- Second quarter results supported by increased crop input
margins, strong global potash demand, higher fertilizer operating
rates and lower operating costs.
- Mark Thompson appointed Executive Vice President and Chief
Financial Officer effective August 26, 2024.
All amounts are in US dollars, except as otherwise noted
Nutrien Ltd. (TSX and NYSE: NTR) announced today its second
quarter 2024 results, with net earnings of $392 million ($0.78
diluted net earnings per share). Second quarter 2024 adjusted
EBITDA1 was $2.2 billion and adjusted net earnings per share1 was
$2.34.
“Nutrien benefited from improved Retail margins, higher
fertilizer sales volumes and lower operating costs in the
first-half of 2024. Crop input demand remains strong, and we raised
our full-year outlook for global potash demand due to healthy
engagement in all key markets,” commented Ken Seitz, Nutrien’s
President and CEO.
“Our upstream production assets and downstream Retail businesses
in North America and Australia have performed well in 2024. In
Brazil, we continue to see challenges and are accelerating a margin
improvement plan that is focused on further reducing operating
costs and rationalizing our footprint to optimize cash flow,” added
Mr. Seitz.
Highlights2:
- Generated net earnings of $557 million and adjusted EBITDA of
$3.3 billion in the first half of 2024. Adjusted EBITDA was down
from the same period in 2023 primarily due to lower fertilizer net
selling prices. This was partially offset by increased Nutrien Ag
Solutions (“Retail”) earnings, higher Potash sales volumes, and
lower natural gas costs.
- Retail adjusted EBITDA increased to $1.2 billion in the first
half of 2024 supported by strong grower demand and a normalization
of product margins in North America. Full-year 2024 Retail adjusted
EBITDA guidance lowered due primarily to ongoing market instability
in Brazil as well as the impact of delayed planting in North
America in the second quarter.
- Potash adjusted EBITDA declined to $1.0 billion in the first
half of 2024 due to lower net selling prices, which more than
offset higher sales volumes and lower operating costs. Full-year
2024 Potash sales volume guidance raised due to record first half
sales volumes and the expectation for strong global demand in the
second half of 2024.
- Nitrogen adjusted EBITDA decreased to $1.1 billion in the first
half of 2024 due to lower net selling prices, which more than
offset lower natural gas costs. Ammonia production increased in the
first half, driven by improved reliability and less turnaround
activity.
- Accelerating a margin improvement plan in Brazil, including the
curtailment of 3 fertilizer blenders and closure of 21 selling
locations in the second quarter of 2024. Recognized a $335 million
non-cash impairment of our Retail – Brazil assets due to ongoing
market instability and more moderate margin expectations. Incurred
a loss on foreign currency derivatives of approximately $220
million in Brazil.3
- Previously announced that we are no longer pursuing our Geismar
Clean Ammonia project and recognized a $195 million non-cash
impairment of assets related to this project.
1. This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
2. Our discussion of highlights set out on
this page is a comparison of the results for the three and six
months ended June 30, 2024 to the results for the three and six
months ended June 30, 2023, unless otherwise noted.
3. For further information see the
Corporate and Others and Eliminations, and Controls and Procedures
sections of the Management’s Discussion and Analysis, and Note 6 to
the unaudited Interim Condensed Consolidated Financial Statements
as at and for the three and six months ended June 30, 2024.
Chief Financial Officer Transition:
Nutrien also announces the appointment of Mark Thompson as
Executive Vice President and Chief Financial Officer, effective
August 26, 2024. In alignment with Nutrien's succession plan, Mr.
Thompson succeeds Pedro Farah, who will remain with Nutrien in an
advisory capacity until his departure on December 31, 2024.
“Mark’s impressive track record of execution, along with his
proven financial and strategic acumen provides the unique ability
to succeed in this position on day one. He brings in-depth
knowledge of our business that will support the advancement of our
strategic actions to enhance quality of earnings and cash flow,”
said Mr. Seitz. “On behalf of the Nutrien team, I would also like
to thank Pedro for his service and commitment to Nutrien over the
last five years.”
“I’ve had the privilege to serve in leadership roles across the
company and firmly believe in the opportunities afforded by
Nutrien’s strong competitive advantages and world-class asset base
to deliver long-term shareholder value,” said Mr. Thompson. “I look
forward to continuing to partner with Ken and our executive
leadership team on the disciplined execution of our strategy and
drive a focused approach to capital allocation.
Mr. Thompson has been with the Company since 2011, currently
serving as Executive Vice President and Chief Commercial Officer.
Prior to his current position he held numerous executive and senior
leadership roles across the company, including Chief Strategy &
Sustainability Officer, Chief Corporate Development & Strategy
Officer, and Vice President of Business Development for Nutrien’s
Retail business. He earned his Bachelor of Commerce (Finance) and
Bachelor of Arts degrees from the University of Saskatchewan and
holds the Chartered Financial Analyst (CFA) designation.
Management’s Discussion and Analysis
The following management’s discussion and analysis (“MD&A”)
is the responsibility of management and is dated as of August 7,
2024. The Board of Directors (“Board”) of Nutrien carries out its
responsibility for review of this disclosure principally through
its Audit Committee, composed entirely of independent directors.
The Audit Committee reviews and, prior to its publication, approves
this disclosure pursuant to the authority delegated to it by the
Board. The term “Nutrien” refers to Nutrien Ltd. and the terms
“we”, “us”, “our”, “Nutrien” and “the Company” refer to Nutrien
and, as applicable, Nutrien and its direct and indirect
subsidiaries on a consolidated basis. Additional information
relating to Nutrien (which, except as otherwise noted, is not
incorporated by reference herein), including our annual report
dated February 22, 2024 (“2023 Annual Report”), which includes our
annual audited consolidated financial statements (“annual financial
statements”) and MD&A, and our annual information form dated
February 22, 2024, each for the year ended December 31, 2023, can
be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
No update is provided to the disclosure in our 2023 annual MD&A
except for material information since the date of our annual
MD&A. The Company is a foreign private issuer under the rules
and regulations of the US Securities and Exchange Commission (the
“SEC”).
This MD&A is based on and should be read in conjunction with
the Company’s unaudited interim condensed consolidated financial
statements as at and for the three and six months ended June 30,
2024 (“interim financial statements”) based on International
Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board and prepared in accordance
with International Accounting Standard (“IAS”) 34 “Interim
Financial Reporting”, unless otherwise noted. This MD&A
contains certain non-GAAP financial measures and ratios and
forward-looking statements, which are described in the “Non-GAAP
Financial Measures” and the “Forward-Looking Statements” sections,
respectively.
Market Outlook and Guidance
Agriculture and Retail Markets
- Favorable growing conditions have created an expectation for
record US corn and soybean yields and pressured crop prices.
Despite lower crop prices, demand for crop inputs in North America
is expected to remain strong in the third quarter of 2024 as
growers aim to maintain optimal plant health and yield potential.
We anticipate that good affordability for potash and nitrogen will
support fall application rates in 2024.
- Brazilian crop prices and prospective grower margins have
improved from levels earlier this year supported by a weaker
currency. Brazilian soybean area is expected to increase by one to
three percent in the upcoming planting season and fertilizer demand
is projected to be approximately 46 million tonnes in 2024, in line
with historical record levels.
- Australian moisture conditions vary regionally but remain
supportive of crop input demand as trend yields are expected.
Crop Nutrient Markets
- Global potash demand in the first half of 2024 was supported by
favorable consumption trends in most markets and low channel
inventories in North America and Southeast Asia. The settlement of
contracts with China and India in July is expected to support
demand in standard grade markets in the second half of 2024, while
uptake on our summer fill program in North America has been strong.
As a result, we have raised our 2024 full-year global potash
shipment forecast to 69 to 72 million tonnes and expect a
relatively balanced market in the second half of 2024.
- Global nitrogen markets are being supported by steady demand
and continued supply challenges in key producing regions. Chinese
urea export restrictions have been extended into the second half of
2024 and natural gas-related supply reductions could continue to
impact nitrogen operating rates in Egypt and Trinidad. US nitrogen
inventories were estimated to be below average levels entering the
second half of 2024, contributing to strong engagement on our
summer fill programs.
- Phosphate fertilizer prices are being supported by tight global
supply due to Chinese export restrictions, low channel inventories
in North America and seasonal demand in Brazil and India. We
anticipate some impact on demand for phosphate fertilizer in the
second half of 2024 as affordability levels have declined compared
to potash and nitrogen.
Financial and Operational Guidance
- Retail adjusted EBITDA guidance was lowered to $1.5 to $1.7
billion due primarily to ongoing market instability in Brazil as
well as the impact of delayed planting in North America in the
second quarter.
- Potash sales volume guidance was increased to 13.2 to 13.8
million tonnes due to expectations for higher global demand in
2024. The range reflects the potential for a relatively short
duration Canadian rail strike in the second half.
- Nitrogen sales volume guidance was narrowed to 10.7 to 11.1
million tonnes as we continue to expect higher operating rates at
our North American and Trinidad plants and growth in sales of
upgraded products such as urea and nitrogen solutions.
- Phosphate sales volume guidance was lowered to 2.5 to 2.6
million tonnes reflecting extended turnaround activity and delayed
mine equipment moves.
- Finance costs guidance was lowered to $0.7 to $0.8 million due
to a lower expected average short-term debt balance.
All guidance numbers, including those noted above are outlined
in the table below. Refer to page 65 of Nutrien’s 2023 Annual
Report for related assumptions and sensitivities.
2024 Guidance Ranges 1 as
of
August 7, 2024
May 8, 2024
(billions of US dollars, except as
otherwise noted)
Low
High
Low
High
Retail adjusted EBITDA
1.5
1.7
1.65
1.85
Potash sales volumes (million tonnes)
2
13.2
13.8
13.0
13.8
Nitrogen sales volumes (million tonnes)
2
10.7
11.1
10.6
11.2
Phosphate sales volumes (million tonnes)
2
2.5
2.6
2.6
2.8
Depreciation and amortization
2.2
2.3
2.2
2.3
Finance costs
0.7
0.8
0.75
0.85
Effective tax rate on adjusted net
earnings (%) 3
23.0
25.0
23.0
25.0
Capital expenditures 4
2.2
2.3
2.2
2.3
1 See the “Forward-Looking Statements”
section.
2 Manufactured product only.
3 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
4 Comprised of sustaining capital
expenditures, investing capital expenditures and mine development
and pre-stripping capital expenditures, which are supplementary
financial measures. See the “Other Financial Measures” section.
Consolidated Results
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
% Change
2024
2023
% Change
Sales
10,156
11,654
(13)
15,545
17,761
(12)
Gross margin
2,912
3,166
(8)
4,449
5,079
(12)
Expenses
2,068
2,038
1
3,186
3,012
6
Net earnings
392
448
(13)
557
1,024
(46)
Adjusted EBITDA 1
2,235
2,478
(10)
3,290
3,899
(16)
Diluted net earnings per
share
0.78
0.89
(12)
1.10
2.03
(46)
Adjusted net earnings per share
1
2.34
2.53
(8)
2.81
3.63
(23)
1 This is a non-GAAP financial
measure. See the “Non-GAAP Financial Measures” section.
