- Nine-month results supported by record Potash sales volumes,
lower Potash operating costs and higher Retail product margins in
North America.
- Commenced share repurchases late in the third quarter and
have continued activity in the fourth quarter.
All amounts are in US dollars, except as otherwise noted
Nutrien Ltd. (TSX and NYSE: NTR) announced today its third
quarter 2024 results, with net earnings of $25 million ($0.04
diluted net earnings per share). Third quarter 2024 adjusted
EBITDA1 was $1.0 billion and adjusted net earnings per share1 was
$0.39.
“Nutrien delivered higher Potash sales volumes and lower
operating costs through the first nine months of 2024, utilizing
the strengths of our six-mine network and global distribution
capabilities to respond to increased customer demand. We are seeing
strong crop nutrient demand in North America for the fall
application season following a period of lower field activity in
the third quarter,” commented Ken Seitz, Nutrien’s President and
CEO.
“We remain focused on strategic priorities that strengthen the
advantages of our business across the ag value chain. This includes
accelerating the timeline for achieving our annual consolidated
cost savings target, further optimizing capital expenditures,
delivering upstream fertilizer sales volume growth and advancing
high-return downstream Retail growth opportunities. These
initiatives provide a pathway for delivering structural
improvements to our earnings and free cash flow through the cycle,”
added Mr. Seitz.
Highlights2:
- Generated net earnings of $582 million and adjusted EBITDA of
$4.3 billion in the first nine months of 2024.
- Retail adjusted EBITDA increased to $1.4 billion in the first
nine months of 2024 supported by higher product margins in North
America. Lowered full-year 2024 Retail adjusted EBITDA guidance to
$1.5 to $1.6 billion as favorable growing conditions in North
America resulted in reduced pest pressure and lower field activity
in the third quarter.
- Potash adjusted EBITDA decreased to $1.6 billion in the first
nine months of 2024 due to lower net selling prices, partially
offset by record sales volumes of 11.1 million tonnes. Raised
full-year 2024 Potash sales volumes guidance to 13.5 to 13.9
million tonnes due to the continued strength of global demand.
- Nitrogen adjusted EBITDA decreased to $1.4 billion in the first
nine months of 2024 as lower net selling prices more than offset
lower natural gas costs and higher sales volumes. Total ammonia
production increased in the first nine months of 2024, driven by
improved natural gas utilization and reliability at our operations
in Trinidad.
- Accelerated operational efficiency and cost savings initiatives
and expect to achieve approximately $200 million of annual
consolidated savings by 2025, ahead of our initial target of
2026.
- Maintained total capital expenditures guidance of $2.2 to $2.3
billion for 2024 and expect capital expenditures in a range of $2.0
to $2.1 billion in 2025 to sustain our assets and deliver on our
growth initiatives.
- Repurchased 1.5 million shares for a total of approximately $75
million in the second half of 2024 as of November 5, 2024.
- This is a non-GAAP financial measure. See the “Non-GAAP
Financial Measures” section.
- Our discussion of highlights set out on this page is a
comparison of the results for the three and nine months ended
September 30, 2024 to the results for the three and nine months
ended September 30, 2023, unless otherwise noted.
Management’s Discussion and Analysis
The following management’s discussion and analysis (“MD&A”)
is the responsibility of management and is dated as of November 6,
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 nine months ended
September 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 in the US have supported
expectations for record US corn and soybean yields and significant
soil nutrient removal in 2024. Prospective crop margins have
declined compared to the historically high levels in recent years,
however we believe most growers in the US Midwest remain in a
healthy financial position. Global grain stocks remain below
historical average levels, supporting export demand for North
American crops and firm prices for key agriculture commodities such
as rice, sugar and palm oil.
- Fertilizer demand in North America for the fall application
season has been supported by a relatively early harvest and the
need to replenish soil nutrients, following a period of lower field
activity in the third quarter.
- Soybean planting in Brazil was delayed by dryness; however, the
pace of planting picked up in the second half of October and
soybean crop area is expected to increase by one to three percent.
Brazilian fertilizer demand is projected to be approximately 46
million tonnes in 2024, in line with historical record levels.
- Australian growing conditions for winter crops have been
favorable with timely rains received in key areas, supporting crop
production prospects and expected grower returns.
Crop Nutrient Markets
- We raised our 2024 global potash shipment forecast to 70 to 72
million tonnes primarily driven by stronger expected demand in
Brazil and Southeast Asia. We believe the increase in global
shipments in 2024 has been driven by an underlying increase in
consumption in key markets.
- We forecast global potash shipments between 71 and 74 million
tonnes in 2025 supported by the need to replenish soil nutrient
levels and the relative affordability of potash. We anticipate
limited new capacity in 2025 and the potential for incremental
supply tightness with demand growth.
- Global ammonia prices have been supported by supply outages,
project delays and higher European natural gas values. Chinese urea
export restrictions, production challenges from major exporters and
strong demand from India and Brazil have tightened the global urea
market. US nitrogen inventory was estimated to be well below
average levels at the end of the third quarter, which we expect
will support demand in the fourth quarter of 2024 and early
2025.
- Global phosphate markets remain tight supported by Chinese
export restrictions and production outages in the US. We anticipate
some impact on global demand due to tight supply and weaker
affordability relative to potash and nitrogen.
Financial and Operational Guidance
- Retail adjusted EBITDA guidance was lowered to $1.5 to $1.6
billion as favorable growing conditions in North America resulted
in reduced pest pressure and lower field activity in the third
quarter.
- Potash sales volume guidance was raised to 13.5 to 13.9 million
tonnes due to the continued strength of global demand. The range
reflects our scheduled maintenance downtime in the fourth quarter
and the assumption of a relatively short duration labor disruption
at the Port of Vancouver.
- Nitrogen sales volume guidance was lowered to 10.6 to 10.8
million tonnes due to extended turnarounds and unplanned outages in
the third quarter, including the impact of weather-related
events.
- Phosphate sales volume guidance was lowered to 2.4 to 2.5
million tonnes due to weather-related production impacts in the
second half of 2024.
- Effective tax rate on adjusted net earnings guidance was
lowered primarily due to a change in our expected geographic mix of
earnings.
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
November 6, 2024
August 7, 2024
(billions of US dollars, except as
otherwise noted)
Low
High
Low
High
Retail adjusted EBITDA
1.5
1.6
1.5
1.7
Potash sales volumes (million tonnes)
2
13.5
13.9
13.2
13.8
Nitrogen sales volumes (million tonnes)
2
10.6
10.8
10.7
11.1
Phosphate sales volumes (million tonnes)
2
2.4
2.5
2.5
2.6
Depreciation and amortization
2.30
2.35
2.2
2.3
Finance costs
0.70
0.75
0.7
0.8
Effective tax rate on adjusted net
earnings (%) 3
21.5
22.5
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 September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Sales
5,348
5,631
(5)
20,893
23,392
(11)
Gross margin
1,500
1,627
(8)
5,949
6,706
(11)
Expenses
1,304
1,242
5
4,490
4,254
6
Net earnings
25
82
(70)
582
1,106
(47)
Adjusted EBITDA 1
1,010
1,084
(7)
4,300
4,983
(14)
Diluted net earnings per share
0.04
0.15
(73)
1.13
2.18
(48)
Adjusted net earnings per share 1
0.39
0.35
11
3.18
4.01
(21)
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
Net earnings and adjusted EBITDA decreased in the third quarter
of 2024 compared to the same period in 2023, primarily due to lower
Potash net selling prices and Retail earnings, partially offset by
higher Nitrogen net selling prices and record Potash sales volumes.
