Nutrien 2024 Investor Day Highlights and Analysis

Index:

1. Nutrien Overview

2. Updates Strategy Efforts

3. Vertical Integrations Benefits to the Business

4. Potash and Phosphate Highlights

5. Retail Highlights

6. New Proprietary Product Effort: Will it work?

Nutrien Overview

Nutrien’s business was down in 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.

On June 12th, Nutrien had their 2024 Investor Day, updating the market on their strategy, new initiatives and outlook towards 2026.

Nutrien Strategy

The Nutrien states the following key pillars:

They have an emphasis on simplification and focus. These strategic priorities are intended to deliver the following results by 2026:

Vertical Integration

I think this is a great visual emphasizing the power and capabilities Nutrien has:

A significant competitive advantage for the upstream aspects of Nutrien’s business are the downstream assets (retail):