- Full-year results demonstrate significant progress towards
strategic priorities and 2026 performance targets.
- 2025 guidance reflects expectation for continued growth in
upstream fertilizer volumes, higher downstream Retail earnings and
lower capital expenditures.
All amounts are in US dollars, except as otherwise noted
Nutrien Ltd. (TSX and NYSE: NTR) announced today its fourth
quarter 2024 results, with net earnings of $118 million ($0.23
diluted net earnings per share). Fourth quarter 2024 adjusted
EBITDA1 was $1.1 billion and adjusted net earnings per share1 was
$0.31.
“Nutrien delivered higher upstream fertilizer sales volumes,
accelerated operational efficiency and cost savings initiatives and
increased downstream Retail earnings in 2024, demonstrating
significant progress towards our 2026 performance targets. We took
a disciplined and intentional approach to our capital allocation
decisions, further optimizing capital expenditures and returning
$1.2 billion to shareholders through dividends and share
repurchases,” commented Ken Seitz, Nutrien’s President and CEO.
“The outlook for our business in 2025 is supported by
expectations for strong crop input demand and firming potash
fundamentals. Nutrien has a world-class asset base, and we remain
focused on strategic priorities that strengthen our core business
and deliver structural improvements to our earnings and free cash
flow,” added Mr. Seitz.
Highlights2:
- Generated net earnings of $700 million ($1.36 diluted net
earnings per share) and adjusted EBITDA of $5.4 billion ($3.47
adjusted net earnings per share) for the full year of 2024.
- Retail adjusted EBITDA increased to $1.7 billion in 2024
supported by higher product margins and lower expenses, as we
continue to simplify our business and accelerate downstream network
optimization initiatives.
- Potash adjusted EBITDA decreased to $1.8 billion in 2024 as
lower net selling prices more than offset increased sales volumes.
We mined 35 percent of our potash ore tonnes using automation in
2024, providing efficiency, flexibility and safety benefits, while
supporting our highest annual production levels on record and a
reduction in controllable cash cost of product manufactured per
tonne.
- Nitrogen adjusted EBITDA of $1.9 billion in 2024 was relatively
flat as lower net selling prices offset higher sales volumes and
lower natural gas costs. Total ammonia production increased in
2024, driven by less maintenance downtime and improved natural gas
utilization and reliability at our operations in Trinidad.
- Divested non-core assets and equity investments totaling
approximately $60 million in 2024, providing incremental cash flow
to allocate to high conviction priorities that are core to our
long-term strategy.
- Repurchased 3.9 million shares for a total of $190 million in
the second half of 2024 and an additional 1.9 million shares in
2025 for $96 million as of February 18, 2025. Nutrien’s Board of
Directors approved the purchase of up to 5 percent of Nutrien’s
outstanding common shares over a twelve-month period through the
renewal of our normal course issuer bid (“NCIB”), which is subject
to acceptance by the Toronto Stock Exchange.
- Nutrien’s Board of Directors approved an increase in the
quarterly dividend to $0.545 per share. Nutrien continues to target
a stable and growing dividend, having now increased the dividend
per share by 36 percent since the beginning of 2018.
1.
This is a non-GAAP financial measure. See
the “Non-GAAP Financial Measures” section.
2.
Our discussion of highlights set out on
this page is a comparison of the results for the twelve months
ended December 31, 2024 to the results for the twelve months ended
December 31, 2023, unless otherwise noted.
Market Outlook and Guidance
Agriculture and Retail Markets
- Global grain stocks-to-use ratios remain historically low and
demand remains strong, providing a supportive environment for ag
commodity prices in 2025. We expect US corn plantings to range
between 91 and 93 million acres and soybean plantings to range from
84 to 86 million acres in 2025. The projected increase in corn
acreage, combined with a shortened fall application season in 2024,
supports our outlook for strong North American fertilizer demand in
the first half of the year.
- In Brazil, generally favorable soil moisture conditions and
stronger crop prices are expected to lead to an increase in
safrinha corn planted acreage of approximately five percent,
supporting crop input demand in the first half of 2025.
- A weaker Australian dollar and strong grain and oilseed export
demand is supporting grower economics, and conditions remain
positive for 2025 crop input demand.
Crop Nutrient Markets
- Global potash shipments rebounded to approximately 72.5 million
tonnes in 2024, driven by improved supply and supportive
application economics that contributed to increased demand in key
markets such as China, Brazil and Southeast Asia.
- We forecast global potash shipments between 71 and 75 million
tonnes in 2025. The high end of the range captures the potential
for stronger underlying global consumption and the lower end
captures the potential for reduced supply availability. We
anticipate the potential for supply tightness with limited global
capacity additions in 2025 and reported operational challenges and
maintenance work in key producing regions.
- Global urea and UAN prices have increased in the first quarter
of 2025, driven by strengthening demand in key import markets and
restricted supply, including continued Chinese urea export
restrictions. Global ammonia prices have trended lower to start the
year due to seasonal demand weakness and the anticipation of
incremental supply in the US and export capacity from Russia. We
expect North American natural gas prices to remain highly
competitive compared to Europe and Asia, with Henry Hub natural gas
prices projected to average between $3.25 and $3.50 per MMBtu for
the year.
- The US nitrogen supply and demand balance is expected to be
tight ahead of the spring application season, as nitrogen
fertilizer net imports in the first half of the 2024/2025
fertilizer year were down approximately 60 percent compared to the
five-year average. Additionally, nitrogen demand for the spring
season is expected to be strong due to the limited fall ammonia
application season and higher projected corn acreage.
- Phosphate fertilizer markets remain firm, particularly in North
America where inventories were estimated to be historically low
entering 2025. We expect Chinese phosphate exports similar to 2024
levels, with total DAP/MAP exports ranging between 6 and 7 million
tonnes, and tight stocks in India to support demand ahead of their
key planting season.
Financial and Operational Guidance
- Retail adjusted EBITDA guidance of $1.65 to $1.85 billion
assumes higher crop nutrient sales volumes, continued growth of our
proprietary products and further margin recovery in Brazil. We
anticipate foreign exchange headwinds in our international retail
operations and the absence of asset sales and other income items
realized in 2024, which combined are estimated at approximately $75
million.
- Potash sales volume guidance of 13.6 to 14.4 million tonnes is
consistent with our global shipments outlook and accounts for some
uncertainty regarding the possible imposition and related impact of
US tariffs, as well as global supply availability.
- Nitrogen sales volume guidance of 10.7 to 11.2 million tonnes
assumes continued reliability improvements and higher operating
rates at our North American plants.
- Phosphate sales volume guidance of 2.35 to 2.55 million tonnes
assumes lower production at our White Springs facility in the first
half of 2025 and improved operating rates in the second half
compared to the prior year.
- Total capital expenditures of $2.0 to $2.1 billion are expected
to be lower than the prior year. Our capital expenditure program
has been further optimized to sustain safe and reliable operations
and to progress a set of targeted growth investments. This total
includes approximately $400 to $500 million in investing capital
expenditures focused on proprietary products, network optimization
and digital capabilities in Retail, low-cost brownfield expansions
in Nitrogen and mine automation projects in Potash.
All guidance numbers, including those noted above, are outlined
in the table below. In addition, set forth below are anticipated
fertilizer pricing and natural gas price sensitivities relating to
adjusted EBITDA (consolidated) and adjusted net earnings per
share.
2025 Guidance Ranges 1 as
of
February 19, 2025
(billions of US dollars, except as
otherwise noted)
Low
High
2024 Actual
Retail adjusted EBITDA
1.65
1.85
1.7
Potash sales volumes (million tonnes)
2
13.6
14.4
13.9
Nitrogen sales volumes (million tonnes)
2
10.7
11.2
10.7
Phosphate sales volumes (million tonnes)
2
2.35
2.55
2.4
Depreciation and amortization
2.35
2.45
2.3
Finance costs
0.65
0.75
0.7
Effective tax rate on adjusted net
earnings (%) 3
22.0
25.0
24.1
Capital expenditures 4
2.0
2.1
2.2
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.