Net earnings were impacted over the same period due to higher
expense for asset retirement obligations at non-operating sites.
For the first nine months of the year, net earnings and adjusted
EBITDA decreased due to lower fertilizer net selling prices,
partially offset by increased Retail earnings, higher Potash sales
volumes and lower natural gas costs. Net earnings were also
impacted over the same period due to a loss on foreign currency
derivatives.
Segment Results
Our discussion of segment results set out on the following pages
is a comparison of the results for the three and nine months ended
September 30, 2024 to the results for the three and nine months
ended September 30, 2023, unless otherwise noted.
Nutrien Ag Solutions (“Retail”)
Three Months Ended September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Sales
3,271
3,490
(6)
14,653
16,040
(9)
Cost of goods sold
2,412
2,595
(7)
11,018
12,599
(13)
Gross margin
859
895
(4)
3,635
3,441
6
Adjusted EBITDA 1
151
197
(23)
1,356
1,230
10
1 See Note 2 to the interim financial
statements.
- Retail adjusted EBITDA decreased in the third quarter of
2024 due primarily to lower crop nutrient sales volumes in North
America and lower seed margins in Brazil. Adjusted EBITDA for the
first nine months increased, supported by higher product margins in
North America.
Three Months Ended September
30
Nine Months Ended September
30
Sales
Gross Margin
Sales
Gross Margin
(millions of US dollars)
2024
2023
2024
2023
2024
2023
2024
2023
Crop nutrients
1,093
1,250
210
262
5,683
6,571
1,150
1,032
Crop protection products
1,518
1,566
360
339
5,365
5,790
1,271
1,220
Seed
132
158
24
54
2,051
2,093
379
391
Services and other
242
235
164
150
690
691
528
522
Merchandise
222
231
37
40
667
750
110
131
Nutrien Financial
85
73
85
73
284
252
284
252
Nutrien Financial elimination 1
(21)
(23)
(21)
(23)
(87)
(107)
(87)
(107)
Total
3,271
3,490
859
895
14,653
16,040
3,635
3,441
1 Represents elimination of the interest
and service fees charged by Nutrien Financial to Retail
branches.
- Crop nutrients sales decreased in the third quarter and
first nine months of 2024 due to lower sales volumes and selling
prices. Gross margin decreased in the third quarter due to reduced
field activity in North America that contributed to lower sales
volumes and lower international per-tonne margins compared to the
historically high levels in the same period last year that were
supported by foreign exchange benefits in Argentina. For the first
nine months, gross margin increased due to higher per-tonne
margins, including growth in our proprietary crop nutritional and
biostimulant product lines.
- Crop protection products sales were lower in the third
quarter and first nine months of 2024 primarily due to lower
selling prices and favorable growing conditions that resulted in
reduced pest pressure and lower field activity. Gross margin for
the third quarter and first nine months of 2024 were supported by
the timing of supplier programs and the selling through of lower
cost inventory compared to the same periods in 2023.
- Seed sales and gross margin decreased in the third
quarter and first nine months of 2024 mainly due to the impact of
dry weather and delayed planting on our proprietary seed business
in Brazil.
- Nutrien Financial sales and gross margin increased in
the third quarter and first nine months of 2024 due to higher
financing rates offered.
Supplemental Data
Three Months Ended September
30
Nine Months Ended September
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
71
79
38
31
361
347
31
34
Crop protection products
119
107
32
31
429
434
34
36
Seed
4
28
22
54
148
171
39
44
Merchandise
4
2
11
6
11
8
10
7
Total
198
216
24
24
949
960
26
28
1 Represents percentage of proprietary
product margins over total product line gross margin.
Three Months Ended September
30
Nine Months Ended September
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
931
1,118
165
165
6,693
6,912
147
130
International
956
880
59
88
2,999
2,857
56
47
Total
1,887
1,998
111
131
9,692
9,769
119
106
(percentages)
September 30, 2024
December 31, 2023
Financial performance measures 1, 2
Cash operating coverage ratio
66
68
Adjusted average working capital to
sales
20
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 September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
884
972
(9)
2,453
2,983
(18)
Cost of goods sold
422
389
8
1,139
1,047
9
Gross margin
462
583
(21)
1,314
1,936
(32)
Adjusted EBITDA 1
555
611
(9)
1,557
1,941
(20)
1 See Note 2 to the interim financial
statements.
- Potash adjusted EBITDA decreased in the third quarter
and first nine months of 2024 due to lower net selling prices,
partially offset by record sales volumes. Higher potash production
and the continued advancement of mine automation contributed to our
lower controllable cash cost of product manufactured in the first
nine months of 2024.
Manufactured Product
Three Months Ended September
30
Nine Months Ended September
30
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
North America
1,733
1,674
3,954
3,754
Offshore
2,419
2,221
7,174
6,159
Total sales volumes
4,152
3,895
11,128
9,913
Net selling price
North America
264
298
287
349
Offshore
177
213
183
271
Average net selling price
213
250
220
301
Cost of goods sold
102
100
102
106
Gross margin
111
150
118
195
Depreciation and amortization
43
34
43
35
Gross margin excluding depreciation and
amortization 1
154
184
161
230
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
- Sales volumes for the third quarter and first nine
months of 2024 were the highest on record, supported by low channel
inventories and strong potash affordability in North America and
key offshore markets.
- Net selling price per tonne decreased in the
third quarter and first nine months of 2024 due to a decline in
benchmark prices compared to the same periods in 2023.
- Cost of goods sold per tonne increased in the third
quarter of 2024 as higher depreciation more than offset lower
royalties and the favorable impact of higher production volumes.
For the first nine months of the year, cost of goods sold per tonne
decreased mainly due to higher production volumes and lower
royalties.
Supplemental Data
Three Months Ended September
30
Nine Months Ended September
30
2024
2023
2024
2023
Production volumes (tonnes –
thousands)
3,696
3,287
10,836
9,612
Potash controllable cash cost of product
manufactured per tonne 1
52
56
52
59
Canpotex sales by market (percentage of
sales volumes)
Latin America
46
49
41
47
Other Asian markets 2
27
28
29
28
China
9
10
12
9
India
4
3
5
5
Other markets
14
10
13
11
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 September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
793
723
10
2,732
3,251
(16)
Cost of goods sold
581
569
2
1,835
2,157
(15)
Gross margin
212
154
38
897
1,094
(18)
Adjusted EBITDA 1
355
294
21
1,413
1,539
(8)
1 See Note 2 to the interim financial
statements.
- Nitrogen adjusted EBITDA increased in the third quarter
of 2024 primarily due to higher net selling prices. Adjusted EBITDA
for the first nine months decreased as lower net selling prices
more than offset lower natural gas costs and higher sales volumes.
Our total ammonia production was flat for the third quarter and
increased in the first nine months of the year supported by
improved natural gas utilization and reliability at our operations
in Trinidad.
Manufactured Product
Three Months Ended September
30
Nine Months Ended September
30
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
Ammonia
567
570
1,782
1,785
Urea and ESN®
661
687
2,300
2,386
Solutions, nitrates and sulfates
1,227
1,130
3,698
3,518
Total sales volumes
2,455
2,387
7,780
7,689
Net selling price
Ammonia
375
272
395
489
Urea and ESN®
400
396
427
496
Solutions, nitrates and sulfates
207
205
224
255
Average net selling price
298
276
323
384
Cost of goods sold
215
208
210
239
Gross margin
83
68
113
145
Depreciation and amortization
54
54
54
55
Gross margin excluding depreciation and
amortization 1
137
122
167
200
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
- Sales volumes were higher in the third quarter and first
nine months of 2024 primarily due to higher production and strong
demand for solutions, nitrates, and sulfates.
