logo
  

K+S Q1 Profit Climbs, Backs FY22 Earnings View; Stock Dips

ks may11 lt

German chemical company K+S Group reported Wednesday significantly higher profit and revenues in its first quarter mainly driven by higher prices, despite weak volumes. Further, the company maintained its fiscal 2022 outlook for strong increase in earnings. However, K+S shares were losing around 6 percent in the morning trading in Germany.

Burkhard Lohr, Chairman of the Board of Executive Directors, said, "We have again translated our continued strong operating performance and favorable market conditions into increased earnings and higher cash flows."

For the full year 2022, K+S Group continues to expect strong increase in adjusted earnings after tax, compared to last year's 525 million euros.

Further, the company now expects EBITDA to be in the range of 2.3 billion euros to 2.6 billion euros, which was raised in mid-April from its previous expectation of 1.6 billion euros to 1.9 billion euros. In 2021, EBITDA was 969 million euros. The new outlook corresponds to more than double the operating earnings compared with the previous year.

The outlook assumes unrestricted production for the rest of the year.

Adjusted free cash flow is now expected to range between 1.0 billion euros and 1.2 billion euros, compared to previously expected 600 million euros to 800 million euros. In 2021, adjusted free cash flow was 93 million euros.

For the first quarter, earnings climbed to 310.9 million euros from last year's 182.2 million euros. Earnings per share grew to 1.62 euros from 0.95 euro last year.

Adjusted Group earnings after tax was 312.7 million euros, compared to 229.3 million euros last year.

EBITDA operating earnings more than quadrupled to 524 million euros from last year's 126 million euros.

Revenues in the first quarter rose 65 percent to 1.2 billion euros from prior year's 733 million euros.

Higher average prices in both customer segments and positive currency effects more than offset lower volumes and increased costs for energy, logistics, and materials.

In the Agriculture customer segment, first-quarter revenues more than doubled to 944 million euros, mainly attributable to significantly higher average selling prices and positive currency effects. Sales volumes fell 11 percent due to occasional logistical shifts and lower inventories at the end of 2021.

Revenues in the Industry+ customer segment edged up 1.5 percent, while sales volumes fell 24.7 percent mainly hurt by weather conditions.

In Germany, K+S shares were trading at 27.84 euros, down 6.07 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Ice Cream maker Ben & Jerry's reportedly filed a lawsuit against parent and British consumer giant Unilever to stop the sale of its Israeli business to a local license-holder Avi Zinger. The company alleged that the decision was made without the approval of its independent board. The judge reportedly denied Ben & Jerry's application for a temporary restraining order against Unilever. J&M Foods is recalling certain Lavender Shortbread Cookies sold through department store chain Target Corp. due to undeclared allergens, the U.S. Food and Drug Administration said. These packages were erroneously packed with Chocolate Chip Cookies and do not disclose the presence of a possible allergen, such as soy or eggs. A multi-state listeria outbreak that has killed one and sickened at least 23 others has been linked to Florida -based Big Olaf Creamery brand ice cream, according to the Centers for Disease Control and Prevention or CDC. The outbreak strain has been reported from 10 states, resulting in 22 hospitalizations. One death has been reported from Illinois.
Follow RTT