 
 

Inventories

 
 

 

 
 

  1,848  

 
 

 

 
 

2,174

 
 

 

 
 

  63  

 
 

 

 
 

746

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  310  

 
 

 

 
 

247

 
 

 

 
 

  998  

 
 

 

 
 

1,013

 
 

Payables and accrued charges

 
 

 

 
 

  534  

 
 

 

 
 

(159)

 
 

 

 
 

  1,231  

 
 

 

 
 

(44)

 
 

  CASH PROVIDED BY OPERATING ACTIVITIES  

 
 

 

 
 

  1,966  

 
 

 

 
 

1,756

 
 

 

 
 

  1,814  

 
 

 

 
 

1,230

 
 

  INVESTING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Additions to property, plant and equipment

 
 

 

 
 

  (378)  

 
 

 

 
 

(298)

 
 

 

 
 

  (703)  

 
 

 

 
 

(661)

 
 

Additions to intangible assets

 
 

 

 
 

  (5)  

 
 

 

 
 

(36)

 
 

 

 
 

  (38)  

 
 

 

 
 

(68)

 
 

Business acquisitions, net of cash acquired

 
 

 

 
 

  (19)  

 
 

 

 
 

(116)

 
 

 

 
 

  (40)  

 
 

 

 
 

(173)

 
 

Other

 
 

 

 
 

  (29)  

 
 

 

 
 

42

 
 

 

 
 

  (38)  

 
 

 

 
 

49

 
 

  CASH USED IN INVESTING ACTIVITIES  

 
 

 

 
 

  (431)  

 
 

 

 
 

(408)

 
 

 

 
 

  (819)  

 
 

 

 
 

(853)

 
 

  FINANCING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Transaction costs related to debt

 
 

 

 
 

  (7)  

 
 

 

 
 

(15)

 
 

 

 
 

  (7)  

 
 

 

 
 

(15)

 
 

(Repayment of) proceeds from short-term debt, net

 
 

 

 
 

  (104)  

 
 

 

 
 

(4,290)

 
 

 

 
 

  (3)  

 
 

 

 
 

204

 
 

Proceeds from long-term debt

 
 

 

 
 

  8  

 
 

 

 
 

1,500

 
 

 

 
 

  8  

 
 

 

 
 

1,506

 
 

Repayment of long-term debt

 
 

 

 
 

  (5)  

 
 

 

 
 

(6)

 
 

 

 
 

  (5)  

 
 

 

 
 

(507)

 
 

Repayment of principal portion of lease liabilities

 
 

 

 
 

  (86)  

 
 

 

 
 

(70)

 
 

 

 
 

  (164)  

 
 

 

 
 

(134)

 
 

Dividends paid to Nutrien's shareholders

 
 

6

 
 

  (263)  

 
 

 

 
 

(258)

 
 

 

 
 

  (518)  

 
 

 

 
 

(514)

 
 

Repurchase of common shares

 
 

6

 
 

  (1)  

 
 

 

 
 

-

 
 

 

 
 

  (2)  

 
 

 

 
 

(160)

 
 

Issuance of common shares

 
 

 

 
 

  21  

 
 

 

 
 

-

 
 

 

 
 

  63  

 
 

 

 
 

-

 
 

Other

 
 

 

 
 

  (12)  

 
 

 

 
 

-

 
 

 

 
 

  (12)  

 
 

 

 
 

-

 
 

  CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES  

 
 

 

 
 

  (449)  

 
 

 

 
 

(3,139)

 
 

 

 
 

  (640)  

 
 

 

 
 

380

 
 

  EFFECT OF EXCHANGE RATE CHANGES ON CASH AND   CASH EQUIVALENTS  

 
 

 

 
 

  (4)  

 
 

 

 
 

24

 
 

 

 
 

  (15)  

 
 

 

 
 

(13)

 
 

  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  

 
 

 

 
 

  1,082  

 
 

 

 
 

(1,767)

 
 

 

 
 

  340  

 
 

 

 
 

744

 
 

  CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD  

 
 

 

 
 

  712  

 
 

 

 
 

3,182

 
 

 

 
 

  1,454  

 
 

 

 
 

671

 
 

  CASH AND CASH EQUIVALENTS – END OF PERIOD  

 
 

 

 
 

  1,794  

 
 

 

 
 

1,415

 
 

 

 
 

  1,794  

 
 

 

 
 

1,415

 
 

Cash and cash equivalents comprised of:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash

 
 

 

 
 

  1,580  

 
 

 

 
 

1,106

 
 

 

 
 

  1,580  

 
 

 

 
 

1,106

 
 

Short-term investments

 
 

 

 
 

  214  

 
 

 

 
 

309

 
 

 

 
 

  214  

 
 

 

 
 

309

 
 

 

 
 

 

 
 

  1,794  

 
 

 

 
 

1,415

 
 

 

 
 

  1,794  

 
 

 

 
 

1,415

 
 

  SUPPLEMENTAL CASH FLOWS INFORMATION  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Interest paid

 
 

 

 
 

  86  

 
 

 

 
 

153

 
 

 

 
 

  162  

 
 

 

 
 

249

 
 

Income taxes paid

 
 

 

 
 

  105  

 
 

 

 
 

30

 
 

 

 
 

  144  

 
 

 

 
 

65

 
 

Total cash outflow for leases

 
 

 

 
 

  111  

 
 

 

 
 

96

 
 

 

 
 

  208  

 
 

