Brazil’s Fertilizantes Heringer, Viana, reported a significant uptick in fourth-quarter and full-year volumes though expenses and exchange rates on U.S. dollar-denominated debt impacted net income.
Fourth-quarter volumes were 474,567 mt, up 45 percent from the year-ago 327,361 mt. Conventional fertilizer volumes represented 52 percent of the total at 246,000 mt, up from the year-ago 189,000 mt. Specialty volumes were 48 percent at 229,000 mt, versus the year-ago 138,000 mt.
Fourth-quarter net income was R$45.8 million on net revenue of R$821.1 million, compared to the year-ago R$899.7 million and R$488.6 million. The year-ago period represented a positive impact from the adjustment to fair value under the restructuring under the company’s judicial recovery. Adjusted EBITDA was up at R$97.7 million from the year-ago R$15.2 million.
Full-year volumes were up 76 percent, to 1.38 million mt from 2019’s 785,457 mt. Conventional fertilizer volumes represented 54 percent of the total at 743,000 mt versus the year-ago 432,000 mt, while specialty was 46 percent at 636,000 mt versus the year-ago 353,000 mt.
Expenses and exchange rates weighed heavily on the company, which posted a full-year net loss of R$199.2 million on net revenue of R$2.12 billion, compared to the year-ago net income of R$664.6 million and R$1.18 billion, respectively. Adjusted EBITDA was a positive R$182.5 million, versus the year-ago negative R$48.7 million.
Going forward, the company has a positive outlook citing expectations for increased corn and soybean production and the recent growth in the country’s agribusiness sector.