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HomePosts Tagged "Financial results for Q3 FY2024"
Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Finance, World

FMC Corporation confirms full-year outlook adjusted for expected sale of GSS business

FMC Corporation reported third quarter 2024 revenue of $1.07 billion, an increase of 9 percent versus third quarter 2023 and up 12 per cent organically. On a GAAP basis, the company reported net income of $0.52 per diluted share in the third quarter, up from a net loss of $0.03 per diluted share in the third quarter 2023 driven by higher sales and lower costs from restructuring actions as well as a lower effective tax provision. Adjusted earnings were $0.69 per diluted share, an increase of 57 per cent versus third quarter of 2023.

Third Quarter Adjusted EPS versus Prior-Year Quarter
Adjusted EBITDA+25 cents
Interest Expense+4 cents
Depreciation & Amortization+2 cents
Minority Interest-1 cent
Taxes+3 cents
Rounding-1 cent
“We delivered revenue and earnings growth as market conditions improved although at varying rates across the regions,” said Pierre Brondeau, FMC chairman and chief executive officer. “Strong volume growth in Latin America and North America more than offset lower pricing, particularly in Brazil and Argentina which accounted for two-thirds of the total company price decline. Despite suboptimal market conditions, we saw increased demand for new products, specifically fluindapyr-based fungicide products, which confirms the strength of FMC’s innovation pipeline.”

Revenue growth in the quarter of 9 per cent was driven by a 17 per cent increase in volume, with some North America second half orders occurring earlier than expected due to improved channel inventory levels. Price was lower by 5 per cent, driven primarily by Latin America due to challenging market conditions in Brazil and Argentina including delayed rains and elevated channel inventory. In addition, the bankruptcy of a large customer led FMC to offer additional incentives to replace lost volumes and maintain market share. Sales in Asia declined 10 per cent (down 12 per cent organically) due to volume declines, mainly in India, as well as lower pricing. In Latin America, revenue improved 8 per cent year-over-year (up 15 per cent organically).
FMC RevenueQ3 2024
Total Revenue Change (GAAP)9%
Less FX Impact(3)%
Organic1 Revenue Change (Non-GAAP)12%

Third quarter adjusted EBITDA was $201 million, an increase of 15 per cent versus the prior-year period and above the top-end of our guidance range. Higher sales volume, FX tailwinds and above-target restructuring benefits more than offset lower pricing and the recognition of unabsorbed fixed costs from lower manufacturing activity in prior periods.

Full-Year 2024 Outlook
The company is confirming its full-year 2024 outlook for sales and EBITDA and updating its outlook for adjusted EPS. The midpoints for sales and EBITDA are adjusted for the imminent sale of the GSS business, which is expected to close in early November. Full-year revenue guidance has tightened to be in the range of $4.33 billion to $4.44 billion, representing a 2 per cent decrease at the midpoint versus 2023. Mid-single digit volume growth is expected to be more than offset by price and, to a lesser extent, FX headwinds. Full-year adjusted EBITDA range has been narrowed and is expected to be $885 million to $915 million, an 8 percent decline at the midpoint versus prior year. The range for 2024 adjusted earnings per share is updated to be $3.16 to $3.52 per diluted share, representing a decrease of 12 percent year-over-year. The tax rate range is narrowed to 13 to 15 percent, a 150 bps reduction versus prior guidance at the midpoint. The company is maintaining its full-year free cash flow guidance range of $400 million to $500 million.

Fourth Quarter Outlook

The fourth quarter outlook has been adjusted to reflect the imminent sale of the GSS business ($20 million loss in revenue and $10 million loss in EBITDA) and outperformance in Q3. Fourth quarter revenue is now expected to be in the range of $1.30 billion to $1.41 billion, a 19 per cent increase at the midpoint compared to fourth quarter 2023. Adjusted EBITDA is forecasted to be in the range of $321 million to $351 million, representing a 32 per cent increase at the midpoint versus fourth quarter 2023. FMC now expects adjusted earnings per diluted share to be in the range of $1.47 to $1.83 in the fourth quarter, which represents an improvement of 54 per cent at the midpoint versus fourth quarter 2023.

FMC Corporation confirms full-year outlook adjusted for

Agro chems – Chemicals, Company News, Finance, World

Company’s revenue from Europe declined by 30 per cent YoY, followed by Latin America (down 28 per cent YoY) and India (down 20 per cent YoY).

