Fertilizantes Heringer, Viana, Brazil, reported record financial results for the year ending Dec. 31, 2021, with several bests reported, including EBITDA, EBITDA margin, gross margin, and net income. It also reported on March 22 that the 2nd Civil Court of the Judicial District of Paulinia granted a request to close the judicial reorganization that was initiated in 2019 (GM Feb. 8, 2019).
In addition, EuroChem Group AG, Zug, Switzerland, has closed on its purchase of a majority stake in Heringer (see related story). As a result, EuroChem may opt to buy the remaining stock of the company and delist it, making this its last financial filing as a public company.
Full-year net earnings were R$667.2 million on net revenue of R$4.3 billion, up from 2020’s loss of R$199.2 million on R$2.2 billion, respectively. EBITDA was up 377 percent to R$870.1 million, up from R$182.5 million.
Full-year fertilizer volumes were up 8.1 percent, to 1.49 million mt from the year-ago 1.38 million mt. Specialty fertilizer volumes made up 51 percent of sales for 2021, up from 2020’s 46 percent. Specialty volumes were 760,000 mt, up 19.5 percent from 636,000 mt, while conventional tons dropped 1.6 percent, to 731,000 mt from 743,000 mt.
Fourth-quarter net earnings were up 835.4 percent to R$428.6 million on net revenue of R$1.67 billion, up from the year-ago R$45.8 million and R$821.1 million, respectively. EBITDA was up 312.3 percent, to R$403 million from R$97.7 million.
Fourth-quarter volumes, however, were off 9.9 percent, to 427,821 mt from the year-ago 474,567 mt. The company said volumes were impacted by high fertilizer prices and dry weather in some areas. Specialty tons represented 51 percent of volumes, up from the year-ago 48 percent. Specialty volumes were 218,000 mt, down 4.8 percent from 229,000 mt, while conventional were 210,000 mt, down 14.6 percent from 246,000 mt.
Currently, the company told analysts there is seasonally low demand in the regions that it serves. For 2021, Heringer said 30 percent of its sales went to coffee, 28 percent to other crops, 22 percent corn, 12 sugar cane, and 8 percent soybeans.