2025 Annual Sensitivities 1
Effect on
(millions of US dollars, except EPS
amounts)
Adjusted EBITDA
Adjusted EPS 4
$25 per tonne change in potash net selling
prices
± 280
± 0.45
$25 per tonne change in ammonia net
selling prices 2
± 35
± 0.05
$25 per tonne change in urea and ESN® net
selling prices
± 85
± 0.15
$25 per tonne change in solutions,
nitrates and sulfates net selling prices
± 130
± 0.20
$1 per MMBtu change in NYMEX natural gas
price 3
± 190
± 0.30
1 See the “Forward-Looking Statements”
section.
2 Includes related impact on natural gas
costs in Trinidad, which is linked to benchmark ammonia
pricing.
3 Nitrogen related impact.
4 Assumes 486 million shares outstanding
for all earnings per share (“EPS”) sensitivities.
Consolidated Results
Three Months Ended December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Sales
5,079
5,664
(10)
25,972
29,056
(11)
Gross margin
1,581
1,768
(11)
7,530
8,474
(11)
Expenses
1,184
1,475
(20)
5,674
5,729
(1)
Net earnings
118
176
(33)
700
1,282
(45)
Adjusted EBITDA 1
1,055
1,075
(2)
5,355
6,058
(12)
Diluted net earnings per share (US
dollars)
0.23
0.35
(34)
1.36
2.53
(46)
Adjusted net earnings per share (US
dollars) 1
0.31
0.37
(16)
3.47
4.44
(22)
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
Net earnings and adjusted EBITDA decreased in the fourth quarter
of 2024 compared to the same period in 2023, primarily due to lower
Potash net selling prices and sales volumes, partially offset by
higher Retail earnings and lower expenses. For the full year of
2024, net earnings and adjusted EBITDA decreased compared to 2023
due to lower Potash and Nitrogen net selling prices, partially
offset by increased Retail earnings and record Potash sales
volumes. Net earnings were also impacted by a previously disclosed
loss on foreign currency derivatives in the second quarter of
2024.
Segment Results
Our discussion of segment results set out on the following pages
is a comparison of the results for the three and twelve months
ended December 31, 2024 to the results for the three and twelve
months ended December 31, 2023, unless otherwise noted.
Nutrien Ag Solutions (“Retail”)
Three Months Ended December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Sales
3,179
3,502
(9)
17,832
19,542
(9)
Cost of goods sold
2,193
2,513
(13)
13,211
15,112
(13)
Gross margin
986
989
‐
4,621
4,430
4
Adjusted EBITDA 1
340
229
48
1,696
1,459
16
1 See Note 2 to the unaudited condensed
consolidated financial statements as at and for the three and
twelve months ended December 31, 2024 (“interim financial
statements”).
- Retail adjusted EBITDA increased in the fourth quarter
of 2024 due to lower expenses and higher crop protection and seed
margins, including increased proprietary products gross margins and
improved margins and selling expenses in Brazil. During the fourth
quarter, we recognized a $25 million gain on the sale of land in
Argentina as we continue to simplify our business. Adjusted EBITDA
increased for the full year, supported by higher product margins in
all geographies and lower expenses.
Three Months Ended December
31
Twelve Months Ended December
31
Sales
Gross Margin
Sales
Gross Margin
(millions of US dollars)
2024
2023
2024
2023
2024
2023
2024
2023
Crop nutrients
1,528
1,808
294
346
7,211
8,379
1,444
1,378
Crop protection products
948
960
351
333
6,313
6,750
1,622
1,553
Seed
184
202
52
36
2,235
2,295
431
427
Services and other
228
236
188
188
918
927
716
710
Merchandise
230
251
40
41
897
1,001
150
172
Nutrien Financial
77
70
77
70
361
322
361
322
Nutrien Financial elimination 1
(16)
(25)
(16)
(25)
(103)
(132)
(103)
(132)
Total
3,179
3,502
986
989
17,832
19,542
4,621
4,430
1 Represents elimination of the interest
and service fees charged by Nutrien Financial to Retail
branches.
- Crop nutrients sales decreased in the fourth quarter of
2024 due to lower sales volumes, which were impacted by wet weather
in North America and strategic actions related to our margin
improvement plan in Brazil. Full-year 2024 sales were impacted by
lower selling prices and sales volumes. Gross margin decreased in
the fourth quarter as higher per-tonne margins in North America
were more than offset by lower sales volumes. For the full year,
gross margin increased due to higher per-tonne margins in North
America, including growth in our proprietary crop nutritional and
biostimulant product lines.
- Crop protection products sales were lower in the fourth
quarter and full year of 2024 mainly due to lower selling prices.
Gross margin improvements for the fourth quarter and full year of
2024 were supported by proprietary products, strong operational
execution and the selling through of lower cost inventory in South
America compared to the same periods in 2023.
- Seed sales decreased in the fourth quarter and full year
of 2024 mainly due to the impact of competitive pricing pressure in
South America. Gross margin for the fourth quarter increased,
supported by higher proprietary gross margin, including improved
margins in South America due to strategic actions related to our
margin improvement plan in Brazil. Full-year 2024 gross margin
increased as improved margins in North America more than offset the
impact of dry weather and competitive market pressures in
Brazil.
- Merchandise sales and gross margin decreased in the
fourth quarter and full year of 2024 due to reductions in Australia
primarily related to weather-related impacts on water equipment
sales and animal health products.
- Nutrien Financial sales and gross margin increased in
the fourth quarter and full year of 2024 due to higher financing
rates offered.
Supplemental Data
Three Months Ended December
31
Twelve Months Ended December
31
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
60
44
19
12
421
391
29
28
Crop protection products
41
27
11
10
470
461
29
30
Seed
6
(3)
16
(9)
154
168
36
39
Merchandise
4
3
9
6
15
11
10
6
Total
111
71
11
8
1,060
1,031
23
23
1 Represents percentage of proprietary
product margins over total product line gross margin.
Three Months Ended December
31
Twelve Months Ended December
31
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
1,854
2,073
125
118
8,547
8,985
142
127
International
716
790
87
127
3,715
3,647
62
65
Total
2,570
2,863
114
120
12,262
12,632
118
109
(percentages)
December 31, 2024
December 31, 2023
Financial performance measures 1, 2
Cash operating coverage ratio
63
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 December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
536
776
(31)
2,989
3,759
(20)
Cost of goods sold
309
349
(11)
1,448
1,396
4
Gross margin
227
427
(47)
1,541
2,363
(35)
Adjusted EBITDA 1
291
463
(37)
1,848
2,404
(23)
1 See Note 2 to the interim financial
statements.
- Potash adjusted EBITDA decreased in the fourth quarter
of 2024 due to lower net selling prices and sales volumes.
Full-year 2024 adjusted EBITDA was lower mainly due to lower net
selling prices, partially offset by record sales volumes. Higher
potash production supported by the continued advancement of mine
automation contributed to our lower controllable cash cost of
product manufactured for the full year of 2024.
Manufactured Product
Three Months Ended December
31
Twelve Months Ended December
31
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
North America
718
1,089
4,672
4,843
Offshore
2,040
2,214
9,214
8,373
Total sales volumes
2,758
3,303
13,886
13,216
Net selling price
North America
270
342
285
348
Offshore
168
182
180
248
Average net selling price
194
235
215
284
Cost of goods sold
112
106
104
105
Gross margin
82
129
111
179
Depreciation and amortization
49
36
44
35
Gross margin excluding depreciation and
amortization 1
131
165
155
214
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
- Sales volumes decreased in the fourth quarter of 2024
compared to the record volumes delivered in the same period in the
prior year due to a more restricted fall application window in
North America and lower volumes to China and Other Asian markets.
