Nutrien 2023 Annual Report Highlights and Analysis

Including the Nutrien Global Sustainability Report for 2024

Index:

1. Overview

2. Nutrien Ag Solutions (Retail) Business

3. Retail Strategy - Highlight of the Nutrien Retail Strategy

4. Revenue and Margin Mix by Segment - KPI Chart

5. Proprietary Products Business - Continued Growth and Focus

6. Non Financial Metrics - Sustainability and Context

7. Nutrien Financial - Strategic Leverage Point

8. Potash Business Highlights

9. Nitrogen Business Highlights

10. Other (See and Spray implications on the Business) and Annual Report Stats

11. Final Thoughts

Overview

Nutrien’s business was down for 2023. However, that was to be expected given 2022 was a record year for the company driven in large part by geopolitics.

Nutrien generated net earnings of $1.3 billion and adjusted EBITDA of $6.1 billion in 2023 on $29 billion in total revenue. Revenue was down 23% from the record levels achieved in 2022 and EBITDA was down 50%. Adjusted EBITDA declined primarily due to lower net selling prices across all segments and lower Nutrien Ag Solutions (Retail) earnings.

On a business unit basis potash is the most profitable unit, making $2.4B on $3.8B of revenue:

Nutrien is the largest ag retailer in the world, the largest global potash producer, the 3rd largest nitrogen producer globally and the 2nd largest phosphate producer in North America.

Nutrien’s capital allocation breaks down as such:

Over the last year, the Nutrien stock has declined more than 26%:

Nutrien Ag Solutions (Retail Business)

Revenue for the retail business was $19.5 billion in 2023:

Retail adjusted EBITDA of $1.5 billion in 2023 decreased primarily due to lower gross margin for both crop nutrients and crop protection products, as they sold through higher-cost inventory.

Crop nutrient sales volumes increased as growers got back to normalized application rates.

Strategy

The Nutrien retail strategy has the following key pillars: