Nutrien Reports Fourth Quarter and Full-Year 2022 Results

 

Delivered record net earnings, advanced strategic initiatives and returned $5.6 billion to shareholders in 2022. Expect strong market fundamentals in 2023 and announced a 10 percent increase in the quarterly dividend.

 

All amounts are in US dollars except as otherwise noted

 

 Nutrien Ltd. (TSX and NYSE: NTR) announced today its fourth quarter 2022 results, with net earnings of $1.1 billion ($2.15 diluted net earnings per share). Fourth quarter 2022 adjusted net earnings per share 1 was $2.02 and adjusted EBITDA 1 was $2.1 billion.

 

"Geopolitical events caused an unprecedented level of supply disruption and market volatility across agriculture, energy and fertilizer markets in 2022. Nutrien delivered record net earnings and cash flow in this environment due to the advantages of our world-class production, distribution and retail network. We returned $5.6 billion to shareholders, invested in our global Retail network and advanced a number of long-term strategic initiatives that position our company for future growth and sustainability," commented Ken Seitz, Nutrien's President and CEO.

 

"The outlook for our business is strong as we expect global supply issues to persist and demand for crop inputs to increase in 2023. We remain disciplined in our capital allocation approach as we position the company to best serve the needs of our customers, while delivering meaningful returns for our shareholders," added Mr. Seitz.

 

  Highlights:  

 
  • Nutrien generated net earnings of $7.7 billion ($14.18 diluted net earnings per share) and adjusted EBITDA 1 of $12.2 billion in 2022 supported by higher realized fertilizer prices and record Nutrien Ag Solutions ("Retail") performance, more than offsetting a reduction in fertilizer sales volumes. Cash provided by operating activities increased to $8.1 billion in 2022, more than doubling the prior year's total.
  •  
  • Nutrien repurchased 53 million shares in 2022 and an additional 8 million shares in 2023, completing its normal course issuer bid ("NCIB") in early February 2023. Nutrien's Board of Directors approved a 10 percent increase in the quarterly dividend to $0.53 per share and approved the purchase of up to 5 percent of Nutrien's outstanding common shares over a twelve-month period through a NCIB. The NCIB is subject to acceptance by the Toronto Stock Exchange.
  •  
  • Nutrien allocated $1.2 billion of growth capital 1 (cash used in investing activities of $2.9 billion) in 2022 to advance strategic initiatives across our Retail, Potash and Nitrogen businesses. This included expanding our Retail network by completing 21 acquisitions in Brazil, the US and Australia for a total investment of approximately $400 million.
  •  
  • Retail delivered record adjusted EBITDA of $2.3 billion for the full year of 2022, due to supportive market conditions in key regions where we operate. Retail cash operating coverage ratio 1 as at December 31, 2022 improved to 55 percent compared to 58 percent for the same period in 2021 driven by higher margins.
  •  
  • Potash adjusted EBITDA of $5.8 billion for the full year of 2022 more than doubled compared to the prior year due to higher net realized selling prices and record offshore sales volumes, more than offsetting lower North American sales volumes.
  •  
  • Nitrogen full year 2022 adjusted EBITDA of $3.9 billion increased 70 percent compared to the prior year due to higher net realized selling prices that more than offset higher natural gas costs and lower sales volumes.
  •  
  • Nutrien issued full-year 2023 adjusted EBITDA and adjusted net earnings per share guidance 1 of $8.4 to $10.0 billion and $8.45 to $10.65 per share, respectively.
  •  
  • Nutrien is adjusting the ramp up timing of its existing low-cost potash capacity to optimize capital expenditures in-line with the pace of expected demand recovery in 2023 and beyond. We will maintain a flexible approach and now expect to reach 18 million tonnes of annual operational capability in 2026. Nutrien continues to believe long-term fundamentals support the need for our low-cost, incremental potash capability and there is significant value in having flexibility to increase production when the market needs it.
  •  
 
 

1. These (and any related guidance, if applicable) are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.

 
 

  Market Outlook and Guidance  

 

  Agriculture and Retail  

 
  • Agricultural fundamentals remain strong and are supported by the lowest global grain stocks-to-use ratio in over 25 years. We expect Ukrainian crop production and exports will continue to be constrained by the impact of the war with Russia and believe it will take more than one growing season to alleviate the supply risk from the market. Spot prices for corn, soybeans, and wheat are up 25 to 50 percent compared to the 10-year average, which supports grower returns and provides an incentive to increase crop production in 2023.
  •  
  • We anticipate US major crop acreage will increase by approximately 4 percent in 2023, assuming a more normal planting window compared to the spring of 2022. We expect corn plantings to increase to 91 to 93 million acres in 2023, which is supportive of crop input demand.
  •  
  • Brazilian grower economics for soybeans and corn are strong, which we expect will support another year of above-trend acreage growth. Safrinha corn planting and crop input purchases have been delayed due to wet weather, but we expect strong demand as the planting season progresses. Australian growers have benefitted from multiple years of above-average yields and historically high crop prices, positioning them very well financially entering 2023. We expect another year of strong crop production and input demand assuming favorable weather conditions.
  •  

  Crop Nutrient Markets  

 
  • We believe potash inventories have been drawn down in Brazil and the US following a historic decline in the pace of potash shipments in the second half of 2022. We have seen improved potash demand in early 2023, however buyers continue to take a cautious approach to managing inventories that could lead to a more condensed shipment period as we approach the primary application seasons. Our estimate for global potash shipments in 2023 is 63 to 67 million tonnes, which is still constrained compared to the historical trend demand estimated at around 70 million tonnes.
  •  
  • Belarus potash shipments in 2023 are projected to be down 40 to 60 percent and Russian shipments down 15 to 30 percent compared to 2021. We anticipate the reduction in supply will be most apparent in the first quarter of 2023 compared to the same period in 2022, as both Belarusian and Russian exports were heavily weighted to early 2022 before sanctions and export restrictions were imposed.
  •  
  • Global nitrogen prices have declined since the beginning of 2023 due to lower European natural gas prices and buyer deferrals. We expect European natural gas prices to be volatile throughout the year and around 30 percent of the region's nitrogen capacity is currently offline. North American natural gas prices remain highly competitive compared to European and Asian natural gas prices and we expect Henry Hub spot prices between $2.50 to $4.50 per MMBtu in 2023.
  •  
  • We anticipate nitrogen supply constraints will persist in 2023, including lower Russian ammonia exports, reduced European operating rates and continued Chinese urea export restrictions. We expect a tight US supply and demand balance ahead of the 2023 spring season due to higher corn acreage and increased US nitrogen exports over the past six months.
  •  
  • We expect Chinese phosphate export restrictions to be in place until at least April 2023, anticipate improved demand in North America and Brazil, and the continuation of strong demand in India. Phosphate product margins are expected to be supported by lower raw material sulfur prices due to reduced operating rates and demand in China.
  •  

  Financial Guidance  

 

Based on market factors detailed above, we are issuing full-year 2023 adjusted EBITDA guidance of $8.4 to $10.0 billion and full-year 2023 adjusted net earnings guidance of $8.45 to $10.65 per share.

 
  • Retail adjusted EBITDA guidance assumes strong demand for crop inputs in each of the markets we serve. We expect gross margins for crop nutrients and crop protection products will be lower compared to the record levels achieved in 2022.
  •  
  • Potash sales tonnes guidance of 13.8 to 14.6 million tonnes assumes increased demand in our key markets of North America and Brazil and continued global supply constraints in 2023. We have maintained capability to increase sales volumes to our previous expectation of approximately 15 million tonnes if we see stronger demand in the market.
  •  
  • Nitrogen sales tonnes guidance of 10.8 to 11.4 million tonnes assumes higher operating rates at our North American plants and a continuation of gas curtailments in Trinidad in 2023. Nitrogen sales tonnes guidance includes 300,000 to 350,000 tonnes of projected ESN® product sales that prior to 2023 were included in the other product category.
  •  

All guidance numbers, including those noted above and related sensitives are outlined in the table below.

 
                                                          
 

 

 
  

  2023 Guidance Ranges 1  

 
 

(billions of US dollars, except as otherwise noted)

 
  

Low

 
  

High

 
 

Adjusted net earnings per share in US dollars ("Adjusted EPS") 2,3

 
  

8.45

 
  

10.65

 
 

Adjusted EBITDA 2

 
  

8.4

 
  

10.0

 
 

Retail adjusted EBITDA

 
  

1.85

 
  

2.05

 
 

Potash adjusted EBITDA

 
  

3.7

 
  

4.5

 
 

Nitrogen adjusted EBITDA

 
  

2.5

 
  

3.2

 
 

Phosphate adjusted EBITDA (in millions of US dollars)

 
  

550

 
  

750

 
 

Potash sales tonnes (millions) 4

 
  

13.8

 
  

14.6

 
 

Nitrogen sales tonnes (millions) 4

 
  

10.8

 
  

11.4

 
 

Depreciation and amortization

 
  

2.1

 
  

2.2

 
 

Effective tax rate on adjusted earnings (%)

 
  

23.5

 
  

24.5

 
 
                                                            
 

 

 
  

 

 
 

  Impact to  

 
 

  2023 Annual Assumptions & Sensitivities 1  

 
  

 

 
 

  Adjusted  

 
  

  Adjusted  

 
 

(millions of US dollars, except EPS amounts or as otherwise noted)

 
  

 

 
 

  EBITDA  

 
  

  EPS 3  

 
 

$1/MMBtu change in NYMEX 5

 
   

180

 
  

0.27

 
 

$25/tonne change in realized potash selling prices

 
   

300

 
  

0.45

 
 

$25/tonne change in realized ammonia selling prices

 
   

50

 
  

0.07

 
 

$25/tonne change in realized urea selling prices

 
   

80

 
  

0.12

 
 

2023 average Canadian to US dollar exchange rate

 
  

 

 
 

1.33

 
 
 

2023 NYMEX natural gas (US dollars per MMBtu)

 
  

 

 
 

~$3.50

 
 
 

1. See the "Forward-Looking Statements" section.

 
 
 

2. These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
3. Assumes 503 million shares outstanding for all EPS guidance and sensitivities.  
4. Manufactured products only. Nitrogen sales tonnes guidance includes ESN® products that prior to 2023 were included in the other category.  
5. Nitrogen related impact.  
 

  Consolidated Results  

 
                                                                                                                                         
 

 

 
 

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Sales

 
 

  7,533  

 
 

 

 
 

7,267

 
 

 

 
 

4

 
 

 

 
 

  37,884  

 
 

 

 
 

27,712

 
 

 

 
 

37

 
 

Freight, transportation and distribution

 
 

  244  

 
 

 

 
 

198

 
 

 

 
 

23

 
 

 

 
 

  872  

 
 

 

 
 

851

 
 

 

 
 

2

 
 

Cost of goods sold

 
 

  4,383  

 
 

 

 
 

3,863

 
 

 

 
 

13

 
 

 

 
 

  21,588  

 
 

 

 
 

17,452

 
 

 

 
 

24

 
 

Gross margin

 
 

  2,906  

 
 

 

 
 

3,206

 
 

 

 
 

(9)

 
 

 

 
 

  15,424  

 
 

 

 
 

9,409

 
 

 

 
 

64

 
 

Expenses

 
 

  1,247  

 
 

 

 
 

1,379

 
 

 

 
 

(10)

 
 

 

 
 

  4,615  

 
 

 

 
 

4,628

 
 

 

 
 

 
 

Net earnings

 
 

  1,118  

 
 

 

 
 

1,207

 
 

 

 
 

(7)

 
 

 

 
 

  7,687  

 
 

 

 
 

3,179

 
 

 

 
 

142

 
 

Adjusted EBITDA 1

 
 

  2,095  

 
 

 

 
 

2,463

 
 

 

 
 

(15)

 
 

 

 
 

  12,170  

 
 

 

 
 

7,126

 
 

 

 
 

71

 
 

Diluted net earnings per share

 
 

  2.15  

 
 

 

 
 

2.11

 
 

 

 
 

2

 
 

 

 
 

  14.18  

 
 

 

 
 

5.52

 
 

 

 
 

157

 
 

Adjusted net earnings per share 1

 
 

  2.02  

 
 

 

 
 

2.47

 
 

 

 
 

(18)

 
 

 

 
 

  13.19  

 
 

 

 
 

6.23

 
 

 

 
 

112

 
 

Cash provided by operating activities

 
 

  4,736  

 
 

 

 
 

3,637

 
 

 

 
 

30

 
 

 

 
 

  8,110  

 
 

 

 
 

3,886

 
 

 

 
 

109

 
 

1. These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 

Net earnings and adjusted EBITDA increased for the full year of 2022 compared to the same periods in 2021, due to higher net realized selling prices resulting primarily from global supply uncertainties across our nutrient businesses and strong Retail performance. Net earnings and adjusted EBITDA decreased in the fourth quarter of 2022 compared to the same period in 2021, due to lower sales volumes partially offset by higher net realized selling prices. In 2022, we recorded a non-cash impairment reversal of $780 million related to our Phosphate operations, which positively impacted net earnings. Cost of goods sold increased in the fourth quarter and full year of 2022 due to higher input costs, in particular higher cost of inventory, natural gas and sulfur. Cash provided by operating activities increased in the full year of 2022 compared to the same period in 2021 primarily due to higher net earnings and increased in the fourth quarter of 2022 compared to the same period in 2021 due to a higher release of working capital.

 

  Segment Results  

 

Our discussion of segment results set out on the following pages is a comparison of the results for the three and twelve months ended December 31, 2022 to the results for the three and twelve months ended December 31, 2021, unless otherwise noted.

 

  Nutrien Ag Solutions ("Retail")  

 
                                                                                                                                                                                                                                                                                                                                
 

 

 
  

  Three Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Gross Margin  

 
 

 

 
 

  Gross Margin (%)  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Sales

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
  

  2,320  

 
 

 

 
 

2,035

 
 

 

 
 

14

 
 

 

 
 

  349  

 
 

 

 
 

428

 
 

 

 
 

(18)

 
 

 

 
 

  15  

 
 

 

 
 

21

 
 

Crop protection products

 
  

  981  

 
 

 

 
 

1,113

 
 

 

 
 

(12)

 
 

 

 
 

  413  

 
 

 

 
 

414

 
 

 

 
 

 
 

 

 
 

  42  

 
 

 

 
 

37

 
 

Seed

 
  

  251  

 
 

 

 
 

189

 
 

 

 
 

33

 
 

 

 
 

  46  

 
 

 

 
 

57

 
 

 

 
 

(19)

 
 

 

 
 

  18  

 
 

 

 
 

30

 
 

Merchandise

 
  

  264  

 
 

 

 
 

270

 
 

 

 
 

(2)

 
 

 

 
 

  41  

 
 

 

 
 

45

 
 

 

 
 

(9)

 
 

 

 
 

  16  

 
 

 

 
 

17

 
 

Nutrien Financial

 
  

  62  

 
 

 

 
 

51

 
 

 

 
 

22

 
 

 

 
 

  62  

 
 

 

 
 

51

 
 

 

 
 

22

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
  

  237  

 
 

 

 
 

243

 
 

 

 
 

(2)

 
 

 

 
 

  194  

 
 

 

 
 

201

 
 

 

 
 

(3)

 
 

 

 
 

  82  

 
 

 

 
 

83

 
 

Nutrien Financial elimination 1, 2

 
  

  (28)  

 
 

 

 
 

(23)

 
 

 

 
 

22

 
 

 

 
 

  (28)  

 
 

 

 
 

(23)

 
 

 

 
 

22

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
  

  4,087  

 
 

 

 
 

3,878

 
 

 

 
 

5

 
 

 

 
 

  1,077  

 
 

 

 
 

1,173

 
 

 

 
 

(8)

 
 

 

 
 

  26  

 
 

 

 
 

30

 
 

Cost of goods sold

 
  

  3,010  

 
 

 

 
 

2,705

 
 

 

 
 

11

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
  

  1,077  

 
 

 

 
 

1,173

 
 

 

 
 

(8)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 3

 
  

  888  

 
 

 

 
 

911

 
 

 

 
 

(3)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Earnings before finance costs and taxes ("EBIT")

 
  

  189  

 
 

 

 
 

262

 
 

 

 
 

(28)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
  

  202  

 
 

 

 
 

178

 
 

 

 
 

13

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
  

  391  

 
 

 

 
 

440

 
 

 

 
 

(11)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 4

 
  

  

 
 

 

 
 

2

 
 

 

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
  

  391  

 
 

 

 
 

442

 
 

 

 
 

(12)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1. Certain immaterial figures have been reclassified for the three months ended December 31, 2021.

