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Jun 30, 2024

Mosaic Q2 2024 Earnings Report

Mosaic's financial performance reflected a net loss, but strategic initiatives led to increased phosphate production and cost savings.

Key Takeaways

The Mosaic Company reported a net loss of $162 million for the second quarter of 2024, with adjusted EPS at $0.54 and adjusted EBITDA at $584 million. Revenues totaled $2.8 billion, a 17% decrease from the previous year, primarily due to lower selling prices. The company saw increased phosphate production volumes and made progress on cost-saving initiatives.

Net loss of $162 million, Adjusted EBITDA of $584 million.

Phosphate production volumes increased almost 100,000 tonnes sequentially.

Significant progress made on cost saving initiatives.

Accelerating Mosaic Biosciences growth; achieved 5 million acres of coverage in North and Central America in the 2024 crop year.

Total Revenue
$2.82B
Previous year: $3.39B
-17.0%
EPS
$0.54
Previous year: $1.04
-48.1%
Potash Sales Volume
2.3M
Previous year: 2.2M
+4.5%
Phosphate Sales Volume
1.7M
Previous year: 1.9M
-10.5%
Fertilizantes Sales Volume
2.2M
Previous year: 2.4M
-8.3%
Gross Profit
$394M
Previous year: $571M
-31.0%
Cash and Equivalents
$322M
Previous year: $626M
-48.6%
Free Cash Flow
$183M
Previous year: $762M
-76.0%
Total Assets
$22.6B
Previous year: $23.1B
-2.5%

Mosaic

Mosaic

Mosaic Revenue by Segment

Forward Guidance

The Company provides the following modeling assumptions for the full year 2024:

Positive Outlook

  • Total Capital Expenditures $1.1 - 1.2 billion
  • Depreciation, Depletion & Amortization Approx. $1 billion
  • Selling, General, and Administrative Expense $470 - $500 million
  • Net Interest Expense $160 - $180 million
  • Effective tax rate High 20’s %

Challenges Ahead

  • Cash tax rate Mid 30's %
  • Average MOP Price / tonne (fob mine) $10/mt price change = $60 million
  • Average DAP Price / tonne (fob plant) $10/mt price change = $70 million
  • Approximately 20% of DAP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment
  • Approximately 5% of the MOP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income