Full-year 2024 sales volumes 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
fourth quarter and full year of 2024 primarily due to a decline in
benchmark prices compared to the same periods in 2023.
- Cost of goods sold per tonne increased in the fourth
quarter of 2024 as higher depreciation and the impact of more
planned turnaround activity more than offset lower royalties. For
the full year, cost of goods sold per tonne decreased primarily due
to higher production volumes and lower royalties, partially offset
by higher depreciation.
Supplemental Data
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Production volumes (tonnes –
thousands)
3,369
3,386
14,205
12,998
Potash controllable cash cost of product
manufactured
per tonne 1
59
56
54
58
Canpotex sales by market (percentage of
sales volumes)
Latin America
35
32
40
47
Other Asian markets 2
24
28
28
28
China
16
19
13
9
India
11
11
7
5
Other markets
14
10
12
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 December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
1,013
956
6
3,745
4,207
(11)
Cost of goods sold
700
671
4
2,535
2,828
(10)
Gross margin
313
285
10
1,210
1,379
(12)
Adjusted EBITDA 1
471
391
20
1,884
1,930
(2)
1 See Note 2 to the interim financial
statements.
- Nitrogen adjusted EBITDA increased in the fourth quarter
of 2024 primarily due to higher sales volumes and ammonia net
selling prices. Adjusted EBITDA for the full year was relatively
flat as lower net selling prices offset higher sales volumes and
lower natural gas costs. Our total ammonia production increased in
the fourth quarter and full year supported by less maintenance
downtime and improved natural gas utilization and reliability at
our operations in Trinidad.
Manufactured Product
Three Months Ended December
31
Twelve Months Ended December
31
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
Ammonia
701
651
2,483
2,436
Urea and ESN®
888
739
3,188
3,125
Solutions, nitrates and sulfates
1,325
1,344
5,023
4,862
Total sales volumes
2,914
2,734
10,694
10,423
Net selling price
Ammonia
448
416
410
469
Urea and ESN®
403
428
421
480
Solutions, nitrates and sulfates
213
215
221
244
Average net selling price
327
321
324
367
Cost of goods sold
221
218
213
233
Gross margin
106
103
111
134
Depreciation and amortization
58
53
55
55
Gross margin excluding depreciation and
amortization 1
164
156
166
189
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
- Sales volumes increased in the fourth quarter due to
higher urea production and strong regional demand for ammonia.
Full-year 2024 sales volumes increased due to higher production at
our operations in Trinidad and reliability improvements across our
network in North America increasing the availability of upgraded
products.
- Net selling price per tonne was higher in the fourth
quarter of 2024 primarily due to stronger ammonia net selling
prices and a favorable geographic mix. For the full year, net
selling price per tonne was lower for all major nitrogen products
due to weaker benchmark prices.
- Cost of goods sold per tonne increased in the fourth
quarter of 2024 mainly due to higher natural gas costs in Trinidad,
partially offset by lower natural gas costs in North America. For
the full year, cost of goods sold per tonne decreased primarily due
to lower natural gas costs in North America and the impact of
higher production volumes.
Supplemental Data
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Sales volumes (tonnes – thousands)
Fertilizer
1,801
1,648
6,259
6,067
Industrial and feed
1,113
1,086
4,435
4,356
Production volumes (tonnes –
thousands)
Ammonia production – total 1
1,451
1,362
5,608
5,357
Ammonia production – adjusted 1, 2
1,041
1,022
3,953
3,902
Ammonia operating rate (%) 2
92
91
88
88
Natural gas costs (US dollars per
MMBtu)
Overall natural gas cost excluding
realized derivative impact
3.61
3.35
3.15
3.51
Realized derivative impact 3
0.10
(0.05)
0.09
(0.02)
Overall natural gas cost
3.71
3.30
3.24
3.49
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 December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Net sales
414
533
(22)
1,657
1,993
(17)
Cost of goods sold
394
463
(15)
1,510
1,760
(14)
Gross margin
20
70
(71)
147
233
(37)
Adjusted EBITDA 1
86
130
(34)
384
470
(18)
1 See Note 2 to the interim financial
statements.
- Phosphate adjusted EBITDA was lower in the fourth
quarter of 2024 as higher net selling prices were more than offset
by the impact of lower production volumes and higher input costs.
Adjusted EBITDA for the full year decreased due to weaker
industrial and feed net selling prices and the impact of lower
production, partially offset by lower sulfur and ammonia input
costs.
Manufactured Product
Three Months Ended December
31
Twelve Months Ended December
31
($ / tonne, except as otherwise noted)
2024
2023
2024
2023
Sales volumes (tonnes - thousands)
Fertilizer
435
579
1,751
1,912
Industrial and feed
173
174
683
639
Total sales volumes
608
753
2,434
2,551
Net selling price
Fertilizer
615
557
612
568
Industrial and feed
812
860
822
1,010
Average net selling price
671
627
671
678
Cost of goods sold
631
535
603
583
Gross margin
40
92
68
95
Depreciation and amortization
127
108
119
115
Gross margin excluding depreciation and
amortization 1
167
200
187
210
1 This is a non-GAAP financial measure.
See the “Non-GAAP Financial Measures” section.
- Sales volumes were lower in the fourth quarter and full
year primarily due to weather-related events and plant outages that
impacted production volumes.
- Net selling price per tonne increased in the fourth
quarter of 2024 primarily due to the strength of fertilizer
benchmark prices. For the full year 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 fourth
quarter of 2024 due to lower production volumes, higher
depreciation, and higher input costs, including sulfur. Full-year
cost of goods sold per tonne increased due to lower production
volumes and higher water treatment costs related to weather-related
events, partially offset by lower sulfur and ammonia input
costs.
Supplemental Data
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Production volumes (P2O5 tonnes –
thousands)
319
380
1,327
1,406
P2O5 operating rate (%)
75
89
78
83
Corporate and Others and Eliminations
Three Months Ended December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Corporate and Others
Gross margin 1
13
‐
n/m
13
‐
n/m
Selling expenses
7
7
‐
‐
‐
‐
General and administrative expenses
126
104
21
403
364
11
Share-based compensation expense
(recovery)
20
(7)
n/m
37
(14)
n/m
Foreign exchange loss (income), net of
related derivatives
1
(14)
n/m
360
91
296
Other expenses
105
175
(40)
379
257
47
Adjusted EBITDA 1
(160)
(117)
37
(456)
(267)
71
Eliminations
Gross margin
22
(3)
n/m
(2)
69
n/m
Adjusted EBITDA 1
27
(21)
n/m
(1)
62
n/m
1 See Note 2 to the interim financial
statements.
- Share-based compensation was an expense in the fourth
quarter and full year of 2024 due to an increase in the fair value
of our share-based awards. We had a recovery in the same periods in
2023 as the fair value of our share-based awards decreased. 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
higher in the full year of 2024 compared to the same period in 2023
as it included a previously disclosed $220 million loss on foreign
currency derivatives in Brazil.
- Other expenses were lower in the fourth quarter of 2024
compared to the same period in 2023 mainly due to a lower expense
for asset retirement obligations and accrued environmental costs
related to our non-operating sites partially offset by higher
restructuring costs. Other expenses in the full year of 2024 were
higher compared to the same period in 2023 due to an $80 million
gain in the full year of 2023 from our other post-retirement
benefit plan amendments. These were partially offset by lower
losses related to our financial instruments in Argentina. Refer to
Note 4 of the interim financial statements for additional
information.
- Eliminations of gross margin in the full year of 2024
resulted from higher intersegment inventory held by our Retail
segment compared to a recovery of gross margin in the full year of
2023, which reflected the sell-through of higher cost
inventory.
