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Mosaic posts 653% net income growth in Q1 on higher commodity prices

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(Kitco News) - The Mosaic Company (NYSE: MOS), yesterday reported net income of $1.18 billion ($3.19 per diluted share) for the first quarter of 2022, up 653% compared to net income of $156.7 million ($0.41 per share) in Q1 2021.

The company said that its first quarter revenues were up 71% year-over-year to $3.9 billion, as stronger pricing more than offset lower volumes. The gross margin rate in the quarter was 36.7%, up from 18.9% in first quarter of 2021.

Adjusted EBITDA totaled $1.45 billion, up from the prior year period total of $560 million. The company generated cash flow from operations of $506 million and free cash flow of $466 million.

Potash operating earnings totaled $563 million and Adjusted EBITDA totaled $651 million in the first quarter of 2022.

"Esterhazy K3 has now ramped to its full annual run rate of 5.5 million tonnes of MOP production, and Colonsay is operating at an expanded annual run rate of 1.3 million tones," the company said in a press-release.

Phosphates operating earnings totaled $493 million and Adjusted EBITDA totaled $632 million in the first quarter of 2022. Operations have recovered from the weather-related headwinds experienced in the second half of 2021.


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Mosaic Fertilizantes operating earnings totaled $187 million and Adjusted EBITDA totaled $233 million in the first quarter of 2022. Results benefited from inventories built late in 2021 that were sold at higher market prices, especially toward the end of the first quarter.

"Mosaic's first quarter results show the strength of our business, which is able to meet customer needs while also delivering value for our shareholders," said Joc O'Rourke, President and CEO. "Looking forward, we expect higher annual production across our global platform in both potash and phosphates, as a result of the completed ramp up of Esterhazy K3, a higher run-rate at Colonsay, and a recovery of phosphate output from our North American operations."

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry.

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