Significant increase in earnings
- Revenues: +32% to EUR 3.2 billion (2020: EUR 2.4 billion)
- EBITDA: +262% to EUR 969 million significantly increased (including REKS one-off gain of EUR 219 million, 2020: EUR 267 million)
- Important strategic course set:
- Significant reduction in debt following the successful sale of Americas business
- Restructuring of organization relieves cost base
- New mission statement and strategy developed
- REKS joint venture launched
- Proposed dividend for the 2021 financial year: 20 cents per share
- 2022 outlook:
- General conditions in the agricultural sector continue to be attractive
- EBITDA expected to range between EUR 1.6 billion and EUR 1.9 billion (2021: EUR 969 million)
- Adjusted free cash flow: EUR 600 to 800 million expected (2021: EUR 93 million)
K+S once again achieved an excellent production performance at all potash and salt sites during the past financial year. The Company met higher demand from customers and increased sales volumes. The Company's own good performance was additionally supported by the very positive market trend over the course of the year. Potash prices rose significantly in almost all regions.
The de-icing salt business was also very favorable in both the first and fourth quarters due to weather conditions.
“2021 was a very successful year for K+S,” said Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft at the Annual Press Conference. “We have made the Company more efficient, leaner, as well as more profitable, and strategically realigned K+S.”
Significant growth in revenues for both customer segments
In the Agriculture customer segment, revenues increased by 34% to EUR 2.3 billion in the 2021 financial year (2021: EUR 1.7 billion). This was mainly attributable to significantly higher average prices (+28%) and the increase in sales volumes by around 300,000 tonnes to 7.62 million tonnes.
At EUR 941 million, the Industry+ customer segment reported 29% higher revenues in 2021 (2020: EUR 731 million). In particular, strong demand in the de-icing salt business and the chemical industry as well as higher prices for industrial potash contributed to the positive development.
Dividend of 20 cents proposed for 2021
The Board of Executive Directors and the Supervisory Board intend to propose a dividend of 20 cents per share to the Annual General Meeting on May 12. In accordance with the new dividend policy of K+S, the amount will consist of a basic dividend of 15 cents and a premium of 5 cents.
Following Russia's attack on Ukraine, the overall economic and geopolitical impact cannot yet be assessed. K+S is observing further developments through close monitoring, especially regarding energy supply and sanctions. Lohr emphasizes: “We are deeply shocked that war is raging again in Europe. I hope that a return to the negotiating table and an end to the hostilities can be achieved quickly.”
For the current financial year, the Company expects – as previously reported – an increase in EBITDA to between EUR 1.6 billion and EUR 1.9 billion. Due to the continued favorable market environment in the Agriculture customer segment, the average price of the product portfolio is again expected to rise sharply. Sales volumes are also expected to increase slightly once again. Against this background, adjusted free cash flow should also increase sharply to between EUR 600 million and EUR 800 million.
“With the above-mentioned range, we would generate the best result in our Company's history to date. Even with a view to the war in Ukraine and the associated dynamics in sales prices as well as energy risks, we are sticking to this forecast,” Lohr concluded.
Additional information and figures on the development in the 2021 financial year can be found in our 2021 Annual Report, in the video interview on business development with Dr. Burkhard Lohr, Chairman of the K+S Board of Executive Directors, and in the Q4/21 facts & figures.
A hybrid Annual Press Conference with CEO Dr. Burkhard Lohr for media representatives will be held in Frankfurt at 10:00 a.m. today. The documents for the event (speech manuscript and presentation) will be available on our website from 10:30 a.m. onwards. Printable photos of the event can be found in our media library. For investors and analysts, a hybrid conference will be held today in English language with the same line-up at 1:00 pm. Both conferences will be available as a recording on our website afterwards.
This press release contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts represent estimates that we have made on the basis of all the information available to us at the present time. Should the assumptions underlying these forecasts prove not to be correct or risks - such as those described in the risk report contained in the current annual report - materialize, actual developments and results may deviate from current expectations. The Company assumes no obligation to update the statements contained in this press release other than as required by law.