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Sunday / June 16. 2024
HomePosts Tagged "Financial results for Q1 FY24"

Asia sales declined 29 per cent (down 28 percent organically), primarily from lower volumes in China due to poor weather.

FMC Corporation reported first quarter 2024 revenue of $918 million, down 32 per cent versus first quarter 2023, and down 31 percent organically. On a GAAP basis, the company reported a loss of $0.02 per diluted share in the first quarter, a decrease of 101 per cent versus first quarter 2023. First quarter adjusted earnings were $0.36 per diluted share, down 80 percent versus first quarter 2023 and $0.04 higher than the midpoint of guidance.

“Free cash flow improved significantly, and we delivered adjusted EBITDA at the high end of our guidance range during the first quarter,” said Mark Douglas, FMC president and chief executive officer. “As expected, sales continued to be impacted by inventory management actions by customers in all regions. Our results benefited from our restructuring actions and the continued resilient sales of our new products, particularly in Latin America.”

First quarter revenue was driven by 27 percent decline in volume due to ongoing channel destocking in all regions.  Price was lower by 4 percent and foreign currency was a headwind of 1 percent.

North America sales declined 48 percent, almost entirely due to volume against a record-breaking prior-year period. Fungicide sales out-performed the portfolio with growth from new products Xyway® and Adastrio® fungicides. In Latin America, revenue declined 20 percent (down 22 percent excluding FX) due to a price decline in the mid-teens as well as lower volumes. Branded diamides and new products both reported higher sales versus prior year, aided by recently launched Premio® Star insecticide and Onsuva® fungicide.

Asia sales declined 29 percent (down 28 percent organically), primarily from lower volumes in China due to poor weather.  Actions to reduce channel inventory in India progressed despite dry conditions that reduced the consumption of crop protection products. Price in the region was down in the high-single digits.  Sales in EMEA declined 20 percent (down 17 percent organically) due to lower volumes including registration removals and rationalization of some lower-margin products.  Price in the region was up by low-single digits.  Plant Health revenue was down 14 percent in the quarter (down 12 percent organically), mainly driven by volume in Europe as customers delayed purchases and managed overall inventory to lower levels.

The company is forecasting full-year 2024 revenue to be in the range of $4.50 billion to $4.70 billion, unchanged since the last guidance and representing an increase of 2.5 percent at the midpoint versus 2023. FMC is maintaining its full year adjusted EBITDA guidance of $900 million to $1.05 billion, flat versus 2023, including the benefit of cost restructuring actions. The 2024 adjusted earnings outlook is unchanged at $3.23 to $4.41 per diluted share, representing a year-over-year increase of 1 percent at the midpoint. The company is maintaining its full-year free cash flow guidance in the range of $400 million to $600 million, representing over $1 billion in year-over-year improvement at the midpoint.

Asia sales declined 29 per cent (down

Total deliveries up 12 per cent with European deliveries up 37 per cent from Q1 FY23.

Yara reported first-quarter EBITDA1 at USD 435 million compared to USD 487 million in first quarter 2023. Net income was USD 16 million (USD 0.07 per share) compared with USD 105 (USD 0.41 per share) a year earlier.

First-quarter 2024 highlights:

  • EBITDA1 down 11 per cent from 1Q23 mainly due to lower prices
  • Total deliveries up 12 per cent with European deliveries up 37 per cent from 1Q23
  • Reduced GHG emission intensity with implementation of key projects
  • Healthy demand growth and limited capacity additions indicate tightening supply-demand balance longer term

“This quarter’s results are down from same quarter last year as increased deliveries are offset by lower prices. Meanwhile, I am pleased to see that our efforts to decarbonize is yielding results. This is crucial to future-proof our business and be able to meet growing demand for low-carbon solutions”, said Svein Tore Holsether, President and Chief Executive Officer.

Despite strong urea supply in 2023, prices are generally demand-driven with positive production margins for even swing producers. With farmer incentives at normal levels and 10-year consumption growth trending at 1.9 per cent per annum, demand fundamentals are supportive for upcoming seasons. While the peak of new capacity additions is now behind us, urea supply is currently strong primarily due to increased production in India and China. However, industry consultant projections show significantly lower supply growth from 2024 onwards. Combined with strong demand fundamentals, this indicates a tightening supply-demand balance longer term.

“Total nitrogen imports to Europe are declining as European production is ramping up. However, Russian urea imports to Europe reached an all-time high last season and currently account for almost one third of total urea imports to the EU. While raw material sanctions and price pressure is taking a double toll on European industry, Russia is gaining market influence. That not only endangers European industry and the green transition, but it also makes European food production more vulnerable,” said Holsether.

The energy transition, climate crisis, and food security remain top priorities globally. With its leading food solutions and ammonia positions, Yara is uniquely positioned to drive these transformations. Yara’s strategy is focused on further strengthening operational resilience and flexibility, and profitable growth in low-carbon solutions. This will support the transformation of the global food system, generate long-term growth opportunities, and drive progress towards Yara’s ambition of growing a nature-positive food future.

Total deliveries up 12 per cent with

Given the current market environment, the Group remained focused on measures to improve operational efficiency and productivity to offset lower volumes and prices.

Syngenta Group today announced financial results for the first quarter of 2024. Sales for the first quarter 2024 were $7.4 billion, down $1.8 billion or 20 percent (-18% at CER), compared to a strong first quarter 2023. First quarter 2024 EBITDA decreased 34 percent (-26% at CER) from prior year to $1.2 billion.

Sales in the first quarter of 2024 continued to be impacted by industry-wide channel destocking in Crop Protection as distributors and retailers further reduced inventories in response to the pressure to lower working capital in the higher interest rate environment.