 
 

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

 
 

3. Includes selling expenses of $836 million (2021 – $848 million).

 
 

4. See Note 2 to the unaudited condensed consolidated financial statements.

 
 
                                                                                                                                                                                                                                                                                                                               
 

 

 
  

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Gross Margin  

 
 

 

 
 

  Gross Margin (%)  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Sales

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
  

  10,060  

 
 

 

 
 

7,290

 
 

 

 
 

38

 
 

 

 
 

  1,766  

 
 

 

 
 

1,597

 
 

 

 
 

11

 
 

 

 
 

  18  

 
 

 

 
 

22

 
 

Crop protection products

 
  

  7,067  

 
 

 

 
 

6,333

 
 

 

 
 

12

 
 

 

 
 

  1,936  

 
 

 

 
 

1,551

 
 

 

 
 

25

 
 

 

 
 

  27  

 
 

 

 
 

24

 
 

Seed

 
  

  2,112  

 
 

 

 
 

2,008

 
 

 

 
 

5

 
 

 

 
 

  428  

 
 

 

 
 

419

 
 

 

 
 

2

 
 

 

 
 

  20  

 
 

 

 
 

21

 
 

Merchandise

 
  

  1,019  

 
 

 

 
 

1,033

 
 

 

 
 

(1)

 
 

 

 
 

  174  

 
 

 

 
 

172

 
 

 

 
 

1

 
 

 

 
 

  17  

 
 

 

 
 

17

 
 

Nutrien Financial

 
  

  267  

 
 

 

 
 

189

 
 

 

 
 

41

 
 

 

 
 

  267  

 
 

 

 
 

189

 
 

 

 
 

41

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
  

  966  

 
 

 

 
 

980

 
 

 

 
 

(1)

 
 

 

 
 

  749  

 
 

 

 
 

771

 
 

 

 
 

(3)

 
 

 

 
 

  78  

 
 

 

 
 

79

 
 

Nutrien Financial elimination 1

 
  

  (141)  

 
 

 

 
 

(99)

 
 

 

 
 

42

 
 

 

 
 

  (141)  

 
 

 

 
 

(99)

 
 

 

 
 

42

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
  

  21,350  

 
 

 

 
 

17,734

 
 

 

 
 

20

 
 

 

 
 

  5,179  

 
 

 

 
 

4,600

 
 

 

 
 

13

 
 

 

 
 

  24  

 
 

 

 
 

26

 
 

Cost of goods sold

 
  

  16,171  

 
 

 

 
 

13,134

 
 

 

 
 

23

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
  

  5,179  

 
 

 

 
 

4,600

 
 

 

 
 

13

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 2

 
  

  3,621  

 
 

 

 
 

3,378

 
 

 

 
 

7

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBIT

 
  

  1,558  

 
 

 

 
 

1,222

 
 

 

 
 

27

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
  

  752  

 
 

 

 
 

706

 
 

 

 
 

7

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
  

  2,310  

 
 

 

 
 

1,928

 
 

 

 
 

20

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
  

  (17)  

 
 

 

 
 

11

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
  

  2,293  

 
 

 

 
 

1,939

 
 

 

 
 

18

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1. Certain immaterial figures have been reclassified for the twelve months ended December 31, 2021.

 
 

2. Includes selling expenses of $3,392 million (2021 – $3,124 million).

 
 

3. See Note 2 to the unaudited condensed consolidated financial statements.

 
 
  •   Adjusted EBITDA for the full year of 2022 increased due to higher sales and gross margins across nearly all product categories and regions where we operate. This was supported by strong agriculture fundamentals, higher selling prices and growth in proprietary product margins. Adjusted EBITDA decreased in the fourth quarter of 2022 compared to the prior year's record results as strong sales prices in most product categories were offset by lower volumes and higher cost inventory. Our Retail cash operating coverage ratio 1 improved as at December 31, 2022 to 55 percent from 58 percent in the same period in 2021 due to higher gross margin.
  •  
  •   Crop nutrients sales increased in the fourth quarter and the full year of 2022 due to higher selling prices. Gross margin increased for the full year of 2022 compared to the same period last year due to strategic procurement and the timing of inventory purchasing in the first half of 2022, with a decrease in the fourth quarter of 2022 due to higher cost inventory. Sales volumes decreased for the full year 2022 due to reduced application resulting from a delayed planting season in North America and stronger fourth quarter engagement in 2021 in a rising price environment, slightly offset by increased South American volumes attributed to recent acquisitions.
  •  
  •   Crop protection products sales and gross margin increased for the full year of 2022, particularly in North America, due to higher selling prices along with increased sales and gross margin in proprietary products. Gross margin was flat in the fourth quarter as higher sales pricing and a favorable sales mix in North America offset a decline in sales volumes compared to a very strong period of demand in the fourth quarter of 2021. Gross margin as a percentage of sales increased for the full year of 2022, supported by the reliability of our supply chain and strategic procurement in a rising price environment.
  •  
  •   Seed sales increased in the fourth quarter and the full year of 2022 due to higher pricing along with strong North America corn sales, Latin America soybean sales and Australia canola sales. Gross margin increased for the full year of 2022 due to higher pricing with a decrease in the fourth quarter of 2022 attributed to the timing and mix of seed sales compared to the same period in 2021.
  •  
  •   Merchandise gross margin increased for the full year of 2022 due to strong margin performance in Australia animal management, farm services and general merchandise, with a decrease in the fourth quarter of 2022 due to an unfavorable foreign exchange rate impact on Australian dollars.
  •  
  •   Nutrien Financial sales increased in the fourth quarter and full year of 2022 due to higher utilization and adoption of our programs and a higher interest-bearing trade receivable balance, driven by strong commodity pricing.
  •  
  •   Services and other sales and gross margin decreased in the fourth quarter and full year of 2022 mainly due to lower livestock volumes in Australia, along with an unfavorable foreign exchange rate impact on Australian dollars. Fourth quarter 2022 sales benefited from improved selling rates on North American custom application services.
  •  
 
1. These (and any related guidance, if applicable) are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.
 

  Potash  

 
                                                                                                                                                                                                                                                                            
 

 

 
  

  Three Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
  

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
  

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
  

% Change

 
 

Manufactured product

 
  

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

Net sales

 
  

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

North America

 
  

  536  

 
 

 

 
 

497

 
  

 

 
 

8

 
 

 

 
 

  959  

 
 

 

 
 

1,002

 
  

 

 
 

(4)

 
 

 

 
 

  560  

 
 

 

 
 

494

 
  

 

 
 

13

 
 

Offshore

 
  

  841  

 
 

 

 
 

923

 
  

 

 
 

(9)

 
 

 

 
 

  1,659  

 
 

 

 
 

2,054

 
  

 

 
 

(19)

 
 

 

 
 

  506  

 
 

 

 
 

450

 
  

 

 
 

12

 
 

 

 
  

  1,377  

 
 

 

 
 

1,420

 
  

 

 
 

(3)

 
 

 

 
 

  2,618  

 
 

 

 
 

3,056

 
  

 

 
 

(14)

 
 

 

 
 

  526  

 
 

 

 
 

465

 
  

 

 
 

13

 
 

Cost of goods sold

 
  

  310  

 
 

 

 
 

305

 
  

 

 
 

2

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

  118  

 
 

 

 
 

100

 
  

 

 
 

18

 
 

Gross margin – total

 
  

  1,067  

 
 

 

 
 

1,115

 
  

 

 
 

(4)

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

  408  

 
 

 

 
 

365

 
  

 

 
 

12

 
 

Expenses 1

 
  

  198  

 
 

 

 
 

179

 
  

 

 
 

11

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  34  

 
 

 

 
 

38

 
  

 

 
 

(11)

 
 

EBIT

 
  

  869  

 
 

 

 
 

936

 
  

 

 
 

(7)

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

Depreciation and amortization

 
  

  89  

 
 

 

 
 

117

 
  

 

 
 

(24)

 
 

 

 
 

and amortization – manufactured 2

 
 

  442  

 
 

 

 
 

403

 
  

 

 
 

10

 
 

EBITDA/ Adjusted EBITDA

 
  

  958  

 
 

 

 
 

1,053

 
  

 

 
 

(9)

 
 

 

 
 

Potash controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

product manufactured 2

 
 

 

 
 

  65  

 
 

 

 
 

52

 
  

 

 
 

25

 
 

1. Includes provincial mining taxes of $190 million (2021 – $173 million).

 
 

2. These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
                                                                                                                                                                                                                                                                                                  
 

 

 
  

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
  

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
  

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
  

% Change

 
 

Manufactured product

 
  

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

Net sales

 
  

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

North America

 
  

  2,485  

 
 

 

 
 

1,638

 
  

 

 
 

52

 
 

 

 
 

  3,729  

 
 

 

 
 

5,159

 
  

 

 
 

(28)

 
 

 

 
 

  667  

 
 

 

 
 

317

 
  

 

 
 

110

 
 

Offshore

 
  

  5,414  

 
 

 

 
 

2,398

 
  

 

 
 

126

 
 

 

 
 

  8,808  

 
 

 

 
 

8,466

 
  

 

 
 

4

 
 

 

 
 

  615  

 
 

 

 
 

283

 
  

 

 
 

117

 
 

 

 
  

  7,899  

 
 

 

 
 

4,036

 
  

 

 
 

96

 
 

 

 
 

  12,537  

 
 

 

 
 

13,625

 
  

 

 
 

(8)

 
 

 

 
 

  630  

 
 

 

 
 

296

 
  

 

 
 

113

 
 

Cost of goods sold

 
  

  1,400  

 
 

 

 
 

1,285

 
  

 

 
 

9

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

  112  

 
 

 

 
 

94

 
  

 

 
 

19

 
 

Gross margin – total

 
  

  6,499  

 
 

 

 
 

2,751

 
  

 

 
 

136

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

  518  

 
 

 

 
 

202

 
  

 

 
 

156

 
 

Expenses 1

 
  

  1,173  

 
 

 

 
 

512

 
  

 

 
 

129

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  35  

 
 

 

 
 

36

 
  

 

 
 

(1)

 
 

EBIT

 
  

  5,326  

 
 

 

 
 

2,239

 
  

 

 
 

138

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

Depreciation and amortization

 
  

  443  

 
 

 

 
 

488

 
  

 

 
 

(9)

 
 

 

 
 

and amortization – manufactured

 
 

  553  

 
 

 

 
 

238

 
  

 

 
 

133

 
 

EBITDA

 
  

  5,769  

 
 

 

 
 

2,727

 
  

 

 
 

112

 
 

 

 
 

Potash controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

Adjustments 2

 
  

  

 
 

 

 
 

9

 
  

 

 
 

(100)

 
 

 

 
 

product manufactured

 
 

 

 
 

  58  

 
 

 

 
 

52

 
  

 

 
 

12

 
 

Adjusted EBITDA

 
  

  5,769  

 
 

 

 
 

2,736

 
  

 

 
 

111

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

1. Includes provincial mining taxes of $1,149 million (2021 – $466 million).

 
 

2. See Note 2 to the unaudited condensed consolidated financial statements.

 
 
  •   Adjusted EBITDA increased in the full year of 2022 due to higher net realized selling prices and strong offshore sales volumes, which more than offset lower North American sales volumes, higher royalties and provincial mining taxes. Adjusted EBITDA decreased in the fourth quarter of 2022 compared to the same period last year mainly due to lower volumes from cautious purchasing in a declining price environment, partially offset by higher net realized selling prices.
  •  
  •   Sales volumes decreased   for the full year of 2022 due to a compressed North American spring application season that resulted in high inventory carry-over and cautious purchasing in key markets during the second half of 2022. Offshore sales volumes were the highest of any full year period on record due to reduced supply from Eastern Europe.
  •  
  •   Net realized selling price increased in the fourth quarter and full year of 2022 due to the impact of reduced supply from Eastern Europe. Net realized selling prices decreased from the third quarter of 2022 due to a decline in benchmark pricing.
  •  
  •   Cost of goods sold per tonne in 2022 increased primarily due to higher royalties resulting from increased net realized selling prices.   Potash   controllable cash cost of product manufactured increased due to lower production volumes and a pull forward of maintenance activities in the second half of 2022.
  •  

  Canpotex Sales by Market  

 
                                                                             
 

(percentage of sales volumes, except as

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

otherwise noted)

 
  

  2022  

 
 

2021

 
 

Change

 
 

 

 
 

  2022  

 
 

2021

 
 

Change

 
 

Latin America

 
  

  28  

 
 

37

 
 

(9)

 
 

 

 
 

  34  

 
 

38

 
 

(4)

 
 

Other Asian markets 1

 
  

  35  

 
 

34

 
 

1

 
 

 

 
 

  34  

 
 

35

 
 

(1)

 
 

China

 
  

  16  

 
 

12

 
 

4

 
 

 

 
 

  14  

 
 

11

 
 

3

 
 

Other markets

 
  

  10  

 
 

11

 
 

(1)

 
 

 

 
 

  10  

 
 

10

 
 

 
 

India

 
  

  11  

 
 

6

 
 

5

 
 

 

 
 

  8  

 
 

6

 
 

2

 
 

 

 
  

  100  

 
 

100

 
 

 

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

1. All Asian markets except China and India.

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Nitrogen  

 
                                                                                                                                                                                                                                                                                                                        
 

 

 
  

  Three Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
  

  689  

 
 

 

 
 

519

 
 

 

 
 

33

 
 

 

 
 

  776  

 
 

 

 
 

790

 
 

 

 
 

(2)

 
 

 

 
 

  887  

 
 

 

 
 

656

 
 

 

 
 

35

 
 

Urea

 
  

  463  

 
 

 

 
 

552

 
 

 

 
 

(16)

 
 

 

 
 

  705  

 
 

 

 
 

824

 
 

 

 
 

(14)

 
 

 

 
 

  657  

 
 

 

 
 

670

 
 

 

 
 

(2)

 
 

Solutions, nitrates and sulfates

 
  

  389  

 
 

 

 
 

385

 
 

 

 
 

1

 
 

 

 
 

  1,056  

 
 

 

 
 

1,221

 
 

 

 
 

(14)

 
 

 

 
 

  368  

 
 

 

 
 

316

 
 

 

 
 

16

 
 

 

 
  

  1,541  

 
 

 

 
 

1,456

 
 

 

 
 

6

 
 

 

 
 

  2,537  

 
 

 

 
 

2,835

 
 

 

 
 

(11)

 
 

 

 
 

  607  

 
 

 

 
 

514

 
 

 

 
 

18

 
 

Cost of goods sold

 
  

  846  

 
 

 

 
 

725

 
 

 

 
 

17

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  333  

 
 

 

 
 

256

 
 

 

 
 

30

 
 

Gross margin – manufactured

 
  

  695  

 
 

 

 
 

731

 
 

 

 
 

(5)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  274  

 
 

 

 
 

258

 
 

 

 
 

6

 
 

Gross margin – other 1

 
  

  4  

 
 

 

 
 

23

 
 

 

 
 

(83)

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  61  

 
 

 

 
 

52

 
 

 

 
 

17

 
 

Gross margin – total

 
  

  699  

 
 

 

 
 

754

 
 

 

 
 

(7)

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses (income) ²

 
  

  13  

 
 

 

 
 

(2)

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured 4

 
 

  335  

 
 

 

 
 

310

 
 

 

 
 

8

 
 

EBIT

 
  

  686  

 
 

 

 
 

756

 
 

 

 
 

(9)

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
  

  155  

 
 

 

 
 

148

 
 

 

 
 

5

 
 

 

 
 

product manufactured 4

 
 

 

 
 

  57  

 
 

 

 
 

45

 
 

 

 
 

27

 
 

EBITDA

 
  

  841  

 
 

 

 
 

904

 
 

 

 
 

(7)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
  

  

 
 

 

 
 

17

 
 

 

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
  

  841  

 
 

 

 
 

921

 
 

 

 
 

(9)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1. Includes other nitrogen (including ESN®) and purchased products and comprises net sales of $251 million (2021 – $193 million) less cost of goods sold of $247 million (2021 – $170 million).

 
 

2. Includes earnings from equity-accounted investees of $41 million (2021 – $41 million).

 
 

3. See Note 2 to the unaudited condensed consolidated financial statements.

 
 

4. These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
                                                                                                                                                                                                                                                                                                                       
 

 

 
  

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
  

  2,641  

 
 

 

 
 

1,393

 
 

 

 
 

90

 
 

 

 
 

  2,715  

 
 

 

 
 

2,919

 
 

 

 
 

(7)

 
 

 

 
 

  973  

 
 

 

 
 

477

 
 

 

 
 

104

 
 

Urea

 
  

  1,920  

 
 

 

 
 

1,463

 
 

 

 
 

31

 
 

 

 
 

  2,757  

 
 

 

 
 

3,059

 
 

 

 
 

(10)

 
 

 

 
 

  696  

 
 

 

 
 

478

 
 

 

 
 

46

 
 

Solutions, nitrates and sulfates

 
  

  1,829  

 
 

 

 
 

1,128

 
 

 

 
 

62

 
 

 

 
 

  4,551  

 
 

 

 
 

4,747

 
 

 

 
 

(4)

 
 

 

 
 

  402  

 
 

 

 
 

238

 
 

 

 
 

69

 
 

 

 
  

  6,390  

 
 

 

 
 

3,984

 
 

 

 
 

60

 
 

 

 
 

  10,023  

 
 

 

 
 

10,725

 
 

 

 
 

(7)

 
 

 

 
 

  638  

 
 

 

 
 

371

 
 

 

 
 

72

 
 

Cost of goods sold

 
  

  3,197  

 
 

 

 
 

2,353

 
 

 

 
 

36

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  319  

 
 

 

 
 

219

 
 

 

 
 

46

 
 

Gross margin – manufactured

 
  

  3,193  

 
 

 

 
 

1,631

 
 

 

 
 

96

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  319  

 
 

 

 
 

152

 
 

 

 
 

110

 
 

Gross margin – other 1

 
  

  88  

 
 

 

 
 

95

 
 

 

 
 

(7)

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  56  

 
 

 

 
 

52

 
 

 

 
 

7

 
 

Gross margin – total

 
  

  3,281  

 
 

 

 
 

1,726

 
 

 

 
 

90

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Income) expenses ²

 
  

  (92)  

 
 

 

 
 

(3)

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured

 
 

  375  

 
 

 

 
 

204

 
 

 

 
 

84

 
 

EBIT

 
  

  3,373  

 
 

 

 
 

1,729

 
 

 

 
 

95

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
  

  558  

 
 

 

 
 

557

 
 

 

 
 

 
 

 

 
 

product manufactured

 
 

 

 
 

  59  

 
 

 

 
 

50

 
 

 

 
 

18

 
 

EBITDA

 
  

  3,931  

 
 

 

 
 

2,286

 
 

 

 
 

72

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
  

  

 
 

 

 
 

22

 
 

 

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
  

  3,931  

 
 

 

 
 

2,308

 
 

 

 
 

70

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1. Includes other nitrogen (including ESN®) and purchased products and comprises net sales of $1,143 million (2021 – $705 million) less cost of goods sold of $1,055 million (2021 – $610 million).