 

 
 

188

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(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

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

730

 
 

 

 
 

730

 
 

 

 
 

-

 
 

 

 
 

730

 
 

Other comprehensive (loss) income

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

(21)

 
 

 

 
 

3

 
 

 

 
 

(121)

 
 

 

 
 

(18)

 
 

 

 
 

(157)

 
 

 

 
 

-

 
 

 

 
 

(157)

 
 

 

 
 

-

 
 

 

 
 

(157)

 
 

Shares repurchased (Note 6)

 
 

(3,832,580)

 
 

 

 
 

(105)

 
 

 

 
 

(55)

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

(160)

 
 

 

 
 

-

 
 

 

 
 

(160)

 
 

Dividends declared

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

(514)

 
 

 

 
 

(514)

 
 

 

 
 

-

 
 

 

 
 

(514)

 
 

Effect of share-based

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

compensation including

 
 

issuance of common shares

 
 

35,706

 
 

1

 
 

7

 
 

-

 
 

-

 
 

-

 
 

-

 
 

-

 
 

-

 
 

8

 
 

-

 
 

8

 
 

Transfer of net loss on

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

cash flow hedges

 
 

-

 
 

-

 
 

-

 
 

-

 
 

-

 
 

-

 
 

11

 
 

11

 
 

-

 
 

11

 
 

-

 
 

11

 
 

Transfer of net actuarial gain

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

on defined benefit plans

 
 

-

 
 

-

 
 

-

 
 

-

 
 

(3)

 
 

-

 
 

-

 
 

(3)

 
 

3

 
 

-

 
 

-

 
 

-

 
 

  BALANCE – JUNE 30, 2020  

 
 

569,145,935

 
 

 

 
 

15,667

 
 

 

 
 

200

 
 

 

 
 

(50)

 
 

 

 
 

-

 
 

 

 
 

(325)

 
 

 

 
 

(25)

 
 

 

 
 

(400)

 
 

 

 
 

7,320

 
 

 

 
 

22,787

 
 

 

 
 

38

 
 

 

 
 

22,825

 
 

  BALANCE – DECEMBER 31, 2020  

 
 

  569,260,406  

 
 

 

 
 

  15,673  

 
 

 

 
 

  205  

 
 

 

 
 

  (36)  

 
 

 

 
 

  -  

 
 

 

 
 

  (62)  

 
 

 

 
 

  (21)  

 
 

 

 
 

  (119)  

 
 

 

 
 

  6,606  

 
 

 

 
 

  22,365  

 
 

 

 
 

  38  

 
 

 

 
 

  22,403  

 
 

Net earnings

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  1,235  

 
 

 

 
 

  1,235  

 
 

 

 
 

  11  

 
 

 

 
 

  1,246  

 
 

Other comprehensive income (loss)

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  70  

 
 

 

 
 

  -  

 
 

 

 
 

  (4)  

 
 

 

 
 

  20  

 
 

 

 
 

  86  

 
 

 

 
 

  -  

 
 

 

 
 

  86  

 
 

 

 
 

  (1)  

 
 

 

 
 

  85  

 
 

Shares repurchased (Note 6)

 
 

  (32,728)  

 
 

 

 
 

  (1)  

 
 

 

 
 

  (1)  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  (2)  

 
 

 

 
 

  -  

 
 

 

 
 

  (2)  

 
 

Dividends declared

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  (526)  

 
 

 

 
 

  (526)  

 
 

 

 
 

  -  

 
 

 

 
 

  (526)  

 
 

Non-controlling interest transactions

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  (12)  

 
 

 

 
 

  (12)  

 
 

Effect of share-based

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

compensation including

 
 

issuance of common shares

 
 

  -  

 
 

  74  

 
 

  (3)  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  71  

 
 

  -  

 
 

  71  

 
 

Transfer of net gain on cash flow hedges

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  (11)  

 
 

 

 
 

  (11)  

 
 

 

 
 

  -  

 
 

 

 
 

  (11)  

 
 

 

 
 

  -  

 
 

 

 
 

  (11)  

 
 

  BALANCE – JUNE 30, 2021  

 
 

  569,227,678  

 
 

 

 
 

  15,746  

 
 

 

 
 

  201  

 
 

 

 
 

  34  

 
 

 

 
 

  -  

 
 

 

 
 

  (66)  

 
 

 

 
 

  (12)  

 
 

 

 
 

  (44)  

 
 

 

 
 

  7,315  

 
 

 

 
 

  23,218  

 
 

 

 
 

  36  

 
 

 

 
 

  23,254  

 
 

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  

 
                                                                                                                                                                                                                                                                                                     
 

 

 
 

 

 
 

  June 30  

 
 

 

 
 

December 31

 
 

As at

 
 

Note

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

 

 
 

Note 1

 
 

  ASSETS  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

 

 
 

  1,794  

 
 

 

 
 

1,415

 
 

 

 
 

1,454

 
 

Receivables

 
 

 

 
 

  6,683  

 
 

 

 
 

5,736

 
 

 

 
 

3,626

 
 

Inventories

 
 

 

 
 

  4,876  

 
 

 

 
 

4,199

 
 

 

 
 

4,930

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  524  

 
 

 

 
 

420

 
 

 

 
 

1,460

 
 

 

 
 

 

 
 

  13,877  

 
 

 

 
 

11,770

 
 

 

 
 

11,470

 
 

Non-current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Property, plant and equipment

 
 

 