Net earnings decreased in the second quarter and first half of
2024 compared to the same periods in 2023, primarily due to lower
fertilizer net selling prices and a loss on foreign currency
derivatives. Adjusted EBITDA decreased over the same periods
primarily due to lower fertilizer net selling prices, partially
offset by increased Retail earnings, higher offshore Potash sales
volumes, and lower natural gas costs.
Segment Results
Our discussion of segment results set out on the following pages
is a comparison of the results for the three and six months ended
June 30, 2024 to the results for the three and six months ended
June 30, 2023, unless otherwise noted.
Nutrien Ag Solutions (“Retail”)
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
% Change
2024
2023
% Change
Sales
8,074
9,128
(12)
11,382
12,550
(9)
Cost of goods sold
6,045
7,197
(16)
8,606
10,004
(14)
Gross margin
2,029
1,931
5
2,776
2,546
9
Adjusted EBITDA 1
1,128
1,067
6
1,205
1,033
17
1 See Note 2 to the interim
financial statements.
- Retail adjusted EBITDA increased in the second quarter
and first half of 2024, supported by strong grower demand and a
normalization of product margins in North America. We recognized a
$335 million non-cash impairment of our Retail – Brazil assets in
the second quarter of 2024 due to ongoing market instability and
more moderate margin expectations. During the same period in 2023,
we recognized a $465 million non-cash impairment primarily to
goodwill relating to our Retail – South America assets.
Three Months Ended June
30
Six Months Ended June
30
Sales
Gross Margin
Sales
Gross Margin
(millions of US dollars)
2024
2023
2024
2023
2024
2023
2024
2023
Crop nutrients
3,281
3,986
686
629
4,590
5,321
940
770
Crop protection products
2,733
3,070
677
673
3,847
4,224
911
881
Seed
1,434
1,428
296
265
1,919
1,935
355
337
Services and other
292
308
239
254
448
456
364
372
Merchandise
245
273
42
47
445
519
73
91
Nutrien Financial
133
122
133
122
199
179
199
179
Nutrien Financial elimination
1
(44)
(59)
(44)
(59)
(66)
(84)
(66)
(84)
Total
8,074
9,128
2,029
1,931
11,382
12,550
2,776
2,546
1 Represents elimination of the
interest and service fees charged by Nutrien Financial to Retail
branches.
- Crop nutrients sales decreased in the second quarter and
first half of 2024 due to lower selling prices. Gross margin
increased over both periods due to higher per-tonne margins,
including proprietary crop nutritional and biostimulant product
lines. Lower second quarter sales volumes were the result of wet
weather that delayed planting and impacted fertilizer applications
in North America.
- Crop protection products sales were lower in the second
quarter and first half of 2024 primarily due to lower selling
prices across all geographies and delayed applications in North
America. Gross margin for the second quarter and first half of 2024
increased from the comparable periods in 2023, which was impacted
by the sell through of higher cost inventory.
- Seed sales for the second quarter and first half of 2024
were consistent with the comparable periods in the prior year while
gross margin increased driven by an increase in proprietary
products gross margins and the timing of supplier programs.
- Nutrien Financial sales and gross margin increased in
the second quarter and first half of 2024 due to higher financing
offering rates and expanded program participation from growers in
the US and Australia.
Supplemental Data
Three Months Ended June
30
Six Months Ended June
30
Gross Margin
% of Product Line 1
Gross Margin
% of Product Line 1
(millions of US dollars, except
as otherwise noted)
2024
2023
2024
2023
2024
2023
2024
2023
Proprietary products
Crop nutrients
220
214
32
34
290
268
31
35
Crop protection products
227
253
34
38
310
327
34
37
Seed
127
113
44
42
144
143
41
42
Merchandise
4
3
9
7
7
6
9
7
Total
578
583
29
30
751
744
27
29
1 Represents percentage of
proprietary product margins over total product line gross
margin.
Three Months Ended June
30
Six Months Ended June
30
Sales Volumes
(tonnes -
thousands)
Gross Margin / Tonne
(US dollars)
Sales Volumes
(tonnes -
thousands)
Gross Margin / Tonne
(US dollars)
2024
2023
2024
2023
2024
2023
2024
2023
Crop nutrients
North America
4,298
4,599
146
131
5,762
5,794
144
123
International
1,125
1,132
53
26
2,043
1,977
54
29
Total
5,423
5,731
127
110
7,805
7,771
120
99
(percentages)
June 30, 2024
December 31, 2023
Financial performance measures 1,
2
Cash operating coverage ratio
65
68
Adjusted average working capital
to sales
19
19
Adjusted average working capital
to sales excluding Nutrien Financial
-
1
Nutrien Financial adjusted net
interest margin
5.3
5.2
1 Rolling four quarters.
2 These are non-GAAP financial
measures. See the “Non-GAAP Financial Measures” section.
Potash
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
756
1,009
(25)
1,569
2,011
(22)
Cost of goods sold
359
353
2
717
658
9
Gross margin
397
656
(39)
852
1,353
(37)
Adjusted EBITDA 1
472
654
(28)
1,002
1,330
(25)
1 See Note 2 to the interim
financial statements.
- Potash adjusted EBITDA declined in the second quarter
and first half of 2024 due to lower net selling prices, which more
than offset increased sales volumes. Higher potash production and
the continuation of mine automation advancements helped lower our
controllable cash cost of product manufactured in the first half of
2024.
Manufactured product
Three Months Ended
June 30
Six Months Ended
June 30
($ / tonne, except as otherwise
noted)
2024
2023
2024
2023
Sales volumes (tonnes -
thousands)
North America
914
1,226
2,221
2,080
Offshore
2,649
2,156
4,755
3,938
Total sales volumes
3,563
3,382
6,976
6,018
Net selling price
North America
301
383
306
391
Offshore
182
250
187
304
Average net selling price
212
298
225
334
Cost of goods sold
101
104
103
109
Gross margin
111
194
122
225
Depreciation and amortization
42
34
43
35
Gross margin excluding
depreciation and amortization 1
153
228
165
260
1 This is a non-GAAP financial
measure. See the “Non-GAAP Financial Measures” section.
- Sales volumes increased in the second quarter of 2024
due to higher offshore demand, partially offset by lower sales
volumes in North America resulting from more normal seasonal
purchasing compared to the same period in 2023. Strong demand in
major offshore markets and low channel inventories in North America
at the beginning of 2024 supported record first half sales
volumes.
- Net selling price per tonne decreased in the
second quarter and first half of 2024 due to a decline in benchmark
prices compared to the same periods last year.
- Cost of goods sold per tonne decreased in the second
quarter and first half of 2024 mainly due to higher production
volumes and lower royalties.
Supplemental Data
Three Months Ended
June 30
Six Months Ended
June 30
2024
2023
2024
2023
Production volumes (tonnes –
thousands)
3,575
3,237
7,140
6,325
Potash controllable cash cost of
product manufactured per tonne 1
50
60
53
61
Canpotex sales by market
(percentage of sales volumes)
Latin America
44
55
38
46
Other Asian markets 2
27
19
30
28
China
7
6
13
8
India
8
10
6
6
Other markets
14
10
13
12
Total
100
100
100
100
1 This is a non-GAAP financial
measure. See the “Non-GAAP Financial Measures” section.
2 All Asian markets except China
and India.
Nitrogen
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
1,028
1,216
(15)
1,939
2,528
(23)
Cost of goods sold
650
817
(20)
1,254
1,588
(21)
Gross margin
378
399
(5)
685
940
(27)
Adjusted EBITDA 1
594
569
4
1,058
1,245
(15)
1 See Note 2 to the interim
financial statements.
- Nitrogen adjusted EBITDA increased in the second quarter
of 2024 due to lower natural gas costs and insurance recoveries
included in other income and expense items, which more than offset
lower net selling prices and sales volumes. First half adjusted
EBITDA decreased as lower net selling prices more than offset lower
natural gas costs. We announced we are no longer pursuing our
Geismar Clean Ammonia project and recognized a $195 million
non-cash impairment of assets during the second quarter. Our
ammonia operating rate increased in the second quarter and first
half of 2024 primarily due to improved reliability and less
turnaround activity.
Manufactured product
Three Months Ended
June 30
Six Months Ended
June 30
($ / tonne, except as otherwise
noted)
2024
2023
2024
2023
Sales volumes (tonnes -
thousands)
Ammonia
698
681
1,215
1,215
Urea and ESN®
864
952
1,639
1,699
Solutions, nitrates and
sulfates
1,256
1,312
2,471
2,388
Total sales volumes
2,818
2,945
5,325
5,302
Net selling price
Ammonia
405
488
404
591
Urea and ESN®
445
472
438
536
Solutions, nitrates and
sulfates
238
254
232
279
Average net selling price
343
379
335
433
Cost of goods sold
211
237
209
254
Gross margin
132
142
126
179
Depreciation and amortization
54
55
54
56
Gross margin excluding
depreciation and amortization 1
186
197
180
235
1 This is a non-GAAP financial
measure. See the “Non-GAAP Financial Measures” section.
- Sales volumes were lower in the second quarter of 2024
as wet weather in North America impacted the timing of nitrogen
applications. First half sales volumes were flat compared to the
same period in 2023.
- Net selling price per tonne was lower in the second
quarter and first half of 2024 for all major nitrogen products
primarily due to weaker benchmark prices in key nitrogen producing
regions.
- Cost of goods sold per tonne decreased in the second
quarter and first half of 2024 mainly due to lower natural gas
costs.
Supplemental Data
Three Months Ended
June 30
Six Months Ended
June 30
2024
2023
2024
2023
Sales volumes (tonnes – thousands)
Fertilizer
1,716
1,866
3,139
3,114
Industrial and feed
1,102
1,079
2,186
2,188
Production volumes (tonnes –
thousands)
Ammonia production – total 1
1,383
1,249
2,835
2,680
Ammonia production – adjusted 1, 2
999
931
2,017
1,968
Ammonia operating rate (%) 2
89
85
91
90
Natural gas costs (US dollars per
MMBtu)
Overall natural gas cost excluding
realized derivative impact
2.65
2.76
2.91
3.85
Realized derivative impact 3
0.10
(0.02)
0.07
(0.01)
Overall natural gas cost
2.75
2.74
2.98
3.84
1 All figures are provided on a
gross production basis in thousands of product tonnes.
2 Excludes Trinidad and
Joffre.
3 Includes realized derivative
impacts recorded as part of cost of goods sold or other income and
expenses. Refer to Note 4 to the interim financial statements.