 
 

2. Includes earnings from equity-accounted investees of $233 million (2021 – $76 million).

 
 

3. See Note 2 to the unaudited condensed consolidated financial statements.

 
 
  •   Adjusted EBITDA increased in the full year of 2022 primarily due to higher net realized selling prices and higher earnings from equity-accounted investees, which more than offset higher natural gas costs and lower sales volumes. Adjusted EBITDA in the fourth quarter of 2022 decreased as lower sales volumes more than offset an increase in net realized selling prices.
  •  
  •   Sales volumes decreased in the fourth quarter primarily due to Trinidad gas curtailments, unplanned plant outages that included the impact of extreme cold weather in the quarter and cautious buying activity. Full-year sales volumes were also impacted by a compressed North American spring application season.
  •  
  •   Net realized selling price was higher   in the fourth quarter and full year of 2022 due to strong benchmark prices, in particular for ammonia, resulting from tight global supply and higher energy prices in key nitrogen producing regions.
  •  
  •   Cost of goods sold per tonne in the fourth quarter and full year of 2022 increased primarily due to higher natural gas, raw material and other input costs. Ammonia   controllable cash cost of product manufactured increased in the fourth quarter and full year of 2022 due to lower production volumes and higher input costs, mainly electricity costs.
  •  

  Natural Gas Prices in Cost of Production  

 
                                                                                                
 

 

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

(US dollars per MMBtu, except as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Overall gas cost excluding realized derivative impact

 
  

  7.49  

 
 

 

 
 

6.43

 
 

 

 
 

16

 
 

 

 
 

  7.82  

 
 

 

 
 

4.60

 
 

 

 
 

70

 
 

Realized derivative impact

 
  

  (0.05)  

 
 

 

 
 

(0.03)

 
 

 

 
 

67

 
 

 

 
 

  (0.05)  

 
 

 

 
 

0.01

 
 

 

 
 

n/m

 
 

Overall gas cost

 
  

  7.44  

 
 

 

 
 

6.40

 
 

 

 
 

16

 
 

 

 
 

  7.77  

 
 

 

 
 

4.61

 
 

 

 
 

69

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average NYMEX

 
  

  6.26  

 
 

 

 
 

5.83

 
 

 

 
 

7

 
 

 

 
 

  6.64  

 
 

 

 
 

3.84

 
 

 

 
 

73

 
 

Average AECO

 
  

  4.11  

 
 

 

 
 

3.93

 
 

 

 
 

5

 
 

 

 
 

  4.28  

 
 

 

 
 

2.84

 
 

 

 
 

51

 
 
  •   Natural gas prices   in our cost of production increased in the fourth quarter and full year of 2022 as a result of higher North American gas index prices and increased gas costs in Trinidad, where our gas prices are linked to ammonia benchmark prices.
  •  

  Phosphate  

 
                                                                                                                                                                                                                                                                                                            
 

 

 
  

  Three Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
  

  274  

 
 

 

 
 

377

 
 

 

 
 

(27)

 
 

 

 
 

  391  

 
 

 

 
 

509

 
 

 

 
 

(23)

 
 

 

 
 

  700  

 
 

 

 
 

741

 
 

 

 
 

(6)

 
 

Industrial and feed

 
  

  155  

 
 

 

 
 

155

 
 

 

 
 

 
 

 

 
 

  140  

 
 

 

 
 

202

 
 

 

 
 

(31)

 
 

 

 
 

  1,107  

 
 

 

 
 

766

 
 

 

 
 

45

 
 

 

 
  

  429  

 
 

 

 
 

532

 
 

 

 
 

(19)

 
 

 

 
 

  531  

 
 

 

 
 

711

 
 

 

 
 

(25)

 
 

 

 
 

  807  

 
 

 

 
 

749

 
 

 

 
 

8

 
 

Cost of goods sold

 
  

  405  

 
 

 

 
 

374

 
 

 

 
 

8

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  762  

 
 

 

 
 

526

 
 

 

 
 

45

 
 

Gross margin - manufactured

 
  

  24  

 
 

 

 
 

158

 
 

 

 
 

(85)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  45  

 
 

 

 
 

223

 
 

 

 
 

(80)

 
 

Gross margin – other 1

 
  

  (8)  

 
 

 

 
 

5

 
 

 

 
 

n/m

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  109  

 
 

 

 
 

55

 
 

 

 
 

99

 
 

Gross margin – total

 
  

  16  

 
 

 

 
 

163

 
 

 

 
 

(90)

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses

 
  

  46  

 
 

 

 
 

10

 
 

 

 
 

360

 
 

 

 
 

and amortization – manufactured 3

 
 

  154  

 
 

 

 
 

278

 
 

 

 
 

(44)

 
 

EBIT

 
  

  (30)  

 
 

 

 
 

153

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
  

  58  

 
 

 

 
 

39

 
 

 

 
 

49

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
  

  28  

 
 

 

 
 

192

 
 

 

 
 

(85)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
  

  

 
 

 

 
 

4

 
 

 

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
  

  28  

 
 

 

 
 

196

 
 

 

 
 

(86)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1. Includes other phosphate and purchased products and comprises net sales of $72 million (2021 – $61 million) less cost of goods sold of $80 million (2021 – $56 million).

 
 

2. See Note 2 to the unaudited condensed consolidated financial statements.

 
 

3. This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.

 
 
                                                                                                                                                                                                                                                                                                           
 

 

 
  

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except

 
  

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
  

  1,367  

 
 

 

 
 

1,108

 
 

 

 
 

23

 
 

 

 
 

  1,696  

 
 

 

 
 

1,840

 
 

 

 
 

(8)

 
 

 

 
 

  806  

 
 

 

 
 

602

 
 

 

 
 

34

 
 

Industrial and feed

 
  

  706  

 
 

 

 
 

520

 
 

 

 
 

36

 
 

 

 
 

  682  

 
 

 

 
 

779

 
 

 

 
 

(12)

 
 

 

 
 

  1,035  

 
 

 

 
 

667

 
 

 

 
 

55

 
 

 

 
  

  2,073  

 
 

 

 
 

1,628

 
 

 

 
 

27

 
 

 

 
 

  2,378  

 
 

 

 
 

2,619

 
 

 

 
 

(9)

 
 

 

 
 

  872  

 
 

 

 
 

622

 
 

 

 
 

40

 
 

Cost of goods sold

 
  

  1,562  

 
 

 

 
 

1,227

 
 

 

 
 

27

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  657  

 
 

 

 
 

469

 
 

 

 
 

40

 
 

Gross margin – manufactured

 
  

  511  

 
 

 

 
 

401

 
 

 

 
 

27

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  215  

 
 

 

 
 

153

 
 

 

 
 

41

 
 

Gross margin – other 1

 
  

  (18)  

 
 

 

 
 

20

 
 

 

 
 

n/m

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  79  

 
 

 

 
 

58

 
 

 

 
 

37

 
 

Gross margin – total

 
  

  493  

 
 

 

 
 

421

 
 

 

 
 

17

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Income) expenses

 
  

  (693)  

 
 

 

 
 

36

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured

 
 

  294  

 
 

 

 
 

211

 
 

 

 
 

40

 
 

EBIT

 
  

  1,186  

 
 

 

 
 

385

 
 

 

 
 

208

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
  

  188  

 
 

 

 
 

151

 
 

 

 
 

25

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
  

  1,374  

 
 

 

 
 

536

 
 

 

 
 

156

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
  

  (780)  

 
 

 

 
 

4

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
  

  594  

 
 

 

 
 

540

 
 

 

 
 

10

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1. Includes other phosphate and purchased products and comprises net sales of $304 million (2021 – $201 million) less cost of goods sold of $322 million (2021 – $181 million).

 
 

2. See Note 2 to the unaudited condensed consolidated financial statements. Includes reversal of impairment of assets of $780 million (2021 – nil).

 
 
  •   Adjusted EBITDA increased for the full year of 2022 mainly due to higher net realized selling prices, which more than offset higher raw material costs and lower sales volumes. Adjusted EBITDA in the fourth quarter decreased due to lower sales volumes as a result of unplanned plant outages. Included with expenses for the full year of 2022, we recognized a $780 million non-cash impairment of assets reversal due to a more favorable outlook for phosphate margins, which is deducted from adjusted EBITDA.
  •  
  •   Sales volumes decreased in the fourth quarter and full year of 2022 due to lower production volumes and a condensed North American spring application season.
  •  
  •   Net realized selling price increased for the full year of 2022 aligned with the increase in global benchmark prices. In the fourth quarter of 2022, higher industrial and feed net realized selling prices more than offset the decline in fertilizer net realized selling prices.
  •  
  •   Cost of goods sold per tonne increased in the fourth quarter and full year of 2022 primarily due to significantly higher sulfur and ammonia input costs, along with lower production volumes.
  •  

  Corporate and Others  

 
                                                                                                                                        
 

(millions of US dollars, except as otherwise

 
 

 

 
 

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Selling expenses

 
  

  5  

 
 

 

 
 

3

 
 

 

 
 

67

 
 

 

 
 

  (1)  

 
 

 

 
 

(21)

 
 

 

 
 

(95)

 
 

General and administrative expenses

 
  

  99  

 
 

 

 
 

93

 
 

 

 
 

6

 
 

 

 
 

  326  

 
 

 

 
 

275

 
 

 

 
 

19

 
 

Share-based compensation (recovery) expense

 
  

  (59)  

 
 

 

 
 

73

 
 

 

 
 

n/m

 
 

 

 
 

  63  

 
 

 

 
 

198

 
 

 

 
 

(68)

 
 

Other expenses

 
  

  67  

 
 

 

 
 

112

 
 

 

 
 

(40)

 
 

 

 
 

  227  

 
 

 

 
 

253

 
 

 

 
 

(10)

 
 

EBIT

 
  

  (112)  

 
 

 

 
 

(281)

 
 

 

 
 

(60)

 
 

 

 
 

  (615)  

 
 

 

 
 

(705)

 
 

 

 
 

(13)

 
 

Depreciation and amortization

 
  

  16  

 
 

 

 
 

15

 
 

 

 
 

7

 
 

 

 
 

  71  

 
 

 

 
 

49

 
 

 

 
 

45

 
 

EBITDA

 
  

  (96)  

 
 

 

 
 

(266)

 
 

 

 
 

(64)

 
 

 

 
 

  (544)  

 
 

 

 
 

(656)

 
 

 

 
 

(17)

 
 

Adjustments 1

 
  

  (84)  

 
 

 

 
 

116

 
 

 

 
 

n/m

 
 

 

 
 

  146  

 
 

 

 
 

348

 
 

 

 
 

(58)

 
 

Adjusted EBITDA

 
  

  (180)  

 
 

 

 
 

(150)

 
 

 

 
 

20

 
 

 

 
 

  (398)  

 
 

 

 
 

(308)

 
 

 

 
 

29

 
 

1. See Note 2 to the unaudited condensed consolidated financial statements.

 
 
  •   General and administrative expenses were higher in the full year of 2022 compared to the same period in 2021 mainly due to increased depreciation and amortization expense, higher donations and higher information technology-related expenses.
  •  
  •   Share-based compensation (recovery) expense was a recovery in the fourth quarter of 2022 due to a decrease in share price and an expense for the comparative period in 2021 due to an increase in share price. We had a lower expense for the full year of 2022 compared to 2021 mainly due to a lower value of share-based awards outstanding.
  •  
  •   Other expenses were lower in the fourth quarter of 2022 compared to the same period in 2021 mainly due to net foreign exchange gains in 2022 compared to net foreign exchange losses in 2021 and lower expenses related to asset retirement obligations and accrued environmental costs for our non-operating sites from the changes in our cost and discount rate estimates. This was partially offset by an employee special recognition award expense in 2022. Other expenses were lower in the full year of 2022 compared to the same period in 2021 mainly due to lower COVID-19 related expenses, the absence of cloud computing related expenses from our change in accounting policy in 2021 and lower expenses related to asset retirement obligations and accrued environmental costs for our non-operating sites from the changes in our cost and discount rate estimates. This was partially offset by higher information technology project feasibility costs and an employee special recognition award expense in 2022.
  •  

  Eliminations  

 

Eliminations are not part of the Corporate and Others segment. Eliminations of gross margin between operating segments were $(28) million for the full year of 2022 compared to $(89) million in the same period of 2021. We had significant eliminations in 2021 due to higher-margin inventories held by our Retail segment as global commodity benchmark prices increased. The magnitude of the rise in prices was lower in 2022.

 

  Finance Costs, Income Taxes and Other Comprehensive Income (Loss)  

 
                                                         
 

(millions of US dollars, except as otherwise

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Finance costs

 
  

  188  

 
 

 

 
 

246

 
 

 

 
 

(24)

 
 

 

 
 

  563  

 
 

 

 
 

613

 
 

 

 
 

(8)

 
 

Income tax expense

 
  

  353  

 
 

 

 
 

374

 
 

 

 
 

(6)

 
 

 

 
 

  2,559  

 
 

 

 
 

989

 
 

 

 
 

159

 
 

Other comprehensive income (loss)

 
  

  119  

 
 

 

 
 

72

 
 

 

 
 

65

 
 

 

 
 

  (177)  

 
 

 

 
 

78

 
 

 

 
 

n/m

 
 
  •   Finance costs were lower in the fourth quarter and full year of 2022 compared to the same periods in 2021 mainly due to the absence of a loss of $142 million on early extinguishment of a portion of our long-term debt in the comparative periods. In the full year of 2022 short-term interest was higher due to increased interest rates and a higher average balance compared to 2021, which more than offset a decrease in long-term interest due to a lower average outstanding balance in 2022.
  •  
  •   Income tax expense was higher in the full year of 2022 as a result of higher earnings in 2022 compared to the same period in 2021.
  •  
  •   Other comprehensive income (loss) is primarily driven by changes in our investment in Sinofert Holdings Ltd ("Sinofert"), the currency translation of our foreign operations and net actuarial gains on defined benefit plans. In the fourth quarter of 2022, we had a fair value gain on our investment in Sinofert due to share price increases, compared to a fair value loss due to share price decreases in 2021. In addition, we had higher gains on foreign currency translation of our Retail foreign operations, mainly in Australia and Brazil, compared to the same period in 2021, as these currencies appreciated relative to the US dollar. These factors were partially offset by a lower net actuarial gain on our defined benefit pension plans in the fourth quarter of 2022 compared to the same period in 2021. For the full year of 2022, we had fair value losses on our investment in Sinofert due to share price decreases, compared to fair value gains due to share price increases for the same period in 2021. In addition, we had higher losses on foreign currency translation of our Retail foreign operations, mainly in Canada, compared to the same period in 2021, as this currency depreciated relative to the US dollar, partially offset by higher gains in Brazil, as this currency appreciated relative to the US dollar.
  •  

  Forward-Looking Statements  

 

Certain statements and other information included in this document, including within the "Market Outlook and Guidance" section, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "anticipate", "forecast", "expect", "believe", "may", "will", "should", "estimate", "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 2023 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; our advancement of strategic growth initiatives; capital spending expectations for 2023; expectations regarding performance of our operating segments in 2023; our intention to increase potash production capability to 18 million tonnes by 2026; our operating segment market outlooks and our expectations for market conditions and fundamentals in 2023 and beyond, 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, grower crop investment, crop mix, production expenses, shipments, consumption, prices and the impact of seasonality, import and export volumes, economic sanctions and the conflict between Ukraine and Russia; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

 

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made 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 on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, 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 2023 and in the future; assumptions with respect to our intention to complete share repurchases under our share repurchase program, including TSX approval and the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies; 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 global economy; our expectations regarding the impacts, direct and indirect, of the conflict between Ukraine and Russia on, among other things, global supply and demand, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; 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 expectations regarding the impact of certain factors on the carrying amount of goodwill associated with our Retail – North America group of CGUs; 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; seasonality; climate change and weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; political risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism; the occurrence of a major environmental or safety incident; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; the COVID-19 pandemic, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, including government-imposed vaccine mandates, fiscal and monetary responses by governments and financial institutions to market conditions and disruptions to global supply chains; the conflict between Ukraine and Russia and its potential impact on, among other things, global market conditions and supply and demand, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments; the risk that rising interest rates and/or deteriorated business operating results may result in the impairment of assets or goodwill attributed to certain of our cash generating units; 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 adjusted net earnings per share and adjusted EBITDA (consolidated and by segment) guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

 

The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws.

 

  Terms and Definitions  

 

For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the "Terms & Definitions" section of our 2021 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, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value for all stakeholders by advancing our key environmental, social and governance priorities.

 

More information about Nutrien can be found at www.nutrien.com .

 

Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool  

 

Such data is not incorporated by reference herein.

 

  Nutrien will host a Conference Call on Thursday, February 16, 2023 at 10:00 a.m. Eastern Time.  

