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  4. K+S report revenues and EBITDA slightly below prior-year figures in Q3

K+S report revenues and EBITDA slightly below prior-year figures in Q3

Published by , Editorial Assistant
World Fertilizer,

In Q324, revenues from K+S were at €866 million, slightly below last year's figure (€881 million). Operating earnings EBITDA reached €66 million compared to €72 million in Q323. Lower prices for products containing potash in both customer segments as well as slightly lower sales volumes were the main reasons for this development. Adjusted free cash flow in the first 9 months of the current financial year amounted to €+111 million (9M/2023: €+328 million). The key figures for Q3 were, therefore, slightly above expectations.

Highlights:

  • Q3 revenues: €866 million (Q323: €881 million; Vara consensus estimate as of October 16, 2024: €822 million); 9M: €2,728 million (9M/2023: €2,899 million).
  • Q3 EBITDA: €66 million (Q323: €72 million; Vara consensus estimate as of October 16, 2024: €59 million); 9M: €394 million (9M/2023: €550 million).
  • Agricultural customer segment once again with high proportion of fertilizer specialties.
  • Adjusted free cash flow reaches €+111 million in the first 9 months (9M/2023: €+328 million; Vara consensus estimate as of October 16, 2024: €+97 million).

2024 outlook:

  • Agricultural customer segment: relatively stable price development for the remainder of the year; annual sales volumes (excluding trade goods) in a range of 7.4 - 7.6 million t assumed (previous outlook: 7.4 - 7.7 million t); the adjustment in sales volumes is due to production bottlenecks, particularly caused by an above-average sickness rate.
  • EBITDA: expected at about €540 million (previous outlook: €530 - €620 million; 2023: €712 million; Vara consensus estimate as of October 16, 2024: €550 million)/
  • Adjusted free cash flow continues to be expected to at least break even (2023: €+311 million; Vara consensus estimate as of October 16, 2024: €+15 million).

    • “Due to the scheduled maintenance measures, Q3 is, as usual, our weakest quarter of the year. The lower potash prices compared to the previous year also weighed on our earnings” says Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft. “For the full year 2024, we now expect EBITDA of about €540 million, which is closer to the lower end of our previous range. The adjusted free cash flow should at least break even, as previously expected.”

    In the agriculture customer segment, revenues decreased to €606 million in the Q3(Q3/2023: €621 million). Higher revenues of fertilizer specialties could not fully compensate for the decline in potassium chloride. While revenues in Europe decreased to €271 million (Q3/2023: €300 million), revenues from overseas rose to €335 million (Q3/2023: €321 million). Sales volumes excluding trade goods in Q3 were slightly below the previous year's figure at 1.80 million t (Q3/2023: 1.84 million t).

    In the Industry and customer segment, revenues inQ3 amounted to €260 million. The recovery in demand for chemical, industrial and pharmaceutical products was noticeable here. A slight increase in sales volumes and a continued good price level for salt products ensured revenues at the prior-year level despite lower average prices for potash products. Sales volumes amounted to 1.57 million , therefore, slightly above the figure for the same quarter last year (Q3/2023: 1.55 million t).

    Read the article online at: https://www.worldfertilizer.com/project-news/14112024/ks-report-revenues-and-ebitda-slightly-below-prior-year-figures-in-q3/

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