 
 

  19,592  

 
 

 

 
 

20,178

 
 

 

 
 

19,660

 
 

Goodwill

 
 

 

 
 

  12,211  

 
 

 

 
 

12,096

 
 

 

 
 

12,198

 
 

Other intangible assets

 
 

 

 
 

  2,393  

 
 

 

 
 

2,376

 
 

 

 
 

2,388

 
 

Investments

 
 

 

 
 

  619  

 
 

 

 
 

803

 
 

 

 
 

562

 
 

Other assets

 
 

 

 
 

  664  

 
 

 

 
 

578

 
 

 

 
 

914

 
 

  TOTAL ASSETS  

 
 

 

 
 

  49,356  

 
 

 

 
 

47,801

 
 

 

 
 

47,192

 
 

  LIABILITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Short-term debt

 
 

 

 
 

  210  

 
 

 

 
 

1,247

 
 

 

 
 

159

 
 

Current portion of long-term debt

 
 

 

 
 

  32  

 
 

 

 
 

-

 
 

 

 
 

14

 
 

Current portion of lease liabilities

 
 

 

 
 

  276  

 
 

 

 
 

228

 
 

 

 
 

249

 
 

Payables and accrued charges

 
 

 

 
 

  9,367  

 
 

 

 
 

7,306

 
 

 

 
 

8,058

 
 

 

 
 

 

 
 

  9,885  

 
 

 

 
 

8,781

 
 

 

 
 

8,480

 
 

Non-current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Long-term debt

 
 

 

 
 

  10,029  

 
 

 

 
 

10,032

 
 

 

 
 

10,047

 
 

Lease liabilities

 
 

 

 
 

  900  

 
 

 

 
 

841

 
 

 

 
 

891

 
 

Deferred income tax liabilities

 
 

4

 
 

  3,118  

 
 

 

 
 

3,212

 
 

 

 
 

3,149

 
 

Pension and other post-retirement benefit liabilities

 
 

 

 
 

  458  

 
 

 

 
 

435

 
 

 

 
 

454

 
 

Asset retirement obligations and accrued environmental costs

 
 

 

 
 

  1,559  

 
 

 

 
 

1,575

 
 

 

 
 

1,597

 
 

Other non-current liabilities

 
 

 

 
 

  153  

 
 

 

 
 

100

 
 

 

 
 

171

 
 

  TOTAL LIABILITIES  

 
 

 

 
 

  26,102  

 
 

 

 
 

24,976

 
 

 

 
 

24,789

 
 

  SHAREHOLDERS' EQUITY  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share capital

 
 

6

 
 

  15,746  

 
 

 

 
 

15,667

 
 

 

 
 

15,673

 
 

Contributed surplus

 
 

 

 
 

  201  

 
 

 

 
 

200

 
 

 

 
 

205

 
 

Accumulated other comprehensive loss

 
 

 

 
 

  (44)  

 
 

 

 
 

(400)

 
 

 

 
 

(119)

 
 

Retained earnings

 
 

 

 
 

  7,315  

 
 

 

 
 

7,320

 
 

 

 
 

6,606

 
 

Equity holders of Nutrien

 
 

 

 
 

  23,218  

 
 

 

 
 

22,787

 
 

 

 
 

22,365

 
 

Non-controlling interest

 
 

 

 
 

  36  

 
 

 

 
 

38

 
 

 

 
 

38

 
 

  TOTAL SHAREHOLDERS' EQUITY  

 
 

 

 
 

  23,254  

 
 

 

 
 

22,825

 
 

 

 
 

22,403

 
 

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  

 
 

 

 
 

  49,356  

 
 

 

 
 

47,801

 
 

 

 
 

47,192

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Notes to the Condensed Consolidated Financial Statements  

 

  As at and for the Three and Six Months Ended June 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 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 August 9, 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 June 30, 2021  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

  Sales  

 
 

  – third party  

 
 

  7,522  

 
 

 

 
 

  844  

 
 

 

 
 

  1,008  

 
 

 

 
 

  389  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  9,763  

 
 

 

 
 

  – intersegment  

 
 

  15  

 
 

 

 
 

  61  

 
 

 

 
 

  307  

 
 

 

 
 

  60  

 
 

 

 
 

  -  

 
 

 

 
 

  (443)  

 
 

 

 
 

  -  

 
 

  Sales  

 
 

  – total  

 
 

  7,537  

 
 

 

 
 

  905  

 
 

 

 
 

  1,315  

 
 

 

 
 

  449  

 
 

 

 
 

  -  

 
 

 

 
 

  (443)  

 
 

 

 
 

  9,763  

 
 

  Freight, transportation and distribution  

 
 

  -  

 
 

 

 
 

  88  

 
 

 

 
 

  136  

 
 

 

 
 

  46  

 
 

 

 
 

  -  

 
 

 

 
 

  (48)  

 
 

 

 
 

  222  

 
 

  Net sales  

 
 

  7,537  

 
 

 

 
 

  817  

 
 

 

 
 

  1,179  

 
 

 

 
 

  403  

 
 

 

 
 

  -  

 
 

 

 
 

  (395)  

 
 

 

 
 

  9,541  

 
 

  Cost of goods sold  

 
 

  5,679  

 
 

 

 
 

  317  

 
 

 

 
 

  763  

 
 

 

 
 

  319  

 
 

 

 
 

  -  

 
 

 

 
 

  (419)  

 
 

 

 
 