Phosphate
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
394
502
(22)
831
1,016
(18)
Cost of goods sold
361
453
(20)
733
880
(17)
Gross margin
33
49
(33)
98
136
(28)
Adjusted EBITDA 1
88
113
(22)
209
250
(16)
1 See Note 2 to the interim
financial statements.
- Phosphate adjusted EBITDA decreased in the second
quarter and first half of 2024 primarily due to lower net selling
prices, partially offset by lower input costs. During last year’s
second quarter, we recognized a $233 million non-cash impairment of
our White Springs property, plant and equipment.
Manufactured product
Three Months Ended
June 30
Six Months Ended
June 30
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
Fertilizer
415
426
862
814
Industrial and feed
169
160
342
320
Total sales volumes
584
586
1,204
1,134
Net selling price
Fertilizer
601
595
614
636
Industrial and feed
830
1,100
839
1,118
Average net selling price
667
732
678
772
Cost of goods sold
602
643
590
647
Gross margin
65
89
88
125
Depreciation and amortization
116
121
115
122
Gross margin excluding depreciation and
amortization 1
181
210
203
247
1 This is a non-GAAP financial
measure. See the “Non-GAAP Financial Measures” section.
- Sales volumes were flat in the second quarter of 2024
compared to the same period last year as lower fertilizer volumes
were offset by higher feed volumes. First half sales volumes were
higher than the first half of 2023 due to strong fertilizer,
industrial and feed demand.
- Net selling price per tonne decreased in the second
quarter and first half of 2024 due primarily to lower industrial
and feed net selling prices which reflect the typical lag in price
realizations relative to benchmark prices.
- Cost of goods sold per tonne decreased in the second
quarter and first half of 2024 mainly due to lower ammonia and
sulfur input costs.
Supplemental Data
Three Months Ended June
30
Six Months Ended June
30
2024
2023
2024
2023
Production volumes (P2O5 tonnes –
thousands)
326
331
678
672
P2O5 operating rate (%)
77
78
80
80
Corporate and Others and Eliminations
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Corporate and Others
Selling expenses (recovery)
(3)
(2)
50
(5)
(4)
25
General and administrative expenses
98
88
11
187
172
9
Share-based compensation expense
(recovery)
10
(64)
n/m
16
(49)
n/m
Foreign exchange loss, net of related
derivatives
285
52
448
328
18
n/m
Other expenses
26
99
(74)
80
52
54
Adjusted EBITDA 1
(121)
(60)
102
(222)
(73)
204
Eliminations
Gross margin
75
131
(43)
38
104
(63)
Adjusted EBITDA 1
74
135
(45)
38
114
(67)
1 See Note 2 to the interim
financial statements.
- Share-based compensation was an expense in the second
quarter and first half of 2024 and a recovery in the comparable
prior periods in 2023 due to an increase in fair value of our
share-based awards in 2024. The fair value takes into consideration
several factors such as our share price movement, our performance
relative to our peer group and return on our invested capital.
- Foreign exchange loss, net of related derivatives was
higher mainly due to a loss on foreign currency derivatives in
Brazil of approximately $220 million in the second quarter of 2024.
This was primarily the result of the execution of certain
derivative contracts with financial institutions in Brazil in June
2024, which were made by an individual outside applicable internal
policy and authority limits. At the end of July 2024, foreign
currency derivative contracts related to this event were settled.
For further detail regarding the impact of the loss and our
remediation efforts, see the Controls and Procedures section of
this MD&A and Note 6 to the interim financial statements.
- Other expenses were lower in the second quarter of 2024
compared to the same period in 2023 mainly due to lower losses
related to financial instruments in Argentina. Other expenses were
higher in the first half of 2024 compared to the same period in
2023, as we recognized an $80 million gain in 2023 from our
post-retirement benefit plan amendments, resulting in lower expense
in the first half of 2023.
Eliminations
- Eliminations are not part of the Corporate and Others
segment. The recovery of gross margin between operating segments
decreased for the second quarter and first half of 2024 due to
lower margins on sales between our operating segments compared to
the comparable periods in 2023.
Finance Costs, Income Taxes and Other Comprehensive Income
(Loss)
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
% Change
2024
2023
% Change
Finance costs
162
204
(21)
341
374
(9)
Income tax expense
290
476
(39)
365
669
(45)
Actual effective tax rate
including discrete items (%)
43
51
(16)
40
40
‐
Other comprehensive income
(loss)
44
68
(35)
(58)
70
n/m
- Finance costs were lower in the second quarter and first
half of 2024 primarily due to lower short term debt average
balances partially offset by higher interest rates.
- Income tax expense was lower in the second quarter and
first half of 2024 primarily as a result of lower earnings compared
to the same periods in 2023. In addition, discrete tax adjustments
primarily related to the change in recognition of deferred tax
assets in our Retail – South America region and results of tax
authority examinations increased our 2023 income tax expense.
- Other comprehensive income (loss) was primarily driven
by lower income in the second quarter and first half of 2024
compared to the comparable periods in 2023 mainly due to
depreciation of Brazilian and Canadian currencies relative to the
US dollar.
Liquidity and Capital Resources
Sources and Uses of Liquidity
We continued to manage our capital in accordance with our
capital allocation strategy. We believe that our internally
generated cash flow, supplemented by available borrowings under new
or existing financing sources, if necessary, will be sufficient to
meet our anticipated capital expenditures, planned growth and
development activities, and other cash requirements for the
foreseeable future. Refer to the “Capital Structure and Management”
section for details on our existing long-term debt and credit
facilities.
Sources and Uses of Cash
Three Months Ended June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
% Change
2024
2023
% Change
Cash provided by operating
activities
1,807
2,243
(19)
1,320
1,385
(5)
Cash used in investing
activities
(614)
(858)
(28)
(1,108)
(1,552)
(29)
Cash (used in) provided by
financing activities
(684)
(2,124)
(68)
(136)
5
n/m
Cash used for dividends and share
repurchases 1
(266)
(413)
(36)
(527)
(1,556)
(66)
1 This is a supplementary
financial measure. See the “Other Financial Measures” section.
Cash provided by operating
activities
- Cash provided by operating activities in the second quarter and
first half of 2024 was lower compared to the same periods in 2023
primarily due to lower realized selling prices across all
segments.
Cash used in investing
activities
- Cash used in investing activities was lower in the second
quarter and first half of 2024 compared to the same periods in 2023
due to lower capital expenditures and fewer business
acquisitions.
Cash (used in) provided by
financing activities
- Cash used in financing activities in the second quarter of 2024
was lower compared to the same period in 2023 due to the issuance
of $1,000 million of senior notes in the second quarter of
2024.
- Cash used in financing activities for the first half of 2024
was for payments of dividends, debt and lease liabilities, which
more than offset the amount received from the debt issuance. For
the same period in 2023, cash received from the debt issuance
mostly offset the total amount paid for dividends, share
repurchases, debt and lease liabilities.
Cash used for dividends and
share repurchases
- Cash used for dividends and share repurchases was lower in the
second quarter and first half of 2024 compared to the same periods
in 2023 as we did not repurchase any shares in the second quarter
and first half of 2024, compared to $150 million and $1,047 million
of share repurchases in the same periods in 2023.
Financial Condition Review
The following is a comparison of balance sheet categories that
are considered material:
As at
(millions of US dollars, except
as otherwise noted)
June 30, 2024
December 31, 2023
$ Change
% Change
Assets
Cash and cash equivalents
1,004
941
63
7
Receivables
8,123
5,398
2,725
50
Inventories
5,298
6,336
(1,038)
(16)
Prepaid expenses and other
current assets
663
1,495
(832)
(56)
Property, plant and equipment
22,198
22,461
(263)
(1)
Intangible assets
1,912
2,217
(305)
(14)
Liabilities and Equity
Short-term debt
1,571
1,815
(244)
(13)
Current portion of long-term
debt
1,012
512
500
98
Payables and accrued charges
9,024
9,467
(443)
(5)
Long-term debt
9,399
8,913
486
5
Retained earnings
11,542
11,531
11
‐
- Explanations for changes in Cash and cash equivalents
are in the “Sources and Uses of Cash” section.
- Receivables increased primarily due to the seasonality
of Retail sales.
- Inventories decreased due to seasonal Retail sales as
inventory drawdowns occur. Generally, we build up our inventory
levels in North America at year end in preparation for the
following year's planting and application seasons.
- Prepaid expenses and other current assets decreased due
to the seasonal drawdown of prepaid inventories during the spring
planting and application seasons in North America.
- Property, plant and equipment decreased due to the
impairments related to our Retail – Brazil assets and Geismar Clean
Ammonia project.
- Intangible assets decreased due to an impairment of our
Retail – Brazil assets.
- Short-term debt decreased due to repayments on our
credit facilities based on our working capital requirements driven
by the seasonality of our business.
- Payables and accrued charges decreased from lower
customer prepayments in North America as Retail customers took
delivery of prepaid sales.
- Long-term debt including current portion increased due
to the issuance of $1,000 million of notes in the second quarter of
2024.
- Retained earnings increased as net earnings in the first
half of 2024 exceeded dividends declared and share
repurchases.
Capital Structure and Management
Principal Debt Instruments
As part of the normal course of business, we closely monitor our
liquidity position. We use a combination of cash generated from
operations and short-term and long-term debt to finance our
operations. We continually evaluate various financing arrangements
and may seek to engage in transactions from time to time when
market and other conditions are favorable. We were in compliance
with our debt covenants and did not have any changes to our credit
ratings for the six months ended June 30, 2024.
Capital Structure (Debt and Equity)
(millions of US dollars)
June 30, 2024
December 31, 2023
Short-term debt
1,571
1,815
Current portion of long-term
debt
1,012
512
Current portion of lease
liabilities
364
327
Long-term debt
9,399
8,913
Lease liabilities
1,024
999
Shareholders' equity
25,159
25,201
Commercial Paper, Credit Facilities and Other Debt
We have a total facility limit of approximately $8,900 million
comprised of several credit facilities available in the
jurisdictions where we operate. In North America, we have a
commercial paper program, which is limited to the undrawn amount
under our $4,500 million unsecured revolving term credit facility
and excess cash invested in highly liquid securities.
As at June 30, 2024, we have utilized $1,529 million of our
total facility limit, which includes $1,096 million of commercial
paper outstanding.
As at June 30, 2024, $242 million in letters of credit were
outstanding and committed, with $187 million of remaining credit
available under our letter of credit facilities.
Our long-term debt consists primarily of notes and debentures.
See the “Capital Structure and Management” section of our 2023
Annual Report for information on balances, rates and maturities for
our notes and debentures. On June 21, 2024, we issued $400 million
of 5.2 percent senior notes due June 21, 2027 and $600 million of
5.4 percent senior notes due June 21, 2034.
See Notes 7 and 8 to the interim financial statements for
additional information.
In March 2024, we filed a base shelf prospectus in Canada and
the US qualifying the issuance of common shares, debt securities,
and other securities during a period of 25 months from March 22,
2024.
