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Mar 31, 2024
Mosaic Q1 2024 Earnings Report
Mosaic's first quarter 2024 earnings were reported, showing a decrease in net earnings compared to the previous year, but with progress in strategic initiatives and cost reduction plans.
Key Takeaways
Mosaic reported net earnings of $45 million for Q1 2024, a decrease from $435 million in the same period last year. Adjusted EBITDA was $576 million, down from $777 million in Q1 2023. The company is focusing on execution and completion of low capital intensity initiatives.
Net earnings were $45 million, with adjusted EPS at $0.65 and adjusted EBITDA at $576 million.
Revenues totaled $2.7 billion, a 26% decrease from the previous year due to lower selling prices.
Transaction announced with Ma'aden, valuing Mosaic's stake at approximately $1.5 billion.
Completed 800,000 tonne MicroEssentials capacity conversion and Riverview facility returned to full capacity.
Mosaic
Mosaic
Mosaic Revenue by Segment
Revenue by Segment
Potash Revenue
CapyFin.comPhosphates Revenue
CapyFin.comMosaic Fertilizantes Revenue
CapyFin.com Forward Guidance
The company provided modeling assumptions for the full year 2024, including capital expenditures between $1.1 - 1.2 billion, depreciation, depletion & amortization between $960 - $990 million, and selling, general, and administrative expense between $470 - $500 million.
Positive Outlook
- Agricultural fundamentals remain constructive with pressured stock-to-use ratios.
- Growers are incentivized to maximize yields due to favorable economics.
- A shift from El Nino to La Nina is expected to create a favorable backdrop in Southeast Asia, India, and Brazil.
- Parts of the world have experienced under-application of fertilizers, leading to a need to replenish soil nutrients.
- Low inventory and a favorable demand outlook in Brazil sets the stage for peak or near-peak fertilizer shipments in 2024.
Challenges Ahead
- Global potash supply constraints are likely to abate with higher exports from Belarus and Russia.
- Corn and soybean fundamentals and prices have softened recently.
- Credit and liquidity challenges exist in Brazil.
- Temporary resumption of China phosphate exports.
- The Colonsay potash mine was curtailed in March and will remain idle until market conditions improve.
Revenue & Expenses
Visualization of income flow from segment revenue to net income