Mosaic Announces April and May 2024 Revenue and Sales Volumes
Mosaic Company (NYSE:MOS) released its combined revenue and sales volumes for April and May 2024. Potash sales volumes decreased to 1,314,000 tonnes from 1,617,000 tonnes in 2023, with revenues dropping to $371 million from $672 million. Phosphates sales volumes were 932,000 tonnes, down from 1,329,000 tonnes, with corresponding revenue falling to $671 million from $948 million. Mosaic Fertilizantes sales volumes slightly declined to 1,237,000 tonnes from 1,305,000 tonnes, while revenue decreased to $606 million from $791 million. The company reiterated its Q2 2024 guidance, projecting Potash sales volumes at 2.2-2.4 million tonnes and prices at $210-$250 per tonne. Phosphates sales volumes are expected to be 1.6-1.8 million tonnes, with prices at $530-$580 per tonne.
- Reiteration of Q2 2024 guidance for both Potash and Phosphates.
- Potash sales volumes decreased from 1,617,000 tonnes to 1,314,000 tonnes.
- Potash revenue dropped from $672 million to $371 million.
- Phosphates sales volumes fell from 1,329,000 tonnes to 932,000 tonnes.
- Phosphates revenue decreased from $948 million to $671 million.
- Mosaic Fertilizantes sales volumes slightly declined from 1,305,000 tonnes to 1,237,000 tonnes.
- Mosaic Fertilizantes revenue fell from $791 million to $606 million.
Insights
Potash experienced a drop in sales volumes from 1,617,000 tonnes to 1,314,000 tonnes and revenues dipped from
These declines are significant and could be driven by various factors including lower global demand, pricing pressure, or increased competition. Investors should be aware that these results could adversely affect the company's stock price in the short term. However, Mosaic has reiterated its second-quarter guidance, indicating management's confidence in stabilizing or potentially improving conditions moving forward. The key metric to watch will be whether the company can meet its projected sales volumes and pricing targets for potash (2.2-2.4 million tonnes at $210-$250 per tonne) and phosphates (1.6-1.8 million tonnes at $530-$580 per tonne). If these targets are met or exceeded, it may suggest that the downturn in April and May was temporary.
In the broader context, fluctuations in commodity prices and agricultural demand typically impact fertilizer companies significantly. Investors should keep an eye on global economic trends, crop production data and any geopolitical factors that might influence agricultural markets.
Overall, this news highlights short-term challenges but does not necessarily undermine the company's longer-term prospects if management's guidance proves accurate. Given this mixed scenario, a cautious outlook is advised.
Mosaic's ability to reiterate its prior guidance for the second quarter indicates that while the company faced a tough April and May, it expects conditions to improve or stabilize as we move through the quarter. The guidance range for potash and phosphate sales volumes and prices helps set investor expectations and provides a benchmark to gauge the company's performance.
Investors should also consider the strategic importance of Mosaic Fertilizantes, the segment focused on the Latin American market where agricultural activity has its unique dynamics and challenges. Despite a drop in both volumes and revenues, this segment remains critical for Mosaic's growth strategy.
It's essential to monitor not just the company's internal operations but also external factors like global commodity prices, trade tariffs and agricultural policies which can significantly influence market conditions for fertilizers.
In summary, this revenue announcement reflects short-term challenges but also a potential for recovery as implied by the company’s reiterated guidance. Investors should stay informed about broader industry trends and closely track Mosaic's performance in meeting its second-quarter targets.
TAMPA, FL / ACCESSWIRE / June 24, 2024 / The Mosaic Company (NYSE:MOS) announced its combined April and May 2024 sales volumes and revenue by business segment.
Potash | Apr/May 2024 | Apr/May 2023 | ||||||
Sales volumes (000 tonnes(1)) | 1,314 | 1,617 | ||||||
Sales revenues (million USD) | $ | 371 | $ | 672 | ||||
Phosphates | Apr/May 2024 | Apr/May 2023 | ||||||
Sales volumes (000 tonnes(1)) | 932 | 1,329 | ||||||
Sales revenues (million USD) | $ | 671 | $ | 948 | ||||
Mosaic Fertilizantes | Apr/May 2024 | Apr/May 2023 | ||||||
Sales Volumes (000 tonnes(1)) | 1,237 | 1,305 | ||||||
Sales Revenues (million USD) | $ | 606 | $ | 791 | ||||
(1)Tonnes = finished product tonnes
Previous second quarter 2024 guidance is reiterated. Potash sales volume and MOP prices at the mine are expected to be in the range 2.2-2.4 million tonnes, and
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphates and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
Mosaic will publish a market update on the company's investor relations website immediately after this press release. Mosaic - Market Education (mosaicco.com)
| The Mosaic Company Contacts | |
| Investors: | Media: |
| Joan Tong, CFA, 863-640-0826 joan.tong@mosaicco.com | Ben Pratt, 813-775-4206 benjamin.pratt@mosaicco.com |
| Jason Tremblay 813-775-4226 jason.tremblay@mosaicco.com |
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa'ad Al Shamal Phosphate Company (also known as MWSPC), the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic's potash mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE: The Mosaic Company
View the original press release on accesswire.com
FAQ
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