Outstanding Share Data
As at August 2, 2024
Common shares
494,757,156
Options to purchase common
shares
3,478,893
For more information on our capital structure and management,
see Note 24 to the annual financial statements in our 2023 Annual
Report.
Quarterly Results
(millions of US dollars, except as
otherwise noted)
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Sales
10,156
5,389
5,664
5,631
11,654
6,107
7,533
8,188
Net earnings
392
165
176
82
448
576
1,118
1,583
Net earnings attributable to equity
holders of Nutrien
385
158
172
75
440
571
1,112
1,577
Net earnings per share attributable to
equity holders of Nutrien
Basic
0.78
0.32
0.35
0.15
0.89
1.14
2.15
2.95
Diluted
0.78
0.32
0.35
0.15
0.89
1.14
2.15
2.94
Our quarterly earnings are significantly affected by the
seasonality of our business, fertilizer benchmark prices, which
have been volatile over the last two years and are affected by
demand-supply conditions, grower affordability and weather. See
Note 9 to the interim financial statements.
The following table describes certain items that impacted our
quarterly earnings:
Quarter
Transaction or Event
Q2 2024
$530 million non-cash impairment
of assets comprised of a $335 million non-cash impairment of the
Retail – Brazil intangible assets and property plant and equipment
due to the ongoing market instability and more moderate margin
expectations, and a $195 million non-cash impairment of our Geismar
Clean Ammonia project property, plant and equipment as we are no
longer pursuing the project. We also recorded a foreign exchange
loss of $220 million on foreign currency derivatives in Brazil for
the second quarter of 2024.
Q2 2023
$698 million non-cash impairment
of assets comprised of a $233 million non-cash impairment of our
Phosphate White Springs property, plant and equipment due to a
decrease in our forecasted phosphate margins and a $465 million
non-cash impairment of our Retail – South America assets primarily
related to goodwill mainly due to the impact of crop input price
volatility, more moderate long-term growth assumptions and higher
interest rates, which lowered our forecasted earnings.
Q3 2022
$330 million reversal of non-cash
impairment of our Phosphate White Springs property, plant and
equipment related to higher forecasted global prices and a more
favorable outlook for phosphate margins.
Critical Accounting Estimates
Our significant accounting policies are disclosed in our 2023
Annual Report. We have discussed the development, selection and
application of our key accounting policies, and the critical
accounting estimates and assumptions they involve, with the Audit
Committee of the Board. Our critical accounting estimates are
discussed on pages 72 to 74 of our 2023 Annual Report. There were
no material changes to our critical accounting estimates for the
three or six months ended June 30, 2024.
Controls and Procedures
We are required to maintain disclosure controls and procedures
as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934 (the "Exchange Act") and National Instrument
52-109 – “Certification of Disclosure in Issuers' Annual and
Interim Filings” ("NI 52-109") designed to provide reasonable
assurance that information required to be disclosed by Nutrien in
its annual filings, interim filings (as these terms are defined in
NI 52-109), and other reports filed or submitted by us under
securities legislation is recorded, processed, summarized and
reported within the required time periods. As at June 30, 2024, our
Chief Executive Officer and Chief Financial Officer have concluded
that our disclosure controls and procedures were not effective due
to the material weakness described below.
Internal control over financial reporting
Management is responsible for establishing and maintaining
adequate internal control over financial reporting ("ICFR"), as
defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, as
amended, and NI 52-109. ICFR is designed to provide reasonable
assurance regarding the reliability of financial reporting and
preparation of financial statements for external purposes in
accordance with IFRS. Any system of ICFR, no matter how well
designed, has inherent limitations. Therefore, even those systems
determined to be effective can provide only reasonable assurance
with respect to financial statement preparation and
presentation.
Under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief
Financial Officer, we have designed ICFR based on the framework
issued by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control – Integrated Framework (2013). A
material weakness is a deficiency, or a combination of
deficiencies, in ICFR, such that there is a reasonable possibility
that a material misstatement of the annual financial statements, or
interim financial statements, will not be prevented or detected on
a timely basis. As at June 30, 2024, we have a material weakness
related to our controls over derivative contract authorization in
Brazil, which resulted in unauthorized execution of derivative
contracts. This material weakness did not result in any errors or a
material misstatement in our interim or annual financial
statements.
In the second quarter of 2024, changes were introduced to our
derivative contract authorization and execution process in Brazil.
As a result of these changes, our controls were not designed
effectively to ensure that segregation of duties was maintained and
checks of authorization were performed in a timely manner and that
derivative contracts entered into were recorded in our treasury
reporting systems on a timely basis.
Notwithstanding this identified material weakness, we believe
that our interim financial statements present fairly, in all
material respects, our business, financial condition and results of
operations for the periods presented.
Remediation Plan
The control deficiency described above was identified by our
management in late June 2024, prior to the preparation and filing
of our interim financial statements as at June 30, 2024 and for the
three and six months then ended. We have prioritized the
remediation of the material weakness described above and are
working to complete certain remediation activities under the
oversight of the Audit Committee to resolve the issue.
Specific actions that are being taken to remediate this material
weakness include the following:
- redesigning certain processes and controls relating to
derivative contract authorization and execution in Brazil,
including with respect to segregation of duties, compliance and
confirmation, accounting and reconciliation activities, authority
limits, and systems controls; and,
- enhancing the supervision and review activities related to
trading in derivative contracts in Brazil.
As the determination regarding the material weakness in ICFR was
reached in July 2024, we have not had adequate time to implement,
evaluate and test the controls and procedures described above and
will not be able to do so until a sufficient period of time has
passed to allow us to evaluate the design and test the operational
effectiveness of the new and re-designed controls and conclude,
through such testing, that these controls are designed and
operating effectively. We will continue to address the material
weakness with the intention of such being remediated by the end of
2024.
Other than the material weakness described above, there has been
no change in our ICFR during the six months ended June 30, 2024
that has materially affected, or is reasonably likely to materially
affect, our ICFR.
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”,
“project”, “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 2024 full-year guidance, including
expectations regarding Retail adjusted EBITDA, Potash sales
volumes, Nitrogen sales volumes, Phosphate sales volumes,
depreciation and amortization, finance costs, effective tax rate
and capital expenditures; our projections to generate strong cash
from operations; expectations regarding our capital allocation
intentions and strategies; our ability to advance strategic
initiatives and high value growth investments; capital spending
expectations for 2024 and beyond; expectations regarding
performance of our operating segments in 2024, including increased
potash sales volumes; our operating segment market outlooks and our
expectations for market conditions and fundamentals in the second
half of 2024 and beyond, and the anticipated supply and demand for
our products and services, expected market, industry and growing
conditions with respect to crop nutrient application rates, planted
acres, grower crop investment, crop mix, including the need to
replenish soil nutrient levels, production volumes and expenses,
shipments, natural gas costs and availability, consumption, prices,
operating rates and the impact of seasonality, import and export
volumes, economic sanctions and restrictions, operating rates,
inventories, crop development and natural gas curtailments; the
negotiation of sales contracts; acquisitions and divestitures and
the anticipated benefits thereof; expectations in connection with
our ability to deliver long-term returns to shareholders, and
expectations related to the timing and outcome of remediation
efforts for the material weakness in ICFR related to derivative
contract authorization.
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 in relation
to the operation of our business as currently planned and our
ability to achieve our business objectives include, among other
things, assumptions with respect to: our ability to successfully
implement our business strategies, growth and capital allocation
investments and initiatives that we will conduct our operations and
achieve results of operations as anticipated; 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, weather conditions, including
the current El Niño weather pattern, supplier agreements, product
distribution agreements, inventory levels, exports, crop
development and cost of labor and interest, exchange and effective
tax rates; potash demand growth in offshore markets and
normalization of Canpotex port operations; global economic
conditions and the accuracy of our market outlook expectations for
2024 and in the future; assumptions related to our assessment of
recoverable amount estimates of our assets, including in relation
to our Retail - Brazil business asset impairments; our intention to
complete share repurchases under our normal course issuer bid
programs, including Toronto Stock Exchange approval, 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 and assumptions
related to our ability to fund our dividends at the current level;
our expectations regarding the impacts, direct and indirect, of
certain geopolitical conflicts, including the war in Eastern Europe
and the conflict in the Middle East on, among other things, global
supply and demand, including for crop nutrients, energy and
commodity prices, global interest rates, supply chains and the
global macroeconomic environment, including inflation; assumptions
regarding future markets for clean ammonia; 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 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 and other
contracts and our ability to successfully implement new initiatives
and programs; and our ability to successfully remediate the
material weakness in our ICFR related to derivative contract
authorization.
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 achieve expected results of our
business strategy, capital allocation initiatives or results of
operations; 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 the current El Niño weather pattern (and
transition to El Niña weather pattern), 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, antitrust and other laws or regulations and the
interpretation thereof; political or military risks, including
civil unrest, actions by armed groups or conflict and malicious
acts including terrorism and industrial espionage; our ability to
access sufficient, cost-effective and timely transportation,
distribution and storage of products (including potential rail
transportation and port disruptions due to labor strikes and/or
work stoppages or other similar actions); the occurrence of a major
environmental or safety incident or becoming subject to legal or
regulatory proceedings; 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 or challenges related to our
major facilities that are out of our control; interruptions of or
constraints in availability of key inputs, including natural gas
and sulfur; any significant impairment of the carrying amount of
certain assets; the risk that rising interest rates and/or
deteriorated business operating results may result in the further
impairment of assets or goodwill attributed to certain of our cash
generating units; 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; geopolitical conflicts, including
the war in Eastern Europe and the conflict in the Middle East, and
their potential impact on, among other things, global market
conditions and supply and demand, including for crop nutrients,
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; failure to
remediate the material weakness in our ICFR related to derivative
contract authorization; and other risk factors detailed from time
to time in Nutrien reports filed with the Canadian securities
regulators and the Securities and Exchange Commission in the United
States.
The purpose of our revised Retail adjusted EBITDA and our
depreciation and amortization, finance costs, effective tax rate
and capital expenditures 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
2023 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 a leading global provider of crop inputs and
services. 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 business across the ag value chain and by
maintaining access to the resources and the relationships with
stakeholders needed to achieve our goals.
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, August 8,
2024 at 10:00 a.m. Eastern Time.
Telephone conference dial-in numbers:
- From Canada and the US 1-800-717-1738
- International 1-289-514-5100
- 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/2024-q2-earnings-conference-call
Non-GAAP Financial Measures
We use both IFRS measures and certain non-GAAP financial
measures to assess performance. Non-GAAP financial measures are
financial measures disclosed by the Company that (a) depict
historical or expected future financial performance, financial
position or cash flow of the 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-GAAP ratios are
financial measures disclosed by the Company that are in the form of
a ratio, fraction, percentage or similar representation that has a
non-GAAP financial measure as one or more of its components, and
that are not disclosed in the financial statements of the
Company.
