Turkish fertilizer company Gübretaş swung to a loss in the first quarter ending March 31, 2023, as drought and the major earthquakes on Feb. 6 took a toll on fertilizer consumption and purchases.
The company reported a net loss of 210.1 million liras (approximately $9.75 million at current exchange rates) for the quarter, down from a net profit of 575.7 million liras in the same prior-year period, according to Bloomberg, citing a company statement. First-quarter sales fell by nearly 10% year-over-year, to 7.14 billion liras.
Drought conditions in the country in January and February led to fertilizer consumption being deferred, and the earthquakes made it harder for orders to be delivered in time, Gübretaş reported. The company added that Turkish fertilizer suppliers with high-cost inventories also started “harsh price” competition.
Gübretaş has 1.085 million mt/y of total fertilizer production capacity at Yarimca and Izmir, with a total warehouse capacity of 450,000 mt, according to the company’s 2021 annual report. The company is majority-owned (75.95%) owned by the Central Union of Turkish Agricultural Credit Cooperatives, according to its website.