One of the last financial reports Earnings 18 cents per share, up from eight last year
In what is likely one of its last financial reports before the expected Glencore takeover next month, Viterra Inc.has announced record second quarter results.
Net earnings for the quarter year over year were more than double at $67 million compared to $30 million. Earnings before interest, depreciation, taxes and amortization (EBITDA) for the quarter were a record $185 million, up 43 percent.
Chief executive officer Mayo Schmidt said in a news release that the company continues to deliver robust results and is proud of the successful business it has built.
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“Viterra’s value has been recognized by our global agricultural peers with the recent acquisition interest and the significant premium being paid by Glencore to acquire the company,” he said, referring to the $16.25 per share offered by Glencore for Viterra.
Earnings per share for the three months ending April 30 were 18 cents, compared to eight cents a year earlier.
In the quarter, Viterra’s agri-products division saw record EBITDA of $64 million on the strength of fertilizer sales volume and pricing. Fertilizer margins averaged $113.51 per tonne during the quarter, compared to $108.76 last year. The early start to spring seeding saw some sales that would usually occur in the third quarter come earlier.
Grain handling and marketing EBITDA increased 14 percent to $141 million. Western Canadian shipments grew 17 percent to 4.3 million tonnes and the year-to-date consolidated global pipeline margin is $35.65, compared to $32.79 the previous year.
Processing also saw a 33 percent improvement in EBITDA to $28 million on improved pasta and canola contributions. The food processing margin for the quarter increased to $100.33 from $98.96, mostly due to lower raw material costs in the pasta business and more higher-margin specialty canola oil sales.
Year-to-date, the company’s EBITDA is $374 million compared to $339 million last year and net earnings were $145 million compared to $131 million.
Viterra estimated that seeded area in Western Canada is about 60 million acres., up from 55.4 million last year and on par with the historical average. Canola area is expected to be a record 20.3 million acres, driven by strong prices and tight stocks.
In South Australia, the company estimates seeded acreage will be up five percent to 9.8 million acres. Canola acres, however, will be up 30 percent to 865,000 acres, while lentil acreage drops 12 percent.
Also June 12, Viterra announced the second semi-annual cash dividend for the year of 7.5 cents per share. The dividend will be paid July 25 to shareholders of record on July 6.
The dividend payment will be made to holders of common shares traded on the Toronto Stock Exchange and holders of CHESS depositary interests that trade on the Australian Securities Exchange.