These non-GAAP financial measures and non-GAAP 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-GAAP financial
measures and non-GAAP 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-GAAP financial measures and
non-GAAP 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-GAAP financial measures
and non-GAAP 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-GAAP financial measures and non-GAAP 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, gain or loss on disposal of certain
businesses and investments, asset retirement obligations (“ARO”)
and accrued environmental costs (“ERL”) related to our
non-operating sites, and loss related to financial instruments in
Argentina.
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 June
30
Six Months Ended June
30
(millions of US dollars)
2024
2023
2024
2023
Net earnings
392
448
557
1,024
Finance costs
162
204
341
374
Income tax expense
290
476
365
669
Depreciation and amortization
586
556
1,151
1,052
EBITDA 1
1,430
1,684
2,414
3,119
Adjustments:
Share-based compensation expense
(recovery)
10
(64)
16
(49)
Foreign exchange loss, net of related
derivatives
285
52
328
18
ARO/ERL related (income) expenses for
non-operating sites
(35)
6
(32)
6
Loss related to financial instruments in
Argentina
15
92
34
92
Integration and restructuring related
costs
‐
10
‐
15
Impairment of assets
530
698
530
698
Adjusted EBITDA
2,235
2,478
3,290
3,899
1 EBITDA is calculated as net
earnings before finance costs, income taxes, and depreciation and
amortization.
Adjusted Net Earnings and Adjusted Net Earnings Per
Share
Most directly comparable IFRS financial measure: Net
earnings (loss) and diluted 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, gain
or loss on disposal of certain businesses and investments, gain or
loss on early extinguishment of debt or on settlement of
derivatives due to discontinuance of hedge accounting, asset
retirement obligations and accrued environmental costs related to
our non-operating sites, loss related to financial instruments in
Argentina, change in recognition of tax losses and deductible
temporary differences related to impairments and certain changes to
tax declarations (e.g., “Swiss Tax Reform adjustment”). We
generally apply the annual forecasted effective tax rate to
specific adjustments during the year, and at year-end, we apply the
actual effective tax rate.
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
June 30, 2024
Six Months Ended
June 30, 2024
Per
Per
Increases
Diluted
Increases
Diluted
(millions of US dollars, except
as otherwise noted)
(Decreases)
Post-Tax
Share
(Decreases)
Post-Tax
Share
Net earnings attributable to equity
holders of Nutrien
385
0.78
543
1.10
Adjustments:
Share-based compensation expense
10
8
0.02
16
12
0.02
Foreign exchange loss, net of related
derivatives
285
283
0.57
328
333
0.67
Impairment of assets
530
491
1.00
530
491
1.00
ARO/ERL related (income) for non-operating
sites
(35)
(25)
(0.06)
(32)
(23)
(0.05)
Loss related to financial instruments in
Argentina
15
15
0.03
34
34
0.07
Adjusted net earnings
1,157
2.34
1,390
2.81
Three Months Ended
June 30, 2023
Six Months Ended
June 30, 2023
Per
Per
Increases
Diluted
Increases
Diluted
(millions of US dollars, except
as otherwise noted)
(Decreases)
Post-Tax
Share
(Decreases)
Post-Tax
Share
Net earnings attributable to equity
holders of Nutrien
440
0.89
1,011
2.03
Adjustments:
Share-based compensation recovery
(64)
(49)
(0.11)
(49)
(37)
(0.08)
Foreign exchange loss, net of related
derivatives
52
40
0.08
18
14
0.02
Integration and restructuring related
costs
10
8
0.02
15
11
0.02
Impairment of assets
698
653
1.32
698
653
1.32
ARO/ERL related expenses for non-operating
sites
6
5
0.01
6
5
0.01
Loss related to financial instruments in
Argentina
92
92
0.19
92
92
0.18
Change in recognition of deferred tax
assets
66
66
0.13
66
66
0.13
Adjusted net earnings
1,255
2.53
1,815
3.63
Effective Tax Rate on Adjusted Net Earnings Guidance
Effective tax rate on adjusted net earnings guidance is a
forward-looking non-GAAP financial measure as it includes adjusted
net earnings, which is a non-GAAP financial measure. It is provided
to assist readers in understanding our expected financial results.
Effective tax rate on adjusted net earnings guidance excludes
certain items that management is aware of that permit management to
focus on the performance of our operations (see the Adjusted Net
Earnings and Adjusted Net Earnings Per Share section for items
generally adjusted). 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.
Gross Margin Excluding Depreciation and Amortization Per
Tonne – Manufactured Product
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. Potash controllable cash COPM
excludes the effects of production from other periods and the
impacts of our long-term investment decisions, supporting a focus
on the performance of our day-to-day operations. 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 June
30
Six Months Ended June
30
(millions of US dollars, except
as otherwise noted)
2024
2023
2024
2023
Total COGS – Potash
359
353
717
658
Change in inventory
(7)
(14)
21
26
Other adjustments 1
(6)
(9)
(9)
(17)
COPM
346
330
729
667
Depreciation and amortization in
COPM
(141)
(101)
(294)
(201)
Royalties in COPM
(20)
(26)
(39)
(57)
Natural gas costs and carbon
taxes in COPM
(8)
(9)
(20)
(25)
Controllable cash COPM
177
194
376
384
Production tonnes (tonnes –
thousands)
3,575
3,237
7,140
6,325
Potash controllable cash COPM per
tonne
50
60
53
61
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.
Nutrien Financial Adjusted Net Interest Margin
Definition: Nutrien Financial revenue less deemed
interest expense divided by average Nutrien Financial net
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 others to evaluate the financial
performance of Nutrien Financial.
Rolling four quarters ended
June 30, 2024
(millions of US dollars, except as
otherwise noted)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Total/Average
Nutrien Financial revenue
73
70
66
133
Deemed interest expense 1
(41)
(36)
(27)
(50)
Net interest
32
34
39
83
188
Average Nutrien Financial net
receivables
4,353
2,893
2,489
4,560
3,574
Nutrien Financial adjusted net interest
margin (%)
5.3
Rolling four quarters ended
December 31, 2023
(millions of US dollars, except as
otherwise noted)
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Total/Average
Nutrien Financial revenue
57
122
73
70
Deemed interest expense 1
(20)
(39)
(41)
(36)
Net interest
37
83
32
34
186
Average Nutrien Financial net
receivables
2,283
4,716
4,353
2,893
3,561
Nutrien Financial adjusted net interest
margin (%)
5.2
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
June 30, 2024
(millions of US dollars, except as
otherwise noted)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Total
Selling expenses
798
841
790
1,005
3,434
General and administrative expenses
57
55
52
51
215
Other expenses
37
77
22
41
177
Operating expenses
892
973
864
1,097
3,826
Depreciation and amortization in operating
expenses
(186)
(199)
(190)
(193)
(768)
Operating expenses excluding depreciation
and amortization
706
774
674
904
3,058
Gross margin
895
989
747
2,029
4,660
Depreciation and amortization in cost of
goods sold
3
2
4
3
12
Gross margin excluding depreciation and
amortization
898
991
751
2,032
4,672
Cash operating coverage ratio (%)
65
Rolling four quarters ended
December 31, 2023
(millions of US dollars, except as
otherwise noted)
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Total
Selling expenses
765
971
798
841
3,375
General and administrative expenses
50
55
57
55
217
Other expenses
15
29
37
77
158
Operating expenses
830
1,055
892
973
3,750
Depreciation and amortization in operating
expenses
(179)
(185)
(186)
(199)
(749)
Operating expenses excluding depreciation
and amortization
651
870
706
774
3,001
Gross margin
615
1,931
895
989
4,430
Depreciation and amortization in cost of
goods sold
2
3
3
2
10
Gross margin excluding depreciation and
amortization
617
1,934
898
991
4,440
Cash operating coverage ratio (%)
68
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
June 30, 2024
(millions of US dollars, except as
otherwise noted)
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Average/Total
Current assets
10,398
10,498
11,821
11,181
Current liabilities
(5,228)
(8,210)
(8,401)
(8,002)
Working capital
5,170
2,288
3,420
3,179
3,514
Working capital from certain recent
acquisitions
‐
‐
‐
‐
Adjusted working capital
5,170
2,288
3,420
3,179
3,514
Nutrien Financial working capital
(4,353)
(2,893)
(2,489)
(4,560)
Adjusted working capital excluding Nutrien
Financial
817
(605)
931
(1,381)
(60)
Sales
3,490
3,502
3,308
8,074
Sales from certain recent acquisitions
‐
‐
‐
‐
Adjusted sales
3,490
3,502
3,308
8,074
18,374
Nutrien Financial revenue
(73)
(70)
(66)
(133)
Adjusted sales excluding Nutrien
Financial
3,417
3,432
3,242
7,941
18,032
Adjusted average working capital to sales
(%)
19
Adjusted average working capital to sales
excluding Nutrien Financial (%)
-
Rolling four quarters ended
December 31, 2023
(millions of US dollars, except as
otherwise noted)
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Average/Total
Current assets
13,000
11,983
10,398
10,498
Current liabilities
(8,980)
(8,246)
(5,228)
(8,210)
Working capital
4,020
3,737
5,170
2,288
3,804
Working capital from certain recent
acquisitions
‐
‐
‐
‐
Adjusted working capital
4,020
3,737
5,170
2,288
3,804
Nutrien Financial working capital
(2,283)
(4,716)
(4,353)
(2,893)
Adjusted working capital excluding Nutrien
Financial
1,737
(979)
817
(605)
243
Sales
3,422
9,128
3,490
3,502
Sales from certain recent acquisitions
‐
‐
‐
‐
Adjusted sales
3,422
9,128
3,490
3,502
19,542
Nutrien Financial revenue
(57)
(122)
(73)
(70)
Adjusted sales excluding Nutrien
Financial
3,365
9,006
3,417
3,432
19,220
Adjusted average working capital to sales
(%)
19
Adjusted average working capital to sales
excluding Nutrien Financial (%)
1
Other Financial Measures
Selected Additional Financial Data
Nutrien Financial
As at June 30, 2024
As at
December
31, 2023
(millions of US dollars)
Current
<31 Days
Past Due
31–90
Days
Past Due
>90 Days
Past Due
Gross
Receivables
Allowance 1
Net
Receivables
Net
Receivables
North America
3,395
182
67
198
3,842
(53)
3,789
2,206
International
628
50
18
85
781
(10)
771
687
Nutrien Financial receivables
4,023
232
85
283
4,623
(63)
4,560
2,893
1 Bad debt expense on the above
receivables for the six months ended June 30, 2024 and 2023 were
$25 million and $30 million, respectively, in the Retail
segment.
Supplementary Financial Measures
Supplementary financial measures are financial measures
disclosed by the 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
the Company, (b) are not disclosed in the financial statements of
the Company, (c) are not non-GAAP financial measures, and (d) are
not non-GAAP ratios.
