The Andersons Inc., Maumee, Ohio, broke company-wide earnings records for the fourth quarter and also did so for its Plant Nutrients segment for both the quarter and the year.
“I’m very pleased with our performance, which includes record fourth-quarter results for the company and for our Plant Nutrient business,” said Pat Bowe, President and CEO.
“We continued to execute well throughout a good 2021 harvest, particularly in the eastern grain belt, made good operating and commercial decisions and enjoyed additional profit from growth in new markets, such as renewable diesel and supply chain extensions with our new Swiss trading office. During 2021, our teams operated safely and effectively in these strong agriculture markets leading to each of our three business segments reaching record or near-record performance in the quarter,” Bowe continued.
Bowe said Plant Nutrient followed up a very strong first half with a great second half, leading to a record year. “Fertilizer prices and farm income both remain high; we continue to receive good support from our suppliers in this time of tight stocks and expect continued strong performance as we move into 2022.”
The company said fertilizers will benefit from continuing limited supply and elevated fertilizer prices, but are not expected to experience significant price increases as in 2021. The company said while manufactured products continue to be impacted by inflation and raw materials and labor constraints, it anticipates solid margin opportunities and well-positioned inventory through spring application season.
“We have a robust pipeline of growth projects that we are evaluating which are aligned with our strategy,” Bowe added. “Our evaluation includes both financial and business considerations and we continue to exercise discipline in our diligence processes. We are focused on organic growth projects in grain, renewables, and fertilizer, as well as potential acquisitions and investments.”
Bowe told analysts the company hopes to expand its organic fertilizer offerings to align with partners, which would create new organic products to market. It is also developing new specialty fertilizer products for customers and growers beyond traditional crops. He said the company would also consider M&A within core areas of strength and product line extensions for manufactured products including industrial applications.
Fourth-quarter Plant Nutrient pretax income was $15.9 million on revenues of $234.2 million, up from the year-ago $3.2 million and $155.5 million, respectively. Gross profit was $39.2 million, up from $30.6 million, while EBITDA was $23.5 million up from $10.8 million.
Full-year Plant Nutrient income was $42.6 million on revenues of $866.9 million up from 2021’s $16 million and $663 million, respectively. Gross profit was $140.4 million, up from $106.2 million, while EBITDA was $72.9 million, up from $47.2 million.
Company-wide fourth-quarter income was $32.8 million ($0.95 per diluted share) on revenues of $3.78 billion, up from the year-ago $17.3 million ($0.52 per share) and $2.51 billion, respectively. Gross profit was $194 million, up from $124 million, while adjusted EBITDA was $130.5 million, up from $71.5 million.
Full-year company net income was $99.7 million ($2.94 per share) on revenues of $12.6 billion, up from $5.8 million ($0.17 per share) and $8.1 billion, respectively. Gross profit was $592.7 million, up from $366.2 million, while adjusted EBITDA was $353 million, up from $170.1 million.