  6,659  

 
 

  Gross margin  

 
 

  1,858  

 
 

 

 
 

  500  

 
 

 

 
 

  416  

 
 

 

 
 

  84  

 
 

 

 
 

  -  

 
 

 

 
 

  24  

 
 

 

 
 

  2,882  

 
 

  Selling expenses  

 
 

  863  

 
 

 

 
 

  2  

 
 

 

 
 

  8  

 
 

 

 
 

  1  

 
 

 

 
 

  (9)  

 
 

 

 
 

  -  

 
 

 

 
 

  865  

 
 

  General and administrative expenses  

 
 

  41  

 
 

 

 
 

  3  

 
 

 

 
 

  3  

 
 

 

 
 

  3  

 
 

 

 
 

  66  

 
 

 

 
 

  -  

 
 

 

 
 

  116  

 
 

  Provincial mining taxes  

 
 

  -  

 
 

 

 
 

  107  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  107  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  38  

 
 

 

 
 

  -  

 
 

 

 
 

  38  

 
 

  Other expenses  

 
 

  34  

 
 

 

 
 

  11  

 
 

 

 
 

  6  

 
 

 

 
 

  3  

 
 

 

 
 

  83  

 
 

 

 
 

  -  

 
 

 

 
 

  137  

 
 

  Earnings (loss) before finance costs and  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  income taxes  

 
 

  920  

 
 

  377  

 
 

  399  

 
 

  77  

 
 

  (178)  

 
 

  24  

 
 

  1,619  

 
 

  Depreciation and amortization  

 
 

  169  

 
 

 

 
 

  116  

 
 

 

 
 

  155  

 
 

 

 
 

  35  

 
 

 

 
 

  10  

 
 

 

 
 

  -  

 
 

 

 
 

  485  

 
 

  EBITDA  

 
 

  1,089  

 
 

 

 
 

  493  

 
 

 

 
 

  554  

 
 

 

 
 

  112  

 
 

 

 
 

  (168)  

 
 

 

 
 

  24  

 
 

 

 
 

  2,104  

 
 

  Integration and restructuring related costs  

 
 

  7  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  22  

 
 

 

 
 

  -  

 
 

 

 
 

  29  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  38  

 
 

 

 
 

  -  

 
 

 

 
 

  38  

 
 

  Impairment of assets  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  1  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  1  

 
 

  COVID-19 related expenses  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  9  

 
 

 

 
 

  -  

 
 

 

 
 

  9  

 
 

  Foreign exchange gain, net of  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  related derivatives  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  (2)  

 
 

  -  

 
 

  (2)  

 
 

  Cloud computing transition adjustment  

 
 

  1  

 
 

 

 
 

  2  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  33  

 
 

 

 
 

  -  

 
 

 

 
 

  36  

 
 

  Adjusted EBITDA  

 
 

  1,097  

 
 

 

 
 

  495  

 
 

 

 
 

  555  

 
 

 

 
 

  112  

 
 

 

 
 

  (68)  

 
 

 

 
 

  24  

 
 

 

 
 

  2,215  

 
 

  Assets – at June 30, 2021  

 
 

  21,784  

 
 

 

 
 

  12,107  

 
 

 

 
 

  10,266  

 
 

 

 
 

  1,454  

 
 

 

 
 

  4,414  

 
 

 

 
 

  (669)  

 
 

 

 
 

  49,356  

 
 
                                                                                                                                                                                                                                                                                                                                                                       
 

 

 
 

 

 
 

Three Months Ended June 30, 2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
 

6,754

 
 

 

 
 

617

 
 

 

 
 

755

 
 

 

 
 

285

 
 

 

 
 

20

 
 

 

 
 

-

 
 

 

 
 

8,431

 
 

 

 
 

– intersegment

 
 

10

 
 

 

 
 

64

 
 

 

 
 

246

 
 

 

 
 

49

 
 

 

 
 

-

 
 

 

 
 

(369)

 
 

 

 
 

-

 
 

Sales

 
 

– total

 
 

6,764

 
 

 

 
 

681

 
 

 

 
 

1,001

 
 

 

 
 

334

 
 

 

 
 

20

 
 

 

 
 

(369)

 
 

 

 
 

8,431

 
 

Freight, transportation and distribution

 
 

-

 
 

 

 
 

93

 
 

 

 
 

148

 
 

 

 
 

57

 
 

 

 
 

-

 
 

 

 
 

(61)

 
 

 

 
 

237

 
 

Net sales

 
 

6,764

 
 

 

 
 

588

 
 

 

 
 

853

 
 

 

 
 

277

 
 

 

 
 

20

 
 

 

 
 

(308)

 
 

 

 
 

8,194

 
 

Cost of goods sold

 
 

5,137

 
 

 

 
 

310

 
 

 

 
 

645

 
 

 

 
 

249

 
 

 

 
 

18

 
 

 

 
 

(335)

 
 

 

 
 

6,024

 
 

Gross margin

 
 

1,627

 
 

 

 
 

278

 
 

 

 
 

208

 
 

 

 
 

28

 
 

 

 
 

2

 
 

 

 
 

27

 
 

 

 
 

2,170

 
 

Selling expenses

 
 

764

 
 

 

 
 

1

 
 

 

 
 

5

 
 

 

 
 

1

 
 

 

 
 

(8)

 
 

 

 
 

-

 
 

 

 
 

763

 
 

General and administrative expenses

 
 

30

 
 

 

 
 