Finance Costs, Income Taxes and Other Comprehensive Income
(Loss)
Three Months Ended December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
% Change
2024
2023
% Change
Finance costs
195
213
(8)
720
793
(9)
Income taxes
Income tax expense (recovery)
84
(96)
n/m
436
670
(35)
Actual effective tax rate including
discrete items (%)
42
(120)
n/m
38
34
12
Other comprehensive (loss) income
(298)
97
n/m
(234)
81
n/m
- Finance costs were lower in the fourth quarter and full
year of 2024 primarily due to lower average short-term debt balance
from lower working capital requirements, partially offset by the
increase in average long-term debt balance throughout 2024.
- Income tax was an expense in the fourth quarter of 2024
compared to a recovery in the same period in 2023 mainly due to
higher earnings and lower discrete tax adjustments. In the fourth
quarter of 2023, our discrete tax items included a $134 million
income tax recovery due to changes in our tax declarations in
Switzerland (“Swiss Tax Reform”). These factors resulted in a
positive effective tax rate in the fourth quarter of 2024 compared
to a negative effective tax rate in the same period in 2023. The
lower income tax expense in the full year of 2024 compared to the
same period in 2023 was due to lower earnings and lower discrete
tax adjustments. The discrete tax adjustments in the same period 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, the impact of the Swiss Tax Reform, and Canadian audit
assessments.
- Other comprehensive loss in the fourth quarter and full
year of 2024 was mainly due to the depreciation of the Australian,
Brazilian and Canadian currencies, relative to the US dollar,
compared to gains for the same periods in 2023.
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 2025 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 on adjusted net earnings and capital expenditures, including
the assumptions and expectations stated therein; our 2026
performance targets; expectations regarding our capital allocation
intentions and strategies, including our target of providing a
stable and growing dividend; our ability to advance strategic
priorities that strengthen our core business and deliver structural
improvements to our earnings and free cash flow; capital spending
expectations for 2025 and beyond, including the expectation that
related investments will sustain safe and reliable operations and
drive growth; expectations regarding performance of our operating
segments in 2025 and beyond; 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, farmer 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, tariffs,
trade or export restrictions, 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; and expectations
in connection with our ability to deliver long-term returns to
shareholders.
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, supplier
agreements, product distribution agreements, inventory levels,
exports, tariffs, including general or retaliatory tariffs, trade
restrictions, international trade arrangements, 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 2025 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; 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; availability of
investment opportunities that align with our strategic priorities
and growth strategy; our ability to maintain investment grade
ratings and achieve our performance targets; and our ability to
successfully negotiate sales and other contracts and our ability to
successfully implement new initiatives and programs.
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
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 general or retaliatory tariffs, trade
restrictions, including the imposition of any tariffs, or other
changes to international trade arrangements; the effects of current
and future multinational trade agreements or other developments
affecting the level of trade or export 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; 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 and 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 farmers. 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, February 20,
2025 at 10:00 a.m. Eastern Time.
Telephone conference dial-in numbers:
- From Canada and the US: 1 (800) 206-4400
- International: 1 (289) 514-5005
- 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-q4-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 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 December
31
Twelve Months Ended December
31
(millions of US dollars)
2024
2023
2024
2023
Net earnings
118
176
700
1,282
Finance costs
195
213
720
793
Income tax expense (recovery)
84
(96)
436
670
Depreciation and amortization
590
565
2,339
2,169
EBITDA 1
987
858
4,195
4,914
Adjustments:
Share-based compensation expense
(recovery)
20
(7)
37
(14)
Foreign exchange loss (gain), net of
related
derivatives
1
(14)
360
91
ARO/ERL related (income) expenses for
non-operating sites
(1)
142
151
152
Loss related to financial instruments in
Argentina
1
‐
35
92
Restructuring costs
47
20
47
49
Impairment of assets
‐
76
530
774
Adjusted EBITDA
1,055
1,075
5,355
6,058
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 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
December 31, 2024
Twelve Months Ended
December 31, 2024
Per
Per
(millions of US dollars, except as
otherwise
Increases
Diluted
Increases
Diluted
noted)
(Decreases)
Post-Tax
Share
(Decreases)
Post-Tax
Share
Net earnings attributable to equity
holders
of Nutrien
113
0.23
674
1.36
Adjustments:
Share-based compensation expense
20
15
0.03
37
27
0.05
Foreign exchange (gain) loss, net of
related
derivatives
1
(16)
(0.03)
360
346
0.70
Restructuring costs
47
38
0.08
47
38
0.08
Impairment of assets
‐
‐
‐
530
492
1.00
ARO/ERL related (income) expenses for
non-operating sites
(1)
(1)
‐
151
106
0.21
Loss related to financial instruments
in
Argentina
1
1
‐
35
35
0.07
Sub-total adjustments
68
37
0.08
1,160
1,044
2.11
Adjusted net earnings
150
0.31
1,718
3.47
Three Months Ended
December 31, 2023
Twelve Months Ended
December 31, 2023
Per
Per
(millions of US dollars, except as
otherwise
Increases
Diluted
Increases
Diluted
noted)
(Decreases)
Post-Tax
Share
(Decreases)
Post-Tax
Share
Net earnings attributable to equity
holders
of Nutrien
172
0.35
1,258
2.53
Adjustments:
Share-based compensation recovery
(7)
(5)
(0.01)
(14)
(11)
(0.02)
Foreign exchange (gain) loss, net of
related
derivatives
(14)
(16)
(0.03)
91
83
0.17
Restructuring costs
20
16
0.03
49
40
0.08
Impairment of assets
76
49
0.10
774
702
1.42
ARO/ERL related expenses for
non-operating
sites
142
102
0.20
152
110
0.22
Loss related to financial instruments
in
Argentina
‐
‐
‐
92
92
0.18
Swiss Tax Reform adjustment
(134)
(134)
(0.27)
(134)
(134)
(0.27)
Change in recognition of deferred tax
assets
‐
‐
‐
66
66
0.13
Sub-total adjustments
83
12
0.02
1,076
948
1.91
Adjusted net earnings
184
0.37
2,206
4.44
Effective Tax Rate on Adjusted Net Earnings
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.
Effective tax rate on adjusted net earnings ratio is calculated
as adjusted income tax expense divided by adjusted earnings before
income taxes. We use this measure to provide the actual result for
a previously disclosed forward-looking effective tax rate on
adjusted net earnings guidance.
(millions of US dollars, except as
otherwise noted)
2024
Earnings before income taxes
1,136
Adjustments 1
1,160
Adjusted earnings before income taxes
2,296
Income tax expense
436
Adjustments 2
116
Adjusted income tax expense
552
Effective tax rate on adjusted net
earnings (%)
24.1
1 Calculated as sum of pre-tax
adjustments noted in the Adjusted Net Earnings section.
2 Calculated as difference between
the sum of pre-tax and post-tax adjustments noted in the Adjusted
Net Earnings section.
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 December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2024
2023
2024
2023
Total COGS – Potash
309
349
1,448
1,396
Change in inventory
66
7
36
(40)
Other adjustments 1
(7)
(7)
(21)
(26)
COPM
368
349
1,463
1,330
Depreciation and amortization in COPM
(142)
(124)
(581)
(427)
Royalties in COPM
(17)
(23)
(79)
(100)
Natural gas costs and carbon taxes in
COPM
(9)
(12)
(36)
(46)
Controllable cash COPM
200
190
767
757
Production tonnes (tonnes – thousands)
3,369
3,386
14,205
12,998
Potash controllable cash COPM per
tonne
59
56
54
58
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
December 31, 2024
(millions of US dollars, except as
otherwise noted)
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Total/Average
Nutrien Financial revenue
66
133
85
77
Deemed interest expense 1
(27)
(50)
(52)
(45)
Net interest
39
83
33
32
187
Average Nutrien Financial net
receivables
2,489
4,560
4,318
2,877
3,561
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 cash flow.