 

Telephone Conference dial-in numbers:

 
  • From Canada and the US 1-888-886-7786
  •  
  • International 1-416-764-8683
  •  
  • No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner.
  •  

Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2022-q4-earnings-conference-call  

 

  Appendix A - Selected Additional Financial Data  

 
                                                                                                                                                                                                                                                                                               
 

  Selected Retail Measures  

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

 

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  Proprietary products gross margin (millions of US   dollars)  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
  

  55  

 
 

 

 
 

49

 
 

 

 
 

  370  

 
 

 

 
 

328

 
 

Crop protection products

 
  

  58  

 
 

 

 
 

58

 
 

 

 
 

  675  

 
 

 

 
 

527

 
 

Seed

 
  

  (7)  

 
 

 

 
 

22

 
 

 

 
 

  166  

 
 

 

 
 

183

 
 

Merchandise

 
  

  5  

 
 

 

 
 

4

 
 

 

 
 

  12  

 
 

 

 
 

12

 
 

All products

 
  

  111  

 
 

 

 
 

133

 
 

 

 
 

  1,223  

 
 

 

 
 

1,050

 
 

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

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
  

  16  

 
 

 

 
 

12

 
 

 

 
 

  21  

 
 

 

 
 

21

 
 

Crop protection products

 
  

  14  

 
 

 

 
 

14

 
 

 

 
 

  35  

 
 

 

 
 

34

 
 

Seed

 
  

  n/m  

 
 

 

 
 

39

 
 

 

 
 

  39  

 
 

 

 
 

44

 
 

Merchandise

 
  

  11  

 
 

 

 
 

9

 
 

 

 
 

  7  

 
 

 

 
 

7

 
 

All products

 
  

  11  

 
 

 

 
 

11

 
 

 

 
 

  24  

 
 

 

 
 

23

 
 

  Crop nutrients sales volumes (tonnes – thousands)  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
  

  1,819  

 
 

 

 
 

2,119

 
 

 

 
 

  8,106  

 
 

 

 
 

9,848

 
 

International

 
  

  675  

 
 

 

 
 

702

 
 

 

 
 

  3,407  

 
 

 

 
 

3,535

 
 

Total

 
  

  2,494  

 
 

 

 
 

2,821

 
 

 

 
 

  11,513  

 
 

 

 
 

13,383

 
 

  Crop nutrients selling price per tonne  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
  

  942  

 
 

 

 
 

725

 
 

 

 
 

  916  

 
 

 

 
 

556

 
 

International

 
  

  896  

 
 

 

 
 

708

 
 

 

 
 

  774  

 
 

 

 
 

512

 
 

Total

 
  

  930  

 
 

 

 
 

721

 
 

 

 
 

  874  

 
 

 

 
 

545

 
 

  Crop nutrients gross margin per tonne  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
  

  151  

 
 

 

 
 

154

 
 

 

 
 

  182  

 
 

 

 
 

133

 
 

International

 
  

  108  

 
 

 

 
 

144

 
 

 

 
 

  86  

 
 

 

 
 

82

 
 

Total

 
  

  139  

 
 

 

 
 

152

 
 

 

 
 

  153  

 
 

 

 
 

119

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Financial performance measures  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Retail adjusted EBITDA margin (%) 1, 2

 
 

 

 
 

  11  

 
 

 

 
 

11

 
 

Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2, 3

 
 

 

 
 

  1,923  

 
 

 

 
 

1,481

 
 

Retail adjusted average working capital to sales (%) 1, 4

 
 

 

 
 

  17  

 
 

 

 
 

13

 
 

Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 4

 
 

 

 
 

  2  

 
 

 

 
 

 
 

Nutrien Financial adjusted net interest margin (%) 1, 4

 
 

 

 
 

  6.8  

 
 

 

 
 

6.6

 
 

Retail cash operating coverage ratio (%) 1, 4

 
 

 

 
 

  55  

 
 

 

 
 

58

 
 

Retail normalized comparable store sales (%) 4

 
 

 

 
 

  (4)  

 
 

 

 
 

7

 
 

1. Rolling four quarters ended December 31, 2022 and 2021.

 
 

2. These are supplementary financial measures. See the "Other Financial Measures" section.

 
 

3. Excluding acquisitions.

 
 

4. These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
                                                                          
 

  Nutrien Financial  

 
  

  As at December 31, 2022  

 
  

As at
December
31, 2021

 
 

(millions of US dollars)

 
  

  Current  

 
  

    Past Due  

 
  

  31–90 Days
  Past Due  

 
  

  >90 Days
  Past Due  

 
  

  Gross
Receivables
 

 
  

  Allowance 1  

 
  

  Net
Receivables
 

 
  

Net
Receivables

 
 

North America

 
  

1,658

 
  

225

 
  

75

 
  

78

 
  

2,036

 
  

(29)

 
  

  2,007  

 
  

1,488

 
 

International

 
  

574

 
  

53

 
  

14

 
  

28

 
  

669

 
  

(7)

 
  

  662  

 
  

662

 
 

Nutrien Financial receivables

 
  

2,232

 
  

278

 
  

89

 
  

106

 
  

2,705

 
  

(36)

 
  

  2,669  

 
  

2,150

 
 

1. Bad debt expense on the above receivables for the twelve months ended December 31, 2022 was $10 million (2021 – $10 million) in the Retail segment.

 
 
                                                                                               
 

  Selected Nitrogen Measures  

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

 

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  Sales volumes (tonnes – thousands)  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
  

  1,408  

 
 

 

 
 

1,578

 
 

 

 
 

  5,371  

 
 

 

 
 

6,028

 
 

Industrial and feed

 
  

  1,129  

 
 

 

 
 

1,257

 
 

 

 
 

  4,652  

 
 

 

 
 

4,697

 
 

  Net sales (millions of US dollars)  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
  

  854  

 
 

 

 
 

861

 
 

 

 
 

  3,512  

 
 

 

 
 

2,364

 
 

Industrial and feed

 
  

  687  

 
 

 

 
 

595

 
 

 

 
 

  2,878  

 
 

 

 
 

1,620

 
 

  Net selling price per tonne  

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
  

  607  

 
 

 

 
 

545

 
 

 

 
 

  654  

 
 

 

 
 

392

 
 

Industrial and feed

 
  

  608  

 
 

 

 
 

473

 
 

 

 
 

  619  

 
 

 

 
 

345

 
 
                                                                                
 

  Production Measures  

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

 

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Potash production (Product tonnes – thousands)

 
  

  2,941  

 
 

 

 
 

3,641

 
 

 

 
 

  13,007  

 
 

 

 
 

13,790

 
 

Potash shutdown weeks 1

 
  

  3  

 
 

 

 
 

 
 

 

 
 

  18  

 
 

 

 
 

14

 
 

Ammonia production – total 2

 
  

  1,400  

 
 

 

 
 

1,641

 
 

 

 
 

  5,759  

 
 

 

 
 

5,996

 
 

Ammonia production – adjusted 2, 3

 
  

  920  

 
 

 

 
 

1,069

 
 

 

 
 

  3,935  

 
 

 

 
 

3,932

 
 

Ammonia operating rate (%) 3

 
  

  83  

 
 

 

 
 

97

 
 

 

 
 

  90  

 
 

 

 
 

90

 
 

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

 
  

  288  

 
 

 

 
 

409

 
 

 

 
 

  1,351  

 
 

 

 
 

1,518

 
 

P 2 O 5 operating rate (%)

 
  

  67  

 
 

 

 
 

95

 
 

 

 
 

  79  

 
 

 

 
 

89

 
 

1. Represents weeks of full production shutdown, including inventory adjustments and unplanned events, excluding the impact of any periods of reduced operating rates, 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 measures and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

 

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

 

The following section outlines our non-IFRS financial measures and non-IFRS ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations.

 

  Adjusted EBITDA (Consolidated)  

 

  Most directly comparable IFRS financial measure: Net earnings (loss).

 

  Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses, gain or loss on disposal of certain businesses and investments, and IFRS adoption transition adjustments.

 

  Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations, and as a component of employee remuneration calculations.

 
                                                                                                                                      
 

 

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

(millions of US dollars)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Net earnings

 
  

  1,118  

 
 

 

 
 

1,207

 
 

 

 
 

  7,687  

 
 

 

 
 

3,179

 
 

Finance costs

 
  

  188  

 
 

 

 
 

246

 
 

 

 
 

  563  

 
 

 

 
 

613

 
 

Income tax expense

 
  

  353  

 
 

 

 
 

374

 
 

 

 
 

  2,559  

 
 

 

 
 

989

 
 

Depreciation and amortization

 
  

  520  

 
 

 

 
 

497

 
 

 

 
 

  2,012  

 
 

 

 
 

1,951

 
 

EBITDA 1

 
  

  2,179  

 
 

 

 
 

2,324

 
 

 

 
 

  12,821  

 
 

 

 
 

6,732

 
 

Share-based compensation (recovery) expense

 
  

  (59)  

 
 

 

 
 

73

 
 

 

 
 

  63  

 
 

 

 
 

198

 
 

Foreign exchange (gain) loss, net of related derivatives

 
  

  (36)  

 
 

 

 
 

38

 
 

 

 
 

  31  

 
 

 

 
 

39

 
 

Integration and restructuring related costs

 
  

  11  

 
 

 

 
 

(4)

 
 

 

 
 

  46  

 
 

 

 
 

43

 
 

Impairment (reversal) of assets

 
  

  

 
 

 

 
 

21

 
 

 

 
 

  (780)  

 
 

 

 
 

33

 
 

COVID-19 related expenses 2

 
  

  

 
 

 

 
 

11

 
 

 

 
 

  8  

 
 

 

 
 

45

 
 

Gain on disposal of investment

 
  

  

 
 

 

 
 

 
 

 

 
 

  (19)  

 
 

 

 
 

 
 

Cloud computing transition adjustment 3

 
  

  

 
 

 

 
 

 
 

 

 
 

  

 
 

 

 
 

36

 
 

Adjusted EBITDA

 
  

  2,095  

 
 

 

 
 

2,463

 
 

 

 
 

  12,170  

 
 

 

 
 

7,126

 
 

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

 
 

2. 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.

 
 

3. 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.

 
 

  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: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments, and gain/loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting. In 2022, we amended our calculation of adjusted net earnings to adjust for a gain on settlement of a derivative due to discontinued hedge accounting. There was no similar gain or loss in the comparative period. 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.

 

  Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations.

 
                                                                                                                                                                                                                                                                                                                                                                         
 

 

 
  

  Three Months Ended
  December 31, 2022  

 
 

 

 
 

  Twelve Months Ended
  December 31, 2022  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

  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

 
  

 

 
 

 

 
 

1,112

 
 

 

 
 

2.15

 
 

 

 
 

 

 
 

 

 
 

7,660

 
 

 

 
 

14.18

 
 

Adjustments:

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share-based compensation (recovery) expense

 
  

(59)

 
 

 

 
 

(45)

 
 

 

 
 

(0.09)

 
 

 

 
 

63

 
 

 

 
 

47

 
 

 

 
 

0.10

 
 

Foreign exchange (gain) loss, net of related derivatives

 
  

(36)

 
 

 

 
 

(27)

 
 

 

 
 

(0.05)

 
 

 

 
 

31

 
 

 

 
 

23

 
 

 

 
 

0.05

 
 

Integration and restructuring related costs

 
  

11

 
 

 

 
 

8

 
 

 

 
 

0.01

 
 

 

 
 

46

 
 

 

 
 

35

 
 

 

 
 

0.06

 
 

Reversal of impairment of assets

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(780)

 
 

 

 
 

(619)

 
 

 

 
 

(1.15)

 
 

COVID-19 related expenses

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

8

 
 

 

 
 

6

 
 

 

 
 

0.01

 
 

Gain on disposal of investment

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(19)

 
 

 

 
 

(14)

 
 

 

 
 

(0.03)

 
 

Gain on settlement of discontinued hedge accounting derivative

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(18)

 
 

 

 
 

(14)

 
 

 

 
 

(0.03)

 
 

Adjusted net earnings

 
  

 

 
 

 

 
 

  1,048  

 
 

 

 
 

  2.02  

 
 

 

 
 

 

 
 

 

 
 

  7,124  

 
 

 

 
 

  13.19  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Three Months Ended

 

December 31, 2021

 
 

 

 
 

Twelve Months Ended

 

December 31, 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

 
  

 

 
 

 

 
 

1,201

 
 

 

 
 

2.11

 
 

 

 
 

 

 
 

 

 
 

3,153

 
 

 

 
 

5.52

 
 

Adjustments:

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share-based compensation expense

 
  

73

 
 

 

 
 

56

 
 

 

 
 

0.10

 
 

 

 
 

198

 
 

 

 
 

151

 
 

 

 
 

0.27

 
 

Foreign exchange loss, net of related derivatives

 
  

38

 
 

 

 
 

29

 
 

 

 
 

0.05

 
 

 

 
 

39

 
 

 

 
 

30

 
 

 

 
 

0.05

 
 

Integration and restructuring related (recovery) costs

 
  

(4)

 
 

 

 
 

(3)

 
 

 

 
 

(0.01)

 
 

 

 
 

43

 
 

 

 
 

33

 
 

 

 
 

0.06

 
 

Impairment of assets

 
  

21

 
 

 

 
 

16

 
 

 

 
 

0.03

 
 

 

 
 

33

 
 

 

 
 

25

 
 

 

 
 

0.04

 
 

COVID-19 related expenses

 
  

11

 
 

 

 
 

8

 
 

 

 
 

0.01

 
 

 

 
 

45

 
 

 

 
 

34

 
 

 

 
 

0.06

 
 

Cloud computing transition adjustment

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

36

 
 

 

 
 

27

 
 

 

 
 

0.05

 
 

Loss on early extinguishment of debt

 
  

142

 
 

 

 
 

104

 
 

 

 
 

0.18

 
 

 

 
 

142

 
 

 

 
 

104

 
 

 

 
 

0.18

 
 

Adjusted net earnings

 
  

 

 
 

 

 
 

1,411

 
 

 

 
 

2.47

 
 

 

 
 

 

 
 

 

 
 

3,557

 
 

 

 
 

6.23

 
 

  Adjusted EBITDA (Consolidated) and Adjusted Net Earnings Per Share Guidance  

 

Adjusted EBITDA and adjusted net earnings per share 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 because a meaningful or accurate calculation of reconciling items and the information is not available without unreasonable effort due to unknown variables, including the timing and amount of certain reconciling items, 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. The probable significance of such unavailable information, which could be material to future results, cannot be addressed. Guidance for adjusted EBITDA and adjusted net earnings per share excludes certain items such as, but not limited to, the impacts of share-based compensation, certain foreign exchange gain/loss (net of related derivatives), integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments, and gain/loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting.

 

  Growth Capital  

 

  Most directly comparable IFRS financial measure: Cash used in investing activities.

 

  Definition: Cash used in investing activities related to growth initiatives consisting of investing capital expenditures, which are a component of capital expenditures, plus business acquisitions, net of cash acquired per the unaudited condensed consolidated statements of cash flows.

 

  Why we use the measure and why it is useful to investors: To demonstrate how we allocate our capital to our various priorities including growth and expansion projects and acquisitions.

 
                                         
 

(millions of US dollars)

 
  

  2022  

 
  

2021

 
 

Cash used in investing activities

 
  

  (2,901)  

 
  

(1,807)

 
 

Sustaining capital expenditures

 
  

  1,449  

 
  

1,247

 
 

Mine development and pre-stripping capital expenditures

 
  

  234  

 
  

156

 
 

Borrowing costs on property, plant and equipment

 
  

  (37)  

 
  

(29)

 
 

Other 1

 
  

  12  

 
  

(64)

 
 

Net changes in non-cash working capital 1

 
  

  44  

 
  

(101)

 
 

Growth capital

 
  

  (1,199)  

 
  

(598)

 
 

1. Included in investing activities as per the unaudited condensed consolidated statement of cash flows.

 
 

  Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured  

 

  Most directly comparable IFRS financial measure: Gross margin.

 

  Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the "Segment Results" section.

 

  Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.

 

  Potash Controllable Cash Cost of Product Manufactured ("COPM") Per Tonne  

 

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

 

  Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes.

 

  Why we use the measure and why it is useful to investors: To assess operational performance. In 2022, we replaced Potash cash COPM with this new financial measure. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions.

 
                                                                                                         
 

 

 
  

  Three Months Ended December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Total COGS – Potash

 
  

  310  

 
 

 

 
 

305

 
 

 

 
 

  1,400  

 
 

 

 
 

1,285

 
 

Change in inventory

 
  

  38  

 
 

 

 
 

64

 
 

 

 
 

  58  

 
 

 

 
 

22

 
 

Other adjustments 1

 
  

  (12)  

 
 

 

 
 

1

 
 

 

 
 

  (41)  

 
 

 

 
 

(6)

 
 

COPM

 
  

  336  

 
 

 

 
 

370

 
 

 

 
 

  1,417  

 
 

 

 
 

1,301

 
 

Depreciation and amortization in COPM

 
  

  (89)  

 
 

 

 
 

(115)

 
 

 

 
 

  (406)  

 
 

 

 
 

(430)

 
 

Royalties in COPM

 
  

  (40)  

 
 

 

 
 

(47)

 
 

 

 
 

  (190)  

 
 

 

 
 

(107)

 
 

Natural gas costs and carbon taxes in COPM

 
  

  (17)  

 
 

 

 
 

(17)

 
 

 

 
 

  (62)  

 
 

 

 
 

(51)

 
 

Controllable cash COPM

 
  

  190  

 
 

 

 
 

191

 
 

 

 
 

  759  

 
 

 

 
 

713

 
 

Production tonnes (tonnes – thousands)

 
  

  2,941  

 
 

 

 
 

3,641

 
 

 

 
 

  13,007  

 
 

 

 
 

13,790

 
 

Potash controllable cash COPM per tonne

 
  

  65  

 
 

 

 
 

52

 
 

 

 
 

  58  

 
 

 

 
 

52

 
 

1. Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

 
 

  Ammonia Controllable Cash COPM Per Tonne  

 

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

 

  Definition: Total Nitrogen COGS 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 December 31  

 
 

 

 
 

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Total Manufactured COGS – Nitrogen

 
  

  846  

 
 

 

 
 

725

 
 

 

 
 

  3,197  

 
 

 

 
 

2,353

 
 

Total Other COGS – Nitrogen

 
  

  247  

 
 

 

 
 

170

 
 

 

 
 

  1,055  

 
 

 

 
 

610

 
 

Total COGS – Nitrogen

 
  

  1,093  

 
 

 

 
 

895

 
 

 

 
 

  4,252  

 
 

 

 
 

2,963

 
 

Depreciation and amortization in COGS

 
  

  (131)  

 
 

 

 
 

(126)

 
 

 

 
 

  (465)  

 
 

 

 
 

(473)

 
 

Cash COGS for products other than ammonia

 
  

  (648)  

 
 

 

 
 

(519)

 
 

 

 
 

  (2,560)  

 
 

 

 
 

(1,740)

 
 

Ammonia

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Total cash COGS before other adjustments

 
  

  314  

 
 

 

 
 

250

 
 

 

 
 

  1,227  

 
 

 

 
 

750

 
 

Other adjustments 1

 
  

  (65)  

 
 

 

 
 

(30)

 
 

 

 
 

  (210)  

 
 

 

 
 

(96)

 
 

Total cash COPM

 
  

  249  

 
 

 

 
 

220

 
 

 

 
 

  1,017  

 
 

 

 
 

654

 
 

Natural gas and steam costs in COPM

 
  

  (212)  

 
 

 

 
 

(186)

 
 

 

 
 

  (855)  

 
 

 

 
 

(515)

 
 

Controllable cash COPM

 
  

  37  

 
 

 

 
 

34

 
 

 

 
 

  162  

 
 

 

 
 

139

 
 

Production tonnes (net tonnes 2 – thousands)

 
  

  655  

 
 

 

 
 

758

 
 

 

 
 

  2,754  

 
 

 

 
 

2,769

 
 

Ammonia controllable cash COPM per tonne

 
  

  57  

 
 

 

 
 

45

 
 

 

 
 

  59  

 
 

 

 
 

50

 
 

1. Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

 
 

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

 
 

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

 

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

 

  Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio.

