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1ST HALF: NUTRIEN'S SALES UP 2%. REPORTS A LOSS
Source: Nutrien news release

SASKATOON, Saskatchewan--Nutrien Ltd. (TSX and NYSE: NTR) announced today its 2020 second-quarter results, with net earnings of $765 million($1.34 diluted earnings per share). Second-quarter adjusted net earnings were $1.45 per share and adjusted EBITDA was $1.72 billion. Adjusted net earnings per share and adjusted EBITDA, together with the related guidance, free cash flow including changes in non-cash operating working capital and cash cost of product manufactured are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.

"Nutrien delivered compelling second-quarter and first-half results supported by strong growth in our Retail Ag Solutions earnings and excellent operational performance across our Potash and Nitrogen business units. Nutrien's many competitive advantages were apparent this quarter, including the quality of our assets and impressive free cash flow generation, even at the bottom of the commodity cycle. Our digital platform continues to exceed expectations. We now expect to reach $1 billion in online orders by the end of the year and are introducing new data-driven offerings to help farmers make quicker and more informed decisions for their business," commented Chuck Magro, Nutrien's President and CEO.

Highlights:

*Nutrien generated $1.6 billion in free cash flow, including improvement to our non-cash operating working capital in the second quarter. The Board of Directors approved the quarterly dividend at $0.45 per share, maintaining our annualized payout at $1.80 per share which is well within our targeted range.

*Retail Ag Solutions delivered record EBITDA in the second quarter and the first half of 2020. First-half EBITDA was up 20 percent year-over-year as a result of double-digit growth in revenue and gross margin, and EBITDA margins surpassing 10 percent. We continue to expand in the market, backed by our organic growth strategy which includes growing our proprietary product sales, as well as through accretive investments made over the past year.

*Total sales through our leading digital retail platform exceeded $700 million in the first half of 2020, surpassing our annual goal of $500 million in just the first six months of the year. Second quarter online sales accounted for 45 percent of North American sales of products that were available for purchase online.

*Potash EBITDA was down 39 percent in the second quarter and first half of 2020 compared to the same periods last year as strong sales volumes and lower cost of goods sold per tonne were more than offset by lower net realized selling prices. Potash cash cost of product manufactured was a record low $52 per tonne in the second quarter of 2020.

*Nitrogen EBITDA was 16 percent lower in the first half and 17 percent lower in the second quarter of 2020 compared to the same periods last year due to lower net realized selling prices. However, we achieved higher sales volumes and lower cost of goods sold per tonne compared to the first half of last year and our ammonia utilization reached a record high of 97 percent in the second quarter of 2020.

*Nutrien issued an aggregate of $1.5 billion in senior notes in the quarter with average coupon rates below 3 percent.

*Nutrien acquired Tec Agro Group, a leading Ag retailer in Goiás, Brazil. Our Brazil operations now include 30 retail locations, two large-scale fertilizer blenders, a premier soybean seed business and specialty nutrition and plant health production facilities. With the addition of Tec Agro Group, our Brazilian operations are expected to generate over half a billion dollars in revenue on a normalized annual run-rate basis.

*Nutrien released its 2020 Environmental, Social and Governance (ESG) report in April and has since achieved significantly higher ratings by third party ESG organizations.

*Nutrien's full-year 2020 adjusted net earnings per share and adjusted EBITDA guidance is $1.50 to $1.90 per share and $3.5 billion to $3.8 billion, respectively. The top end of the guidance range was lowered due to lower ammonia and UAN prices.

To read the entire report click here.


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