Third quarter results significantly impacted by lower sales in Latin America channel destocking in all regions
FMC Corporation reported a third-quarter 2023 revenue of $982 million, a decrease of 29 per cent versus the third quarter of 2022 and down 29 per cent organically. On a GAAP basis, the company reported a net loss of $0.03 per diluted share in the third quarter, down 103 per cent versus the third quarter of 2022. Adjusted earnings were $0.44 per diluted share, a decrease of 64 per cent versus the third quarter 2022.
“Our results were significantly below the prior year driven by volume headwinds from a continuation of channel destocking behaviour that began in the prior quarter. Destocking was much worse than anticipated in Brazil. Despite this, on-the-ground application remains steady as growers continue to protect their crops,” said Mark Douglas, FMC president and chief executive officer. “Branded diamides and our new products outperformed the overall portfolio, which illustrates robustness for differentiated and higher value products even in challenging environments.”
Revenue in the quarter was driven by a 26 per cent decline in volume. Price increases in North America, EMEA and Asia were more than offset by price decreases in Latin America. FX impacts were neutral to revenue. While overall sales were down 29 per cent, sales of products launched in the last five years were up 4 per cent year-over-year, with growth in all regions.
Sales in all regions declined versus the prior-year period as partners, the distribution channel and growers continued to reduce inventory levels. In North America, revenue was down 34 per cent year-over-year (down 34 per cent organically). EMEA revenue declined 1 per cent (down 4 per cent organically) compared to the third quarter of 2022, as higher pricing and FX tailwinds mostly offset lower volumes. Sales in Asia declined 28 per cent (down 23 per cent organically) as continued destocking across the region negatively impacted volumes. The region reported a 16 per cent growth in products launched in the last five years. In Latin America, revenue was down 33 per cent (down 36 per cent organically) year-over-year driven mainly by lower volumes primarily due to severe destocking in Brazil and, to a lesser extent, drought conditions in Argentina. Globally, Plant Health revenue was down 20 per cent (down 17 per cent organically) versus the prior year driven by similar, but less severe channel destocking dynamics.