The following section provides an explanation of the composition
of those supplementary financial measures, if not previously
provided.
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.
Mine development and pre-stripping capital expenditures:
Represents capital expenditures that are required for activities to
open new areas underground and/or develop a mine or ore body to
allow for future production mining and activities required to
prepare and/or access the ore, i.e., removal of an overburden that
allows access to the ore.
Cash used for dividends and share repurchases (shareholder
returns): Calculated as dividends paid to Nutrien’s
shareholders plus repurchase of common shares as reflected in the
unaudited condensed consolidated statements of cash flows. This
measure is useful as it represents return of capital to
shareholders.
Condensed Consolidated Financial Statements
Unaudited
Condensed Consolidated
Statements of Earnings
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars, except as
otherwise noted)
Note
2024
2023
2024
2023
SALES
2, 10
10,156
11,654
15,545
17,761
Freight, transportation and
distribution
240
252
478
451
Cost of goods sold
7,004
8,236
10,618
12,231
GROSS MARGIN
2,912
3,166
4,449
5,079
Selling expenses
1,008
979
1,802
1,749
General and administrative expenses
158
157
312
302
Provincial mining taxes
68
104
136
223
Share-based compensation expense
(recovery)
10
(64)
16
(49)
Impairment of assets
3
530
698
530
698
Foreign exchange loss, net of related
derivatives
6
285
52
328
18
Other expenses
4
9
112
62
71
EARNINGS BEFORE FINANCE COSTS
AND INCOME TAXES
844
1,128
1,263
2,067
Finance costs
162
204
341
374
EARNINGS BEFORE INCOME TAXES
682
924
922
1,693
Income tax expense
5
290
476
365
669
NET EARNINGS
392
448
557
1,024
Attributable to
Equity holders of Nutrien
385
440
543
1,011
Non-controlling interest
7
8
14
13
NET EARNINGS
392
448
557
1,024
NET EARNINGS PER SHARE ATTRIBUTABLE TO
EQUITY HOLDERS OF NUTRIEN ("EPS")
Basic
0.78
0.89
1.10
2.03
Diluted
0.78
0.89
1.10
2.03
Weighted average shares outstanding for
basic EPS
494,646,000
495,379,000
494,608,000
498,261,000
Weighted average shares outstanding for
diluted EPS
494,915,000
495,932,000
494,851,000
499,059,000
Condensed Consolidated
Statements of Comprehensive Income
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars)
2024
2023
2024
2023
NET EARNINGS
392
448
557
1,024
Other comprehensive income (loss)
Items that will not be reclassified to net
earnings:
Net actuarial loss on defined benefit
plans
‐
‐
‐
(3)
Net fair value gain on investments
36
6
18
11
Items that have been or may be
subsequently reclassified to net earnings:
Gain (loss) on currency translation of
foreign operations
9
49
(57)
50
Other
(1)
13
(19)
12
OTHER COMPREHENSIVE INCOME
(LOSS)
44
68
(58)
70
COMPREHENSIVE INCOME
436
516
499
1,094
Attributable to
Equity holders of Nutrien
429
508
486
1,081
Non-controlling interest
7
8
13
13
COMPREHENSIVE INCOME
436
516
499
1,094
(See Notes to the Condensed
Consolidated Financial Statements)
Condensed Consolidated
Statements of Cash Flows
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars)
Note
2024
2023
2024
2023
Note 1
Note 1
OPERATING ACTIVITIES
Net earnings
392
448
557
1,024
Adjustments for:
Depreciation and amortization
586
556
1,151
1,052
Share-based compensation expense
(recovery)
10
(64)
16
(49)
Impairment of assets
3
530
698
530
698
Provision for deferred income tax
23
100
51
121
Net distributed (undistributed) earnings
of equity-accounted investees
88
(23)
38
140
Fair value adjustment to derivatives
6
187
38
186
32
Loss related to financial instruments in
Argentina
4
15
92
34
92
Long-term income tax receivables and
payables
(35)
(18)
8
(90)
Other long-term assets, liabilities and
miscellaneous
5
53
70
(14)
Cash from operations before working
capital changes
1,801
1,880
2,641
3,006
Changes in non-cash operating working
capital:
Receivables
(2,555)
(2,653)
(2,812)
(2,118)
Inventories and prepaid expenses and other
current assets
3,222
4,065
1,892
2,572
Payables and accrued charges
(661)
(1,049)
(401)
(2,075)
CASH PROVIDED BY OPERATING
ACTIVITIES
1,807
2,243
1,320
1,385
INVESTING ACTIVITIES
Capital expenditures 1
(547)
(791)
(920)
(1,256)
Business acquisitions, net of cash
acquired
(4)
(5)
(4)
(116)
Net proceeds from (purchase of)
investments
3
(93)
(15)
(98)
Purchase of investments
(107)
‐
(111)
‐
Net changes in non-cash working
capital
5
(4)
(85)
(104)
Other
36
35
27
22
CASH USED IN INVESTING
ACTIVITIES
(614)
(858)
(1,108)
(1,552)
FINANCING ACTIVITIES
(Net repayment of) proceeds from debt
(1,215)
(1,105)
(289)
768
Proceeds from debt
998
‐
998
1,500
Repayment of debt
(75)
(500)
(89)
(517)
Repayment of principal portion of lease
liabilities
(106)
(100)
(202)
(187)
Dividends paid to Nutrien's
shareholders
(266)
(263)
(527)
(509)
Repurchase of common shares
‐
(150)
‐
(1,047)
Issuance of common shares
8
3
9
31
Other
(28)
(9)
(36)
(34)
CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES
(684)
(2,124)
(136)
5
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS
(1)
3
(13)
(2)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
508
(736)
63
(164)
CASH AND CASH EQUIVALENTS – BEGINNING
OF PERIOD
496
1,473
941
901
CASH AND CASH EQUIVALENTS – END OF
PERIOD
1,004
737
1,004
737
Cash and cash equivalents is composed
of:
Cash
953
724
953
724
Short-term investments
51
13
51
13
1,004
737
1,004
737
SUPPLEMENTAL CASH FLOWS
INFORMATION
Interest paid
216
227
348
325
Income taxes paid
83
270
133
1,589
Total cash outflow for leases
153
129
284
248
1 Includes additions to property,
plant and equipment, and intangible assets for the three months
ended June 30, 2024 of $506 million and $41 million (2023 – $732
million and $59 million), respectively, and for the six months
ended June 30, 2024 of $844 million and $76 million (2023 – $1,154
million and $102 million), respectively.
(See Notes to the Condensed
Consolidated Financial Statements)
Condensed Consolidated
Statements of Changes in Shareholders’ Equity
Accumulated Other
Comprehensive
(Loss) Income ("AOCI")
(Loss) Gain
on Currency
Equity
Number of
Translation
Holders
Non-
Common
Share
Contributed
of Foreign
Total
Retained
of
Controlling
Total
(millions of US dollars, except as
otherwise noted)
Shares
Capital
Surplus
Operations
Other
AOCI
Earnings
Nutrien
Interest
Equity
BALANCE – DECEMBER 31, 2022
507,246,105
14,172
109
(374)
(17)
(391)
11,928
25,818
45
25,863
Net earnings
‐
‐
‐
‐
‐
‐
1,011
1,011
13
1,024
Other comprehensive income
‐
‐
‐
50
20
70
‐
70
‐
70
Shares repurchased
(13,378,189)
(374)
(26)
‐
‐
‐
(600)
(1,000)
‐
(1,000)
Dividends declared - $1.06/share
‐
‐
‐
‐
‐
‐
(527)
(527)
‐
(527)
Non-controlling interest transactions
‐
‐
‐
‐
‐
‐
‐
‐
(13)
(13)
Effect of share-based compensation
including issuance of
common shares
628,402
37
(3)
‐
‐
‐
‐
34
‐
34
Transfer of net gain on sale of
investment
‐
‐
‐
‐
(14)
(14)
14
‐
‐
‐
Transfer of net loss on cash flow
hedges
‐
‐
‐
‐
9
9
‐
9
‐
9
Transfer of net actuarial loss on defined
benefit plans
‐
‐
‐
‐
3
3
(3)
‐
‐
‐
Other
‐
‐
‐
(2)
‐
(2)
‐
(2)
‐
(2)
BALANCE – JUNE 30, 2023
494,496,318
13,835
80
(326)
1
(325)
11,823
25,413
45
25,458
BALANCE – DECEMBER 31, 2023
494,551,730
13,838
83
(286)
(10)
(296)
11,531
25,156
45
25,201
Net earnings
‐
‐
‐
‐
‐
‐
543
543
14
557
Other comprehensive loss
‐
‐
‐
(56)
(1)
(57)
‐
(57)
(1)
(58)
Dividends declared - $1.08/share
‐
‐
‐
‐
‐
‐
(532)
(532)
‐
(532)
Non-controlling interest transactions
‐
‐
‐
‐
‐
‐
‐
‐
(26)
(26)
Effect of share-based compensation
including issuance of
common shares
153,808
8
3
‐
‐
‐
‐
11
‐
11
Transfer of net loss on cash flow
hedges
‐
‐
‐
‐
8
8
‐
8
‐
8
Other
‐
‐
‐
(2)
‐
(2)
‐
(2)
‐
(2)
BALANCE – JUNE 30, 2024
494,705,538
13,846
86
(344)
(3)
(347)
11,542
25,127
32
25,159
(See Notes to the Condensed
Consolidated Financial Statements)
Condensed Consolidated Balance
Sheets
June 30
December 31
As at (millions of US dollars)
Note
2024
2023
2023
ASSETS
Current assets
Cash and cash equivalents
1,004
737
941
Receivables
6, 7, 10
8,123
8,595
5,398
Inventories
5,298
6,062
6,336
Prepaid expenses and other current
assets
663
602
1,495
15,088
15,996
14,170
Non-current assets
Property, plant and equipment
22,198
21,920
22,461
Goodwill
12,094
12,077
12,114
Intangible assets
1,912
2,252
2,217
Investments
703
708
736
Other assets
996
973
1,051
TOTAL ASSETS
52,991
53,926
52,749
LIABILITIES
Current liabilities
Short-term debt
7
1,571
2,922
1,815
Current portion of long-term debt
1,012
44
512
Current portion of lease liabilities
364
301
327
Payables and accrued charges
6
9,024
9,470
9,467
11,971
12,737
12,121
Non-current liabilities
Long-term debt
9,399
9,498
8,913
Lease liabilities
1,024
861
999
Deferred income tax liabilities
3,615
3,584
3,574
Pension and other post-retirement benefit
liabilities
245
245
252
Asset retirement obligations and accrued
environmental costs
1,406
1,379
1,489
Other non-current liabilities
172
164
200
TOTAL LIABILITIES
27,832
28,468
27,548
SHAREHOLDERS’ EQUITY
Share capital
13,846
13,835
13,838
Contributed surplus
86
80
83
Accumulated other comprehensive loss
(347)
(325)
(296)
Retained earnings
11,542
11,823
11,531
Equity holders of Nutrien
25,127
25,413
25,156
Non-controlling interest
32
45
45
TOTAL SHAREHOLDERS’ EQUITY
25,159
25,458
25,201
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
52,991
53,926
52,749
(See Notes to the Condensed
Consolidated Financial Statements)
Notes to the Condensed Consolidated Financial
Statements
As at and for the Three and Six Months Ended June 30,
2024
Note 1 Basis of presentation
Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”,
“we”, “us”, “our” or “the Company”) is a leading provider of crop
inputs and services. Nutrien plays a critical role in helping
growers around the globe increase food production in a sustainable
manner.
