07 March 2014 04:10 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Specialty fertilizer producer Heringer posted on Thursday a fourth-quarter net income of Brazilian reais (R) 19.3m ($8.3m), down by about 60% year on year partly on foreign exchange losses.
The company incurred a net financial expense of R76.3m during the quarter that included a higher foreign exchange variation of R80.2m, Heringer said in its earnings report.
Fertilizer deliveries to end-consumers during the October-December 2013 period totalled 1.63m tonnes, up by 3.8% from 1.57m tonnes in the same quarter in 2012.
Deliveries of fertilizers for soybean crops grew by 49% year on year to 284,600 tonnes as a result of more efficient logistics to meet urgent demand from farmers, the company said.
Deliveries to coffee crops fell by 14.8% to 295,300 tonnes due to reduced fertilization rates, while deliveries to sugarcane crops were down by 5.8% to 272,500 tonnes amid a lower profitability period for sugar and ethanol.
Deliveries of Heringer’s specialty fertilizer products – which the company describes as products whose agronomic characteristics are superior to market standards – reached 541,000 tonnes in the quarter, an increase of 5.4% year on year.
Net revenue in the October-December period stood at R1.68bn, down by 5.1% from the same quarter in 2012.
Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 18.4% to R117.2m.
Heringer’s market share in the Brazilian fertilizer market stood at around 19% in the quarter, in line with the fourth quarter of 2012.
The company’s competitors in the market include Yara, Fertipar and Mosaic.
For the whole of 2013, deliveries were up by 0.8% year on year to 5.04m tonnes, bringing in revenues of R5.43bn, a 1.8% increase over the previous year. EBITDA for the year reached R267.9m, up by 8.6%.
However, as a result of the foreign exchange variation, which saw a 15% depreciation of the real against the US dollar during the period, the company recorded a bigger net loss of R33.9m in 2013 against a loss of R2.5m in the previous year.
($1 = R2.32)
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