MOSAIC CO
For the period ended Dec 31, 2023. Filed Feb 22, 2024.
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FY2023 · Filed Feb 22, 2024
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Mosaic Fertilizantes
Mosaic Fertilizantes Net Sales and Gross Margin
The following table summarizes the Mosaic Fertilizantes segment’s net sales, gross margin, sales volume and selling price.
| Years Ended December 31, | 2023-2022 | 2022-2021 | |||||||||
| (in millions, except price per tonne or unit) | 2023 | 2022 | 2021 | Change | Percent | Change | Percent | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | $5,684.7 | $8,287.2 | $5,088.5 | $(2,602.5) | (31)% | $3,198.7 | 63% | ||||
| Cost of goods sold | 5,473.1 | 7,241.6 | 4,245.8 | (1,768.5) | (24)% | 2,995.8 | 71% | ||||
| Gross margin | $211.6 | $1,045.6 | $842.7 | $(834.0) | (80)% | $202.9 | 24% | ||||
| Gross margin as a percent of net sales | 3.7% | 12.6% | 16.6% | ||||||||
| Sales volume (in thousands of metric tonnes) | |||||||||||
| Phosphate produced in Brazil | 2,235 | 2,368 | 2,543 | (133) | (6)% | (175) | (7)% | ||||
| Potash produced in Brazil | 195 | 165 | 240 | 30 | 18% | (75) | (31)% | ||||
| Purchased nutrients | 7,253 | 6,905 | 7,319 | 348 | 5% | (414) | (6)% | ||||
| Total Mosaic Fertilizantes Segment Tonnes | 9,683 | 9,438 | 10,102 | 245 | 3% | (664) | (7)% | ||||
| Realized prices ($/tonne) | |||||||||||
| Average finished product selling price (destination) | $587 | $878 | $504 | $(291) | (33)% | $374 | 74% | ||||
| Brazil MAP price (delivered price to third party) | $597 | $868 | $597 | $(271) | (31)% | $271 | 45% | ||||
| Purchases (’000 tonnes) | |||||||||||
| DAP/MAP from Mosaic | 341 | 272 | 311 | 69 | 25% | (39) | (13)% | ||||
| MicroEssentials® from Mosaic | 1,019 | 1,271 | 1,226 | (252) | (20)% | 45 | 4% | ||||
| Potash from Mosaic/Canpotex | 2,067 | 2,276 | 2,510 | (209) | (9)% | (234) | (9)% | ||||
| Average cost per unit consumed in cost of goods sold: | |||||||||||
| Ammonia (metric tonne) | $807 | $1,301 | $580 | $(494) | (38)% | $721 | 124% | ||||
| Sulfur (long ton) | $232 | $391 | $194 | $(159) | (41)% | $197 | 102% | ||||
| Blended rock (metric tonne) | $122 | $105 | $80 | $17 | 16% | $25 | 31% | ||||
| Production volume (in thousands of metric tonnes) | 3,457 | 3,598 | 3,725 | (141) | (4)% | (127) | (3)% | ||||
The Mosaic Fertilizantes segment’s net sales were $5.7 billion for the year ended December 31, 2023, compared to $8.3 billion for 2022. In the current period, net sales were unfavorably impacted by approximately $2.5 billion due to lower finished product selling prices, partially offset by the impact of higher finished goods sales volumes of approximately $200 million. Net sales were also unfavorably impacted by decreased revenues from other products, primarily acids, of approximately $300 million, due to lower selling prices.
The overall average finished product selling price decreased $291 per tonne, to $587 per tonne for 2023, due to the decrease in global prices referenced in the Overview.
The Mosaic Fertilizantes segment’s sales volume increased to 9.7 million tonnes for the year ended December 31, 2023, compared to 9.4 million tonnes for the prior year period, due to the factors discussed in the Overview.
Gross margin for the Mosaic Fertilizantes segment decreased to $211.6 million for the year ended December 31, 2023, from $1.0 billion in the prior year. In the current year, gross margin was unfavorably impacted by approximately $2.5 billion due to lower average selling prices. This impact was partially offset by approximately $1.7 billion related to lower product costs, primarily reductions in material purchases by our distribution business and lower raw materials costs in the current year compared to the prior year. Lower idle and turnaround costs also favorably impacted gross margin by approximately $20
F- 11 million. Foreign currency had an unfavorable impact of approximately $50 million on gross margin in the current year compared to the prior year.
The average consumed price for ammonia for our Brazilian operations was $807 per tonne for the year ended December 31, 2023, compared to $1,301 per ton in the prior year. The average consumed sulfur price for our Brazilian operations was $232 per long tonne for the year ended December 31, 2023, compared to $391 in the prior year. The purchase prices of these raw materials are driven by global supply and demand, and include transportation, transformation, and storage costs.
The Mosaic Fertilizantes segment’s production of crop nutrient dry concentrates and animal feed ingredients decreased 4% to 3.5 million tonnes for the year ended December 31, 2023, compared to 3.6 million tonnes in the prior year. For the year ended December 31, 2023, our phosphate operating rate was 77%, compared to 85% in the prior year.
Our Brazilian phosphate rock production decreased to 3.9 million tonnes for the year ended December 31, 2023 compared to 4.2 million for the prior year period due to unplanned maintenance downtime.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.