Rolling four quarters ended
December 31, 2024
(millions of US dollars, except as
otherwise noted)
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Total
Selling expenses
790
1,005
815
808
3,418
General and administrative expenses
52
51
51
37
191
Other expenses
22
41
32
(8)
87
Operating expenses
864
1,097
898
837
3,696
Depreciation and amortization in operating
expenses
(190)
(193)
(182)
(186)
(751)
Operating expenses excluding depreciation
and amortization
674
904
716
651
2,945
Gross margin
747
2,029
859
986
4,621
Depreciation and amortization in cost of
goods sold
4
3
8
5
20
Gross margin excluding depreciation and
amortization
751
2,032
867
991
4,641
Cash operating coverage ratio (%)
63
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
December 31, 2024
(millions of US dollars, except as
otherwise noted)
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Average/Total
Current assets
11,821
11,181
10,559
10,360
Current liabilities
(8,401)
(8,002)
(5,263)
(8,028)
Working capital
3,420
3,179
5,296
2,332
3,557
Working capital from certain recent
acquisitions
‐
‐
‐
‐
Adjusted working capital
3,420
3,179
5,296
2,332
3,557
Nutrien Financial working capital
(2,489)
(4,560)
(4,318)
(2,877)
Adjusted working capital excluding Nutrien
Financial
931
(1,381)
978
(545)
(4)
Sales
3,308
8,074
3,271
3,179
Sales from certain recent acquisitions
‐
‐
‐
‐
Adjusted sales
3,308
8,074
3,271
3,179
17,832
Nutrien Financial revenue
(66)
(133)
(85)
(77)
Adjusted sales excluding Nutrien
Financial
3,242
7,941
3,186
3,102
17,471
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 December 31,
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
1,671
289
112
156
2,228
(50)
2,178
2,206
International
575
51
19
64
709
(10)
699
687
Nutrien Financial receivables
2,246
340
131
220
2,937
(60)
2,877
2,893
1 Bad debt expense on the above
receivables for the twelve months ended December 31, 2024 and 2023
were $55 million and $35 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
Twelve Months Ended
December 31
December 31
(millions of US dollars, except as
otherwise noted)
Note
2024
2023
2024
2023
SALES
2, 10
5,079
5,664
25,972
29,056
Freight, transportation and
distribution
215
260
956
974
Cost of goods sold
3,283
3,636
17,486
19,608
GROSS MARGIN
1,581
1,768
7,530
8,474
Selling expenses
813
849
3,435
3,397
General and administrative expenses
176
173
644
626
Provincial mining taxes
45
79
255
398
Share-based compensation expense
(recovery)
20
(7)
37
(14)
Impairment of assets
3
‐
76
530
774
Foreign exchange loss (gain), net of
related derivatives
6
1
(14)
360
91
Other expenses
4
129
319
413
457
EARNINGS BEFORE FINANCE COSTS
AND INCOME TAXES
397
293
1,856
2,745
Finance costs
195
213
720
793
EARNINGS BEFORE INCOME TAXES
202
80
1,136
1,952
Income tax expense (recovery)
5
84
(96)
436
670
NET EARNINGS
118
176
700
1,282
Attributable to
Equity holders of Nutrien
113
172
674
1,258
Non-controlling interest
5
4
26
24
NET EARNINGS
118
176
700
1,282
NET EARNINGS PER SHARE ATTRIBUTABLE TO
EQUITY HOLDERS OF NUTRIEN ("EPS")
Basic
0.23
0.35
1.36
2.53
Diluted
0.23
0.35
1.36
2.53
Weighted average shares outstanding for
basic EPS
492,843,000
494,545,000
494,198,000
496,381,000
Weighted average shares outstanding for
diluted EPS
492,930,000
494,878,000
494,365,000
496,994,000
Condensed Consolidated Statements of Comprehensive (Loss)
Income
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars, net of related
income taxes)
2024
2023
2024
2023
NET EARNINGS
118
176
700
1,282
Other comprehensive (loss) income
Items that will not be reclassified to net
earnings:
Net actuarial gain (loss) on defined
benefit plans
17
(14)
17
(17)
Net fair value gain (loss) on
investments
2
(1)
55
4
Items that have been or may be
subsequently reclassified to net earnings:
(Loss) gain on currency translation of
foreign operations
(282)
103
(254)
89
Other
(35)
9
(52)
5
OTHER COMPREHENSIVE (LOSS)
INCOME
(298)
97
(234)
81
COMPREHENSIVE (LOSS) INCOME
(180)
273
466
1,363
Attributable to
Equity holders of Nutrien
(182)
268
443
1,338
Non-controlling interest
2
5
23
25
COMPREHENSIVE (LOSS) INCOME
(180)
273
466
1,363
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Statements of Cash Flows
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars)
Note
2024
2023
2024
2023
Note 1
Note 1
OPERATING ACTIVITIES
Net earnings
118
176
700
1,282
Adjustments for:
Depreciation and amortization
590
565
2,339
2,169
Share-based compensation expense
(recovery)
20
(7)
37
(14)
Impairment of assets
3
‐
76
530
774
Provision for (recovery of) deferred
income tax
16
(169)
31
7
Net (undistributed) distributed earnings
of equity-accounted investees
(22)
5
(8)
117
Loss related to financial instruments in
Argentina
4
1
‐
35
92
Long-term income tax receivables and
payables
30
24
47
(65)
Other long-term assets, liabilities and
miscellaneous
(16)
153
311
197
Cash from operations before working
capital changes
737
823
4,022
4,559
Changes in non-cash operating working
capital:
Receivables
2,170
2,370
(224)
879
Inventories and prepaid expenses and other
current assets
(2,205)
(1,990)
60
1,376
Payables and accrued charges
2,421
2,947
(323)
(1,748)
CASH PROVIDED BY OPERATING
ACTIVITIES
3,123
4,150
3,535
5,066
INVESTING ACTIVITIES
Capital expenditures 1
(767)
(760)
(2,154)
(2,600)
Business acquisitions, net of cash
acquired
(15)
(37)
(21)
(153)
Proceeds from (purchase of) investments,
held within three months, net
74
22
44
(112)
Purchase of investments
‐
(19)
(112)
(31)
Net changes in non-cash working
capital
82
46
27
(22)
Other
107
15
83
(40)
CASH USED IN INVESTING
ACTIVITIES
(519)
(733)
(2,133)
(2,958)
FINANCING ACTIVITIES
Repayment of debt, maturing within three
months, net
(1,231)
(2,671)
(142)
(458)
Proceeds from debt
8
24
‐
1,022
1,500
Repayment of debt
8
(527)
(13)
(659)
(648)
Repayment of principal portion of lease
liabilities
(102)
(97)
(402)
(375)
Dividends paid to Nutrien's
shareholders
9
(265)
(262)
(1,060)
(1,032)
Repurchase of common shares, inclusive of
related tax
