- Special fertilisers continue to supply R & D
K+S Corporation continues to benefit from the business of specialty fertilizers, particularly in Europe, which achieve higher prices than standard products in the key market of Brazil. In the second quarter, the company based in Hesse was able to increase sales volumes in both its agricultural and industrial businesses. This offset lower average prices. Overall, sales performed better and earnings were roughly in line with analysts' expectations, according to the company's figures. CEO Burkhard Lohr slightly narrowed the outlook for earnings in 2024.
The MDax company increased its revenue in the three months to the end of June by almost 6 percent year-on-year to 874 million euros. The agricultural business contributed 616 million euros, while the industrial segment contributed 258 million euros. While profits in the industrial business fell, the company spoke of a noticeable recovery in demand, which drove up sales volumes.
Operating profit (Ebitda) of 128 million euros remained from the company's revenue, a multiple of the previous year's figure. The adjusted net result reached 6.5 million euros, compared to a loss of almost 55 million euros a year ago. At that time, the company was particularly affected by low potassium prices and the impact of a labor dispute in Canada, where K+S had only recently built the Bethune plant.
For the full year, Lohr now expects an Ebitda of between 530 and 620 million euros; the midpoint remains the same as the previous target of 500 to 650 million euros. This is based on the assumption of a largely stable potassium price for the rest of the year, which Lohr sees confirmed by recent potassium supply contracts of major competitors with important customer countries, especially China. The rest of the industry also orients itself on these prices, also with a view to other regions of the world.
The strong demand in various regions, including key market Brazil, contributed to the increase in sales volumes in K+S Corporation's agricultural business. Despite higher prices for specialty fertilizers in Brazil, the company continues to focus on its European operations, where it derives significant benefits.
