MOSAIC CO
For the period ended Dec 31, 2024. Filed Mar 3, 2025.
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FY2024 · Filed Mar 3, 2025
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Potash
Potash Net Sales and Gross Margin
The following table summarizes the Potash segment’s net sales, gross margin, sales volume and selling price:
| Years Ended December 31, | 2024-2023 | 2023-2022 | |||||||||
| (in millions, except price per tonne or unit) | 2024 | 2023 | 2022 | Change | Percent | Change | Percent | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales: | |||||||||||
| North America | $1,452.3 | $1,899.9 | $2,122.3 | $(447.6) | (24)% | $(222.4) | (10)% | ||||
| International | 936.4 | 1,333.7 | 3,086.2 | (397.3) | (30)% | (1,752.5) | (57)% | ||||
| Total | 2,388.7 | 3,233.6 | 5,208.5 | (844.9) | (26)% | (1,974.9) | (38)% | ||||
| Cost of goods sold | 1,745.5 | 2,018.6 | 2,365.5 | (273.1) | (14)% | (346.9) | (15)% | ||||
| Gross margin | $643.2 | $1,215.0 | $2,843.0 | $(571.8) | (47)% | $(1,628.0) | (57)% | ||||
| Gross margin as a percentage of net sales | 26.9% | 37.6% | 54.6% | ||||||||
| Sales volume(a) (in thousands of metric tonnes) | |||||||||||
| MOP | 7,879 | 7,969 | 7,236 | (90) | (1)% | 733 | 10% | ||||
| Performance and Other(b) | 865 | 901 | 865 | (36) | (4)% | 36 | 4% | ||||
| Total Potash Segment Tonnes | 8,744 | 8,870 | 8,101 | (126) | (1)% | 769 | 9% | ||||
| Realized prices ($/tonne) | |||||||||||
| Average finished product selling price (destination) | $273 | $365 | $643 | $(92) | (25)% | $(278) | (43)% | ||||
| MOP selling price (fob mine) | $222 | $308 | $632 | $(86) | (28)% | $(324) | (51)% | ||||
| Production volume (in thousands of metric tonnes) | 8,798 | 8,246 | 9,053 | 552 | 7% | (807) | (9)% | ||||
(a) Includes intersegment sales volumes.
(b) Includes sales volumes of K-Mag®, Aspire® and animal feed ingredients.
The Potash segment’s net sales decreased to $2.4 billion for the year ended December 31, 2024, compared to $3.2 billion in the prior year. Lower average selling prices had an unfavorable impact on net sales of approximately $760 million versus the prior year period. Net sales were also unfavorably impacted by approximately $70 million due to lower finished goods sales volumes compared to the prior period.
Our average finished product selling price was $273 per tonne for the year ended December 31, 2024, a decrease of $92 per tonne compared with the prior year period, due to the factor discussed in the Overview.
The Potash segment’s sales volumes decreased to 8.7 million tonnes for the year ended December 31, 2024, compared to 8.9 million tonnes in the same period a year ago, due to the factors discussed in the Overview.
Gross margin for the Potash segment decreased to $643.2 million in the current year, from $1.2 billion in the prior year period. Gross margin was unfavorably impacted by approximately $760 million due to the decrease in average selling prices, and approximately $50 million due to lower sales volumes. This was partially offset by lower Canadian resource taxes of approximately $170 million in the current year period, as discussed below. Gross margin was also favorably impacted by approximately $40 million, due to lower idle and maintenance turnaround costs in the current year period due to the timing of turnarounds. In addition, gross margin was favorably impacted by lower conversion costs of approximately $30 million.
We had expense of $232.2 million from Canadian resource taxes for the year ended December 31, 2024 compared to $403.4 million in the prior year. Royalty expense also decreased to $40.5 million for the year ended December 31, 2024 from $53.6 million in the prior year. The fluctuations in Canadian resource taxes and royalties are due to lower sales volumes, average selling prices and margins in the current year, compared to the prior year.
For the year ended December 31, 2024, potash production increased to 8.8 million tonnes, compared to 8.2 million tonnes in the prior year period, resulting in an operating rate of 76% for 2024, compared to 73% for 2023. The increased operating rate in the current year period reflects higher production across our Canadian mines, due to less maintenance downtime at our
F- 9
Esterhazy and Belle Plaine locations and our Colonsay mine operating for a portion of the current year period. Prior year production was impacted by maintenance downtime during the first half of the year.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.