9
(134)
‐
(184)
(1,047)
Issuance of common shares
2
1
18
33
Other
(6)
‐
(46)
(34)
CASH USED IN FINANCING
ACTIVITIES
(2,239)
(3,042)
(1,453)
(2,061)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND
CASH EQUIVALENTS
(32)
12
(37)
(7)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
333
387
(88)
40
CASH AND CASH EQUIVALENTS – BEGINNING
OF PERIOD
520
554
941
901
CASH AND CASH EQUIVALENTS – END OF
PERIOD
853
941
853
941
Cash and cash equivalents is composed
of:
Cash
741
909
741
909
Short-term investments
112
32
112
32
853
941
853
941
SUPPLEMENTAL CASH FLOWS
INFORMATION
Interest paid
244
267
740
729
Income taxes paid
61
42
321
1,764
Total cash outflow for leases
140
128
558
501
1 Includes additions to property, plant
and equipment, and intangible assets for the three months ended
December 31, 2024 of $735 million and $32 million (2023 – $716
million and $44 million), respectively, and for the twelve months
ended December 31, 2024 of $2,025 million and $129 million (2023 –
$2,415 million and $185 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
‐
‐
‐
‐
‐
‐
1,258
1,258
24
1,282
Other comprehensive income (loss)
‐
‐
‐
88
(8)
80
‐
80
1
81
Shares repurchased (Note 9)
(13,378,189)
(374)
(26)
‐
‐
‐
(600)
(1,000)
‐
(1,000)
Dividends declared - $2.12/share
‐
‐
‐
‐
‐
‐
(1,050)
(1,050)
‐
(1,050)
Non-controlling interest transactions
‐
‐
‐
‐
‐
‐
(2)
(2)
(25)
(27)
Effect of share-based compensation
including
issuance of common shares
683,814
40
‐
‐
‐
‐
‐
40
‐
40
Transfer of net gain on sale of
investment
‐
‐
‐
‐
(14)
(14)
14
‐
‐
‐
Transfer of net loss on cash flow
hedges
‐
‐
‐
‐
12
12
‐
12
‐
12
Transfer of net actuarial loss on defined
benefit plans
‐
‐
‐
‐
17
17
(17)
‐
‐
‐
BALANCE – DECEMBER 31, 2023
494,551,730
13,838
83
(286)
(10)
(296)
11,531
25,156
45
25,201
Net earnings
‐
‐
‐
‐
‐
‐
674
674
26
700
Other comprehensive (loss) income
‐
‐
‐
(251)
20
(231)
‐
(231)
(3)
(234)
Shares repurchased (Note 9)
(3,944,903)
(110)
(20)
‐
‐
‐
(60)
(190)
‐
(190)
Dividends declared - $2.16/share
‐
‐
‐
‐
‐
‐
(1,063)
(1,063)
‐
(1,063)
Non-controlling interest transactions
‐
‐
‐
‐
‐
‐
‐
‐
(33)
(33)
Effect of share-based compensation
including
issuance of common shares
418,619
20
5
‐
‐
‐
‐
25
‐
25
Transfer of net gain on sale of
investment
‐
‐
‐
‐
‐
‐
7
7
‐
7
Transfer of net loss on cash flow
hedges
‐
‐
‐
‐
29
29
‐
29
‐
29
Transfer of net actuarial gain on defined
benefit plans
‐
‐
‐
‐
(17)
(17)
17
‐
‐
‐
BALANCE – DECEMBER 31, 2024
491,025,446
13,748
68
(537)
22
(515)
11,106
24,407
35
24,442
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Balance Sheets
December 31
December 31
As at (millions of US dollars)
Note
2024
2023
ASSETS
Current assets
Cash and cash equivalents
853
941
Receivables
6, 7, 10
5,390
5,398
Inventories
6,148
6,336
Prepaid expenses and other current
assets
1,401
1,495
13,792
14,170
Non-current assets
Property, plant and equipment
3
22,604
22,461
Goodwill
3
12,043
12,114
Intangible assets
3
1,819
2,217
Investments
698
736
Other assets
884
1,051
TOTAL ASSETS
51,840
52,749
LIABILITIES
Current liabilities
Short-term debt
7
1,534
1,815
Current portion of long-term debt
8
1,037
512
Current portion of lease liabilities
356
327
Payables and accrued charges
6
9,118
9,467
12,045
12,121
Non-current liabilities
Long-term debt
8
8,881
8,913
Lease liabilities
999
999
Deferred income tax liabilities
3,539
3,574
Pension and other post-retirement benefit
liabilities
227
252
Asset retirement obligations and accrued
environmental costs
1,543
1,489
Other non-current liabilities
164
200
TOTAL LIABILITIES
27,398
27,548
SHAREHOLDERS’ EQUITY
Share capital
9
13,748
13,838
Contributed surplus
68
83
Accumulated other comprehensive loss
(515)
(296)
Retained earnings
11,106
11,531
Equity holders of Nutrien
24,407
25,156
Non-controlling interest
35
45
TOTAL SHAREHOLDERS’ EQUITY
24,442
25,201
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
51,840
52,749
(See Notes to the Condensed Consolidated
Financial Statements)
Notes to the Condensed Consolidated Financial Statements
As at and for the Three and Twelve Months Ended December 31,
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. We operate a world-class network of
production, distribution and ag retail facilities that positions us
to efficiently serve the needs of farmers.
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.
In management’s opinion, the interim financial statements
include all adjustments necessary to fairly present such
information in all material respects. Interim results are not
necessarily indicative of the results expected for any other
interim period or the fiscal year.
These interim financial statements were authorized by the Audit
Committee of the Board of Directors for issue on February 19,
2025.
Note 2 Segment information
We have four reportable operating segments: Nutrien Ag Solutions
(“Retail”), Potash, Nitrogen and Phosphate. Our downstream Retail
segment distributes crop nutrients, crop protection products, seed
and merchandise, and provides agronomic application services and
solutions, including the services offered through Nutrien
Financial. Retail also manufactures and distributes proprietary
products and provides services directly to farmers through a
network of retail locations in North America, South America and
Australia. Our upstream Potash, Nitrogen and Phosphate segments are
differentiated by the chemical nutrient contained in the products
that each segment produces and are supported by midstream
activities, which include the global sales, freight, transportation
and distribution of our products, which are reported within these
segments, respectively. Potash freight, transportation and
distribution costs only apply to our North American potash sales
volumes. Sales reported under our Corporate and Others segment
relates to our non-core business. EBITDA presented in the
succeeding tables is calculated as net earnings (loss) before
finance costs, income taxes, and depreciation and amortization.
