Yara 2021 Integrated Annual Report Highlights and Analysis

Highlights and analysis of Yara International's 2021 Integrated Report

This year the Yara report changed quite significantly. Not only did they integrate the their Sustainability Report into their Annual Report, but they seemed to overly emphasize the sustainability aspects more than some of the specifics of their business.

In the past couple of years it was possible to see how their premium products segment was growing in total volume as well as contribution margins and what new digital products they were emphasizing. This changed in 2021 and I think it’s a shame not only because of my own bias towards enjoying that aspect of their business, but because they emphasize knowledge transfer and the following goals:

Responsibly feed the world and protect the planet. In collaboration with customers and partners, Yara grows knowledge to fulfill its vision of a collaborative society, a world without hunger and a planet respected. Together we’ll grow a nature-positive food future.

Along with:

If they are doing those things effectively, their premium products and digital products should grow rapidly. Fundamentally, part of the scorecard for their sustainability endeavours could be emphasizing their growth in premium products growth! A missed opportunity in my opinion.

In saying that, they did have an okay year thanks to pricing of Nitrogen fertilizers, growing their sales by almost 50% and their EBITDA by >25%:

Their net income and cash flow did decline YoY though.

For comparison across the last 5 years:

Highlighting the tonnage of their business by product:

Digital Initiatives and Revenue Models

Yara has been emphasizing the last couple of years new revenue models, but they haven’t pushed this ahead in any tangible, reported way at this point: