Nutrien (NYSE:NTR) earned $576 million, or $1.14 per share, in the first quarter of 2023, compared to $1,385 million, or $2.49 in the previous quarter.

Adjusted profits per share (EPS) were $1.11, excluding one-time items. The bottom line fell short of the $1.54 consensus estimate.

Sales fell 20.2% year on year to $6,107 million in the third quarter. The amount fell short of the Consensus Estimate of $6,672.9 million.

Lower realized selling prices and lower sales volumes in Nutrien’s Retail, Potash, and Phosphate units harmed the company’s earnings. These were countered in part by the lower cost of products sold as a result of decreased natural gas costs and better operating rates at its North American nitrogen plants.

Highlights by Segment

Nutrien Ag Solutions (Retail) sales fell 11% year on year to $3,422 million in the third quarter. Crop fertilizer sales fell as a result of lower selling prices.

Sales in the Potash division fell 46% year on year to $1,002 million due to lower net realized selling prices and sales volumes. Due to just-in-time purchasing, segment sales volumes declined in North America.

Nitrogen sales were $1,179 million, a 22% decrease year over year. Lower net realized selling prices for all major nitrogen products are to blame for the downturn. Sales volume grew somewhat as a result of increasing Urea production in Canadian facilities.

Phosphate category sales were $446 million, a 21% decrease year over year due to decreased production quantities and cautious buying activity.

Financials

Nutrien had $1,473 million in cash and cash equivalents at the end of the quarter, a 63% increase sequentially. Long-term debt was $9,510 million, an increase of around 18%.

As of March 31, 2023, the business had repurchased around 11.8 million shares for a total of approximately $900 million.

Nutrien reduced its full-year 2023 adjusted EBITDA and adjusted net earnings per share expectations to account for lower expected benchmark fertilizer pricing and lower expected natural gas expenses in North America.

For the full year 2023, the business now anticipates adjusted EBITDA of $6.5-$8 billion. Adjusted EPS is expected to range between $5.5 to $7.5.

Potash sales volumes are expected to range between 13.5 million and 14.3 million tons in 2023, according to the business. Nitrogen sales for the year are estimated to range between 10.8 and 11.4 million tons.

Price Efficiency

Nutrien’s stock has dropped 40.9% in the last year, compared to the industry’s 38.4% drop.

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