Downstream
Upstream and Midstream
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Assets – as at December 31, 2024
22,149
13,792
11,603
2,453
2,571
(728)
51,840
Assets – as at December 31, 2023
23,056
13,571
11,466
2,438
2,818
(600)
52,749
Three Months Ended December
31, 2024
Downstream
Upstream and Midstream
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
3,179
522
953
403
22
‐
5,079
– intersegment
‐
65
223
68
‐
(356)
‐
Sales
– total
3,179
587
1,176
471
22
(356)
5,079
Freight, transportation and
distribution
‐
51
163
57
‐
(56)
215
Net sales
3,179
536
1,013
414
22
(300)
4,864
Cost of goods sold
2,193
309
700
394
9
(322)
3,283
Gross margin
986
227
313
20
13
22
1,581
Selling expenses (recovery)
808
1
3
1
7
(7)
813
General and administrative
expenses
37
2
8
3
126
‐
176
Provincial mining taxes
‐
45
‐
‐
‐
‐
45
Share-based compensation
expense
‐
‐
‐
‐
20
‐
20
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
1
‐
1
Other (income) expenses
(8)
22
1
7
105
2
129
Earnings (loss) before finance costs and
income taxes
149
157
301
9
(246)
27
397
Depreciation and amortization
191
134
170
77
18
‐
590
EBITDA
340
291
471
86
(228)
27
987
Restructuring costs
‐
‐
‐
‐
47
‐
47
Share-based compensation expense
‐
‐
‐
‐
20
‐
20
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
1
‐
1
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
(1)
‐
(1)
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
1
‐
1
Adjusted EBITDA
340
291
471
86
(160)
27
1,055
Three Months Ended December
31, 2023
Downstream
Upstream and Midstream
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
3,504
734
895
531
‐
‐
5,664
– intersegment
(2)
129
223
84
‐
(434)
‐
Sales
– total
3,502
863
1,118
615
‐
(434)
5,664
Freight, transportation and
distribution
‐
87
162
82
‐
(71)
260
Net sales
3,502
776
956
533
‐
(363)
5,404
Cost of goods sold
2,513
349
671
463
‐
(360)
3,636
Gross margin
989
427
285
70
‐
(3)
1,768
Selling expenses (recovery)
841
3
4
1
7
(7)
849
General and administrative expenses
55
3
10
1
104
‐
173
Provincial mining taxes
‐
79
‐
‐
‐
‐
79
Share-based compensation recovery
‐
‐
‐
‐
(7)
‐
(7)
Impairment of assets
‐
‐
76
‐
‐
‐
76
Foreign exchange gain, net of related
derivatives
‐
‐
‐
‐
(14)
‐
(14)
Other expenses (income)
77
(3)
26
19
175
25
319
Earnings (loss) before finance costs and
income taxes
16
345
169
49
(265)
(21)
293
Depreciation and amortization
201
118
146
81
19
‐
565
EBITDA
217
463
315
130
(246)
(21)
858
Restructuring costs
12
‐
‐
‐
8
‐
20
Share-based compensation recovery
‐
‐
‐
‐
(7)
‐
(7)
Impairment of assets
‐
‐
76
‐
‐
‐
76
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
142
‐
142
Foreign exchange gain, net of related
derivatives
‐
‐
‐
‐
(14)
‐
(14)
Adjusted EBITDA
229
463
391
130
(117)
(21)
1,075
Twelve Months Ended December
31, 2024
Downstream
Upstream and Midstream
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
17,832
3,008
3,500
1,610
22
‐
25,972
– intersegment
‐
370
807
278
‐
(1,455)
‐
Sales
– total
17,832
3,378
4,307
1,888
22
(1,455)
25,972
Freight, transportation and
distribution
‐
389
562
231
‐
(226)
956
Net sales
17,832
2,989
3,745
1,657
22
(1,229)
25,016
Cost of goods sold
13,211
1,448
2,535
1,510
9
(1,227)
17,486
Gross margin
4,621
1,541
1,210
147
13
(2)
7,530
Selling expenses (recovery)
3,418
10
26
6
‐
(25)
3,435
General and administrative expenses
191
12
24
14
403
‐
644
Provincial mining taxes
‐
255
‐
‐
‐
‐
255
Share-based compensation expense
‐
‐
‐
‐
37
‐
37
Impairment of assets
335
‐
195
‐
‐
‐
530
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
360
‐
360
Other expenses (income)
87
25
(135)
33
379
24
413
Earnings (loss) before finance costs and
income taxes
590
1,239
1,100
94
(1,166)
(1)
1,856
Depreciation and amortization
771
609
589
290
80
‐
2,339
EBITDA
1,361
1,848
1,689
384
(1,086)
(1)
4,195
Restructuring costs
‐
‐
‐
‐
47
‐
47
Share-based compensation expense
‐
‐
‐
‐
37
‐
37
Impairment of assets
335
‐
195
‐
‐
‐
530
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
35
‐
35
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
151
‐
151
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
360
‐
360
Adjusted EBITDA
1,696
1,848
1,884
384
(456)
(1)
5,355
Twelve Months Ended December
31, 2023
Downstream
Upstream and Midstream
Corporate
(millions of US dollars)
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
19,542
3,735
3,804
1,975
‐
‐
29,056
– intersegment
‐
431
931
288
‐
(1,650)
‐
Sales
– total
19,542
4,166
4,735
2,263
‐
(1,650)
29,056
Freight, transportation and
distribution
‐
407
528
270
‐
(231)
974
Net sales
19,542
3,759
4,207
1,993
‐
(1,419)
28,082
Cost of goods sold
15,112
1,396
2,828
1,760
‐
(1,488)
19,608
Gross margin
4,430
2,363
1,379
233
‐
69
8,474
Selling expenses (recovery)
3,375
12
27
6
‐
(23)
3,397
General and administrative expenses
217
13
21
11
364
‐
626
Provincial mining taxes
‐
398
‐
‐
‐
‐
398
Share-based compensation recovery
‐
‐
‐
‐
(14)
‐
(14)
Impairment of assets
465
‐
76
233
‐
‐
774
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
91
‐
91
Other expenses (income)
158
(1)
(27)
40
257
30
457
Earnings (loss) before finance costs and
income taxes
215
1,941
1,282
(57)
(698)
62
2,745
Depreciation and amortization
759
463
572
294
81
‐
2,169
EBITDA
974
2,404
1,854
237
(617)
62
4,914
Restructuring costs
20
‐
‐
‐
29
‐
49
Share-based compensation recovery
‐
‐
‐
‐
(14)
‐
(14)
Impairment of assets
465
‐
76
233
‐
‐
774
Loss related to financial instruments in
Argentina
‐
‐
‐
‐
92
‐
92
ARO/ERL related expense for non-operating
sites
‐
‐
‐
‐
152
‐
152
Foreign exchange loss, net of related
derivatives
‐
‐
‐
‐
91
‐
91
Adjusted EBITDA
1,459
2,404
1,930
470
(267)
62
6,058
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars)
2024
2023
2024
2023
Retail sales by product line
Crop nutrients
1,528
1,808
7,211
8,379
Crop protection products
948
960
6,313
6,750
Seed
184
202
2,235
2,295
Services and other
228
236
918
927
Merchandise
230
251
897
1,001
Nutrien Financial
77
70
361
322
Nutrien Financial elimination 1
(16)
(25)
(103)
(132)
3,179
3,502
17,832
19,542
Potash sales by geography
Manufactured product
North America
245
459
1,719
2,090
Offshore 2
342
404
1,658
2,076
Other potash and purchased products
‐
‐
1
‐
587
863
3,378
4,166
Nitrogen sales by product line
Manufactured product
Ammonia
376
339
1,232
1,337
Urea and ESN®
395
346
1,480
1,624
Solutions, nitrates and sulfates
339
345
1,300
1,367
Other nitrogen and purchased products
66
88
295
407
1,176
1,118
4,307
4,735
Phosphate sales by product line
Manufactured product
Fertilizer
309
378
1,237
1,264
Industrial and feed
157
168
627
703
Other phosphate and purchased products
5
69
24
296
471
615
1,888
2,263
1 Represents elimination of the interest
and service fees charged by Nutrien Financial to Retail
branches.
2 Relates to Canpotex Limited ("Canpotex")
(see Note 10) and includes provisional pricing adjustments for the
three months ended December 31, 2024 of $(3) million (2023 – $(40)
million) and the twelve months ended December 31, 2024 of $4
million (2023 – $(394) million).
Note 3 Impairment of assets
We recorded the following non-cash impairment of assets in the
condensed consolidated statements of earnings:
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars)
2024
2023
2024
2023
Segment
Category
Retail
Intangible assets
‐
‐
200
43
Property, plant and equipment
‐
‐
120
‐
Other
‐
‐
15
‐
Goodwill
‐
‐
‐
422
Nitrogen
Property, plant and equipment
‐
76
195
76
Phosphate
Property, plant and equipment
‐
‐
‐
233
Impairment of assets
‐
76
530
774
Retail – Brazil
During the three months ended 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.
We used the fair value less cost to dispose (“FVLCD”)
methodology (Level 3) based on a market approach using the sales
comparison method to assess the recoverable value of the Retail –
Brazil CGU at June 30, 2024. This is a change from the methodology
used in 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). In 2024, we incorporated assumptions
that an independent market participant would apply.
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
‐
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.
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 was $nil.
Goodwill Impairment Testing
As at December 31 (millions of US
dollars)
2024
2023
Goodwill by CGU or Group of
CGUs
Retail – North America
6,961
6,981
Retail – Australia
539
590
Potash
154
154
Nitrogen
4,389
4,389
12,043
12,114
During the three and twelve months ended December 31, 2024, we
performed our annual impairment test on goodwill and did not
identify any impairment.