 
                                                                                                                                                                                                                                                                                                                                                                       
 

 

 
  

  Rolling four quarters ended December 31, 2022  

 
 

(millions of US dollars, except as otherwise noted)

 
  

  Q1 2022  

 
 

 

 
 

  Q2 2022  

 
 

 

 
 

  Q3 2022  

 
 

 

 
 

  Q4 2022  

 
 

 

 
 

  Average/Total  

 
 

Current assets

 
  

12,392

 
 

 

 
 

12,487

 
 

 

 
 

11,262

 
 

 

 
 

11,668

 
 

 

 
 

 

 
 

Current liabilities

 
  

(9,223)

 
 

 

 
 

(9,177)

 
 

 

 
 

(5,889)

 
 

 

 
 

(8,708)

 
 

 

 
 

 

 
 

Working capital

 
  

3,169

 
 

 

 
 

3,310

 
 

 

 
 

5,373

 
 

 

 
 

2,960

 
 

 

 
 

  3,703  

 
 

Working capital from certain recent acquisitions

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted working capital

 
  

3,169

 
 

 

 
 

3,310

 
 

 

 
 

5,373

 
 

 

 
 

2,960

 
 

 

 
 

  3,703  

 
 

Nutrien Financial working capital

 
  

(2,274)

 
 

 

 
 

(4,404)

 
 

 

 
 

(3,898)

 
 

 

 
 

(2,669)

 
 

 

 
 

 

 
 

Adjusted working capital excluding Nutrien Financial

 
  

895

 
 

 

 
 

(1,094)

 
 

 

 
 

1,475

 
 

 

 
 

291

 
 

 

 
 

  392  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales

 
  

3,861

 
 

 

 
 

9,422

 
 

 

 
 

3,980

 
 

 

 
 

4,087

 
 

 

 
 

 

 
 

Sales from certain recent acquisitions

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted sales

 
  

3,861

 
 

 

 
 

9,422

 
 

 

 
 

3,980

 
 

 

 
 

4,087

 
 

 

 
 

  21,350  

 
 

Nutrien Financial revenue

 
  

(49)

 
 

 

 
 

(91)

 
 

 

 
 

(65)

 
 

 

 
 

(62)

 
 

 

 
 

 

 
 

Adjusted sales excluding Nutrien Financial

 
  

3,812

 
 

 

 
 

9,331

 
 

 

 
 

3,915

 
 

 

 
 

4,025

 
 

 

 
 

  21,083  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Adjusted average working capital to sales (%)  

 
 

 

 
 

  17  

 
 

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

 
 

 

 
 

  2  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Rolling four quarters ended December 31, 2021

 
 

(millions of US dollars, except as otherwise noted)

 
  

Q1 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Q4 2021

 
 

 

 
 

Average/Total

 
 

Current assets

 
  

9,160

 
 

 

 
 

9,300

 
 

 

 
 

8,945

 
 

 

 
 

9,924

 
 

 

 
 

 

 
 

Current liabilities

 
  

(7,530)

 
 

 

 
 

(7,952)

 
 

 

 
 

(5,062)

 
 

 

 
 

(7,828)

 
 

 

 
 

 

 
 

Working capital

 
  

1,630

 
 

 

 
 

1,348

 
 

 

 
 

3,883

 
 

 

 
 

2,096

 
 

 

 
 

2,239

 
 

Working capital from certain recent acquisitions

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted working capital

 
  

1,630

 
 

 

 
 

1,348

 
 

 

 
 

3,883

 
 

 

 
 

2,096

 
 

 

 
 

2,239

 
 

Nutrien Financial working capital

 
  

(1,221)

 
 

 

 
 

(3,072)

 
 

 

 
 

(2,820)

 
 

 

 
 

(2,150)

 
 

 

 
 

 

 
 

Adjusted working capital excluding Nutrien Financial

 
  

409

 
 

 

 
 

(1,724)

 
 

 

 
 

1,063

 
 

 

 
 

(54)

 
 

 

 
 

(77)

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales

 
  

2,972

 
 

 

 
 

7,537

 
 

 

 
 

3,347

 
 

 

 
 

3,878

 
 

 

 
 

 

 
 

Sales from certain recent acquisitions

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted sales

 
  

2,972

 
 

 

 
 

7,537

 
 

 

 
 

3,347

 
 

 

 
 

3,878

 
 

 

 
 

17,734

 
 

Nutrien Financial revenue

 
  

(25)

 
 

 

 
 

(59)

 
 

 

 
 

(54)

 
 

 

 
 

(51)

 
 

 

 
 

 

 
 

Adjusted sales excluding Nutrien Financial

 
  

2,947

 
 

 

 
 

7,478

 
 

 

 
 

3,293

 
 

 

 
 

3,827

 
 

 

 
 

17,545

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted average working capital to sales (%)

 
 

 

 
 

13

 
 

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

 
 

 

 
 

 
 

  Nutrien Financial Adjusted Net Interest Margin  

 

  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 the financial performance of Nutrien Financial.

 
                                                                                                                                                                            
 

 

 
  

  Rolling four quarters ended December 31, 2022  

 
 

(millions of US dollars, except as otherwise noted)

 
  

  Q1 2022  

 
 

 

 
 

  Q2 2022  

 
 

 

 
 

  Q3 2022  

 
 

 

 
 

  Q4 2022  

 
 

 

 
 

  Total/Average  

 
 

Nutrien Financial revenue

 
  

49

 
 

 

 
 

91

 
 

 

 
 

65

 
 

 

 
 

62

 
 

 

 
 

 

 
 

Deemed interest expense 1

 
  

(6)

 
 

 

 
 

(12)

 
 

 

 
 

(12)

 
 

 

 
 

(11)

 
 

 

 
 

 

 
 

Net interest

 
  

43

 
 

 

 
 

79

 
 

 

 
 

53

 
 

 

 
 

51

 
 

 

 
 

  226  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average Nutrien Financial receivables

 
  

2,274

 
 

 

 
 

4,404

 
 

 

 
 

3,898

 
 

 

 
 

2,669

 
 

 

 
 

  3,311  

 
 

Nutrien Financial adjusted net interest margin (%)

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  6.8  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Rolling four quarters ended December 31, 2021

 
 

(millions of US dollars, except as otherwise noted)

 
  

Q1 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Q4 2021

 
 

 

 
 

Total/Average

 
 

Nutrien Financial revenue

 
  

25

 
 

 

 
 

59

 
 

 

 
 

54

 
 

 

 
 

51

 
 

 

 
 

 

 
 

Deemed interest expense 1

 
  

(6)

 
 

 

 
 

(8)

 
 

 

 
 

(10)

 
 

 

 
 

(12)

 
 

 

 
 

 

 
 

Net interest

 
  

19

 
 

 

 
 

51

 
 

 

 
 

44

 
 

 

 
 

39

 
 

 

 
 

153

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average Nutrien Financial receivables

 
  

1,221

 
 

 

 
 

3,072

 
 

 

 
 

2,820

 
 

 

 
 

2,150

 
 

 

 
 

2,316

 
 

Nutrien Financial adjusted net interest margin (%)

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

6.6

 
 

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

 
 

  Retail Cash Operating Coverage Ratio  

 

  Definition: Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters.

 

  Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.

 
                                                                                                                                                                                                                                                                                         
 

 

 
  

  Rolling four quarters ended December 31, 2022  

 
 

(millions of US dollars, except as otherwise noted)

 
  

  Q1 2022  

 
 

 

 
 

  Q2 2022  

 
 

 

 
 

  Q3 2022  

 
 

 

 
 

  Q4 2022  

 
 

 

 
 

  Total  

 
 

Selling expenses

 
  

722

 
 

 

 
 

1,013

 
 

 

 
 

821

 
 

 

 
 

836

 
 

 

 
 

  3,392  

 
 

General and administrative expenses

 
  

45

 
 

 

 
 

54

 
 

 

 
 

50

 
 

 

 
 

51

 
 

 

 
 

  200  

 
 

Other (income) expenses

 
  

(12)

 
 

 

 
 

21

 
 

 

 
 

19

 
 

 

 
 

1

 
 

 

 
 

  29  

 
 

Operating expenses

 
  

755

 
 

 

 
 

1,088

 
 

 

 
 

890

 
 

 

 
 

888

 
 

 

 
 

  3,621  

 
 

Depreciation and amortization in operating expenses

 
  

(167)

 
 

 

 
 

(171)

 
 

 

 
 

(204)

 
 

 

 
 

(198)

 
 

 

 
 

  (740)  

 
 

Operating expenses excluding depreciation and amortization

 
  

588

 
 

 

 
 

917

 
 

 

 
 

686

 
 

 

 
 

690

 
 

 

 
 

  2,881  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
  

845

 
 

 

 
 

2,340

 
 

 

 
 

917

 
 

 

 
 

1,077

 
 

 

 
 

  5,179  

 
 

Depreciation and amortization in cost of goods sold

 
  

2

 
 

 

 
 

4

 
 

 

 
 

2

 
 

 

 
 

4

 
 

 

 
 

  12  

 
 

Gross margin excluding depreciation and amortization

 
  

847

 
 

 

 
 

2,344

 
 

 

 
 

919

 
 

 

 
 

1,081

 
 

 

 
 

  5,191  

 
 

Cash operating coverage ratio (%)

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  55  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Rolling four quarters ended December 31, 2021

 
 

(millions of US dollars, except as otherwise noted)

 
  

Q1 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Q4 2021

 
 

 

 
 

Total

 
 

Selling expenses

 
  

667

 
 

 

 
 

863

 
 

 

 
 

746

 
 

 

 
 

848

 
 

 

 
 

3,124

 
 

General and administrative expenses

 
  

39

 
 

 

 
 

41

 
 

 

 
 

45

 
 

 

 
 

43

 
 

 

 
 

168

 
 

Other expenses

 
  

15

 
 

 

 
 

34

 
 

 

 
 

17

 
 

 

 
 

20

 
 

 

 
 

86

 
 

Operating expenses

 
  

721

 
 

 

 
 

938

 
 

 

 
 

808

 
 

 

 
 

911

 
 

 

 
 

3,378

 
 

Depreciation and amortization in operating expenses

 
  

(175)

 
 

 

 
 

(166)

 
 

 

 
 

(180)

 
 

 

 
 

(173)

 
 

 

 
 

(694)

 
 

Operating expenses excluding depreciation and amortization

 
  

546

 
 

 

 
 

772

 
 

 

 
 

628

 
 

 

 
 

738

 
 

 

 
 

2,684

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
  

652

 
 

 

 
 

1,858

 
 

 

 
 

917

 
 

 

 
 

1,173

 
 

 

 
 

4,600

 
 

Depreciation and amortization in cost of goods sold

 
  

2

 
 

 

 
 

3

 
 

 

 
 

2

 
 

 

 
 

5

 
 

 

 
 

12

 
 

Gross margin excluding depreciation and amortization

 
  

654

 
 

 

 
 

1,861

 
 

 

 
 

919

 
 

 

 
 

1,178

 
 

 

 
 

4,612

 
 

Cash operating coverage ratio (%)

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

58

 
 

  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 average selling price (which generally moves with published potash, nitrogen and phosphate benchmark prices), acquisitions of new stores and foreign exchange rates used in the current year.

 

  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.

 
                                                 
 

 

 
  

  Twelve Months Ended December 31  

 
 

(millions of US dollars, except as otherwise noted)

 
  

  2022  

 
 

 

 
 

2021

 
 

Sales from comparable base

 
  

 

 
 

 

 
 

 

 
 

Prior period

 
  

  17,734  

 
 

 

 
 

14,785

 
 

Adjustments 1

 
  

  (64)  

 
 

 

 
 

(476)

 
 

Revised prior period

 
  

  17,670  

 
 

 

 
 

14,309

 
 

Current period

 
  

  21,092  

 
 

 

 
 

17,511

 
 

Comparable store sales (%)

 
  

  19  

 
 

 

 
 

22

 
 

Prior period normalized for average selling prices and foreign exchange rates

 
  

  21,867  

 
 

 

 
 

16,350

 
 

Normalized comparable store sales (%)

 
  

  (4)  

 
 

 

 
 

7

 
 

1. Adjustments relate to prior period sales related to closed locations or businesses that no longer exist in the current period in order to provide a comparable base in our calculation.

 
 

  Appendix C – Other Financial Measures  

 

  Supplementary Financial Measures  

 

Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

 

The following section provides an explanation of the composition of those supplementary financial measures if not previously provided.

 

  Retail adjusted EBITDA margin: Retail adjusted EBITDA divided by Retail sales for the last four rolling quarters.

 

  Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance, and plant turnarounds.

 

  Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees.

 

  Retail adjusted EBITDA per US selling location: Calculated as total Retail US adjusted EBITDA for the last four rolling quarters, representing the organic EBITDA component, which excludes 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 in those quarters.

 

  Condensed Consolidated Financial Statements  

 

  Unaudited - In millions of US dollars except as otherwise noted  

 

  Condensed Consolidated Statements of Earnings  

 
                                                                                                                                                                                                                                           
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Twelve Months Ended  

 
 

 

 
 

 

 
 

  December 31  

 
 

 

 
 

  December 31  

 
 

 

 
 

Note

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  SALES  

 
 

2

 
 

  7,533  

 
 

 

 
 

7,267

 
 

 

 
 

  37,884  

 
 

 

 
 

27,712

 
 

Freight, transportation and distribution

 
 

 

 
 

  244  

 
 

 

 
 

198

 
 

 

 
 

  872  

 
 

 

 
 

851

 
 

Cost of goods sold

 
 

 

 
 

  4,383  

 
 

 

 
 

3,863

 
 

 

 
 

  21,588  

 
 

 

 
 

17,452

 
 

  GROSS MARGIN  

 
 

 

 
 

  2,906  

 
 

 

 
 

3,206

 
 

 

 
 

  15,424  

 
 

 

 
 

9,409

 
 

Selling expenses

 
 

 

 
 

  844  

 
 

 

 
 

855

 
 

 

 
 

  3,414  

 
 

 

 
 

3,142

 
 

General and administrative expenses

 
 

 

 
 

  162  

 
 

 

 
 

148

 
 

 

 
 

  565  

 
 

 

 
 

477

 
 

Provincial mining taxes

 
 

 

 
 

  190  

 
 

 

 
 

173

 
 

 

 
 

  1,149  

 
 

 

 
 

466

 
 

Share-based compensation (recovery) expense

 
 

 

 
 

  (59)  

 
 

 

 
 

73

 
 

 

 
 

  63  

 
 

 

 
 

198

 
 

Impairment (reversal) of assets

 
 

 

 
 

  

 
 

 

 
 

21

 
 

 

 
 

  (780)  

 
 

 

 
 

33

 
 

Other expenses

 
 

4

 
 

  110  

 
 

 

 
 

109

 
 

 

 
 

  204  

 
 

 

 
 

312

 
 

  EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES  

 
 

  1,659  

 
 

 

 
 

1,827

 
 

 

 
 

  10,809  

 
 

 

 
 

4,781

 
 

Finance costs

 
 

 

 
 

  188  

 
 

 

 
 

246

 
 

 

 
 

  563  

 
 

 

 
 

613

 
 

  EARNINGS BEFORE INCOME TAXES  

 
 

 

 
 

  1,471  

 
 

 

 
 

1,581

 
 

 

 
 

  10,246  

 
 

 

 
 

4,168

 
 

Income tax expense

 
 

 

 
 

  353  

 
 

 

 
 

374

 
 

 

 
 

  2,559  

 
 

 

 
 

989

 
 

  NET EARNINGS  

 
 

 

 
 

  1,118  

 
 

 

 
 

1,207

 
 

 

 
 

  7,687  

 
 

 

 
 

3,179

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

 

 
 

  1,112  

 
 

 

 
 

1,201

 
 

 

 
 

  7,660  

 
 

 

 
 

3,153

 
 

Non-controlling interest

 
 

 

 
 

  6  

 
 

 

 
 

6

 
 

 

 
 

  27  

 
 

 

 
 

26

 
 

  NET EARNINGS  

 
 

 

 
 

  1,118  

 
 

 

 
 

1,207

 
 

 

 
 

  7,687  

 
 

 

 
 

3,179

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

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

 
 

Basic

 
 

 

 
 

  2.15  

 
 

 

 
 

2.11

 
 

 

 
 

  14.22  

 
 

 

 
 

5.53

 
 

Diluted

 
 

 

 
 

  2.15  

 
 

 

 
 

2.11

 
 

 

 
 

  14.18  

 
 

 

 
 

5.52

 
 

Weighted average shares outstanding for basic EPS

 
 

 

 
 

  516,810,000  

 
 

 

 
 

568,027,000

 
 

 

 
 

  538,475,000  

 
 

 

 
 

569,664,000

 
 