- Net selling price per tonne was higher in the third
quarter of 2024 primarily due to stronger ammonia benchmark prices.
For the first nine months of the year, net selling price per tonne
was lower for all major nitrogen products due to weaker benchmark
prices in key nitrogen producing regions in the first half of the
year.
- Cost of goods sold per tonne increased in the third
quarter of 2024 mainly due to higher natural gas costs in Trinidad,
partially offset by lower natural gas costs in North America. For
the first nine months of the year, cost of goods sold per tonne
decreased primarily due to lower natural gas costs across all
operating regions.
Supplemental Data
Three Months Ended September
30
Nine Months Ended September
30
2024
2023
2024
2023
Sales volumes (tonnes – thousands)
Fertilizer
1,319
1,305
4,458
4,419
Industrial and feed
1,136
1,082
3,322
3,270
Production volumes (tonnes –
thousands)
Ammonia production – total 1
1,322
1,315
4,157
3,995
Ammonia production – adjusted 1, 2
895
912
2,912
2,880
Ammonia operating rate (%) 2
79
82
87
88
Natural gas costs (US dollars per
MMBtu)
Overall natural gas cost excluding
realized derivative impact
3.13
2.96
2.98
3.56
Realized derivative impact 3
0.15
(0.01)
0.09
(0.01)
Overall natural gas cost
3.28
2.95
3.07
3.55
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 September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
412
444
(7)
1,243
1,460
(15)
Cost of goods sold
383
417
(8)
1,116
1,297
(14)
Gross margin
29
27
7
127
163
(22)
Adjusted EBITDA 1
89
90
(1)
298
340
(12)
1 See Note 2 to the interim financial
statements.
- Phosphate adjusted EBITDA was flat in the third quarter
of 2024 as higher net selling prices were offset by lower sales
volumes and higher input costs. Adjusted EBITDA for the first nine
months decreased as lower net selling prices more than offset
higher sales volumes and lower costs.
Manufactured Product
Three Months Ended September
30
Nine Months Ended September
30
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
Fertilizer
454
519
1,316
1,333
Industrial and feed
168
145
510
465
Total sales volumes
622
664
1,826
1,798
Net selling price
Fertilizer
605
472
611
572
Industrial and feed
797
946
826
1,064
Average net selling price
657
575
671
700
Cost of goods sold
601
528
594
604
Gross margin
56
47
77
96
Depreciation and amortization
121
113
117
118
Gross margin excluding depreciation and
amortization 1
177
160
194
214
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
- Sales volumes were lower in the third quarter of 2024 as
weather-related events impacted production volumes. Sales volumes
for the first nine months were higher than the same period in 2023
due to stronger industrial and feed demand.
- Net selling price per tonne increased in the third
quarter of 2024 primarily due to the strength of fertilizer
benchmark prices. For the first nine months of 2024, net selling
price per tonne decreased due 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 increased in the third
quarter of 2024 primarily due to higher water treatment costs
related to weather-related events, higher ammonia input costs and
lower production volumes. Cost of goods sold per tonne for the
first nine months was lower mainly due to lower ammonia and sulfur
input costs.
Supplemental Data
Three Months Ended September
30
Nine Months Ended September
30
2024
2023
2024
2023
Production volumes (P2O5 tonnes –
thousands)
330
354
1,008
1,026
P2O5 operating rate (%)
77
83
79
81
Corporate and Others and Eliminations
Three Months Ended September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Corporate and Others
Selling expenses (recovery)
(2)
(3)
(33)
(7)
(7)
‐
General and administrative expenses
90
88
2
277
260
7
Share-based compensation expense
(recovery)
1
42
(98)
17
(7)
n/m
Foreign exchange loss, net of related
derivatives
31
87
(64)
359
105
242
Other expenses
194
30
547
274
82
234
Adjusted EBITDA 1
(74)
(77)
(4)
(296)
(150)
97
Eliminations
Gross margin
(62)
(32)
94
(24)
72
n/m
Adjusted EBITDA 1
(66)
(31)
113
(28)
83
n/m
1 See Note 2 to the interim financial
statements.
- Share-based compensation expense decreased in the third
quarter of 2024 due to a lower increase in the fair value of our
share-based awards compared to the same period in 2023. We had an
expense in the first nine months of 2024 due to an increase in the
fair value of our share-based awards compared to a recovery in the
same period in 2023 due to a decrease in the fair value of our
share-based awards. The fair value of our share-based awards takes
into consideration several factors such as our share price
movement, our performance relative to our peer group and our return
on invested capital.
- Foreign exchange loss, net of related derivatives was
lower in the third quarter of 2024 compared to the same period in
2023 due to lower foreign exchange losses in South America. The
loss was higher in the first nine months of 2024 compared to the
same period in 2023 as it included a previously reported $220
million loss on foreign currency derivatives in Brazil. 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 higher in the third quarter and in
the first nine months of 2024 compared to the same periods in 2023
mainly due to a $185 million increase in expense for asset
retirement obligations and accrued environmental costs recorded in
the third quarter of 2024 related to changes in closure cost
estimates at certain non-operating sites. The first nine months of
2023 included a $92 million loss on Blue Chip Swaps. Refer to Note
4 for additional information. This was partially offset by an $80
million gain in the first nine months of 2023 from our other
post-retirement benefit plan amendments.
- Eliminations of gross margin between operating segments
increased in the third quarter of 2024 mainly due to higher sales
volumes at higher average margins compared to the same period in
2023. Eliminations of gross margin between operating segments in
the first nine months of 2024 was an elimination due to higher
sales volumes at lower average margins compared to a recovery in
the same period in 2023.
Finance Costs, Income Taxes and Other Comprehensive Income
(Loss)
Three Months Ended September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Finance costs
184
206
(11)
525
580
(9)
Income tax (recovery) expense
(13)
97
n/m
352
766
(54)
Actual effective tax rate including
discrete items (%)
(112)
54
n/m
38
41
(7)
Other comprehensive income (loss)
122
(86)
n/m
64
(16)
n/m
- Finance costs were lower in the third quarter and first
nine months of 2024 primarily due to lower short-term debt average
balances partially offset by higher interest rates on long-term
debt.
- Income tax was a recovery in the third quarter of 2024
compared to an expense in the same period in 2023 mainly due to a
tax recovery in higher tax jurisdictions, which more than offset
tax expense in lower tax jurisdictions. The tax recovery resulted
in a negative effective tax rate in the third quarter of 2024
compared to the same period in 2023. The lower income tax expense
in the first nine months of 2024 compared to the same period in
2023 was due to lower earnings and lower discrete tax adjustments.
The discrete tax adjustments in 2023 were related to a change in
recognition of deferred tax assets in South America as they no
longer met the asset recognition criteria and Canadian audit
assessments. These factors resulted in a lower effective tax rate
in the first nine months of 2024 compared to the same period in
2023.
