Nutrien to Highlight Strategic Priorities and 2026 Targets at Investor Day
June 12 2024 - 8:30AM
Business Wire
Nutrien Ltd. (TSX and NYSE: NTR) today is hosting an Investor
Day at the New York Stock Exchange beginning at 10:00 a.m. EDT. At
the event, management will detail plans to fortify its leadership
position across the ag value chain and position the Company to
deliver long-term growth.
“Nutrien operates the most extensive crop inputs and services
ecosystem with low-cost upstream production assets, global supply
chain capabilities, and the leading downstream retail channel to
the farmer. Our differentiated business model is centred on our
ability to efficiently produce and distribute the products and
services needed in key agriculture markets around the world,”
commented Ken Seitz, Nutrien’s President and CEO.
“Today, we look forward to providing an update on the evolution
of our strategy and establish new performance targets that we
believe provide a clear pathway to deliver long-term value for our
shareholders. Our simplified and focused plan prioritizes
initiatives that enhance our ability to serve growers in our core
markets, maintain the low-cost position and reliability of our
assets, and improve the quality of our earnings and free cash
flow,” added Mr. Seitz.
Strategic Priorities and Performance Targets
Simplifying portfolio and focusing on core assets and markets
to enhance earnings quality and free cash flow.
- Prioritizing investments to enhance our North American
fertilizer production assets and proprietary products capabilities,
strengthen our global distribution network and grow in our core
downstream Retail markets.
- Reviewing strategic options for our 50 percent ownership stake
in Profertil and announcing we are no longer pursuing our Geismar
clean ammonia project.
Driving operational improvements and network optimization
opportunities to increase asset efficiency.
- Focused on maintaining a low-cost position and enhancing the
reliability of our upstream production assets. Supporting these
objectives through the deployment of automation and other
operational excellence initiatives in potash and the implementation
of reliability and energy efficiency programs in nitrogen.
- Optimizing downstream Retail network through modernization and
consolidation initiatives in North America and a targeted margin
improvement plan in Brazil.
Utilizing competitive advantages to deliver scalable
growth.
- Targeting potash and nitrogen sales volume growth of
approximately 2.0 to 3.0 million tonnes by 2026, compared to 2023
levels.
- Targeting Retail adjusted EBITDA of $1.9 to $2.1 billion in
2026, including a goal of $1.4 billion in gross margin from our
proprietary products portfolio.
Maintaining disciplined approach to cost and capital
management.
- Intend to reduce controllable costs across our operations and
corporate functions by approximately $200 million by 2026 and
maintain annual average capital expenditures of $2.2 to $2.3
billion through 2026.
- Expect to generate strong cash flow through the cycle,
providing the opportunity to pursue high conviction capital
deployment opportunities, including meaningful returns to
shareholders.
Nutrien will provide more detail on its strategic priorities,
2026 performance targets and capital allocation plans at its
Investor Day this morning.
The event will begin at 10:00 a.m. EDT and conclude at
approximately 12:30 p.m. EDT. To view the live webcast and access
the presentation materials, visit the investor relations page of
Nutrien’s website at
https://www.nutrien.com/investors/events/nutrien-2024-investor-day.
A replay of the webcast will be available following the event.
Forward-Looking Statements
Certain statements in this news release constitute
"forward-looking information" or "forward-looking statements"
(collectively, "forward-looking statements") under applicable
securities laws including Nutrien’s strategic priorities and
performance targets; our expectations for quality of earnings and
free cash flow; our intention to increase asset efficiency
including our expectations for potash automation, nitrogen
reliability and efficiency programs as well as optimizing our
Retail network and margin improvement plans in Brazil; our targets
for potash and nitrogen sales volumes and our target for Retail
adjusted EBITDA by the end of 2026 as well as our goal of $1.4
billion in proprietary products gross margin by the end of 2026;
our targets to reduce controllable costs by 2026 and to maintain
annual average capital expenditures through 2026; and our
expectations for cash flow through the cycle and capital deployment
opportunities. Forward looking statements in this news release are
based on certain key expectations and assumptions made by Nutrien,
many of which are outside of our control including but not limited
to: that future business, regulatory and industry conditions and
global economic conditions will be within the parameters expected
by us, including with respect to margins, demand, supply, energy
and commodity prices, and availability and cost of labor and
technology. Although Nutrien believes that the expectations and
assumptions on which such forward looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Nutrien can give no assurance
that they will prove to be correct. Forward looking statements are
subject to various risks and uncertainties which could cause actual
results and experience to differ materially from the anticipated
results or expectations expressed in this news release including,
but not limited to: general global economic, market, industry, and
business conditions including supply, demand, energy and commodity
prices; regulatory and stock exchange requirements; access and
availability of technology; and performance of third parties. For
additional information on the assumptions made, and the risks and
uncertainties that could cause actual results to differ from the
anticipated results, refer to our reports filed with the Canadian
securities regulatory authorities and the United States Securities
and Exchange Commission.
The forward-looking statements in this news release are made as
of the date hereof and Nutrien disclaims any intention or
obligation to update or revise any forward-looking statements in
this news release, except as may be required under applicable
laws.
About Nutrien
Nutrien is a leading 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 ag retail
facilities that positions us to efficiently serve the needs of
growers. We focus on creating long-term value by prioritizing
investments that strengthen the advantages of our integrated
business and by maintaining access to the resources and the
relationships with stakeholders needed to achieve our goals.
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version on businesswire.com: https://www.businesswire.com/news/home/20240611005416/en/
Investor Relations Jeff Holzman Vice President, Investor
Relations (306) 933-8545
Media Relations Megan Fielding Vice President, Brand
& Culture Communications (403) 797-3015
Contact us at: www.nutrien.com
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