Weighted average shares outstanding for diluted EPS

 
 

 

 
 

  517,964,000  

 
 

 

 
 

569,653,000

 
 

 

 
 

  540,010,000  

 
 

 

 
 

571,289,000

 
 

  Condensed Consolidated Statements of Comprehensive Income  

 
                                                                                                                                                           
 

 

 
  

  Three Months Ended  

 
 

 

 
 

  Twelve Months Ended  

 
 

 

 
  

  December 31  

 
 

 

 
 

  December 31  

 
 

(Net of related income taxes)

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  NET EARNINGS  

 
  

  1,118  

 
 

 

 
 

1,207

 
 

 

 
 

  7,687  

 
 

 

 
 

3,179

 
 

Other comprehensive income (loss)

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Items that will not be reclassified to net earnings:

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net actuarial gain on defined benefit plans

 
  

  22  

 
 

 

 
 

95

 
 

 

 
 

  83  

 
 

 

 
 

95

 
 

Net fair value gain (loss) on investments

 
  

  17  

 
 

 

 
 

(35)

 
 

 

 
 

  (44)  

 
 

 

 
 

81

 
 

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

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gain (loss) on currency translation of foreign operations

 
  

  73  

 
 

 

 
 

14

 
 

 

 
 

  (199)  

 
 

 

 
 

(115)

 
 

Other

 
  

  7  

 
 

 

 
 

(2)

 
 

 

 
 

  (17)  

 
 

 

 
 

17

 
 

  OTHER COMPREHENSIVE INCOME (LOSS)  

 
  

  119  

 
 

 

 
 

72

 
 

 

 
 

  (177)  

 
 

 

 
 

78

 
 

  COMPREHENSIVE INCOME  

 
  

  1,237  

 
 

 

 
 

1,279

 
 

 

 
 

  7,510  

 
 

 

 
 

3,257

 
 

Attributable to

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
  

  1,230  

 
 

 

 
 

1,273

 
 

 

 
 

  7,484  

 
 

 

 
 

3,232

 
 

Non-controlling interest

 
  

  7  

 
 

 

 
 

6

 
 

 

 
 

  26  

 
 

 

 
 

25

 
 

  COMPREHENSIVE INCOME  

 
  

  1,237  

 
 

 

 
 

1,279

 
 

 

 
 

  7,510  

 
 

 

 
 

3,257

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Cash Flows  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Twelve Months Ended  

 
 

 

 
 

 

 
 

  December 31  

 
 

 

 
 

  December 31  

 
 

 

 
 

Note

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

  OPERATING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net earnings

 
 

 

 
 

  1,118  

 
 

 

 
 

1,207

 
 

 

 
 

  7,687  

 
 

 

 
 

3,179

 
 

Adjustments for:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  520  

 
 

 

 
 

497

 
 

 

 
 

  2,012  

 
 

 

 
 

1,951

 
 

Share-based compensation (recovery) expense

 
 

 

 
 

  (59)  

 
 

 

 
 

73

 
 

 

 
 

  63  

 
 

 

 
 

198

 
 

Impairment (reversal) of assets

 
 

 

 
 

  

 
 

 

 
 

21

 
 

 

 
 

  (780)  

 
 

 

 
 

33

 
 

Gain on disposal of investment

 
 

 

 
 

  

 
 

 

 
 

 
 

 

 
 

  (19)  

 
 

 

 
 

 
 

Loss on early extinguishment of debt

 
 

 

 
 

  

 
 

 

 
 

142

 
 

 

 
 

  

 
 

 

 
 

142

 
 

Cloud computing transition adjustment

 
 

 

 
 

  

 
 

 

 
 

 
 

 

 
 

  

 
 

 

 
 

36

 
 

Provision for (recovery of) deferred income tax

 
 

 

 
 

  30  

 
 

 

 
 

66

 
 

 

 
 

  182  

 
 

 

 
 

(31)

 
 

Long-term income tax receivables

 
 

 

 
 

  72  

 
 

 

 
 

 
 

 

 
 

  273  

 
 

 

 
 

 
 

Net undistributed earnings of equity-accounted investees

 
 

 

 
 

  (42)  

 
 

 

 
 

(43)

 
 

 

 
 

  (181)  

 
 

 

 
 

(44)

 
 

Other long-term assets, liabilities and miscellaneous

 
 

 

 
 

  (29)  

 
 

 

 
 

40

 
 

 

 
 

  21  

 
 

 

 
 

83

 
 

Cash from operations before working capital changes

 
 

 

 
 

  1,610  

 
 

 

 
 

2,003

 
 

 

 
 

  9,258  

 
 

 

 
 

5,547

 
 

Changes in non-cash operating working capital:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Receivables

 
 

 

 
 

  2,683  

 
 

 

 
 

1,432

 
 

 

 
 

  (919)  

 
 

 

 
 

(1,669)

 
 

Inventories

 
 

 

 
 

  (937)  

 
 

 

 
 

(1,652)

 
 

 

 
 

  (1,281)  

 
 

 

 
 

(1,459)

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  (904)  

 
 

 

 
 

(1,092)

 
 

 

 
 

  114  

 
 

 

 
 

(227)

 
 

Payables and accrued charges

 
 

 

 
 

  2,284  

 
 

 

 
 

2,946

 
 

 

 
 

  938  

 
 

 

 
 

1,694

 
 

  CASH PROVIDED BY OPERATING ACTIVITIES  

 
 

 

 
 

  4,736  

 
 

 

 
 

3,637

 
 

 

 
 

  8,110  

 
 

 

 
 

3,886

 
 

  INVESTING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Capital expenditures 1

 
 

 

 
 

  (974)  

 
 

 

 
 

(646)

 
 

 

 
 

  (2,438)  

 
 

 

 
 

(1,884)

 
 

Business acquisitions, net of cash acquired

 
 

 

 
 

  (329)  

 
 

 

 
 

(18)

 
 

 

 
 

  (407)  

 
 

 

 
 

(88)

 
 

Other

 
 

 

 
 

  48  

 
 

 

 
 

121

 
 

 

 
 

  (12)  

 
 

 

 
 

64

 
 

Net changes in non-cash working capital

 
 

 

 
 

  33  

 
 

 

 
 

78

 
 

 

 
 

  (44)  

 
 

 

 
 

101

 
 

  CASH USED IN INVESTING ACTIVITIES  

 
 

 

 
 

  (1,222)  

 
 

 

 
 

(465)

 
 

 

 
 

  (2,901)  

 
 

 

 
 

(1,807)

 
 

  FINANCING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Transaction costs related to debt

 
 

 

 
 

  (6)  

 
 

 

 
 

 
 

 

 
 

  (9)  

 
 

 

 
 

(7)

 
 

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

 
 

 

 
 

  (2,338)  

 
 

 

 
 

307

 
 

 

 
 

  529  

 
 

 

 
 

1,344

 
 

Proceeds from long-term debt

 
 

5

 
 

  1,004  

 
 

 

 
 

(3)

 
 

 

 
 

  1,045  

 
 

 

 
 

86

 
 

Repayment of long-term debt

 
 

5

 
 

  (511)  

 
 

 

 
 

(2,207)

 
 

 

 
 

  (561)  

 
 

 

 
 

(2,212)

 
 

Repayment of principal portion of lease liabilities

 
 

 

 
 

  (85)  

 
 

 

 
 

(78)

 
 

 

 
 

  (341)  

 
 

 

 
 

(320)

 
 

Dividends paid to Nutrien's shareholders

 
 

 

 
 

  (251)  

 
 

 

 
 

(266)

 
 

 

 
 

  (1,031)  

 
 

 

 
 

(1,045)

 
 

Repurchase of common shares

 
 

6

 
 

  (1,214)  

 
 

 

 
 

(885)

 
 

 

 
 

  (4,520)  

 
 

 

 
 

(1,035)

 
 

Issuance of common shares

 
 

 

 
 

  

 
 

 

 
 

12

 
 

 

 
 

  168  

 
 

 

 
 

200

 
 

Other

 
 

 

 
 

  (11)  

 
 

 

 
 

 
 

 

 
 

  (11)  

 
 

 

 
 

(14)

 
 

  CASH USED IN FINANCING ACTIVITIES  

 
 

 

 
 

  (3,412)  

 
 

 

 
 

(3,120)

 
 

 

 
 

  (4,731)  

 
 

 

 
 

(3,003)

 
 

  EFFECT OF EXCHANGE RATE CHANGES ON CASH AND   CASH EQUIVALENTS  

 
 

 

 
 

  (24)  

 
 

 

 
 

4

 
 

 

 
 

  (76)  

 
 

 

 
 

(31)

 
 

  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  

 
 

 

 
 

  78  

 
 

 

 
 

56

 
 

 

 
 

  402  

 
 

 

 
 

(955)

 
 

  CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD  

 
 

 

 
 

  823  

 
 

 

 
 

443

 
 

 

 
 

  499  

 
 

 

 
 

1,454

 
 

  CASH AND CASH EQUIVALENTS – END OF PERIOD  

 
 

 

 
 

  901  

 
 

 

 
 

499

 
 

 

 
 

  901  

 
 

 

 
 

499

 
 

Cash and cash equivalents is composed of:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash

 
 

 

 
 

  775  

 
 

 

 
 

428

 
 

 

 
 

  775  

 
 

 

 
 

428

 
 

Short-term investments

 
 

 

 
 

  126  

 
 

 

 
 

71

 
 

 

 
 

  126  

 
 

 

 
 

71

 
 

 

 
 

 

 
 

  901  

 
 

 

 
 

499

 
 

 

 
 

  901  

 
 

 

 
 

499

 
 

  SUPPLEMENTAL CASH FLOWS INFORMATION  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Interest paid

 
 

 

 
 

  202  

 
 

 

 
 

172

 
 

 

 
 

  482  

 
 

 

 
 

491

 
 

Income taxes paid

 
 

 

 
 

  379  

 
 

 

 
 

79

 
 

 

 
 

  1,882  

 
 

 

 
 

435

 
 

Total cash outflow for leases

 
 

 

 
 

  120  

 
 

 

 
 

94

 
 

 

 
 

  459  

 
 

 

 
 

393

 
 

1. Includes additions to property, plant and equipment, and intangible assets for the three months ended December 31, 2022 of $910 and $64 (2021 – $606 and $40), respectively, and for the twelve months ended December 31, 2022 of $2,227 and $211 (2021 – $1,777 and $107), respectively.

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Changes in Shareholders' Equity  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Accumulated Other Comprehensive

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Loss) Income ("AOCI")

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Loss on

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Currency

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Number of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Translation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Holders

 
 

 

 
 

Non-

 
 

 

 
 

 

 
 

 

 
  

Common

 
 

 

 
 

Share

 
 

 

 
 

Contributed

 
 

 

 
 

of Foreign

 
 

 

 
 

 

 
 

 

 
 

Total

 
 

 

 
 

Retained

 
 

 

 
 

of

 
 

 

 
 

Controlling

 
 

 

 
 

Total

 
 

 

 
  

Shares

 
 

 

 
 

Capital

 
 

 

 
 

Surplus

 
 

 

 
 

Operations

 
 

 

 
 

Other

 
 

 

 
 

AOCI

 
 

 

 
 

Earnings

 
 

 

 
 

Nutrien

 
 

 

 
 

Interest

 
 

 

 
 

Equity

 
 

  BALANCE – DECEMBER 31, 2020  

 
  

569,260,406

 
 

 

 
 

15,673

 
 

 

 
 

205

 
 

 

 
 

(62)

 
 

 

 
 

(57)

 
 

 

 
 

(119)

 
 

 

 
 

6,606

 
 

 

 
 

22,365

 
 

 

 
 

38

 
 

 

 
 

22,403

 
 

Net earnings

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

3,153

 
 

 

 
 

3,153

 
 

 

 
 

26

 
 

 

 
 

3,179

 
 

Other comprehensive (loss) income

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(114)

 
 

 

 
 

193

 
 

 

 
 

79

 
 

 

 
 

 
 

 

 
 

79

 
 

 

 
 

(1)

 
 

 

 
 

78

 
 

Shares repurchased (Note 6)

 
  

(15,982,154)

 
 

 

 
 

(442)

 
 

 

 
 

(47)

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(616)

 
 

 

 
 

(1,105)

 
 

 

 
 

 
 

 

 
 

(1,105)

 
 

Dividends declared

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(1,046)

 
 

 

 
 

(1,046)

 
 

 

 
 

 
 

 

 
 

(1,046)

 
 

Non-controlling interest transactions

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(16)

 
 

 

 
 

(16)

 
 

Effect of share-based compensation including issuance of common shares

 
  

4,424,437

 
 

 

 
 

226

 
 

 

 
 

(9)

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

217

 
 

 

 
 

 
 

 

 
 

217

 
 

Transfer of net gain on cash flow hedges

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(11)

 
 

 

 
 

(11)

 
 

 

 
 

 
 

 

 
 

(11)

 
 

 

 
 

 
 

 

 
 

(11)

 
 

Transfer of net actuarial gain on defined benefit plans

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(95)

 
 

 

 
 

(95)

 
 

 

 
 

95

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

Share cancellation

 
  

(210,173)

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

  BALANCE – DECEMBER 31, 2021  

 
  

  557,492,516  

 
 

 

 
 

  15,457  

 
 

 

 
 

  149  

 
 

 

 
 

  (176)  

 
 

 

 
 

  30  

 
 

 

 
 

  (146)  

 
 

 

 
 

  8,192  

 
 

 

 
 

  23,652  

 
 

 

 
 

  47  

 
 

 

 
 

  23,699  

 
 

Net earnings

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  7,660  

 
 

 

 
 

  7,660  

 
 

 

 
 

  27  

 
 

 

 
 

  7,687  

 
 

Other comprehensive (loss) income

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (198)  

 
 

 

 
 

  22  

 
 

 

 
 

  (176)  

 
 

 

 
 

  

 
 

 

 
 

  (176)  

 
 

 

 
 

  (1)  

 
 

 

 
 

  (177)  

 
 

Shares repurchased (Note 6)

 
  

  (53,312,559)  

 
 

 

 
 

  (1,487)  

 
 

 

 
 

  (22)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (2,987)  

 
 

 

 
 

  (4,496)  

 
 

 

 
 

  

 
 

 

 
 

  (4,496)  

 
 

Dividends declared

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (1,019)  

 
 

 

 
 

  (1,019)  

 
 

 

 
 

  

 
 

 

 
 

  (1,019)  

 
 

Non-controlling interest transactions

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (1)  

 
 

 

 
 

  (1)  

 
 

 

 
 

  (28)  

 
 

 

 
 

  (29)  

 
 

Effect of share-based compensation including issuance of common shares

 
  

  3,066,148  

 
 

 

 
 

  202  

 
 

 

 
 

  (18)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  184  

 
 

 

 
 

  

 
 

 

 
 

  184  

 
 

Transfer of net loss on cash flow hedges

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  14  

 
 

 

 
 

  14  

 
 

 

 
 

  

 
 

 

 
 

  14  

 
 

 

 
 

  

 
 

 

 
 

  14  

 
 

Transfer of net actuarial gain on defined benefit plans

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (83)  

 
 

 

 
 

  (83)  

 
 

 

 
 

  83  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

  BALANCE – DECEMBER 31, 2022  

 
  

  507,246,105  

 
 

 

 
 

  14,172  

 
 

 

 
 

  109  

 
 

 

 
 

  (374)  

 
 

 

 
 

  (17)  

 
 

 

 
 

  (391)  

 
 

 

 
 

  11,928  

 
 

 

 
 

  25,818  

 
 

 

 
 

  45  

 
 

 

 
 

  25,863  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Balance Sheets  

 
                                                                                                                                                                                                              
 

 

 
 

 

 
 

  December 31  

 
 

 

 
 

December 31

 
 

As at

 
 

Note

 
 

  2022  

 
 

 

 
 

2021

 
 

  ASSETS  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

 

 
 

  901  

 
 

 

 
 

499

 
 

Receivables

 
 

 

 
 

  6,194  

 
 

 

 
 

5,366

 
 

Inventories

 
 

 

 
 

  7,632  

 
 

 

 
 

6,328

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  1,615  

 
 

 

 
 

1,653

 
 

 

 
 

 

 
 

  16,342  

 
 

 

 
 

13,846

 
 

Non-current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Property, plant and equipment

 
 

 

 
 

  21,767  

 
 

 

 
 

20,016

 
 

Goodwill

 
 

 

 
 

  12,368  

 
 

 

 
 

12,220

 
 

Intangible assets

 
 

 

 
 

  2,297  

 
 

 

 
 

2,340

 
 

Investments

 
 

 

 
 

  843  

 
 

 

 
 

703

 
 

Other assets

 
 

 

 
 

  969  

 
 

 

 
 

829

 
 

  TOTAL ASSETS  

 
 

 

 
 

  54,586  

 
 

 

 
 

49,954

 
 

  LIABILITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Short-term debt

 
 

 

 
 

  2,142  

 
 

 

 
 

1,560

 
 

Current portion of long-term debt

 
 

 

 
 

  542  

 
 

 

 
 

545

 
 

Current portion of lease liabilities

 
 

 

 
 

  305  

 
 

 

 
 

286

 
 

Payables and accrued charges

 
 

 

 
 

  11,291  

 
 

 

 
 

10,052

 
 

 

 
 

 

 
 

  14,280  

 
 

 

 
 

12,443

 
 

Non-current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Long-term debt

 
 

5

 
 

  8,040  

 
 

 

 
 

7,521

 
 

Lease liabilities

 
 

 

 
 

  899  

 
 

 

 
 

934

 
 

Deferred income tax liabilities

 
 

 

 
 

  3,547  

 
 

 

 
 

3,165

 
 

Pension and other post-retirement benefit liabilities

 
 

 

 
 

  319  

 
 

 

 
 

419

 
 

Asset retirement obligations and accrued environmental costs

 
 

 

 
 

  1,403  

 
 

 

 
 

1,566

 
 

Other non-current liabilities

 
 

 

 
 

  235  

 
 

 

 
 

207

 
 

  TOTAL LIABILITIES  

 
 

 

 
 

  28,723  

 
 

 

 
 

26,255

 
 

  SHAREHOLDERS' EQUITY  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share capital

 
 

6

 
 

  14,172  

 
 

 

 
 

15,457

 
 

Contributed surplus

 
 

 

 
 

  109  

 
 

 

 
 

149

 
 

Accumulated other comprehensive loss

 
 

 

 
 

  (391)  

 
 

 

 
 

(146)

 
 

Retained earnings

 
 

 

 
 

  11,928  

 
 

 

 
 

8,192

 
 

Equity holders of Nutrien

 
 

 

 
 

  25,818  

 
 

 

 
 

23,652

 
 

Non-controlling interest

 
 

 

 
 

  45  

 
 

 

 
 

47

 
 

  TOTAL SHAREHOLDERS' EQUITY  

 
 

 

 
 

  25,863  

 
 

 

 
 

23,699

 
 

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  

 
 

 

 
 

  54,586  

 
 

 

 
 

49,954

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Notes to the Condensed Consolidated Financial Statements  

 

  As at and for the Three and Twelve Months Ended December 31, 2022  

 

  NOTE 1 BASIS OF PRESENTATION

 

Nutrien Ltd. (collectively with its subsidiaries, "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.

