Fertilizantes Heringer reported first-quarter gross profit of R$17.4 million, up from the year-ago negative R$56.4 million. “An important reversal when compared to the same period in 2023,” CFO and Investor Relations Officer Persio Pimentel Pinto Ravena said in the company earnings call, “representing a positive margin of 1.8% over net revenue.”
EBITDA also reflected an improvement at a negative R$52.1 million versus the year-ago negative R$139.5 million. However, the company’s net loss grew 9.6%, to R$144.2 million on net revenue of R$970.1 million from the year-ago negative R$131.5 million and R$1.38 billion, respectively.
First-quarter fertilizer sales volumes were off 3%, to 455,000 mt from the year-ago 469,000 mt, with the company citing the delay in soybean planting and harvest at the end of 2023, which resulted in a reduction in the area and investment for second crop corn. Conventional fertilizer sales were off about 8%, to 405,000 mt from 441,000 mt, while premium fertilizers (formerly called specialty) were up nearly 80%, to 50,000 mt from 28,000 mt.
Heringer reported a mixed bag on major fertilizer prices, saying urea prices increased due to geopolitical tensions and increased demand in North America. However, it saw a large supply of potash in the market and a favorable exchange rate with prices remaining low. It said Brazilian MAP remains stable compared to the international market due to suppressed demand.
Citing a May CONAB survey, the company said Brazil should reach a 2023/24 harvest of around 295.4 million mt, with grain production seeing a reduction of 7.6% from 2022/23, which saw a record harvest of 319.8 million mt.