Nutrien Ltd (NYSE:NTR) stock rose 4.64% (As on May 9, 11:34:19 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. The company has generated net earnings of $165 million and adjusted EBITDA of $1.1 billion in the first quarter of 2024, down from the same period in 2023 primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Nutrien Ag Solutions (“Retail”) adjusted EBITDA increased to $77 million in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America.

Moreover, Potash adjusted EBITDA declined to $530 million in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production, supported by continued advancement of mine automation initiatives, and reduced our controllable cash cost of product manufactured per tonne. Nitrogen adjusted EBITDA declined to $464 million in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter, driven by higher utilization rates in Trinidad. The company has initiated a process to divest the Retail assets in Argentina, Chile, and Uruguay to provide greater focus on the core Retail businesses and enhance the quality of earnings and free cash flow.

NTR in the first quarter of FY 24 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 36 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $5.39 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue by 0.25%.

The company expects Retail adjusted EBITDA of $1.65 to $1.85 billion reflects expectations for increased crop nutrient sales volumes and margins for the North American business in the first half of 2024 and improved crop input margins in Brazil during the second half of the year. Potash sales volumes are expected to be of 13.0 to 13.8 million tonnes assumes a more even split between first and second half volumes compared to the prior year. Nitrogen sales volumes guidance of 10.6 to 11.2 million tonnes assumes higher operating rates at the North American and Trinidad plants and growth in sales of upgraded products such as urea and nitrogen solutions.