1

 
 

 

 
 

2

 
 

 

 
 

3

 
 

 

 
 

65

 
 

 

 
 

-

 
 

 

 
 

101

 
 

Provincial mining taxes

 
 

-

 
 

 

 
 

46

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

48

 
 

Share-based compensation expense

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

12

 
 

 

 
 

-

 
 

 

 
 

12

 
 

Other expenses (income)

 
 

32

 
 

 

 
 

4

 
 

 

 
 

(11)

 
 

 

 
 

3

 
 

 

 
 

79

 
 

 

 
 

-

 
 

 

 
 

107

 
 

Earnings (loss) before finance costs and

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

income taxes

 
 

801

 
 

226

 
 

211

 
 

21

 
 

(147)

 
 

27

 
 

1,139

 
 

Depreciation and amortization

 
 

163

 
 

 

 
 

109

 
 

 

 
 

172

 
 

 

 
 

56

 
 

 

 
 

17

 
 

 

 
 

-

 
 

 

 
 

517

 
 

EBITDA

 
 

964

 
 

 

 
 

335

 
 

 

 
 

383

 
 

 

 
 

77

 
 

 

 
 

(130)

 
 

 

 
 

27

 
 

 

 
 

1,656

 
 

Integration and restructuring related costs

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

18

 
 

 

 
 

-

 
 

 

 
 

18

 
 

Share-based compensation expense

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

12

 
 

 

 
 

-

 
 

 

 
 

12

 
 

COVID-19 related expenses

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

17

 
 

 

 
 

-

 
 

 

 
 

17

 
 

Foreign exchange loss, net of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

related derivatives

 
 

-

 
 

-

 
 

-

 
 

-

 
 

18

 
 

-

 
 

18

 
 

Adjusted EBITDA

 
 

964

 
 

 

 
 

335

 
 

 

 
 

383

 
 

 

 
 

77

 
 

 

 
 

(65)

 
 

 

 
 

27

 
 

 

 
 

1,721

 
 

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.

 
 
                                                                                                                                                                                                                                                                                                                                                                      
 

 

 
 

 

 
 

  Six Months Ended June 30, 2021  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

  Sales  

 
 

  – third party  

 
 

  10,482  

 
 

 

 
 

  1,475  

 
 

 

 
 

  1,703  

 
 

 

 
 

  761  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  14,421  

 
 

 

 
 

  – intersegment  

 
 

  27  

 
 

 

 
 

  151  

 
 

 

 
 

  467  

 
 

 

 
 

  132  

 
 

 

 
 

  -  

 
 

 

 
 

  (777)  

 
 

 

 
 

  -  

 
 

  Sales  

 
 

  – total  

 
 

  10,509  

 
 

 

 
 

  1,626  

 
 

 

 
 

  2,170  

 
 

 

 
 

  893  

 
 

 

 
 

  -  

 
 

 

 
 

  (777)  

 
 

 

 
 

  14,421  

 
 

  Freight, transportation and distribution  

 
 

  -  

 
 

 

 
 

  198  

 
 

 

 
 

  231  

 
 

 

 
 

  105  

 
 

 

 
 

  -  

 
 

 

 
 

  (101)  

 
 

 

 
 

  433  

 
 

  Net sales  

 
 

  10,509  

 
 

 

 
 

  1,428  

 
 

 

 
 

  1,939  

 
 

 

 
 

  788  

 
 

 

 
 

  -  

 
 

 

 
 

  (676)  

 
 

 

 
 

  13,988  

 
 

  Cost of goods sold  

 
 

  7,999  

 
 

 

 
 

  608  

 
 

 

 
 

  1,373  

 
 

 

 
 

  638  

 
 

 

 
 

  -  

 
 

 

 
 

  (668)  

 
 

 

 
 

  9,950  

 
 

  Gross margin  

 
 

  2,510  

 
 

 

 
 

  820  

 
 

 

 
 

  566  

 
 

 

 
 

  150  

 
 

 

 
 

  -  

 
 

 

 
 

  (8)  

 
 

 

 
 

  4,038  

 
 

  Selling expenses  

 
 

  1,530  

 
 

 

 
 

  5  

 
 

 

 
 

  15  

 
 

 

 
 

  3  

 
 

 

 
 

  (15)  

 
 

 

 
 

  -  

 
 

 

 
 

  1,538  

 
 

  General and administrative expenses  

 
 

  80  

 
 

 

 
 

  5  

 
 

 

 
 

  5  

 
 

 

 
 

  5  

 
 

 

 
 

  124  

 
 

 

 
 

  -  

 
 

 

 
 

  219  

 
 

  Provincial mining taxes  

 
 

  -  

 
 

 

 
 

  165  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  165  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  61  

 
 

 

 
 

  -  

 
 

 

 
 

  61  

 
 

  Other expenses (income)  

 
 

  49  

 
 

 

 
 

  12  

 
 

 

 
 

  (20)  

 
 

 

 
 

  6  

 
 

 

 
 

  111  

 
 

 

 
 

  -  

 
 

 

 
 

  158  

 
 

  Earnings (loss) before finance costs and  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  income taxes  

 
 

  851  

 
 

  633  

 
 

  566  

 
 

  136  

 
 

  (281)  

 
 

  (8)  

 
 

  1,897  

 
 

  Depreciation and amortization  

 
 

  346  

 
 

 

 
 

  240  

 
 

 

 
 

  284  

 
 

 

 
 