 

Our accounting policies are in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. The accounting policies and methods of computation used in preparing these unaudited condensed consolidated financial statements are materially consistent with those used in the preparation of our 2021 annual consolidated financial statements. These unaudited condensed consolidated 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 2021 annual consolidated financial statements. Our 2022 annual consolidated financial statements, which are expected to be issued in February 2023, will include additional information under IFRS.

 

Certain immaterial 2021 figures have been reclassified in the condensed consolidated statements of cash flows.

 

In management's opinion, the unaudited condensed consolidated financial statements include all adjustments necessary to fairly present such information in all material respects.

 

  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 produces.

 
                                                                                                                                                                                                                                                                                                                                                                                                 
 

 

 
 

 

 
  

  Three Months Ended December 31, 2022  

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

Sales

 
 

– third party

 
  

  4,089  

 
 

 

 
 

  1,255  

 
 

 

 
 

  1,677  

 
 

 

 
 

  512  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  7,533  

 
 

 

 
 

– intersegment

 
  

  (2)  

 
 

 

 
 

  203  

 
 

 

 
 

  272  

 
 

 

 
 

  54  

 
 

 

 
 

  

 
 

 

 
 

  (527)  

 
 

 

 
 

  

 
 

Sales

 
 

– total

 
  

  4,087  

 
 

 

 
 

  1,458  

 
 

 

 
 

  1,949  

 
 

 

 
 

  566  

 
 

 

 
 

  

 
 

 

 
 

  (527)  

 
 

 

 
 

  7,533  

 
 

Freight, transportation and distribution

 
  

  

 
 

 

 
 

  81  

 
 

 

 
 

  157  

 
 

 

 
 

  65  

 
 

 

 
 

  

 
 

 

 
 

  (59)  

 
 

 

 
 

  244  

 
 

Net sales

 
  

  4,087  

 
 

 

 
 

  1,377  

 
 

 

 
 

  1,792  

 
 

 

 
 

  501  

 
 

 

 
 

  

 
 

 

 
 

  (468)  

 
 

 

 
 

  7,289  

 
 

Cost of goods sold

 
  

  3,010  

 
 

 

 
 

  310  

 
 

 

 
 

  1,093  

 
 

 

 
 

  485  

 
 

 

 
 

  

 
 

 

 
 

  (515)  

 
 

 

 
 

  4,383  

 
 

Gross margin

 
  

  1,077  

 
 

 

 
 

  1,067  

 
 

 

 
 

  699  

 
 

 

 
 

  16  

 
 

 

 
 

  

 
 

 

 
 

  47  

 
 

 

 
 

  2,906  

 
 

Selling expenses

 
  

  836  

 
 

 

 
 

  1  

 
 

 

 
 

  6  

 
 

 

 
 

  2  

 
 

 

 
 

  5  

 
 

 

 
 

  (6)  

 
 

 

 
 

  844  

 
 

General and administrative expenses

 
  

  51  

 
 

 

 
 

  3  

 
 

 

 
 

  5  

 
 

 

 
 

  4  

 
 

 

 
 

  99  

 
 

 

 
 

  

 
 

 

 
 

  162  

 
 

Provincial mining taxes

 
  

  

 
 

 

 
 

  190  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  190  

 
 

Share-based compensation recovery

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (59)  

 
 

 

 
 

  

 
 

 

 
 

  (59)  

 
 

Other expenses (income)

 
  

  1  

 
 

 

 
 

  4  

 
 

 

 
 

  2  

 
 

 

 
 

  40  

 
 

 

 
 

  67  

 
 

 

 
 

  (4)  

 
 

 

 
 

  110  

 
 

Earnings (loss) before

 
              
 

finance costs and income taxes

 
  

  189  

 
 

 

 
 

  869  

 
 

 

 
 

  686  

 
 

 

 
 

  (30)  

 
 

 

 
 

  (112)  

 
 

 

 
 

  57  

 
 

 

 
 

  1,659  

 
 

Depreciation and amortization

 
  

  202  

 
 

 

 
 

  89  

 
 

 

 
 

  155  

 
 

 

 
 

  58  

 
 

 

 
 

  16  

 
 

 

 
 

  

 
 

 

 
 

  520  

 
 

EBITDA 1

 
  

  391  

 
 

 

 
 

  958  

 
 

 

 
 

  841  

 
 

 

 
 

  28  

 
 

 

 
 

  (96)  

 
 

 

 
 

  57  

 
 

 

 
 

  2,179  

 
 

Integration and

 
              
 

restructuring related costs

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  11  

 
 

 

 
 

  

 
 

 

 
 

  11  

 
 

Share-based compensation recovery

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (59)  

 
 

 

 
 

  

 
 

 

 
 

  (59)  

 
 

Foreign exchange gain,

 
              
 

net of related derivatives

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (36)  

 
 

 

 
 

  

 
 

 

 
 

  (36)  

 
 

Adjusted EBITDA

 
  

  391  

 
 

 

 
 

  958  

 
 

 

 
 

  841  

 
 

 

 
 

  28  

 
 

 

 
 

  (180)  

 
 

 

 
 

  57  

 
 

 

 
 

  2,095  

 
 

Assets – at December 31, 2022

 
  

  24,451  

 
 

 

 
 

  13,921  

 
 

 

 
 

  11,807  

 
 

 

 
 

  2,661  

 
 

 

 
 

  2,622  

 
 

 

 
 

  (876)  

 
 

 

 
 

  54,586  

 
 

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

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 

 

 
 

 

 
  

Three Months Ended December 31, 2021

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
  

3,847

 
 

 

 
 

1,358

 
 

 

 
 

1,476

 
 

 

 
 

586

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

7,267

 
 

 

 
 

– intersegment

 
  

31

 
 

 

 
 

128

 
 

 

 
 

292

 
 

 

 
 

65

 
 

 

 
 

 
 

 

 
 

(516)

 
 

 

 
 

 
 

Sales

 
 

– total

 
  

3,878

 
 

 

 
 

1,486

 
 

 

 
 

1,768

 
 

 

 
 

651

 
 

 

 
 

 
 

 

 
 

(516)

 
 

 

 
 

7,267

 
 

Freight, transportation and distribution

 
  

 
 

 

 
 

66

 
 

 

 
 

119

 
 

 

 
 

58

 
 

 

 
 

 
 

 

 
 

(45)

 
 

 

 
 

198

 
 

Net sales

 
  

3,878

 
 

 

 
 

1,420

 
 

 

 
 

1,649

 
 

 

 
 

593

 
 

 

 
 

 
 

 

 
 

(471)

 
 

 

 
 

7,069

 
 

Cost of goods sold

 
  

2,705

 
 

 

 
 

305

 
 

 

 
 

895

 
 

 

 
 

430

 
 

 

 
 

 
 

 

 
 

(472)

 
 

 

 
 

3,863

 
 

Gross margin

 
  

1,173

 
 

 

 
 

1,115

 
 

 

 
 

754

 
 

 

 
 

163

 
 

 

 
 

 
 

 

 
 

1

 
 

 

 
 

3,206

 
 

Selling expenses

 
  

848

 
 

 

 
 

1

 
 

 

 
 

2

 
 

 

 
 

1

 
 

 

 
 

3

 
 

 

 
 

 
 

 

 
 

855

 
 

General and administrative expenses

 
  

43

 
 

 

 
 

2

 
 

 

 
 

7

 
 

 

 
 

3

 
 

 

 
 

93

 
 

 

 
 

 
 

 

 
 

148

 
 

Provincial mining taxes

 
  

 
 

 

 
 

173

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

173

 
 

Share-based compensation expense

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

73

 
 

 

 
 

 
 

 

 
 

73

 
 

Impairment of assets

 
  

 
 

 

 
 

 
 

 

 
 

17

 
 

 

 
 

4

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

21

 
 

Other expenses (income)

 
  

20

 
 

 

 
 

3

 
 

 

 
 

(28)

 
 

 

 
 

2

 
 

 

 
 

112

 
 

 

 
 

 
 

 

 
 

109

 
 

Earnings (loss) before

 
              
 

finance costs and income taxes

 
  

262

 
 

 

 
 

936

 
 

 

 
 

756

 
 

 

 
 

153

 
 

 

 
 

(281)

 
 

 

 
 

1

 
 

 

 
 

1,827

 
 

Depreciation and amortization

 
  

178

 
 

 

 
 

117

 
 

 

 
 

148

 
 

 

 
 

39

 
 

 

 
 

15

 
 

 

 
 

 
 

 

 
 

497

 
 

EBITDA

 
  

440

 
 

 

 
 

1,053

 
 

 

 
 

904

 
 

 

 
 

192

 
 

 

 
 

(266)

 
 

 

 
 

1

 
 

 

 
 

2,324

 
 

Integration and restructuring

 
              
 

related costs (recovery)

 
  

2

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(6)

 
 

 

 
 

 
 

 

 
 

(4)

 
 

Share-based compensation expense

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

73

 
 

 

 
 

 
 

 

 
 

73

 
 

Impairment of assets

 
  

 
 

 

 
 

 
 

 

 
 

17

 
 

 

 
 

4

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

21

 
 

COVID-19 coronavirus pandemic

 
              
 

("COVID-19") related expenses

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

11

 
 

 

 
 

 
 

 

 
 

11

 
 

Foreign exchange loss,

 
              
 

net of related derivatives

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

38

 
 

 

 
 

 
 

 

 
 

38

 
 

Adjusted EBITDA

 
  

442

 
 

 

 
 

1,053

 
 

 

 
 

921

 
 

 

 
 

196

 
 

 

 
 

(150)

 
 

 

 
 

1

 
 

 

 
 

2,463

 
 

Assets – at December 31, 2021

 
  

22,387

 
 

 

 
 

13,148

 
 

 

 
 

11,093

 
 

 

 
 

1,699

 
 

 

 
 

2,266

 
 

 

 
 

(639)

 
 

 

 
 

49,954

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 

 

 
 

 

 
  

  Twelve Months Ended December 31, 2022  

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

Sales

 
 

– third party

 
  

  21,266  

 
 

 

 
 

  7,600  

 
 

 

 
 

  6,755  

 
 

 

 
 

  2,263  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  37,884  

 
 

 

 
 

– intersegment

 
  

  84  

 
 

 

 
 

  599  

 
 

 

 
 

  1,293  

 
 

 

 
 

  357  

 
 

 

 
 

  

 
 

 

 
 

  (2,333)  

 
 

 

 
 

  

 
 

Sales

 
 

– total

 
  

  21,350  

 
 

 

 
 

  8,199  

 
 

 

 
 

  8,048  

 
 

 

 
 

  2,620  

 
 

 

 
 

  

 
 

 

 
 

  (2,333)  

 
 

 

 
 

  37,884  

 
 

Freight, transportation and distribution

 
  

  

 
 

 

 
 

  300  

 
 

 

 
 

  515  

 
 

 

 
 

  243  

 
 

 

 
 

  

 
 

 

 
 

  (186)  

 
 

 

 
 

  872  

 
 

Net sales

 
  

  21,350  

 
 

 

 
 

  7,899  

 
 

 

 
 

  7,533  

 
 

 

 
 

  2,377  

 
 

 

 
 

  

 
 

 

 
 

  (2,147)  

 
 

 

 
 

  37,012  

 
 

Cost of goods sold

 
  

  16,171  

 
 

 

 
 

  1,400  

 
 

 

 
 

  4,252  

 
 

 

 
 

  1,884  

 
 

 

 
 

  

 
 

 

 
 

  (2,119)  

 
 

 

 
 

  21,588  

 
 

Gross margin

 
  

  5,179  

 
 

 

 
 

  6,499  

 
 

 

 
 

  3,281  

 
 

 

 
 

  493  

 
 

 

 
 

  

 
 

 

 
 

  (28)  

 
 

 

 
 

  15,424  

 
 

Selling expenses

 
  

  3,392  

 
 

 

 
 

  10  

 
 

 

 
 

  28  

 
 

 

 
 

  7  

 
 

 

 
 

  (1)  

 
 

 

 
 

  (22)  

 
 

 

 
 

  3,414  

 
 

General and administrative expenses

 
  

  200  

 
 

 

 
 

  9  

 
 

 

 
 

  17  

 
 

 

 
 

  13  

 
 

 

 
 

  326  

 
 

 

 
 

  

 
 

 

 
 

  565  

 
 

Provincial mining taxes

 
  

  

 
 

 

 
 

  1,149  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  1,149  

 
 

Share-based compensation expense

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  63  

 
 

 

 
 

  

 
 

 

 
 

  63  

 
 

Reversal of impairment of assets

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

Other expenses (income)

 
  

  29  

 
 

 

 
 

  5  

 
 

 

 
 

  (137)  

 
 

 

 
 

  67  

 
 

 

 
 

  227  

 
 

 

 
 

  13  

 
 

 

 
 

  204  

 
 

Earnings (loss) before

 
              
 

finance costs and income taxes

 
  

  1,558  

 
 

 

 
 

  5,326  

 
 

 

 
 

  3,373  

 
 

 

 
 

  1,186  

 
 

 

 
 

  (615)  

 
 

 

 
 

  (19)  

 
 

 

 
 

  10,809  

 
 

Depreciation and amortization

 
  

  752  

 
 

 

 
 

  443  

 
 

 

 
 

  558  

 
 

 

 
 

  188  

 
 

 

 
 

  71  

 
 

 

 
 

  

 
 

 

 
 

  2,012  

 
 

EBITDA

 
  

  2,310  

 
 

 

 
 

  5,769  

 
 

 

 
 

  3,931  

 
 

 

 
 

  1,374  

 
 

 

 
 

  (544)  

 
 

 

 
 

  (19)  

 
 

 

 
 

  12,821  

 
 

Integration and restructuring

 
              
 

related costs

 
  

  2  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  44  

 
 

 

 
 

  

 
 

 

 
 

  46  

 
 

Share-based compensation expense

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  63  

 
 

 

 
 

  

 
 

 

 
 

  63  

 
 

Reversal of impairment of assets

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

COVID-19 related expenses

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  8  

 
 

 

 
 

  

 
 

 

 
 

  8  

 
 

Foreign exchange loss,

 
              
 

net of related derivatives

 
  

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  31  

 
 

 

 
 

  

 
 

 

 
 

  31  

 
 

Gain on disposal of investment

 
  

  (19)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (19)  

 
 

Adjusted EBITDA

 
  

  2,293  

 
 

 

 
 

  5,769  

 
 

 

 
 

  3,931  

 
 

 

 
 

  594  

 
 

 

 
 

  (398)  

 
 

 

 
 

  (19)  

 
 

 

 
 

  12,170  

 
 

Assets – at December 31, 2022

 
  

  24,451  

 
 

 

 
 

  13,921  

 
 

 

 
 

  11,807  

 
 

 

 
 

  2,661  

 
 

 

 
 

  2,622  

 
 

 

 
 

  (876)  

 
 

 

 
 

  54,586  

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 

 

 
 

 

 
  

Twelve Months Ended December 31, 2021

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
  

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
  

17,665

 
 

 

 
 

4,021

 
 

 

 
 

4,216

 
 

 

 
 

1,810

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

27,712

 
 

 

 
 

– intersegment

 
  

69

 
 

 

 
 

386

 
 

 

 
 

921

 
 

 

 
 

236

 
 

 

 
 

 
 

 

 
 

(1,612)

 
 

 

 
 

 
 

Sales

 
 

– total

 
  

17,734

 
 

 

 
 

4,407

 
 

 

 
 

5,137

 
 

 

 
 

2,046

 
 

 

 
 

 
 

 

 
 

(1,612)

 
 

 

 
 

27,712

 
 

Freight, transportation and distribution

 
  

 
 

 

 
 

371

 
 

 

 
 

448

 
 

 

 
 

217

 
 

 

 
 

 
 

 

 
 

(185)

 
 

 

 
 

851

 
 

Net sales

 
  

17,734

 
 

 

 
 

4,036

 
 

 

 
 

4,689

 
 

 

 
 

1,829

 
 

 

 
 

 
 

 

 
 

(1,427)

 
 

 

 
 

26,861

 
 

Cost of goods sold

 
  

13,134

 
 

 

 
 

1,285

 
 

 

 
 

2,963

 
 

 

 
 

1,408

 
 

 

 
 

 
 

 

 
 

(1,338)

 
 

 

 
 

17,452

 
 

Gross margin

 
  

4,600

 
 

 

 
 

2,751

 
 

 

 
 

1,726

 
 

 

 
 

421

 
 

 

 
 

 
 

 

 
 

(89)

 
 

 

 
 

9,409

 
 

Selling expenses

 
  