In testing for impairment of goodwill, we calculate the
recoverable amount for a CGU or groups of CGUs containing goodwill.
We used the FVLCD methodology based on after-tax discounted cash
flows (five-year projections plus a terminal value) and
incorporated assumptions an independent market participant would
apply. We adjusted discount rates for each CGU or group of CGUs for
the risk associated with achieving our forecasts and for the
country risk premium in which we expect to generate cash flows.
FVLCD is a Level 3 measurement. We use our market capitalization
(where applicable) and comparative market multiples to ensure
discounted cash flow results are reasonable.
The key assumptions with the greatest influence on the
calculation of the recoverable amounts are the discount rates,
terminal growth rates and forecasted EBITDA. The key forecast
assumptions were based on historical data and our estimates of
future results from internal sources considering industry and
market information.
During our performance of our annual impairment test, the Retail
– North America group of CGUs recoverable amount exceeded its
carrying amount by $2.8 billion. Goodwill is more susceptible to
impairment risk if there is an increase in the discount rate or a
deterioration in business operating results or economic conditions
and actual results do not meet our forecasts. A reduction in the
terminal growth rate, an increase in the discount rate or a
decrease in forecasted EBITDA could cause impairment in the future
as shown in the table below.
Key Assumption
Change Required for Carrying
Amount
2024 Annual Impairment Testing
Used in Impairment
Model
to Equal Recoverable
Amount
Terminal growth rate (%)
2.5
1.4
Percentage point decrease
Discount rate 1 (%)
7.3
1.1
Percentage point increase
Forecasted EBITDA over forecast period ($
millions)
8,300
11.1
Percent decrease
1 The discount rate used in the previous
measurement at October 1, 2023 was 8.6 percent. At December 31,
2024, the discount rate was 8.0 percent.
The following table indicates the key assumptions used in
testing the remaining groups of CGUs:
Terminal Growth Rate
(%)
Discount Rate (%)
2024
2023
2024
2023
Retail – Australia
2.6
2.1
7.9
9.0
Potash
2.5
2.5
6.3
7.6
Nitrogen
2.3
2.3
7.6
8.3
Note 4 Other expenses (income)
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars)
2024
2023
2024
2023
Restructuring costs
47
20
47
49
Earnings of equity-accounted investees
(23)
(1)
(130)
(101)
Bad debt expense
23
4
117
55
Project feasibility costs
26
39
92
92
Customer prepayment costs
12
12
58
55
Legal expenses
15
16
47
34
Consulting expenses
3
3
10
21
Insurance recoveries
(3)
‐
(65)
‐
Loss on natural gas derivatives not
designated as hedge
1
‐
8
‐
Loss related to financial instruments in
Argentina
1
‐
35
92
ARO/ERL related (income) expenses for
non-operating sites 1
(1)
142
151
152
Gain on amendments to other
post-retirement pension plans
‐
‐
‐
(80)
Other expenses
28
84
43
88
129
319
413
457
1 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
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars, except as
otherwise noted)
2024
2023
2024
2023
Actual effective tax rate on earnings
(%)
33
39
40
33
Actual effective tax rate including
discrete items (%)
42
(120)
38
34
Discrete tax adjustments that impacted the
tax rate
18
(127)
(13)
28
Note 6 Financial instruments
Foreign Currency Derivatives
Three Months Ended
Twelve Months Ended
December 31
December 31
(millions of US dollars)
2024
2023
2024
2023
Foreign exchange (gain) loss
(13)
(22)
14
(10)
Hyperinflationary loss
12
36
97
114
Loss (gain) on foreign currency
derivatives at fair value through profit or loss
2
(28)
249
(13)
Foreign exchange loss (gain), net of
related derivatives
1
(14)
360
91
For the twelve months ended December 31, 2024, the losses on our
foreign currency derivatives were primarily related to Brazil which
matured in July 2024. As of December 31, 2024, outstanding
derivative contracts were related to our ongoing risk management
strategy. The fair value of our net foreign exchange currency
derivative (liabilities) assets as at December 31, 2024 was $(13)
million (December 31, 2023 – $11 million).
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 2023 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 fair value of our natural gas derivative assets
(liabilities) as at December 31, 2024 was $1 million (December 31,
2023 - $(5) million).
Our financial instruments carrying amount are a reasonable
approximation of their fair values, except for our long-term debt,
including current portion, that has a carrying value of $9,918
million and fair value of $9,317 million as at December 31, 2024.
There were no transfers between levels for financial instruments
measured at fair value on a recurring basis.
Note 7 Short-term debt
In 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 December 31, 2024, there
were no borrowings outstanding under this facility.
In 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
(millions of US dollars, except as
otherwise noted)
Rate of interest (%)
Maturity
Amount
Senior notes repaid in 2024
5.9
November 7, 2024
500
Senior notes issued in 2024
5.2
June 21, 2027
400
Senior notes issued in 2024
5.4
June 21, 2034
600
1,000
The notes issued in the twelve months ended December 31, 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
Twelve Months Ended
December 31
December 31
(millions of US dollars, except as
otherwise noted)
2024
2023
2024
2023
Number of common shares repurchased for
cancellation
2,905,718
‐
3,944,903
13,378,189
Average price per share (US dollars)
47.02
‐
47.31
74.73
Total cost, inclusive of tax
139
‐
190
1,000
As of February 18, 2025, an additional 1,887,537 common shares
were repurchased for cancellation at a cost of $96 million and an
average price per share of $50.82.
On February 19, 2025, our Board of Directors approved a share
repurchase program for up to five percent of our outstanding common
shares. The 2025 normal course issuer bid, which is subject to the
acceptance by the Toronto Stock Exchange, will expire after a
one-year period, if we acquire the maximum number of common shares
allowable or otherwise decide not to make any further
repurchases.
Dividends Declared
We declared a dividend per share of $0.54 (2023 – $0.53) during
the three months ended December 31, 2024, payable on January 17,
2025 to shareholders of record on December 31, 2024.
On February 19, 2025, our Board of Directors declared and
increased our quarterly dividend to $0.545 per share payable on
April 10, 2025, to shareholders of record on March 31, 2025. The
total estimated dividend to be paid is $265 million.
Note 10 Related party transactions
We sell potash outside Canada and the US exclusively through
Canpotex. Our total revenue is recognized at the amount received
from Canpotex representing proceeds from their sale of potash, less
net costs of Canpotex. The receivable outstanding from Canpotex
arose from sale transactions described above. It is unsecured and
bears no interest. Any credit losses held against this receivable
are expected to be negligible. Canpotex sells potash to buyers,
including Nutrien, in export markets pursuant to term and spot
contracts at agreed-upon prices. Purchases from Canpotex for the
three months ended December 31, 2024 were $34 million (2023 – $32
million) and the twelve months ended December 31, 2024 were $146
million (2023 – $92 million).
As at (millions of US dollars)
December 31, 2024
December 31, 2023
Receivables from Canpotex
122
162
Payables to Canpotex
66
64
Note 11 Accounting policies, estimates and judgments
IFRS 18, “Presentation and Disclosure in Financial Statements”
(“IFRS 18”), which was issued on April 9, 2024, would supersede IAS
1, “Presentation of Financial Statements” and increase the
comparability of financial statements by enhancing principles on
aggregation and disaggregation. IFRS 18 will be effective January
1, 2027, and will also apply to comparative information. We are
reviewing the standard to determine the potential impact.
Amendments for IFRS 9 and IFRS 7, “Amendments to the
Classification and Measurement of Financial Instruments”, which was
issued on May 30, 2024, will address diversity in practice by
making the requirements more understandable and consistently
applied. These amendments will be effective January 1, 2026, and
will not apply to comparative information. We are reviewing the
standard to determine the potential impact.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250211173070/en/
Jeff Holzman Vice President, Investor Relations (306) 933-8545
Investors@nutrien.com
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