  73  

 
 

 

 
 

  22  

 
 

 

 
 

  -  

 
 

 

 
 

  965  

 
 

  EBITDA  

 
 

  1,197  

 
 

 

 
 

  873  

 
 

 

 
 

  850  

 
 

 

 
 

  209  

 
 

 

 
 

  (259)  

 
 

 

 
 

  (8)  

 
 

 

 
 

  2,862  

 
 

  Integration and restructuring related costs  

 
 

  8  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  31  

 
 

 

 
 

  -  

 
 

 

 
 

  39  

 
 

  Share-based compensation expense  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  61  

 
 

 

 
 

  -  

 
 

 

 
 

  61  

 
 

  Impairment of assets  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  5  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  5  

 
 

  COVID-19 related expenses  

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  18  

 
 

 

 
 

  -  

 
 

 

 
 

  18  

 
 

  Cloud computing transition adjustment  

 
 

  1  

 
 

 

 
 

  2  

 
 

 

 
 

  -  

 
 

 

 
 

  -  

 
 

 

 
 

  33  

 
 

 

 
 

  -  

 
 

 

 
 

  36  

 
 

  Adjusted EBITDA  

 
 

  1,206  

 
 

 

 
 

  875  

 
 

 

 
 

  855  

 
 

 

 
 

  209  

 
 

 

 
 

  (116)  

 
 

 

 
 

  (8)  

 
 

 

 
 

  3,021  

 
 

  Assets – at June 30, 2021  

 
 

  21,784  

 
 

 

 
 

  12,107  

 
 

 

 
 

  10,266  

 
 

 

 
 

  1,454  

 
 

 

 
 

  4,414  

 
 

 

 
 

  (669)  

 
 

 

 
 

  49,356  

 
 
                                                                                                                                                                                                                                                                                                                                                                      
 

 

 
 

 

 
 

Six Months Ended June 30, 2020

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
 

9,406

 
 

 

 
 

1,164

 
 

 

 
 

1,401

 
 

 

 
 

611

 
 

 

 
 

47

 
 

 

 
 

-

 
 

 

 
 

12,629

 
 

 

 
 

– intersegment

 
 

19

 
 

 

 
 

128

 
 

 

 
 

378

 
 

 

 
 

106

 
 

 

 
 

-

 
 

 

 
 

(631)

 
 

 

 
 

-

 
 

Sales

 
 

– total

 
 

9,425

 
 

 

 
 

1,292

 
 

 

 
 

1,779

 
 

 

 
 

717

 
 

 

 
 

47

 
 

 

 
 

(631)

 
 

 

 
 

12,629

 
 

Freight, transportation and distribution

 
 

-

 
 

 

 
 

187

 
 

 

 
 

248

 
 

 

 
 

127

 
 

 

 
 

-

 
 

 

 
 

(113)

 
 

 

 
 

449

 
 

Net sales

 
 

9,425

 
 

 

 
 

1,105

 
 

 

 
 

1,531

 
 

 

 
 

590

 
 

 

 
 

47

 
 

 

 
 

(518)

 
 

 

 
 

12,180

 
 

Cost of goods sold

 
 

7,257

 
 

 

 
 

575

 
 

 

 
 

1,226

 
 

 

 
 

569

 
 

 

 
 

43

 
 

 

 
 

(545)

 
 

 

 
 

9,125

 
 

Gross margin

 
 

2,168

 
 

 

 
 

530

 
 

 

 
 

305

 
 

 

 
 

21

 
 

 

 
 

4

 
 

 

 
 

27

 
 

 

 
 

3,055

 
 

Selling expenses

 
 

1,399

 
 

 

 
 

4

 
 

 

 
 

12

 
 

 

 
 

3

 
 

 

 
 

(13)

 
 

 

 
 

-

 
 

 

 
 

1,405

 
 

General and administrative expenses

 
 

68

 
 

 

 
 

3

 
 

 

 
 

4

 
 

 

 
 

5

 
 

 

 
 

125

 
 

 

 
 

-

 
 

 

 
 

205

 
 

Provincial mining taxes

 
 

-

 
 

 

 
 

103

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

1

 
 

 

 
 

-

 
 

 

 
 

105

 
 

Share-based compensation recovery

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

(20)

 
 

 

 
 

-

 
 

 

 
 

(20)

 
 

Other expenses (income)

 
 

48

 
 

 

 
 

5

 
 

 

 
 

(9)

 
 

 

 
 

9

 
 

 

 
 

86

 
 

 

 
 

-

 
 

 

 
 

139

 
 

Earnings (loss) before finance costs and

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

income taxes

 
 

653

 
 

415

 
 

297

 
 

4

 
 

(175)

 
 

27

 
 

1,221

 
 

Depreciation and amortization

 
 

318

 
 

 

 
 

205

 
 

 

 
 

322

 
 

 

 
 

119

 
 

 

 
 

26

 
 

 

 
 

-

 
 

 

 
 

990

 
 

EBITDA

 
 

971

 
 

 

 
 

620

 
 

 

 
 

619

 
 

 

 
 

123

 
 

 

 
 

(149)

 
 

 

 
 

27

 
 

 

 
 

2,211

 
 

Integration and restructuring related costs

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

28

 
 

 

 
 

-

 
 

 

 
 

28

 
 

Share-based compensation recovery

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

(20)

 
 

 

 
 

-

 
 

 

 
 

(20)

 
 

COVID-19 related expenses

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

-

 
 

