Tessenderlo Group, Brussels, reported first-half Agro adjusted EBITDA of €75.2 million on revenues of €373.5 million, versus the year-ago €84.5 million and €362.2 million, respectively. The company said the adjusted EBITDA, when excluding the foreign exchange effect, was in line with last year, though off 3.5 percent. It said the segment was significantly impacted by the increase in raw materials, such as sulfur, and also by increased transportation costs.
The company said Tessenderlo Kerley Inc.’s (TKI) adjusted EBITDA remained stable, while that of NovaSource increased thanks to higher volumes. Crop Vitality adjusted EBITDA decreased, as higher sales volumes were more than offset by lower margins.
Agro revenue was up 9.6 percent. The company attributed the uptick to increased volumes from TKI’s partnership agreement with Kemira Oyj, announced in 2020, in which Kemira produces premium sulfate of potash (SOP), both standard and water-soluble grade, at Helsingborg, Sweden, and TKI partially markets these products.
Company-wide, adjusted EBITDA was up 6.9 percent to €184.7 million from the year-ago €182 million, excluding the effect of foreign exchange. Revenue was up 12.9 percent, to €1.02 billion from €935 million.
The company expects that the 2021 adjusted EBITDA will be in line with the 2020 adjusted EBITDA. It said this guidance already takes into account the expected negative foreign exchange effect in 2021, following the weakening of the U.S. dollar.