3,124

 
 

 

 
 

9

 
 

 

 
 

24

 
 

 

 
 

6

 
 

 

 
 

(21)

 
 

 

 
 

 
 

 

 
 

3,142

 
 

General and administrative expenses

 
  

168

 
 

 

 
 

8

 
 

 

 
 

15

 
 

 

 
 

11

 
 

 

 
 

275

 
 

 

 
 

 
 

 

 
 

477

 
 

Provincial mining taxes

 
  

 
 

 

 
 

466

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

466

 
 

Share-based compensation expense

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

198

 
 

 

 
 

 
 

 

 
 

198

 
 

Impairment of assets

 
  

 
 

 

 
 

7

 
 

 

 
 

22

 
 

 

 
 

4

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

33

 
 

Other expenses (income)

 
  

86

 
 

 

 
 

22

 
 

 

 
 

(64)

 
 

 

 
 

15

 
 

 

 
 

253

 
 

 

 
 

 
 

 

 
 

312

 
 

Earnings (loss) before

 
              
 

finance costs and income taxes

 
  

1,222

 
 

 

 
 

2,239

 
 

 

 
 

1,729

 
 

 

 
 

385

 
 

 

 
 

(705)

 
 

 

 
 

(89)

 
 

 

 
 

4,781

 
 

Depreciation and amortization

 
  

706

 
 

 

 
 

488

 
 

 

 
 

557

 
 

 

 
 

151

 
 

 

 
 

49

 
 

 

 
 

 
 

 

 
 

1,951

 
 

EBITDA

 
  

1,928

 
 

 

 
 

2,727

 
 

 

 
 

2,286

 
 

 

 
 

536

 
 

 

 
 

(656)

 
 

 

 
 

(89)

 
 

 

 
 

6,732

 
 

Integration and

 
              
 

restructuring related costs

 
  

10

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

33

 
 

 

 
 

 
 

 

 
 

43

 
 

Share-based compensation expense

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

198

 
 

 

 
 

 
 

 

 
 

198

 
 

Impairment of assets

 
  

 
 

 

 
 

7

 
 

 

 
 

22

 
 

 

 
 

4

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

33

 
 

COVID-19 related expenses

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

45

 
 

 

 
 

 
 

 

 
 

45

 
 

Foreign exchange loss,

 
              
 

net of related derivatives

 
  

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

39

 
 

 

 
 

 
 

 

 
 

39

 
 

Cloud computing transition adjustment

 
  

1

 
 

 

 
 

2

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

33

 
 

 

 
 

 
 

 

 
 

36

 
 

Adjusted EBITDA

 
  

1,939

 
 

 

 
 

2,736

 
 

 

 
 

2,308

 
 

 

 
 

540

 
 

 

 
 

(308)

 
 

 

 
 

(89)

 
 

 

 
 

7,126

 
 

Assets – at December 31, 2021

 
  

22,387

 
 

 

 
 

13,148

 
 

 

 
 

11,093

 
 

 

 
 

1,699

 
 

 

 
 

2,266

 
 

 

 
 

(639)

 
 

 

 
 

49,954

 
 

  NOTE 3 GOODWILL

 

  Goodwill Impairment Testing  

 
                              
 

  Goodwill by cash-generating unit or group of cash-generating units  

 
  

  2022  

 
 

 

 
 

2021

 
 

Retail – North America

 
  

  6,898  

 
 

 

 
 

6,898

 
 

Retail – International

 
  

  927  

 
 

 

 
 

779

 
 

Potash

 
  

  154  

 
 

 

 
 

154

 
 

Nitrogen

 
  

  4,389  

 
 

 

 
 

4,389

 
 

 

 
  

  12,368  

 
 

 

 
 

12,220

 
 

We performed our annual impairment test on goodwill and did not identify any impairment.

 

In 2022, North American central banks increased their benchmark borrowing rates, which are a component of our discount rate for impairment testing. As a result of these increases, we revised our discount rates throughout 2022, which triggered impairment testing for our Retail – North America group of Cash Generating Units ("CGUs") as at June 30, 2022 and September 30, 2022. No impairment was recognized during these interim testing periods. There was no trigger for an impairment test to be performed in the three months ended December 31, 2022.

 

Goodwill is more susceptible to impairment risk if there is an increase in the discount rate, or a deterioration in business operating results or economic conditions and actual results do not meet our forecasts. As at September 30, 2022, the Retail – North America group of CGUs carrying amount approximated its recoverable amount. A 25 basis point increase in the discount rate would have resulted in an impairment of the carrying amount of goodwill of approximately $500. A decrease in forecasted EBITDA and cash flows or a reduction in the terminal growth rate could result in impairment in the future.

 
                         
 

 

 
  

  As at  

 
 

 

 
 

As at

 
 

  Retail – North America – Key Assumptions  

 
  

  September 30, 2022  

 
 

 

 
 

June 30, 2022

 
 

Terminal growth rate (%)

 
  

  2.5  

 
 

 

 
 

2.5

 
 

Forecasted EBITDA over forecast period (billions)

 
  

  7.6  

 
 

 

 
 

7.5

 
 

Discount rate (%)

 
  

  8.5  

 
 

 

 
 

8.0

 
 

In testing for impairment of goodwill, we calculate the recoverable amount for a CGU or groups of CGUs containing goodwill. We used the fair value less cost of disposal ("FVLCD") methodology based on after-tax discounted cash flows (five-year projections plus a terminal value) and incorporated assumptions an independent market participant would apply, including considerations related to climate-change initiatives. We adjusted discount rates for each CGU or group of CGUs for the risk associated with achieving our forecasts and for the country risk premium in which we expect to generate cash flows. FVLCD is a Level 3 measurement. We use our market capitalization and comparative market multiples to ensure discounted cash flow results are reasonable.

 

The key assumptions with the greatest influence on the calculation of the recoverable amounts are the discount rates, terminal growth rates and cash flow forecasts. The key forecast assumptions were based on historical data and our estimates of future results from internal sources considering industry and market trends.

 

The remaining CGUs were tested as part of our annual impairment test and the following table indicates the key assumptions used:

 
                                                                  
 

 

 
  

  Terminal Growth Rate (%)  

 
 

 

 
 

  Discount Rate (%)  

 
 

 

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Retail – International 1

 
  

  2.0  

 
 

  

 
 

  6.0  

 
 

 

 
 

2.0

 
 

 
 

6.2

 
 

 

 
 

  8.9  

 
 

  

 
 

  16.0  

 
 

 

 
 

8.0

 
 

 
 

15.5

 
 

Potash

 
  

 

 
 

 

 
 

  2.5  

 
 

 

 
 

 

 
 

 

 
 

2.5

 
 

 

 
 

 

 
 

 

 
 

  8.3  

 
 

 

 
 

 

 
 

 

 
 

7.7

 
 

Nitrogen

 
  

 

 
 

 

 
 

  2.0  

 
 

 

 
 

 

 
 

 

 
 

2.0

 
 

 

 
 

 

 
 

 

 
 

  9.3  

 
 

 

 
 

 

 
 

 

 
 

7.8

 
 

1. The discount rates reflect the country risk premium and size for our international groups of CGUs.

 
 

  NOTE 4 OTHER EXPENSES (INCOME)

 
                                                                                                                                                 
 

 

 
  

  Three Months Ended  

 
 

 

 
 

  Twelve Months Ended  

 
 

 

 
  

  December 31  

 
 

 

 
 

  December 31  

 
 

 

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Integration and restructuring related costs (recovery)

 
  

  11  

 
 

 

 
 

(4)

 
 

 

 
 

  46  

 
 

 

 
 

43

 
 

Foreign exchange (gain) loss, net of related derivatives

 
  

  (36)  

 
 

 

 
 

38

 
 

 

 
 

  31  

 
 

 

 
 

42

 
 

Earnings of equity-accounted investees

 
  

  (47)  

 
 

 

 
 

(46)

 
 

 

 
 

  (247)  

 
 

 

 
 

(89)

 
 

Bad debt (recovery) expense

 
  

  (6)  

 
 

 

 
 

4

 
 

 

 
 

  12  

 
 

 

 
 

26

 
 

COVID-19 related expenses

 
  

  

 
 

 

 
 

11

 
 

 

 
 

  8  

 
 

 

 
 

45

 
 

Gain on disposal of investment

 
  

  

 
 

 

 
 

 
 

 

 
 

  (19)  

 
 

 

 
 

 
 

Project feasibility costs

 
  

  22  

 
 

 

 
 

20

 
 

 

 
 

  79  

 
 

 

 
 

50

 
 

Customer prepayment costs

 
  

  7  

 
 

 

 
 

8

 
 

 

 
 

  42  

 
 

 

 
 

45

 
 

Legal expenses

 
  

  8  

 
 

 

 
 

4

 
 

 

 
 

  21  

 
 

 

 
 

6

 
 

Consulting expenses

 
  

  15  

 
 

 

 
 

2

 
 

 

 
 

  29  

 
 

 

 
 

4

 
 

Employee special recognition award

 
  

  61  

 
 

 

 
 

 
 

 

 
 

  61  

 
 

 

 
 

 
 

Cloud computing transition adjustment

 
  

  

 
 

 

 
 

 
 

 

 
 

  

 
 

 

 
 

36

 
 

Other expenses

 
  

  75  

 
 

 

 
 

72

 
 

 

 
 

  141  

 
 

 

 
 

104

 
 

 

 
  

  110  

 
 

 

 
 

109

 
 

 

 
 

  204  

 
 

 

 
 

312

 
 

  NOTE 5 LONG-TERM DEBT

 

In March 2022, we filed a base shelf prospectus in Canada and the US qualifying the issuance of up to $5,000 of common shares, debt and other securities during a period of 25 months from March 11, 2022. Issuance of securities requires us to file a prospectus supplement and is subject to availability of funding in capital markets. On November 7, 2022, we issued $1,000 of notes, as described below, pursuant to the base shelf prospectus and a prospectus supplement.

 
                                                 
 

  Repayments and issuances in the fourth quarter  

 
  

  Rate of interest (%)  

 
 

 

 
 

  Maturity  

 
 

 

 
 

  Amount  

 
 

Notes repaid 2022

 
  

3.150

 
 

 

 
 

October 1, 2022

 
 

 

 
 

  500  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Notes issued

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Notes issued 2022

 
  

5.900

 
 

 

 
 

November 7, 2024

 
 

 

 
 

  500  

 
 

Notes issued 2022

 
  

5.950

 
 

 

 
 

November 7, 2025

 
 

 

 
 

  500  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

  1,000  

 
 

The notes issued in the fourth quarter of 2022 are unsecured, rank equally with our existing unsecured notes and debentures, and have no sinking fund requirements prior to maturity. Each series of notes is redeemable and provides for redemption prior to maturity, at our option, at specified prices.

 

  NOTE 6 SHARE CAPITAL

 

   Share Repurchase Programs   

 
                                              
 

 

 
  

  Three Months Ended  

 
 

 

 
 

  Twelve Months Ended  

 
 

 

 
  

  December 31  

 
 

 

 
 

  December 31  

 
 

 

 
  

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Number of common shares repurchased for cancellation

 
  

  14,924,590  

 
 

 

 
 

13,522,057

 
 

 

 
 

  53,312,559  

 
 

 

 
 

15,982,154

 
 

Average price per share (US dollars)

 
  

  77.91  

 
 

 

 
 

70.64

 
 

 

 
 

  84.34  

 
 

 

 
 

69.17

 
 

Total cost

 
  

  1,162  

 
 

 

 
 

955

 
 

 

 
 

  4,496  

 
 

 

 
 

1,105

 
 

The original expiry date for the 2022 normal course issuer bid was February 28, 2023, but we acquired the maximum number of common shares allowable on February 7, 2023. As of February 7, 2023, an additional 8,002,792 common shares were repurchased for cancellation at a cost of $625 and an average price per share of $78.07.

 

On February 15, 2023, our Board of Directors approved a share repurchase program for up to five percent of our outstanding common shares. The 2023 normal course issuer bid, which is subject to the acceptance by the Toronto Stock Exchange, will expire after a one-year period, if we acquire the maximum number of common shares allowable or otherwise decide not to make any further repurchases.

 

   Dividends Declared   

 

On February 15, 2023, our Board of Directors declared a quarterly dividend of $0.53 per share payable on April 13, 2023, to shareholders of record on March 31, 2023. The total estimated dividend to be paid is $265.

 

  NOTE 7 BUSINESS COMBINATIONS

 
                           
 

 

 
  

  Casa do Adubo S.A. ("Casa do Adubo")  

 
  

  Other Acquisitions  

 
 

Acquisition date

 
  

October 1, 2022

 
  

Various

 
 

Purchase price, net of cash and cash equivalents acquired, and amounts held in escrow

 
  

$231 (preliminary)

 

 

 

On the acquisition date, we acquired 100% of the issued and outstanding Casa do Adubo stock.

 
  

$176 (preliminary) (2021 – $88)

 

 

 
 

Goodwill and expected benefits of acquisitions

 
  

$145 (preliminary)

 
  

$55 (preliminary) (2021 – $77)

 
  

The expected benefits of the acquisitions resulting in goodwill include:

 
  • synergies from expected reduction in operating costs
  •  
  • wider distribution channel for selling products of acquired businesses
  •  
  • a larger assembled workforce
  •  
  • potential increase in customer base
  •  
  • enhanced ability to innovate
  •  
 

Description

 
  

An agriculture retailer in Brazil with 39 retail locations and 10 distribution centers. This acquisition is aligned with our disciplined approach to capital allocation and sustainability commitments, as we continue to expand our presence in Brazil.

 
  

2022 – 43 Retail locations related to various agricultural services and 1 wholesale warehouse location (2021 – 36 Retail locations)

 
 

We have engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts. As at December 31, 2022, the total consideration and purchase price allocation for Casa do Adubo and certain other acquisitions are not final as we are continuing to obtain and verify information required to determine the fair value of certain assets acquired and liabilities assumed and the amount of deferred income taxes arising on their recognition, as part of the due diligence process. We expect to finalize the amounts recognized as we obtain the information necessary to complete the analysis within one year from the date of acquisition.

 

We allocated the following values to the acquired assets and assumed liabilities based upon fair values at their respective acquisition date. The information below represents preliminary fair values.

 

For certain other acquisitions, we finalized the purchase price with no material change to the fair values disclosed in prior periods. The valuation technique and judgments applied are consistent with those methods presented in Note 30 of the 2021 annual consolidated financial statements.

 
                                                                                                                                             
 

 

 
  

  December 31, 2022  

 
 

 

 
 

December 31, 2021

 
 

 

 
  

  Casa do Adubo
  (Preliminary)  

 
 

 

 
 

  Other
  Acquisitions
(Preliminary)
 

 
 

 

 
 

Other
Acquisitions

 
 

Receivables

 
  

  174  

 
 

   1  

 
 

  11  

 
 

 

 
 

43

 
 

Inventories

 
  

  107  

 
 

 

 
 

  92  

 
 

 

 
 

24

 
 

Prepaid expenses and other current assets

 
  

  3  

 
 

 

 
 

  13  

 
 

 

 
 

 
 

Property, plant and equipment

 
  

  24  

 
 

 

 
 

  116  

 
 

 

 
 

10

 
 

Goodwill

 
  

  145  

 
 

   2  

 
 

  55  

 
 

 

 
 

77

 
 

Intangible assets

 
  

  95  

 
 

 

 
 

  9  

 
 

 

 
 

16

 
 

Investments

 
  

  

 
 

 

 
 

  2  

 
 

 

 
 

 
 

Other non-current assets

 
  

  6  

 
 

 

 
 

  4  

 
 

 

 
 

4

 
 

Total assets

 
  

  554  

 
 

 

 
 

  302  

 
 

 

 
 

174

 
 

Short-term debt

 
  

  14  

 
 

   3  

 
 

  11  

 
 

 

 
 

11

 
 

Payables and accrued charges

 
  

  159  

 
 

 

 
 

  74  

 
 

 

 
 

50

 
 

Long-term debt, including current portion

 
  

  91  

 
 

 

 
 

  14  

 
 

 

 
 

7

 
 

Lease liabilities, including current portion

 
  

  10  

 
 

 

 
 

  3  

 
 

 

 
 

1

 
 

Other non-current liabilities

 
  

  1  

 
 

 

 
 

  14  

 
 

 

 
 

17

 
 

Total liabilities

 
  

  275  

 
 

 

 
 

  116  

 
 

 

 
 

86

 
 

Total consideration

 
  

  279  

 
 

 

 
 

  186  

 
 

 

 
 

88

 
 

Amounts held in escrow

 
  

  (48)  

 
 

 

 
 

  (10)  

 
 

 

 
 

 
 

Total consideration, net of cash and cash equivalents acquired, and amounts held in escrow

 
  

  231  

 
 

 

 
 

  176  

 
 

 

 
 

88

 
 

1. Includes receivables from customers with gross contractual amounts of $169, of which $3 is considered to be uncollectible.

 
 

2. Goodwill was calculated as the excess of the fair value of consideration transferred over the recognized amount of net identifiable assets acquired. The portion of goodwill deductible for income tax purposes will be determined when the purchase allocation is finalized.

 
 

3. Outstanding amount on the Casa do Adubo credit facilities assumed as part of the acquisition.

 
 

Financial information related to the Casa do Adubo acquisition is as follows:

 
        
 

  2022 Proforma (estimated as if acquisitions occurred at the beginning of the year)  

 
 

Sales

 
  

  440  

 
 

Earnings before finance costs and income taxes 1

 
  

  42  

 
 

1. Net earnings is not available.

 
 
            
 

 

 
  

  Three and Twelve Months Ended  

 
 

  From date of acquisition  

 
  

  December 31, 2022  

 
 

Sales

 
  

  130  

 
 

Earnings before finance costs and income taxes

 
  

  7  

 
 

 

 

  

  

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

 

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

 

News Provided by Business Wire via QuoteMedia

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