These unaudited interim condensed consolidated financial
statements (“interim financial statements”) are based on
International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board and have been prepared
in accordance with IAS 34, “Interim Financial Reporting”. The
accounting policies and methods of computation used in preparing
these interim financial statements are materially consistent with
those used in the preparation of our 2023 annual audited
consolidated financial statements, as well as any amended standards
adopted in 2024 that we previously disclosed. These interim
financial statements include the accounts of Nutrien and its
subsidiaries; however, they do not include all disclosures normally
provided in annual audited consolidated financial statements and
should be read in conjunction with our 2023 annual audited
consolidated financial statements. Certain immaterial 2023 figures
have been reclassified in the condensed consolidated statements of
earnings, condensed consolidated statements of cash flows and Note
4 Other expenses (income).
In management’s opinion, the interim financial statements
include all adjustments necessary to fairly present such
information in all material respects. Interim results are not
necessarily indicative of the results expected for any other
interim period or the fiscal year. These interim financial
statements were authorized by the Audit Committee of the Board of
Directors for issue on August 7, 2024.
Note 2 Segment information
We have four reportable operating segments: Nutrien Ag Solutions
(“Retail”), Potash, Nitrogen and Phosphate. The Retail segment
distributes crop nutrients, crop protection products, seed and
merchandise. Retail 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. Potash freight, transportation and distribution
costs only apply to our North American potash sales volumes. EBITDA
presented in the succeeding tables is calculated as net earnings
(loss) before finance costs, income taxes, and depreciation and
amortization.
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Assets – as at June 30, 2024
23,223
13,667
11,571
2,452
2,955
(877)
52,991
Assets – as at December 31,
2023
23,056
13,571
11,466
2,438
2,818
(600)
52,749
Three Months Ended June 30,
2024
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
8,074
750
948
384
‐
‐
10,156
– intersegment
‐
86
239
67
‐
(392)
‐
Sales
– total
8,074
836
1,187
451
‐
(392)
10,156
Freight, transportation and
distribution
‐
80
159
57
‐
(56)
240
Net sales
8,074
756
1,028
394
‐
(336)
9,916
Cost of goods sold
6,045
359
650
361
‐
(411)
7,004
Gross margin
2,029
397
378
33
‐
75
2,912
Selling expenses (recovery)
1,005
3
8
2
(3)
(7)
1,008
General and administrative expenses
51
1
5
3
98
‐
158
Provincial mining taxes
‐
68
‐
‐
‐
‐
68
Share-based compensation expense
‐
‐
‐
‐
10
‐
10
Impairment of assets
335
‐
195
‐
‐
‐
530
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
285
‐
285
Other expenses (income)
41
4
(78)
8
26
8
9
Earnings (loss) before finance costs and
income taxes
597
321
248
20
(416)
74
844
Depreciation and amortization
196
151
151
68
20
‐
586
EBITDA
793
472
399
88
(396)
74
1,430
Share-based compensation expense
‐
‐
‐
‐
10
‐
10
Impairment of assets
335
‐
195
‐
‐
‐
530
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
15
‐
15
ARO/ERL related income for non-operating
sites
‐
‐
‐
‐
(35)
‐
(35)
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
285
‐
285
Adjusted EBITDA
1,128
472
594
88
(121)
74
2,235
Three Months Ended June 30,
2023
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
9,127
976
1,065
486
‐
‐
11,654
– intersegment
1
140
306
74
‐
(521)
‐
Sales
– total
9,128
1,116
1,371
560
‐
(521)
11,654
Freight, transportation and
distribution
‐
107
155
58
‐
(68)
252
Net sales
9,128
1,009
1,216
502
‐
(453)
11,402
Cost of goods sold
7,197
353
817
453
‐
(584)
8,236
Gross margin
1,931
656
399
49
‐
131
3,166
Selling expenses (recovery)
971
3
7
2
(2)
(2)
979
General and administrative expenses
55
5
5
4
88
‐
157
Provincial mining taxes
‐
104
‐
‐
‐
‐
104
Share-based compensation recovery
‐
‐
‐
‐
(64)
‐
(64)
Impairment of assets
465
‐
‐
233
‐
‐
698
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
52
‐
52
Other expenses (income)
29
5
(20)
1
99
(2)
112
Earnings (loss) before finance costs and
income taxes
411
539
407
(191)
(173)
135
1,128
Depreciation and amortization
188
115
162
71
20
‐
556
EBITDA
599
654
569
(120)
(153)
135
1,684
Integration and restructuring related
costs
3
‐
‐
‐
7
‐
10
Share-based compensation recovery
‐
‐
‐
‐
(64)
‐
(64)
Impairment of assets
465
‐
‐
233
‐
‐
698
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
92
‐
92
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
6
‐
6
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
52
‐
52
Adjusted EBITDA
1,067
654
569
113
(60)
135
2,478
Six Months Ended June 30,
2024
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
11,382
1,571
1,794
798
‐
‐
15,545
– intersegment
‐
192
421
152
‐
(765)
‐
Sales
– total
11,382
1,763
2,215
950
‐
(765)
15,545
Freight, transportation and
distribution
‐
194
276
119
‐
(111)
478
Net sales
11,382
1,569
1,939
831
‐
(654)
15,067
Cost of goods sold
8,606
717
1,254
733
‐
(692)
10,618
Gross margin
2,776
852
685
98
‐
38
4,449
Selling expenses (recovery)
1,795
6
15
4
(5)
(13)
1,802
General and administrative expenses
103
5
10
7
187
‐
312
Provincial mining taxes
‐
136
‐
‐
‐
‐
136
Share-based compensation expense
‐
‐
‐
‐
16
‐
16
Impairment of assets
335
‐
195
‐
‐
‐
530
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
328
‐
328
Other expenses (income)
63
1
(111)
16
80
13
62
Earnings (loss) before finance costs and
income taxes
480
704
576
71
(606)
38
1,263
Depreciation and amortization
390
298
287
138
38
‐
1,151
EBITDA
870
1,002
863
209
(568)
38
2,414
Share-based compensation expense
‐
‐
‐
‐
16
‐
16
Impairment of assets
335
‐
195
‐
‐
‐
530
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
34
‐
34
ARO/ERL related income for non-operating
sites
‐
‐
‐
‐
(32)
‐
(32)
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
328
‐
328
Adjusted EBITDA
1,205
1,002
1,058
209
(222)
38
3,290
Six Months Ended June 30,
2023
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
12,549
1,999
2,219
994
‐
‐
17,761
– intersegment
1
194
570
138
‐
(903)
‐
Sales
– total
12,550
2,193
2,789
1,132
‐
(903)
17,761
Freight, transportation and
distribution
‐
182
261
116
‐
(108)
451
Net sales
12,550
2,011
2,528
1,016
‐
(795)
17,310
Cost of goods sold
10,004
658
1,588
880
‐
(899)
12,231
Gross margin
2,546
1,353
940
136
‐
104
5,079
Selling expenses
1,736
6
15
4
(4)
(8)
1,749
General and administrative expenses
105
8
10
7
172
‐
302
Provincial mining taxes
‐
223
‐
‐
‐
‐
223
Share-based compensation recovery
‐
‐
‐
‐
(49)
‐
(49)
Impairment of assets
465
‐
‐
233
‐
‐
698
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
18
‐
18
Other expenses (income)
44
(2)
(34)
13
52
(2)
71
Earnings (loss) before finance costs and
income taxes
196
1,118
949
(121)
(189)
114
2,067
Depreciation and amortization
369
212
296
138
37
‐
1,052
EBITDA
565
1,330
1,245
17
(152)
114
3,119
Integration and restructuring related
costs
3
‐
‐
‐
12
‐
15
Share-based compensation recovery
‐
‐
‐
‐
(49)
‐
(49)
Impairment of assets
465
‐
‐
233
‐
‐
698
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
92
‐
92
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
6
‐
6
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
18
‐
18
Adjusted EBITDA
1,033
1,330
1,245
250
(73)
114
3,899
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars)
2024
2023
2024
2023
Retail sales by product line
Crop nutrients
3,281
3,986
4,590
5,321
Crop protection products
2,733
3,070
3,847
4,224
Seed
1,434
1,428
1,919
1,935
Services and other
292
308
448
456
Merchandise
245
273
445
519
Nutrien Financial
133
122
199
179
Nutrien Financial elimination 1
(44)
(59)
(66)
(84)
8,074
9,128
11,382
12,550
Potash sales by geography
Manufactured product
North America
353
577
873
994
Offshore 2
482
539
889
1,199
Other potash and purchased products
1
‐
1
‐
836
1,116
1,763
2,193
Nitrogen sales by product line
Manufactured product
Ammonia
351
389
595
805
Urea and ESN®
426
490
792
981
Solutions, nitrates and sulfates
343
381
662
752
Other nitrogen and purchased products
67
111
166
251
1,187
1,371
2,215
2,789
Phosphate sales by product line
Manufactured product
Fertilizer
291
289
612
591
Industrial and feed
155
189
322
384
Other phosphate and purchased products
5
82
16
157
451
560
950
1,132
1 Represents elimination of the
interest and service fees charged by Nutrien Financial to Retail
branches.
2 Relates to Canpotex Limited
("Canpotex") (Note 10) and includes provisional pricing adjustments
for the three months ended June 30, 2024 of $(1) million (2023 –
$(173) million) and the six months ended June 30, 2024 of $11
million (2023 – $(320) million).
Note 3 Impairment of assets
We recorded the following non-cash impairment of assets in the
condensed consolidated statements of earnings:
Three and Six Months
Ended
June 30
Segment
Category
(millions of US dollars)
2024
2023
Retail
Intangible assets
200
43
Property, plant and equipment
120
‐
Other
15
‐
Goodwill
‐
422
Nitrogen
Property, plant and equipment
195
‐
Phosphate
Property, plant and equipment
‐
233
Impairment of assets
530
698
Retail – Brazil
At June 30, 2024, due to the ongoing market instability and more
moderate margin expectations, we have lowered our forecasted EBITDA
for the Retail – Brazil cash generating unit (“CGU”). This
triggered an impairment analysis. Prior to June 30, 2023, the
Retail – Brazil CGU was part of the Retail – South America group of
CGUs at which time the goodwill of the group was deemed to be fully
impaired.
