Tessenderlo Group, Brussels, reported an 8 percent increase in adjusted EBITDA for its Agro segment for the year ended Dec. 31, 2020, to €125.6 million on revenues of €582.9 million, versus the prior year’s €118.5 million and €602.8 million, respectively.
The company said Agro’s overall revenue decreased by 2 percent when excluding the foreign exchange effect, but Agro’s Crop Vitality revenue remained stable last year as the lower second-half 2020 volumes could be offset by higher volumes in the first half.
The company reported volumes in the second half of the year were in line with expectations as part of the agro season in the U.S. shifted from the second half to the first half of the year, being impacted by weather conditions.
While NovaSource revenue remained stable throughout the year, Tessenderlo Kerley International revenue decreased due to lower SOP volumes.
The 8 percent rise in adjusted EBITDA for the Agro division excluded the foreign exchange effect. Agro’s Crop Vitality adjusted EBITDA increased on account of favorable market circumstances, while adjusted EBITDA of NovaSource and Tessenderlo Kerley International (TKI) remained stable.
However, second-half Agro adjusted EBITDA declined by 5 percent, to €41.1 million on revenue of €220.7 million, compared with the same prior-year period’s €47.8 million and €250.1 million, respectively.
Company-wide, Tessenderlo reported a 21 percent rise in full-year adjusted EBITDA to €314.6 million on revenues of €1.74 billion, up from 2019’s €267.7 million and €1.74 billion, respectively.
Tessenderlo anticipates a continued “high level of uncertainty” in the first half of 2021 due to the ongoing COVID-19 pandemic, where it said the development of customer demand and margin is exposed to increased risk.
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 at the time of writing.
The company is proposing not to pay out a dividend for the 2020 financial year.