- Other comprehensive income in the third quarter and
first nine months of 2024 compared to a loss for the same periods
in 2023 was mainly due to the appreciation of the Australian
currency in the third quarter of 2024, and mainly due to
appreciation of Australian and Argentinian currencies partially
offset by the depreciation of the Brazilian currency in the first
nine months of 2024, 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 September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Cash (used in) provided by operating
activities
(908)
(469)
94
412
916
(55)
Cash used in investing activities
(506)
(673)
(25)
(1,614)
(2,225)
(27)
Cash provided by financing activities
922
976
(6)
786
981
(20)
Cash used for dividends and share
repurchases 1
(318)
(261)
22
(845)
(1,817)
(53)
1 This is a supplementary financial
measure. See the “Other Financial Measures” section.
Cash (used in) provided by operating
activities
- Cash (used in) provided by operating activities in the third
quarter and first nine months of 2024 was lower compared to the
same periods in 2023 primarily due to lower sales across all
segments. This was partially offset by lower cash paid for income
taxes and cash paid to our suppliers primarily due to lower cost to
purchase inventory for resale and other costs such as royalties and
sulfur costs.
Cash used in investing
activities
- Cash used in investing activities was lower in the third
quarter and first nine months of 2024 compared to the same periods
in 2023 due to lower capital expenditures and fewer business
acquisitions.
Cash provided by financing
activities
- Cash provided by financing activities in the third quarter and
first nine months of 2024 was lower compared to the same periods in
2023 due to lower proceeds from debt. For the first nine months of
2024, we had lower share repurchases compared to the same period in
2023.
Cash used for dividends and share
repurchases
- Cash used for dividends and share repurchases was higher in the
third quarter of 2024 as we repurchased shares in the third quarter
of 2024 with no similar share repurchases in the same period in
2023.
- Cash used for dividends and share repurchases was lower in the
first nine months of 2024 from lower share repurchases compared to
the same period 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)
September 30, 2024
December 31, 2023
$ Change
% Change
Assets
Cash and cash equivalents
520
941
(421)
(45)
Receivables
7,786
5,398
2,388
44
Inventories
4,890
6,336
(1,446)
(23)
Prepaid expenses and other current
assets
678
1,495
(817)
(55)
Property, plant and equipment
22,329
22,461
(132)
(1)
Intangible assets
1,877
2,217
(340)
(15)
Liabilities and Shareholders'
Equity
Short-term debt
2,967
1,815
1,152
63
Current portion of long-term debt
1,013
512
501
98
Payables and accrued charges
6,613
9,467
(2,854)
(30)
Long-term debt
9,383
8,913
470
5
Retained earnings
11,291
11,531
(240)
(2)
- Explanations for changes in Cash and cash equivalents
are in the “Liquidity and Capital Resources - Sources and Uses of
Cash” section.
- Receivables increased primarily due to the seasonality
of Retail sales, resulting in higher receivables with customers and
vendor rebates.
- Inventories decreased due to Retail's seasonal sales and
lower-value inventories on hand as related benchmark prices
decreased. Generally, we build up our inventory levels in North
America near year-end in preparation for the next year’s upcoming
planting and application seasons.
- Prepaid expenses and other current assets decreased due
to the seasonal drawdown of prepaid inventories where Retail
typically prepays for products during the fourth quarter and takes
possession of inventory throughout the following year.
- Property, plant and equipment decreased due to the
impairments related to our Retail – Brazil assets and Geismar Clean
Ammonia project in the second quarter of 2024.
- Intangible assets decreased due to an impairment of our
Retail – Brazil assets in the second quarter of 2024.
- Short-term debt increased due to drawdowns on our
commercial paper program based on our working capital requirements
driven by the seasonality of our business.
- Payables and accrued charges decreased primarily due to
seasonality of our Retail segment. We generally receive higher
customer prepayments in North America near year-end and customers
draw down on the balance throughout the year. We also had lower
trade and other payables as we settled our obligations with
suppliers compared to the buildup of trade and other payables near
year-end as we purchase inventory for the upcoming spring and
planting seasons.
- Long-term debt including current portion increased due
to the issuance of $1,000 million of notes in the first nine months
of 2024.
- Retained earnings decreased as dividends declared and
share repurchases exceeded net earnings in the first nine months of
2024.
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 nine months ended September 30, 2024.
Capital Structure (Debt and Equity)
(millions of US dollars)
September 30, 2024
December 31, 2023
Short-term debt
2,967
1,815
Current portion of long-term debt
1,013
512
Current portion of lease liabilities
364
327
Long-term debt
9,383
8,913
Lease liabilities
1,029
999
Shareholders' equity
25,006
25,201
Commercial Paper, Credit Facilities and Other Debt
We have a total facility limit of approximately $8,200 million
comprised of several credit facilities available in the
jurisdictions where we operate. Our total facility limit decreased
in the third quarter of 2024 due to a reduction in our unsecured
revolving term facility limit from $1,500 million to $750 million.
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 September 30, 2024, we have utilized $2,895 million of our
total facility limit, which includes $2,383 million of commercial
paper outstanding. In the third quarter of 2024, we extended the
maturities on our $4,500 million unsecured revolving term credit
facility to September 4, 2029 and our $750 million unsecured
revolving term credit facility to September 3, 2025.
As at September 30, 2024, $231 million in letters of credit were
outstanding and committed, with $80 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.
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.
See Notes 7, 8 and 9 to the interim financial statements for
additional information.
Outstanding Share Data
As at November 5, 2024
Common shares
493,432,198
Options to purchase common shares
3,111,221
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)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Sales
5,348
10,156
5,389
5,664
5,631
11,654
6,107
7,533
Net earnings
25
392
165
176
82
448
576
1,118
Net earnings attributable to equity
holders of Nutrien
18
385
158
172
75
440
571
1,112
Net earnings per share attributable to
equity holders of Nutrien
Basic
0.04
0.78
0.32
0.35
0.15
0.89
1.14
2.15
Diluted
0.04
0.78
0.32
0.35
0.15
0.89
1.14
2.15
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 10 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.
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 nine months ended September 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 September 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 September 30, 2024, we have a material weakness related to
our controls over derivative contract authorization in Brazil,
which was identified by our management in late June 2024 and which
resulted in unauthorized execution of derivative contracts in the
second quarter of 2024. 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 of September 30, 2024, we have taken steps to implement our
remediation plan; however, the material weakness will not be
considered remediated until the enhanced controls operate for a
sufficient period of time and management has concluded, through
testing, that these controls are designed and operating
effectively. We will continue to monitor our remediation plan in
relation to the material weakness with the intention of such being
remediated by the end of 2024.
Other than the remediation steps relating to the material
weakness described above, there has been no change in our ICFR
during the three months ended September 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; expectations regarding certain targets,
including our targeted $200 million in annual consolidated cost
savings, expected capital expenditures in 2025, delivering upstream
fertilizer sales volume growth and advancing high-return downstream
Retail growth opportunities, and the anticipated benefits thereof,
including with respect to earnings and cash flow; 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 and beyond, including increased potash shipment forecasts;
expectations regarding a strong fall fertilizer application season
in North America; our operating segment market outlooks and our
expectations for market conditions and fundamentals, 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, the funding of such share repurchases, existing and
future market conditions, including with respect to the price of
our common shares, capital allocation priorities 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, results of
operations or targets, such as our targeted $200 million in annual
consolidated cost savings, expected capital expenditures in 2025,
delivering upstream fertilizer sales volume growth and advancing
high-return downstream Retail growth opportunities; 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 La 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, including risks associated with disclosure thereof;
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 SEC.
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, November 7,
2024 at 10:00 a.m. Eastern Time.