We used the fair value less cost to dispose (“FVLCD”)
methodology (level 3) based on a market approach to assess the
recoverable value of the Retail – Brazil CGU at June 30, 2024. This
is a change from our 2023 analysis, as the market approach resulted
in a more representative fair value of the CGU as restructuring
initiatives in Brazil are currently being developed. In 2023, we
used the FVLCD methodology based on after-tax discounted cash flows
(10-year projections plus a terminal value) and an after-tax
discount rate (14.4 percent). We incorporated assumptions that an
independent market participant would apply.
The key assumptions with the greatest influence on the
calculation of the impairment are the estimated recoverable value
of property, plant and equipment and intangible assets. Any change
to these estimates could directly impact the impairment amount.
Retail – Brazil
(millions of US dollars)
June 30, 2024
Recoverable amount comprised
of:
Working capital and other
324
Property, plant and equipment
92
Intangible assets
‐
Nitrogen
During the three and six months ended June 30, 2024, we decided
that we are no longer pursuing our Geismar Clean Ammonia project.
As a result, we recorded an impairment loss of $195 million to
fully write-off the amount of property, plant and equipment related
to this project. As the project was cancelled before it generated
revenue, the recoverable amount, which was based on its value in
use, is $nil.
At June 30, 2023, we recorded an impairment of $465 million on
our Retail – South America groups of CGUs and $233 million on our
Phosphate – White Springs CGU. Refer to Note 13 of our 2023 annual
audited consolidated financial statements for further details.
Note 4 Other expenses (income)
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars)
2024
2023
2024
2023
Integration and restructuring related
costs
‐
10
‐
15
Earnings of equity-accounted investees
(30)
(35)
(81)
(72)
Bad debt expense
50
30
63
39
Project feasibility costs
28
21
43
34
Customer prepayment costs
15
12
31
26
Insurance recoveries
(67)
‐
(67)
‐
(Gain) loss on natural gas derivatives not
designated as hedge ¹
(1)
‐
2
‐
Loss related to financial instruments in
Argentina
15
92
34
92
ARO/ERL related (income) expenses for
non-operating sites ²
(35)
6
(32)
6
Gain on amendments to other
post-retirement pension plans
‐
‐
‐
(80)
Other expenses (income)
34
(24)
69
11
9
112
62
71
1 Includes realized loss of $2
million for the three and six months ended June 30, 2024 (2023 –
$nil) and unrealized gain of $3 million and $nil for the three and
six months ended June 30, 2024, respectively (2023 – $nil).
2 ARO/ERL refers to asset
retirement obligations and accrued environmental costs.
Argentina has certain currency controls in place that limit our
ability to settle our foreign currency-denominated obligations or
remit cash out of Argentina. We utilize various financial
instruments such as Blue Chip Swaps or Bonds for the Reconstruction
of a Free Argentina (“BOPREAL”) that effectively allow companies to
transact in US dollars. We incurred losses on these transactions
due to the significant divergence between the market exchange rate
used for these financial instruments and the official Central Bank
of Argentina rate. These losses are recorded as part of loss
related to financial instruments in Argentina.
Note 5 Income taxes
A separate estimated average annual effective income tax rate
was determined and applied individually to the interim period
pre-tax earnings for each taxing jurisdiction.
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars, except
as otherwise noted)
2024
2023
2024
2023
Actual effective tax rate on
earnings (%)
46
39
42
32
Actual effective tax rate
including discrete items (%)
43
51
40
40
Discrete tax adjustments that
impacted the tax rate
(23)
114
(20)
132
Note 6 Financial instruments
Foreign Currency Derivatives
The following table presents the significant foreign currency
derivatives outstanding at the periods presented.
As at June 30, 2024
As at December 31,
2023
Average
Average
Contract
Contract
(millions of US dollars, except as
otherwise noted)
Maturities
Rate
Fair
Maturities
Rate
Fair
Notional
(year)
(1:1)
Value 1
Notional
(year)
(1:1)
Value 1
Derivatives not designated as
hedges
Forwards (Sell/buy)
USD/Brazilian real ("BRL")
2,065
July 2024
5.2208
(138)
‐
‐
‐
‐
USD/Canadian dollars ("CAD")
801
2024
1.3686
‐
435
2024
1.3207
‐
Australian dollars/USD
46
2024
1.5096
‐
86
2024
1.5269
(5)
BRL/USD
‐
‐
‐
‐
94
2024
4.8688
‐
Options
USD/BRL – sell USD calls
600
July 2024
5.1772
(45)
‐
‐
‐
‐
USD/BRL – buy USD puts
600
July 2024
5.1772
‐
‐
‐
‐
‐
Derivatives designated as
hedges
Forwards (Sell/buy)
USD/CAD
681
2025
1.3605
(2)
601
2024
1.3565
16
Presented as:
Receivables
‐
16
Payables and accrued charges
(185)
(5)
1 Fair value of foreign currency
derivatives are based on exchange-quoted prices which are
classified as Level 2.
Subsequent to the June 30, 2024 reporting period, we entered
into $3 billion notional value of BRL/USD (sell/buy) forward
contracts, not designated as hedges. These contracts have maturity
dates between July and September 2024 at an average contract rate
of 5.62. An additional loss of approximately $12 million on foreign
currency derivatives at fair value through profit or loss was
recorded in July 2024. As of the issuance date of this report, all
derivative contracts related to Brazil were settled except for $220
million notional value BRL/USD (sell/buy) of forward contracts as
part of our ongoing risk management strategy.
Three Months Ended
Six Months Ended
June 30
June 30
(millions of US dollars)
2024
2023
2024
2023
Foreign exchange loss (gain)
40
(4)
30
(20)
Hyperinflationary loss
20
19
65
32
Loss on foreign currency
derivatives at fair value through profit or loss
225
37
233
6
Foreign exchange loss, net of
related derivatives
285
52
328
18
Natural Gas Derivatives
In 2024, we increased our use of natural gas derivatives to
lock-in commodity prices. Our risk management strategies and
accounting policies for derivatives that are designated and qualify
as cash flow hedges are consistent with those disclosed in Note 10
and Note 30 of our annual consolidated financial statements,
respectively. For derivatives that do not qualify as cash flow
hedges, any gains or losses are recorded in net earnings in the
current period.
We assess whether our derivative hedging transactions are
expected to be or were highly effective, both at the hedge’s
inception and on an ongoing basis, in offsetting changes in fair
values of hedged items.
Hedging Transaction
Measurement of
Ineffectiveness
Potential Sources of
Ineffectiveness
New York Mercantile Exchange
(“NYMEX”) natural gas hedges
Assessed on a prospective and
retrospective basis using regression analyses
Changes in:
- timing of forecast
transactions
- volume delivered
- our credit risk or the credit
risk of a counterparty
The table below presents information about our natural gas
derivatives which are used to manage the risk related to
significant price changes in natural gas.
As at June 30, 2024
Maturities
Average
Fair Value of
(millions of US dollars, except
as otherwise noted)
Notional 1
(year)
Contract Price 2
Assets (Liabilities) 3
Derivatives not designated as
hedges
NYMEX call options
29
2024
2.89
6
Derivatives designated as
hedges
NYMEX swaps
25
2024
2.84
1
1 In millions of Metric Million
British Thermal Units (“MMBtu”).
2 US dollars per MMBtu.
3 Fair value of natural gas
derivatives are based on a discounted cash flow model which are
classified as Level 2.
Our financial instruments carrying amount are a reasonable
approximation of their fair values, except for our long-term debt
that has a carrying value of $10,411 million and fair value of
$9,774 million as of June 30, 2024. There were no transfers between
levels for financial instruments measured at fair value on a
recurring basis.
Note 7 Short-term debt
On March 7, 2024, we entered into an uncommitted $500 million
accounts receivable repurchase facility (the “repurchase
facility”), where we may sell certain receivables from customers to
a financial institution and agree to repurchase those receivables
at a future date. When we draw under this repurchase facility, the
receivables from customers remain on our condensed consolidated
balance sheet as we control and retain substantially all of the
risks and rewards associated with the receivables. As at June 30,
2024, there were no borrowings made under this facility.
Note 8 Long-term debt
Issuances in the second
quarter of 2024
(millions of US dollars, except
as otherwise noted)
Rate of interest (%)
Maturity
Amount
Senior notes issued 2024
5.2
June 21, 2027
400
Senior notes issued 2024
5.4
June 21, 2034
600
1,000
The notes issued in the three and six months ended June 30,
2024, are unsecured, rank equally with our existing unsecured debt,
and have no sinking fund requirements prior to maturity. Each
series is redeemable and has various provisions for redemption
prior to maturity, at our option, at specified prices.
In March 2024, we filed a base shelf prospectus in Canada and
the US qualifying the issuance of common shares, debt securities
and other securities during a period of 25 months from March 22,
2024.
Note 9 Seasonality
Seasonality in our business results from increased demand for
products during planting season. Crop input sales are generally
higher in the spring and fall application seasons. Crop input
inventories are normally accumulated leading up to each application
season. The results of this seasonality have a corresponding effect
on receivables from customers and rebates receivables, inventories,
prepaid expenses and other current assets, and trade payables. Our
short-term debt also fluctuates during the year to meet working
capital requirements. Our cash collections generally occur after
the application season is complete, while customer prepayments made
to us are typically concentrated in December and January and
inventory prepayments paid to our suppliers are typically
concentrated in the period from November to January. Feed and
industrial sales are more evenly distributed throughout the
year.
Note 10 Related party transactions
We sell potash outside Canada and the United States exclusively
through Canpotex. Canpotex sells potash to buyers, including
Nutrien, in export markets pursuant to term and spot contracts at
agreed upon prices. Our total revenue is recognized at the amount
received from Canpotex representing proceeds from their sale of
potash, less net costs of Canpotex.
As at (millions of US
dollars)
June 30, 2024
December 31, 2023
Receivables from Canpotex
206
162
Note 11 Accounting policies, estimates and judgments
IFRS 18, “Presentation and Disclosure in Financial Statements”
(“IFRS 18”), which was issued on April 9, 2024, would supersede IAS
1, “Presentation of Financial Statements” and increase the
comparability of financial statements by enhancing principles on
aggregation and disaggregation. IFRS 18 will be effective January
1, 2027, and will also apply to comparative information. We are
reviewing the standard to determine the potential impact.
Amendments for IFRS 9 and IFRS 7, “Amendments to the
Classification and Measurement of Financial Instruments”, which was
issued on May 30, 2024, will address diversity in practice by
making the requirements more understandable and consistently
applied. These amendments will be effective January 1, 2026, and
will not apply to comparative information. We are reviewing the
standard to determine the potential impact.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801864874/en/
For Further Information:
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
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