Tessenderlo Group, Brussels, reported Agro segment first-half adjusted EBITDA of €121.6 million when excluding the foreign exchange effect, up 49.6% from the year-ago €75.2 million, citing favorable market conditions for its Crop Vitality, Tessenderlo Kerley International, and NovaSource businesses. It said that while the Violleau organic agricultural solutions business is included within Agro, its contribution to results is not considered to be significant.
Agro reported first-half revenue of €546 million, up 38.6% from the year-ago €373.5 million. It cited an increase in sales prices implemented in 2021 and in the first-half that offset raw material, energy, and transportation costs.
Company-wide, Tessenderlo reported first-half adjusted EBITDA of €247.6 million on revenue of €1.34 billion, up from the year-ago €184.7 million and €1.02 billion, respectively.
While the company anticipates a continued high level of uncertainty in second-half 2022 as well as 2023 due to the Russia/Ukraine conflict, difficult supply chain circumstances, and other challenges following COVID-19, based on current information it expects 2022 adjusted EBITDA will be up 15-20% over the year-ago adjusted EBITDA of €354.2 million. This outlook is revised from the 10% increase that was forecast this past June (GM June 24, p. 26). The new outlook reflects the strong first-half, with second-half results expected to be in line with year-ago results.