Telephone conference dial-in numbers:
- From Canada and the US 1-888-870-4559
- International 647-931-1822
- 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/news/events/2024-q3-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 September
30
Nine Months Ended September
30
(millions of US dollars)
2024
2023
2024
2023
Net earnings
25
82
582
1,106
Finance costs
184
206
525
580
Income tax (recovery) expense
(13)
97
352
766
Depreciation and amortization
598
552
1,749
1,604
EBITDA 1
794
937
3,208
4,056
Adjustments:
Share-based compensation expense
(recovery)
1
42
17
(7)
Foreign exchange loss, net of related
derivatives
31
87
359
105
ARO/ERL related expenses for non-operating
sites
184
4
152
10
Loss related to financial instruments in
Argentina
‐
‐
34
92
Integration and restructuring related
costs
‐
14
‐
29
Impairment of assets
‐
‐
530
698
Adjusted EBITDA
1,010
1,084
4,300
4,983
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. 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
September 30, 2024
Nine Months Ended
September 30, 2024
(millions of US dollars, except as
otherwise noted)
Increases
(Decreases)
Post-Tax
Per Diluted
Share
Increases
(Decreases)
Post-Tax
Per Diluted
Share
Net earnings attributable to equity
holders of Nutrien
18
0.04
561
1.13
Adjustments:
Share-based compensation expense
1
1
‐
17
13
0.03
Foreign exchange loss, net of related
derivatives
31
38
0.08
359
361
0.73
Impairment of assets
‐
‐
‐
530
491
1.00
ARO/ERL related expenses for non-operating
sites
184
134
0.27
152
112
0.22
Loss related to financial instruments in
Argentina
‐
‐
‐
34
34
0.07
Adjusted net earnings
191
0.39
1,572
3.18
Three Months Ended
September 30, 2023
Nine Months Ended
September 30, 2023
(millions of US dollars, except as
otherwise noted)
Increases
(Decreases)
Post-Tax
Per Diluted
Share
Increases
(Decreases)
Post-Tax
Per Diluted
Share
Net earnings attributable to equity
holders of Nutrien
75
0.15
1,086
2.18
Adjustments:
Share-based compensation expense
(recovery)
42
19
0.04
(7)
(4)
(0.01)
Foreign exchange loss, net of related
derivatives
87
71
0.14
105
80
0.16
Integration and restructuring related
costs
14
6
0.02
29
17
0.03
Impairment of assets
‐
‐
‐
698
653
1.32
ARO/ERL related expenses for non-operating
sites
4
2
‐
10
6
0.02
Loss related to financial instruments in
Argentina
‐
‐
‐
92
92
0.18
Change in recognition of deferred tax
assets
‐
‐
‐
66
66
0.13
Adjusted net earnings
173
0.35
1,996
4.01
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 this
forward-looking measure 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 September
30
Nine Months Ended September
30
(millions of US dollars, except as
otherwise noted)
2024
2023
2024
2023
Total COGS – Potash
422
389
1,139
1,047
Change in inventory
(51)
(73)
(30)
(47)
Other adjustments 1
(5)
(2)
(14)
(19)
COPM
366
314
1,095
981
Depreciation and amortization in COPM
(145)
(102)
(439)
(303)
Royalties in COPM
(23)
(20)
(62)
(77)
Natural gas costs and carbon taxes in
COPM
(7)
(9)
(27)
(34)
Controllable cash COPM
191
183
567
567
Production tonnes (tonnes – thousands)
3,696
3,287
10,836
9,612
Potash controllable cash COPM per
tonne
52
56
52
59
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
September 30, 2024
(millions of US dollars, except as
otherwise noted)
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Total/Average
Nutrien Financial revenue
70
66
133
85
Deemed interest expense 1
(36)
(27)
(50)
(52)
Net interest
34
39
83
33
189
Average Nutrien Financial net
receivables
2,893
2,489
4,560
4,318
3,565
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
September 30, 2024
(millions of US dollars, except as
otherwise noted)
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Total
Selling expenses
841
790
1,005
815
3,451
General and administrative expenses
55
52
51
51
209
Other expenses
77
22
41
32
172
Operating expenses
973
864
1,097
898
3,832
Depreciation and amortization in operating
expenses
(199)
(190)
(193)
(182)
(764)
Operating expenses excluding depreciation
and amortization
774
674
904
716
3,068
Gross margin
989
747
2,029
859
4,624
Depreciation and amortization in cost of
goods sold
2
4
3
8
17
Gross margin excluding depreciation and
amortization
991
751
2,032
867
4,641
Cash operating coverage ratio (%)
66
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
September 30, 2024
(millions of US dollars, except as
otherwise noted)
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Average/Total
Current assets
10,498
11,821
11,181
10,559
Current liabilities
(8,210)
(8,401)
(8,002)
(5,263)
Working capital
2,288
3,420
3,179
5,296
3,546
Working capital from certain recent
acquisitions
‐
‐
‐
‐
Adjusted working capital
2,288
3,420
3,179
5,296
3,546
Nutrien Financial working capital
(2,893)
(2,489)
(4,560)
(4,318)
Adjusted working capital excluding Nutrien
Financial
(605)
931
(1,381)
978
(19)
Sales
3,502
3,308
8,074
3,271
Sales from certain recent acquisitions
‐
‐
‐
‐
Adjusted sales
3,502
3,308
8,074
3,271
18,155
Nutrien Financial revenue
(70)
(66)
(133)
(85)
Adjusted sales excluding Nutrien
Financial
3,432
3,242
7,941
3,186
17,801
Adjusted average working capital to sales
(%)
20
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 September 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
3,213
105
79
191
3,588
(61)
3,527
2,206
International
646
62
25
69
802
(11)
791
687
Nutrien Financial receivables
3,859
167
104
260
4,390
(72)
4,318
2,893
1 Bad debt expense on the above
receivables for the nine months ended September 30, 2024 and 2023
were $44 million and $36 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: 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
Nine Months Ended
September 30
September 30
(millions of US dollars, except as
otherwise noted)
Note
2024
2023
2024
2023
SALES
2, 11
5,348
5,631
20,893
23,392
Freight, transportation and
distribution
263
263
741
714
Cost of goods sold
3,585
3,741
14,203
15,972
GROSS MARGIN
1,500
1,627
5,949
6,706
Selling expenses
820
799
2,622
2,548
General and administrative expenses
156
151
468
453
Provincial mining taxes
74
96
210
319
Share-based compensation expense
(recovery)
1
42
17
(7)
Impairment of assets
3
‐
‐
530
698
Foreign exchange loss, net of related
derivatives
6
31
87
359
105
Other expenses
4
222
67
284
138
EARNINGS BEFORE FINANCE COSTS AND
INCOME TAXES
196
385
1,459
2,452
Finance costs
184
206
525
580
EARNINGS BEFORE INCOME TAXES
12
179
934
1,872
Income tax (recovery) expense
5
(13)
97
352
766
NET EARNINGS
25
82
582
1,106
Attributable to
Equity holders of Nutrien
18
75
561
1,086
Non-controlling interest
7
7
21
20
NET EARNINGS
25
82
582
1,106
NET EARNINGS PER SHARE ATTRIBUTABLE TO
EQUITY HOLDERS OF NUTRIEN ("EPS")
Basic
0.04
0.15
1.13
2.18
Diluted
0.04
0.15
1.13
2.18
Weighted average shares outstanding for
basic EPS
494,743,000
494,517,000
494,653,000
496,999,000
Weighted average shares outstanding for
diluted EPS
494,857,000
495,056,000
494,851,000
497,708,000
Condensed Consolidated Statements of Comprehensive Income
(Loss)
Three Months Ended
Nine Months Ended
September 30
September 30
(millions of US dollars, net of related
income taxes)
2024
2023
2024
2023
NET EARNINGS
25
82
582
1,106
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 (loss) on
investments
35
(6)
53
5