 

 
 

19

 
 

 

 
 

-

 
 

 

 
 

19

 
 

Foreign exchange gain, net of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

related derivatives

 
 

-

 
 

-

 
 

-

 
 

-

 
 

(9)

 
 

-

 
 

(9)

 
 

Adjusted EBITDA

 
 

971

 
 

 

 
 

620

 
 

 

 
 

619

 
 

 

 
 

123

 
 

 

 
 

(131)

 
 

 

 
 

27

 
 

 

 
 

2,229

 
 

Assets – at December 31, 2020

 
 

20,526

 
 

 

 
 

11,707

 
 

 

 
 

10,077

 
 

 

 
 

1,388

 
 

 

 
 

3,917

 
 

 

 
 

(423)

 
 

 

 
 

47,192

 
 

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

 
                                                                                                                                                                                                                                          
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

  Retail sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  3,045  

 
 

 

 
 

2,527

 
 

 

 
 

  4,061  

 
 

 

 
 

3,312

 
 

Crop protection products

 
 

  2,666  

 
 

 

 
 

2,436

 
 

 

 
 

  3,751  

 
 

 

 
 

3,446

 
 

Seed

 
 

  1,216  

 
 

 

 
 

1,141

 
 

 

 
 

  1,679  

 
 

 

 
 

1,535

 
 

Merchandise

 
 

  268  

 
 

 

 
 

253

 
 

 

 
 

  498  

 
 

 

 
 

469

 
 

Nutrien Financial

 
 

  59  

 
 

 

 
 

40

 
 

 

 
 

  84  

 
 

 

 
 

56

 
 

Services and other

 
 

  335  

 
 

 

 
 

400

 
 

 

 
 

  508  

 
 

 

 
 

655

 
 

Nutrien Financial elimination 1

 
 

  (52)  

 
 

 

 
 

(33)

 
 

 

 
 

  (72)  

 
 

 

 
 

(48)

 
 

 

 
 

  7,537  

 
 

 

 
 

6,764

 
 

 

 
 

  10,509  

 
 

 

 
 

9,425

 
 

  Potash sales by geography  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  414  

 
 

 

 
 

325

 
 

 

 
 

  856  

 
 

 

 
 

644

 
 

Offshore 2

 
 

  491  

 
 

 

 
 

356

 
 

 

 
 

  770  

 
 

 

 
 

648

 
 

 

 
 

  905  

 
 

 

 
 

681

 
 

 

 
 

  1,626  

 
 

 

 
 

1,292

 
 

  Nitrogen sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  405  

 
 

 

 
 

291

 
 

 

 
 

  593  

 
 

 

 
 

447

 
 

Urea

 
 

  372  

 
 

 

 
 

304

 
 

 

 
 

  646  

 
 

 

 
 

566

 
 

Solutions, nitrates and sulfates

 
 

  329  

 
 

 

 
 

233

 
 

 

 
 

  526  

 
 

 

 
 

429

 
 

Other nitrogen and purchased products

 
 

  209  

 
 

 

 
 

173

 
 

 

 
 

  405  

 
 

 

 
 

337

 
 

 

 
 

  1,315  

 
 

 

 
 

1,001

 
 

 

 
 

  2,170  

 
 

 

 
 

1,779

 
 

  Phosphate sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  258  

 
 

 

 
 

185

 
 

 

 
 

  530  

 
 

 

 
 

406

 
 

Industrial and feed

 
 

  133  

 
 

 

 
 

117

 
 

 

 
 

  259  

 
 

 

 
 

237

 
 

Other phosphate and purchased products

 
 

  58  

 
 

 

 
 

32

 
 

 

 
 

  104  

 
 

 

 
 

74

 
 

 

 
 

  449  

 
 

 

 
 

334

 
 

 

 
 

  893  

 
 

 

 
 

717

 
 

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 (INCOME) EXPENSES  

 
                                                                                        
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Integration and restructuring related costs

 
 

  29  

 
 

 

 
 

18

 
 

 

 
 

  39  

 
 

 

 
 

28

 
 

Foreign exchange loss (gain), net of related derivatives

 
 

  1  

 
 

 

 
 

18

 
 

 

 
 

  3  

 
 

 

 
 

(13)

 
 

Earnings of equity-accounted investees

 
 

  (2)  

 
 

 

 
 

(13)

 
 

 

 
 

  (22)  

 
 

 

 
 

(23)

 
 

Bad debt expense

 
 

  13  

 
 

 

 
 

21

 
 

 

 
 

  15  

 
 

 

 
 

27

 
 

COVID-19 related expenses

 
 

  9  

 
 

 

 
 

17

 
 

 

 
 

  18  

 
 

 

 
 

19

 
 

Impairment of assets

 
 

  1  

 
 

 

 
 

-

 
 

 

 
 

  5  

 
 

 

 
 

-

 
 

Cloud computing transition adjustment

 
 

  36  

 
 

 

 
 

-

 
 

 

 
 

  36  

 
 

 

 
 

-

 
 

Other expenses

 
 

  50  

 
 

 

 
 

46

 
 

 

 
 

  64  

 
 

 

 
 

101

 
 

 

 
 

  137  

 
 

 

 
 

107

 
 

 

 
 

  158  

 
 

 

 
 

139

 
 

In April 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  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Income tax expense

 
 

  381  

 
 

 

 
 

235

 
 

 

 
 

  406  

 
 

 

 
 

219

 
 