Given the current market environment, the Group remained focused on measures to improve operational efficiency and productivity to offset lower volumes and prices. EBITDA margin for the Group was 16.7 percent versus 20.2 percent in the first quarter 2023.

Syngenta’s Crop Protection, driver of approximately 40 percent of Syngenta Group’s sales, declined amidst a still challenging crop protection market. ADAMA also recorded a weaker first quarter compared to Q1 2023 in a challenging environment for suppliers of post patent active ingredients, with the business downturn in Asia Pacific (excluding China) and Europe greatly affecting the comparison. Syngenta Seeds overall was 8 percent lower than in the first quarter last year but showed strong growth in Vegetables Seeds, Flowers and in China.

Syngenta Group China saw a sales decline of 18 per cent versus last year’s record first quarter. Its Seeds business maintained its growth and the branded formulation crop protection business showed further growth on the back of recently launched products. The sales decline was partially offset by a better business mix and cost reductions.

Given the current market environment, the Group

Revenue from operations up 73 per cent to Rs 87.85 crore in Q1FY24.

Hester Biosciences Limited, one of India’s leading animal health company, manufacturing vaccines and health products has reported consolidated net profit of Rs 6.71 crore in Q1FY24 ended June 2023 as against net profit of Rs. 3.56 crore in Q1FY23, growth of 88 per cent. Company reported revenue from operations of Rs. 87.85 crore for the Q1FY24, growth of 73 per cent Y-o-Y as compared to revenue of Rs. 50.70 crore in Q1FY23. Operating profit during Q1FY24 ended June 2023 was reported at Rs. 14.36 crore, 93 per cent growth Y-o-Y from Rs 7.43 crore in Q1FY23. EPS for Q1FY24 was reported at Rs. 7.89 per share.

Consolidated results include operations of subsidiaries from Nepal and Tanzania. Hester Nepal had a turnover of Rs. 6.54 Crore primarily from exports of vaccines with overall Net Profit of Rs. 3.67 Crore during Q1 FY24. Hester Africa has registered export sales of Rs.  1.76 Crore.

Animal Healthcare Division

The Animal Healthcare division grew by 93 per cent. The increase in domestic sales of this division is attributed to:

1. A boost in demand for Goat Pox Vaccine (GPV) consequent to the Government advisory to carry out the annual preventive vaccination program for Lumpy Skin Disease (LSD) in cattle as well as towards the sale of PPR vaccine towards the National PPR Immunization program of Government of India.

2.  The continued growth in sales of health products resulting from the earlier investments in expansion of sales force, territorial expansion and new product introductions.

Poultry Healthcare Division

The Poultry Healthcare division experienced de-growth of 13% in sales of Q1. Domestic sales continued to be hit due to by the recession in the poultry industry, though it is now showing an upward trend.

Petcare Division

Petcare division which was launched last year, has registered promising sales of Rs. 0.80 Crore in Q1 FY24. Petcare products have been well received in the market as reflected by a steady upward trend in month-on-month sales.

Revenue from operations up 73 per cent

Segment results of Crop Protection business improved significantly by 224 per cent in Q1 FY24 as compared to the same period last year.

Godrej Agrovet Limited (GAVL) has today announced its financial results for the first quarter ended June 30, 2023. The Company reported consolidated revenues from operations of Rs 2,510.2 crore in Q1 FY24, unchanged from the same period last year. FY24 consolidated EBITDA* increased to Rs 206.8 crore from Rs. 169.3 crore in Q1 FY23, a growth of 22 per cent year-on-year. Q1 FY24 Profit before tax* increased to Rs 124.5 crore from Rs 102.8 crore in Q1 FY23, a growth of 21 per cent year-on-year.

Commenting on the performance, B. S. Yadav, Managing Director, Godrej Agrovet Limited, said, Godrej Agrovet started FY24 with a strong growth in profitability and margin expansion in the first quarter ended June 30, 2023. While our topline growth was flat, we achieved 21 per cent  year-on-year growth to clock Profit before tax of Rs. 124.5 Crore in Q1 FY24. The growth in profitability was driven by the strong performance of domestic Crop Protection, Animal Feed and Poultry businesses.

With robust volume growth and improved realizations in HITWEED (in-house herbicide), domestic Crop Protection business achieved a record quarterly topline and profitability in Q1 FY24. Segment results of Crop Protection business improved significantly by 224 per cent in Q1 FY24 as compared to the same period last year. In Feed business, sustained volume growth in cattle-feed and aqua feed was accompanied by notable recovery in margin profile across categories. Our food businesses-maintained volume growth momentum in branded products and delivered margin expansion. In Poultry, revenues from branded products increased by 15% year-on-year led by higher volumes. Lower live bird costs on account of better operational efficiencies boosted profitability as segment EBITDA grew by 50% year-on-year. Dairy business turned EBITDA positive in Q1 FY24. The higher salience of value-added products coupled with reduction in procurement costs contributed to recovery in margin profile.

Astec LifeSciences and Vegetable Oil businesses were adversely impacted by challenging market conditions. The continued demand-supply imbalance and the resultant decline in volumes as well as realizations of key enterprise products led to a sharp drop in Astec’s profitability. Astec’s contract manufacturing business, however, remained on track and its performance was in line with our expectations. Vegetable Oil business suffered from correction in end-product prices more than offsetting higher volumes.

During the quarter, GAVL commissioned its first downstream project in Vegetable oil business of an edible oil refinery in Andhra Pradesh. The refinery has a capacity of 400 MT per day.

Segment results of Crop Protection business improved