Items that have been or may be
subsequently reclassified to net earnings:
Gain (loss) on currency translation of
foreign operations
85
(64)
28
(14)
Other
2
(16)
(17)
(4)
OTHER COMPREHENSIVE INCOME
(LOSS)
122
(86)
64
(16)
COMPREHENSIVE INCOME (LOSS)
147
(4)
646
1,090
Attributable to
Equity holders of Nutrien
139
(11)
625
1,070
Non-controlling interest
8
7
21
20
COMPREHENSIVE INCOME (LOSS)
147
(4)
646
1,090
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Statements of Cash Flows
Three Months Ended
Nine Months Ended
September 30
September 30
(millions of US dollars)
Note
2024
2023
2024
2023
Note 1
Note 1
OPERATING ACTIVITIES
Net earnings
25
82
582
1,106
Adjustments for:
Depreciation and amortization
598
552
1,749
1,604
Share-based compensation expense
(recovery)
1
42
17
(7)
Impairment of assets
3
‐
‐
530
698
(Recovery of) provision for deferred
income tax
(36)
55
15
176
Net (undistributed) distributed earnings
of equity-accounted investees
(24)
(28)
14
112
Fair value adjustment to derivatives
6
(180)
(27)
6
5
Loss related to financial instruments in
Argentina
4
‐
‐
34
92
Long-term income tax receivables and
payables
9
1
17
(89)
Other long-term assets, liabilities and
miscellaneous
251
53
321
39
Cash from operations before working
capital changes
644
730
3,285
3,736
Changes in non-cash operating working
capital:
Receivables
418
627
(2,394)
(1,491)
Inventories and prepaid expenses and other
current assets
373
794
2,265
3,366
Payables and accrued charges
(2,343)
(2,620)
(2,744)
(4,695)
CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES
(908)
(469)
412
916
INVESTING ACTIVITIES
Capital expenditures 1
(529)
(634)
(1,449)
(1,890)
Business acquisitions, net of cash
acquired
(2)
‐
(6)
(116)
(Purchase of) proceeds from investments,
held within three months, net
(15)
(36)
(30)
(134)
Purchase of investments
(1)
(12)
(112)
(12)
Net changes in non-cash working
capital
30
36
(55)
(68)
Other
11
(27)
38
(5)
CASH USED IN INVESTING
ACTIVITIES
(506)
(673)
(1,614)
(2,225)
FINANCING ACTIVITIES
Proceeds from (repayment of) debt,
maturing within three months, net
1,378
1,445
1,089
2,213
Proceeds from debt
8
‐
‐
998
1,500
Repayment of debt
(43)
(118)
(132)
(635)
Repayment of principal portion of lease
liabilities
(98)
(91)
(300)
(278)
Dividends paid to Nutrien's
shareholders
(268)
(261)
(795)
(770)
Repurchase of common shares
9
(50)
‐
(50)
(1,047)
Issuance of common shares
7
1
16
32
Other
(4)
‐
(40)
(34)
CASH PROVIDED BY FINANCING
ACTIVITIES
922
976
786
981
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS
8
(17)
(5)
(19)
DECREASE IN CASH AND CASH
EQUIVALENTS
(484)
(183)
(421)
(347)
CASH AND CASH EQUIVALENTS – BEGINNING
OF PERIOD
1,004
737
941
901
CASH AND CASH EQUIVALENTS – END OF
PERIOD
520
554
520
554
Cash and cash equivalents is composed
of:
Cash
472
508
472
508
Short-term investments
48
46
48
46
520
554
520
554
SUPPLEMENTAL CASH FLOWS
INFORMATION
Interest paid
148
137
496
462
Income taxes paid
127
133
260
1,722
Total cash outflow for leases
134
125
418
373
1 Includes additions to property, plant
and equipment, and intangible assets for the three months ended
September 30, 2024 of $489 million and $40 million (2023 – $580
million and $54 million), respectively, and for the nine months
ended September 30, 2024 of $1,333 million and $116 million (2023 –
$1,734 million and $156 million), respectively.
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Statements of Changes in Shareholders’
Equity
Accumulated Other
Comprehensive
(Loss) Income ("AOCI")
(millions of US dollars, inclusive of
related tax, except as otherwise noted)
Number of Common
Shares
Share Capital
Contributed
Surplus
(Loss) Gain on Currency
Translation of Foreign Operations
Other
Total AOCI
Retained
Earnings
Equity Holders of
Nutrien
Non-Controlling
Interest
Total Equity
BALANCE – DECEMBER 31, 2022
507,246,105
14,172
109
(374)
(17)
(391)
11,928
25,818
45
25,863
Net earnings
‐
‐
‐
‐
‐
‐
1,086
1,086
20
1,106
Other comprehensive loss
‐
‐
‐
(14)
(2)
(16)
‐
(16)
‐
(16)
Shares repurchased (Note 9)
(13,378,189)
(374)
(26)
‐
‐
‐
(600)
(1,000)
‐
(1,000)
Dividends declared - $1.59/share
‐
‐
‐
‐
‐
‐
(789)
(789)
‐
(789)
Non-controlling interest transactions
‐
‐
‐
‐
‐
‐
‐
‐
(14)
(14)
Effect of share-based compensation
including issuance of common shares
664,230
39
(1)
‐
‐
‐
‐
38
‐
38
Transfer of net gain on sale of
investment
‐
‐
‐
‐
(14)
(14)
14
‐
‐
‐
Transfer of net loss on cash flow
hedges
‐
‐
‐
‐
8
8
‐
8
‐
8
Transfer of net actuarial loss on defined
benefit plans
‐
‐
‐
‐
3
3
(3)
‐
‐
‐
BALANCE – SEPTEMBER 30, 2023
494,532,146
13,837
82
(388)
(22)
(410)
11,636
25,145
51
25,196
BALANCE – DECEMBER 31, 2023
494,551,730
13,838
83
(286)
(10)
(296)
11,531
25,156
45
25,201
Net earnings
‐
‐
‐
‐
‐
‐
561
561
21
582
Other comprehensive income
‐
‐
‐
28
36
64
‐
64
‐
64
Shares repurchased (Note 9)
(1,039,185)
(29)
(21)
‐
‐
‐
(1)
(51)
‐
(51)
Dividends declared - $1.62/share
‐
‐
‐
‐
‐
‐
(800)
(800)
‐
(800)
Non-controlling interest transactions
‐
‐
‐
‐
‐
‐
‐
‐
(26)
(26)
Effect of share-based compensation
including issuance of common shares
369,904
18
5
‐
‐
‐
‐
23
‐
23
Transfer of net loss on cash flow
hedges
‐
‐
‐
‐
13
13
‐
13
‐
13
BALANCE – SEPTEMBER 30, 2024
493,882,449
13,827
67
(258)
39
(219)
11,291
24,966
40
25,006
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Balance Sheets
September 30
December 31
As at (millions of US dollars)
Note
2024
2023
2023
ASSETS
Current assets
Cash and cash equivalents
520
554
941
Receivables
6, 7, 11
7,786
7,713
5,398
Inventories
4,890
5,169
6,336
Prepaid expenses and other current
assets
678
656
1,495
13,874
14,092
14,170
Non-current assets
Property, plant and equipment
3
22,329
22,150
22,461
Goodwill
12,122
12,078
12,114
Intangible assets
3
1,877
2,219
2,217
Investments
739
731
736
Other assets
970
959
1,051
TOTAL ASSETS
51,911
52,229
52,749
LIABILITIES
Current liabilities
Short-term debt
7
2,967
4,354
1,815
Current portion of long-term debt
8
1,013
‐
512
Current portion of lease liabilities
364
305
327
Payables and accrued charges
6
6,613
6,653
9,467
10,957
11,312
12,121
Non-current liabilities
Long-term debt
8
9,383
9,427
8,913
Lease liabilities
1,029
901
999
Deferred income tax liabilities
3,555
3,631
3,574
Pension and other post-retirement benefit
liabilities
245
241
252
Asset retirement obligations and accrued
environmental costs
1,564
1,353
1,489
Other non-current liabilities
172
168
200
TOTAL LIABILITIES
26,905
27,033
27,548
SHAREHOLDERS’ EQUITY
Share capital
9
13,827
13,837
13,838
Contributed surplus
67
82
83
Accumulated other comprehensive loss
(219)
(410)
(296)
Retained earnings
11,291
11,636
11,531
Equity holders of Nutrien
24,966
25,145
25,156
Non-controlling interest
40
51
45
TOTAL SHAREHOLDERS’ EQUITY
25,006
25,196
25,201
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
51,911
52,229
52,749
(See Notes to the Condensed Consolidated
Financial Statements)
Notes to the Condensed Consolidated Financial
Statements
As at and for the Three and Nine Months Ended September 30,
2024
Note 1 Basis of presentation
Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”,
“we”, “us”, “our” or “the Company”) is a leading global provider of
crop inputs and services. Nutrien plays a critical role in helping
growers around the globe increase food production.