Actual effective tax rate on earnings (%)

 
 

  26  

 
 

 

 
 

25

 
 

 

 
 

  25  

 
 

 

 
 

24

 
 

Actual effective tax rate including discrete items (%)

 
 

  26  

 
 

 

 
 

24

 
 

 

 
 

  25  

 
 

 

 
 

23

 
 

Discrete tax adjustments that impacted the tax rate

 
 

  (3)  

 
 

 

 
 

(13)

 
 

 

 
 

  (3)  

 
 

 

 
 

(11)

 
 

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

 
                                                       
 

Income Tax Assets and Liabilities

 
 

Balance Sheet Location

 
 

  As at June 30, 2021  

 
 

 

 
 

As at December 31, 2020

 
 

Income tax assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current

 
 

Receivables

 
 

  346  

 
 

 

 
 

83

 
 

Non-current

 
 

Other assets

 
 

  89  

 
 

 

 
 

305

 
 

Deferred income tax assets

 
 

Other assets

 
 

  221  

 
 

 

 
 

242

 
 

Total income tax assets

 
 

 

 
 

  656  

 
 

 

 
 

630

 
 

Income tax liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current

 
 

Payables and accrued charges

 
 

  335  

 
 

 

 
 

48

 
 

Non-current

 
 

Other non-current liabilities

 
 

  49  

 
 

 

 
 

40

 
 

Deferred income tax liabilities

 
 

Deferred income tax liabilities

 
 

  3,118  

 
 

 

 
 

3,149

 
 

Total income tax liabilities

 
 

 

 
 

  3,502  

 
 

 

 
 

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:

 
                                                                                                                                                                                                                         
 

 

 
 

  June 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

 
 

  1,794  

 
 

 

 
 

  -  

 
 

 

 
 

  1,794  

 
 

 

 
 

  -  

 
 

 

 
 

1,454

 
 

 

 
 

-

 
 

 

 
 

1,454

 
 

Derivative instrument assets

 
 

  27  

 
 

 

 
 

  -  

 
 

 

 
 

  27  

 
 

 

 
 

  -  

 
 

 

 
 

45

 
 

 

 
 

-

 
 

 

 
 

45

 
 

Other current financial assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

- marketable securities 2

 
 

  224  

 
 

  31  

 
 

  193  

 
 

  -  

 
 

161

 
 

24

 
 

137

 
 

Investments at FVTOCI 3

 
 

  233  

 
 

 

 
 

  223  

 
 

 

 
 

  -  

 
 

 

 
 

  10  

 
 

 

 
 

153

 
 

 

 
 

153

 
 

 

 
 

-

 
 

Derivative instrument liabilities

 
 

  (20)  

 
 

 

 
 

  -  

 
 

 

 
 

  (20)  

 
 

 

 
 

  -  

 
 

 

 
 

(48)

 
 

 

 
 

-

 
 

 

 
 

(48)

 
 

  Amortized cost  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current portion of long-term debt

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fixed and floating rate debt

 
 

  (32)  

 
 

 

 
 

  -  

 
 

 

 
 

  (32)  

 
 

 

 
 

  -  

 
 

 

 
 

(14)

 
 

 

 
 

-

 
 

 

 
 

(14)

 
 

Long-term debt

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Notes and debentures

 
 

  (9,988)  

 
 

 

 
 

  (7,763)  

 
 

 

 
 

  (3,721)  

 
 

 

 
 

  -  

 
 

 

 
 

(9,994)

 
 

 

 
 

(3,801)

 
 

 

 
 

(7,955)

 
 

Fixed and floating rate debt

 
 

  (41)  

 
 

 

 
 

  -  

 
 

 

 
 

  (41)  

 
 

 

 
 

  -  

 
 

 

 
 

(53)

 
 

 

 
 

-

 
 

 

 
 

(53)

 
 

1 During the periods ended June 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

 
 

 

 
 

32,728

 
 

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  

 
 

 

 
 

  Six Months Ended  

 
 

 

 
 

  June 30  

 
 

 

 
 

  June 30  

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

 

 
 

  2021  

 
 

 

 
 

2020

 
 

Number of common shares repurchased for cancellation

 
 

  17,750  

 
 

 

 
 

-

 
 

 

 
 

  32,728  

 
 

 

 
 

3,832,580

 
 

Average price per share (US dollars)

 
 

  52.88  

 
 

 

 
 

-

 
 

 

 
 

  52.90  

 
 

 

 
 

41.96

 
 

Total cost

 
 

  1  

 
 

 

 
 

-

 
 

 

 
 

  2  

 
 

 

 
 

160

 
 

   Dividends declared   

 

We declared a dividend per share of $0.46 (2020 – $0.45) during the three months ended June 30, 2021, payable on July 16, 2021 to shareholders of record on June 30, 2021 and total dividends of $0.92 (2020 – $0.90) during the six months ended June 30, 2021.

 

  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 input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets and trade payables. Our short-term debt also fluctuates during the year to meet working capital 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

 
 

  June 30, 2021  

 
 

 

 
 

December 31, 2020

 
 

Receivables from Canpotex

 
 

  356  

 
 

 

 
 

122

 
 

 

 

  

  

  Investor Relations:  
Richard Downey
Vice President, Investor Relations
(403) 225-7357
Investors@nutrien.com  

 

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

 

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

 

Contact us at: www.nutrien.com  

 

News Provided by Business Wire via QuoteMedia

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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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