The agrochemical major UPL Ltd has reported a consolidated net loss of Rs 1,217 crore in Q3 FY24 as against a net profit of Rs 1,087 crore recorded in Q3 FY23. Company’s revenue from operations declined 27.72 per cent YoY to Rs 9,887 crore in the quarter ended 31 December 2023. Loss before exceptional items and tax was at Rs 1,649 crore as against profit before exceptional items of Rs 1,515 crore reported in the same quarter a year ago.

Revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates, company mentioned. UPL’s income from North American tumbled 64 per cent YoY, revenue from Europe declined by 30 per cent YoY, followed by Latin America (down 28 per cent YoY) and India (down 20 per cent YoY) and rest of the world shed by 12 per cent YoY during the period under review.

UPL said that the revenue and EBITDA for Q3 continued to be impacted by global channel destocking and ongoing pricing pressure in post patent space exacerbated by higher rebates.

During the quarter, contribution profit jumped 54 per cent YoY to Rs 2,689 crore and contribution margin declined to 42.6 per cent from 42.6 per cent in Q3 FY23. Liquidation of high-cost inventory, and higher rebates to support channel partners, impacted contribution margin, as per the statement.

The company’s revenue from crop protection was at Rs 8,495 crore (down 30.68 per cent YoY) and non -agro came in at Rs 520 crore (down 9.25 per cent YoY). However, income from seeds business was at Rs 931 crore (up 2.08 per cent YoY)

Mike Frank, CEO, UPL Corporation, said, “Destocking continued to weigh down the global agrochemical market. Overall, prices remained stable QoQ in the crop protection business but came off significantly as against with the high base of previous year amid intense post patent price competition.

However, we did see a pick-up in volumes in Latin America, and a double-digit growth in revenue in the RoW region. Our high margin differentiated and sustainable portfolio continued to outperform as revenue 2 share of this portfolio increased to 37% of crop protection revenue (ex-India) vs 28 per cent last year. Contribution margins too were down only marginally versus last year adjusted for the short-term impact of high-cost inventory liquidation and higher rebates to channel partners.

We continued to implement cost optimization initiatives to align our operations with the new reality, reducing SG&A expenses by 19 per cent YoY in Q3. We are well on track to reduce our SG&A by $100 million in FY25 (from the base of FY23). Going forward, while we are optimistic of a progressively improved performance in Q4FY24 and Q1FY25, we expect normalized business performance from Q2FY25. Our foremost priority is reducing debt. In-line with this, we have also recently announced a rights issue of upto $500 million and are exploring capital raise opportunities at platforms in addition to operational cash flows.”

Company’s revenue from Europe declined by 30

Agribusiness, Agro chems – Chemicals, Company News, Finance, India

The company has reported total income of Rs. 644.6238 crores during the period ended December 31, 2023, as compared to Rs.1020.0410 crores during the period ended December 31, 2022.

Agrochemical major, Sharda Cropchem Limited has reported Consolidated financial results for the period ended December 31, 2023.The company has posted total income of Rs. 644.6238 crores during the period ended December 31, 2023 as compared to Rs. 604.3484 crores during the period ended September 30, 2023.

The company has reported net profit / (loss) of Rs. 4.6380 crores for the period ended December 31, 2023 as against net profit / (loss) of Rs 27.5812 crores for the period ended September 30, 2023.

The company has reported total income of Rs. 644.6238 crores during the period ended December 31, 2023 as compared to Rs.1020.0410 crores during the period ended December 31, 2022.

The company has posted net profit / (loss) of Rs.4.6380 crores for the period ended December 31, 2023 as against net profit / (loss) of Rs 108.3925 crores for the period ended December 31, 2022.

The company has reported total income of Rs.1912.7410 crores during the 9 Months period ended December 31, 2023 as compared to Rs.2596.5702 crores during the 9 Months period ended December 31, 2022.

The company has posted net profit / (loss) of Rs 111.5831 crores for the 9 Months period ended December 31, 2023 as against net profit / (loss) of Rs.143.1246 crores for the 9 Months period ended December 31, 2022.

The company has reported EPS of Rs. 0.51 for the period ended December 31, 2023, as compared to Rs. -3.06 for the period ended September 30, 2023.

The company has reported total income of