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 for issue by the Audit Committee of the
Board of Directors for issue on November 6, 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.
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
Corporate
and Others
Eliminations
Consolidated
Assets – as at September 30, 2024
22,585
13,686
11,303
2,412
2,443
(518)
51,911
Assets – as at December 31, 2023
23,056
13,571
11,466
2,438
2,818
(600)
52,749
Three Months Ended September
30, 2024
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
Corporate
and Others
Eliminations
Consolidated
Sales
– third party
3,271
915
753
409
‐
‐
5,348
– intersegment
‐
113
163
58
‐
(334)
‐
Sales
– total
3,271
1,028
916
467
‐
(334)
5,348
Freight, transportation and
distribution
‐
144
123
55
‐
(59)
263
Net sales
3,271
884
793
412
‐
(275)
5,085
Cost of goods sold
2,412
422
581
383
‐
(213)
3,585
Gross margin
859
462
212
29
‐
(62)
1,500
Selling expenses (recovery)
815
3
8
1
(2)
(5)
820
General and administrative expenses
51
5
6
4
90
‐
156
Provincial mining taxes
‐
74
‐
‐
‐
‐
74
Share-based compensation expense
‐
‐
‐
‐
1
‐
1
Impairment of assets
‐
‐
‐
‐
‐
‐
‐
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
31
‐
31
Other expenses (income)
32
2
(25)
10
194
9
222
Earnings (loss) before finance costs and
income taxes
(39)
378
223
14
(314)
(66)
196
Depreciation and amortization
190
177
132
75
24
‐
598
EBITDA
151
555
355
89
(290)
(66)
794
Share-based compensation expense
‐
‐
‐
‐
1
‐
1
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
184
‐
184
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
31
‐
31
Adjusted EBITDA
151
555
355
89
(74)
(66)
1,010
Three Months Ended September
30, 2023
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
Corporate
and Others
Eliminations
Consolidated
Sales
– third party
3,489
1,002
690
450
‐
‐
5,631
– intersegment
1
108
138
66
‐
(313)
‐
Sales
– total
3,490
1,110
828
516
‐
(313)
5,631
Freight, transportation and
distribution
‐
138
105
72
‐
(52)
263
Net sales
3,490
972
723
444
‐
(261)
5,368
Cost of goods sold
2,595
389
569
417
‐
(229)
3,741
Gross margin
895
583
154
27
‐
(32)
1,627
Selling expenses (recovery)
798
3
8
1
(3)
(8)
799
General and administrative expenses
57
2
1
3
88
‐
151
Provincial mining taxes
‐
96
‐
‐
‐
‐
96
Share-based compensation expense
‐
‐
‐
‐
42
‐
42
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
87
‐
87
Other expenses (income)
37
4
(19)
8
30
7
67
Earnings (loss) before finance costs and
income taxes
3
478
164
15
(244)
(31)
385
Depreciation and amortization
189
133
130
75
25
‐
552
EBITDA
192
611
294
90
(219)
(31)
937
Integration and restructuring related
costs
5
‐
‐
‐
9
‐
14
Share-based compensation expense
‐
‐
‐
‐
42
‐
42
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
4
‐
4
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
87
‐
87
Adjusted EBITDA
197
611
294
90
(77)
(31)
1,084
Nine Months Ended September
30, 2024
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
Corporate
and Others
Eliminations
Consolidated
Sales
– third party
14,653
2,486
2,547
1,207
‐
‐
20,893
– intersegment
‐
305
584
210
‐
(1,099)
‐
Sales
– total
14,653
2,791
3,131
1,417
‐
(1,099)
20,893
Freight, transportation and
distribution
‐
338
399
174
‐
(170)
741
Net sales
14,653
2,453
2,732
1,243
‐
(929)
20,152
Cost of goods sold
11,018
1,139
1,835
1,116
‐
(905)
14,203
Gross margin
3,635
1,314
897
127
‐
(24)
5,949
Selling expenses (recovery)
2,610
9
23
5
(7)
(18)
2,622
General and administrative expenses
154
10
16
11
277
‐
468
Provincial mining taxes
‐
210
‐
‐
‐
‐
210
Share-based compensation expense
‐
‐
‐
‐
17
‐
17
Impairment of assets
335
‐
195
‐
‐
‐
530
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
359
‐
359
Other expenses (income)
95
3
(136)
26
274
22
284
Earnings (loss) before finance costs and
income taxes
441
1,082
799
85
(920)
(28)
1,459
Depreciation and amortization
580
475
419
213
62
‐
1,749
EBITDA
1,021
1,557
1,218
298
(858)
(28)
3,208
Share-based compensation expense
‐
‐
‐
‐
17
‐
17
Impairment of assets
335
‐
195
‐
‐
‐
530
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
34
‐
34
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
152
‐
152
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
359
‐
359
Adjusted EBITDA
1,356
1,557
1,413
298
(296)
(28)
4,300
Nine Months Ended September
30, 2023
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
Corporate
and Others
Eliminations
Consolidated
Sales
– third party
16,038
3,001
2,909
1,444
‐
‐
23,392
– intersegment
2
302
708
204
‐
(1,216)
‐
Sales
– total
16,040
3,303
3,617
1,648
‐
(1,216)
23,392
Freight, transportation and
distribution
‐
320
366
188
‐
(160)
714
Net sales
16,040
2,983
3,251
1,460
‐
(1,056)
22,678
Cost of goods sold
12,599
1,047
2,157
1,297
‐
(1,128)
15,972
Gross margin
3,441
1,936
1,094
163
‐
72
6,706
Selling expenses
2,534
9
23
5
(7)
(16)
2,548
General and administrative expenses
162
10
11
10
260
‐
453
Provincial mining taxes
‐
319
‐
‐
‐
‐
319
Share-based compensation recovery
‐
‐
‐
‐
(7)
‐
(7)
Impairment of assets
465
‐
‐
233
‐
‐
698
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
105
‐
105
Other expenses (income)
81
2
(53)
21
82
5
138
Earnings (loss) before finance costs and
income taxes
199
1,596
1,113
(106)
(433)
83
2,452
Depreciation and amortization
558
345
426
213
62
‐
1,604
EBITDA
757
1,941
1,539
107
(371)
83
4,056
Integration and restructuring related
costs
8
‐
‐
‐
21
‐
29
Share-based compensation recovery
‐
‐
‐
‐
(7)
‐
(7)
Impairment of assets
465
‐
‐
233
‐
‐
698
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
92
‐
92
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
10
‐
10
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
105
‐
105
Adjusted EBITDA
1,230
1,941
1,539
340
(150)
83
4,983
Three Months Ended
Nine Months Ended
September 30
September 30
(millions of US dollars)
2024
2023
2024
2023
Retail sales by product line
Crop nutrients
1,093
1,250
5,683
6,571
Crop protection products
1,518
1,566
5,365
5,790
Seed
132
158
2,051
2,093
Services and other
242
235
690
691
Merchandise
222
231
667
750
Nutrien Financial
85
73
284
252
Nutrien Financial elimination 1
(21)
(23)
(87)
(107)
3,271
3,490
14,653
16,040
Potash sales by geography
Manufactured product
North America
601
637
1,474
1,631
Offshore 2
427
473
1,316
1,672
Other potash and purchased products
‐
‐
1
‐
1,028
1,110
2,791
3,303
Nitrogen sales by product line
Manufactured product
Ammonia
261
193
856
998
Urea and ESN®
293
297
1,085
1,278
Solutions, nitrates and sulfates
299
270
961
1,022
Other nitrogen and purchased products
63
68
229
319
916
828
3,131
3,617
Phosphate sales by product line
Manufactured product
Fertilizer
316
295
928
886
Industrial and feed
148
151
470
535
Other phosphate and purchased products
3
70
19
227
467
516
1,417
1,648
1 Represents elimination of the interest
and service fees charged by Nutrien Financial to Retail
branches.
2 Relates to Canpotex Limited ("Canpotex")
(Note 11) and includes provisional pricing adjustments for the
three months ended September 30, 2024 of $(4) million (2023 – $(34)
million) and the nine months ended September 30, 2024 of $7 million
(2023 – $(354) million).
Note 3 Impairment of assets
We recorded the following non-cash impairment of assets in the
condensed consolidated statements of earnings:
Nine Months Ended
September 30
(millions of US dollars)
2024
2023
Segment
Category
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 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 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
Nine Months Ended
September 30
September 30
(millions of US dollars)
2024
2023
2024
2023
Integration and restructuring related
costs
‐
14
‐
29
Earnings of equity-accounted investees
(26)
(28)
(107)
(100)
Bad debt expense
31
12
94
51
Project feasibility costs
19
19
62
53
Customer prepayment costs
10
10
41
36
Insurance recoveries
(3)
‐
(70)
‐
Loss on natural gas derivatives not
designated as hedge 1
5
‐
7
‐
Loss related to financial instruments in
Argentina
‐
‐
34
92
ARO/ERL related expenses for non-operating
sites 2
184
4
152
10
Gain on amendments to other
post-retirement pension plans
‐
‐
‐
(80)
Other expenses
2
36
71
47
222
67
284
138
1 Includes realized loss of $3 million and
$5 million for the three and nine months ended September 30, 2024
(2023 – $nil) and unrealized loss of $2 million for the three and
nine months ended September 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
Nine Months Ended
September 30
September 30
(millions of US dollars, except as
otherwise noted)
2024
2023
2024
2023
Actual effective tax rate on earnings
(%)
(18)
41
41
33
Actual effective tax rate including
discrete items (%)
(112)
54
38
41
Discrete tax adjustments that impacted the
tax rate
(11)
23
(31)
155
Note 6 Financial instruments
Foreign Currency Derivatives
Three Months Ended
Nine Months Ended
September 30
September 30
(millions of US dollars)
2024
2023
2024
2023
Foreign exchange (gain) loss
(3)
32
27
12
Hyperinflationary loss
20
46
85
78
Loss on foreign currency derivatives at
fair value through profit or loss
14
9
247
15
Foreign exchange loss, net of related
derivatives
31
87
359
105
During the nine months ended September 30, 2024, we entered into
various foreign currency derivative contracts. The losses on our
foreign currency derivatives were primarily related to Brazil which
matured in July 2024. As of September 30, 2024, outstanding
derivative contracts were related to our ongoing risk management
strategy. The fair value of our net foreign exchange currency
derivative assets (liabilities) as at September 30, 2024 was $3
million (December 31, 2023 – $11 million).
As at September 30,
2024
As at December 31,
2023
(millions of US dollars, except as
otherwise noted)
Notional
Maturities
(year)
Average
Contract
Rate
(1:1)
Notional
Maturities
(year)
Average
Contract
Rate
(1:1)
Derivatives not designated as
hedges
Forwards (Sell/buy)
USD/Canadian dollars ("CAD")
416
2024
1.3445
435
2024
1.3207
Brazilian real ("BRL")/USD
213
2024
5.4668
94
2024
4.8688
Australian dollars ("AUD")/USD
75
2025
1.4940
86
2024
1.5269
USD/BRL
94
2025
5.5408
‐
‐
‐
USD/BRL
58
2025
5.6617
‐
‐
‐
USD/AUD
11
2024
1.4904
‐
‐
‐
Derivatives designated as
hedges
Forwards (Sell/buy)
USD/CAD
485
2025
1.3638
601
2024
1.3565
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 September 30,
2024
(millions of US dollars, except as
otherwise noted)
Notional 1
Maturities
(year)
Average
Contract Price 2
Fair Value of
Assets (Liabilities) 3
Derivatives not designated as
hedges
NYMEX call options
15
2024
3.15
1
Derivatives designated as
hedges
NYMEX swaps
12
2024
3.06
(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 $10,396 million and fair value of
$10,194 million as at September 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 September
30, 2024, there were no borrowings outstanding under this
facility.
During the three months ended September 30, 2024, we extended
the term of our unsecured revolving term credit facility to
September 3, 2025 and reduced the facility limit from $1,500
million to $750 million. We also extended the maturity of our
$4,500 million unsecured revolving term facility to September 4,
2029.
Note 8 Long-term debt
Issuances in the nine months ended
September 30, 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 nine months ended September 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 Share capital
Share Repurchase Programs
The following table summarizes our share repurchase activities
during the periods indicated below:
Three Months Ended
Nine Months Ended
September 30
September 30
(millions of US dollars, except as
otherwise noted)
2024
2023
2024
2023
Number of common shares repurchased for
cancellation
1,039,185
‐
1,039,185
13,378,189
Average price per share (US dollars)
48.11
‐
48.11
74.73
Total cost, inclusive of tax
51
‐
51
1,000
As of November 5, 2024, an additional 477,671 common shares were
repurchased for cancellation at a cost of $23 million and an
average price per share of $48.68.
Note 10 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 11 Related party transactions
We sell potash outside Canada and the US 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)
September 30, 2024
December 31, 2023
Receivables from Canpotex
195
162
Note 12 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/20241101408237/en/
Jeff Holzman Vice President, Investor Relations (306) 933-8545
Investors@nutrien.com
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