Recasts, adds further detail, quote, strategy
Nov 11 (Reuters) – German potash and salt miner K+S SDFGn.DE on Thursday reported a 50% jump in its quarterly core profit thanks to strong demand for potash fertilisers and rising prices for the mineral, though it narrowly missed analysts’ consensus estimate.
The group, which along with potash fertilisers makes salts for cooking, animal feed and de-icing roads, posted earnings before interest, tax, depreciation and amortisation (EBITDA) of 121 million euros ($139.92 million) for the third quarter, slightly missing the mean forecast of 122.4 million euros published by Vara Research.
Sales rose 32% to 746 million euros, beating the consensus estimate of 652 million euros.
K+S also confirmed its recently-adjusted 2021 forecast for core earnings of around 630 million euros and a neutral cash flow compared to the outflow of 180 million euros in 2020.
In October, the group had tweaked its 2021 guidance as it announced that the closing of the REKS joint venture transaction would not be completed before year-end.
“We continue to benefit from the ongoing positive market situation and our improved operating performance at the production sites,” Chief Executive Burkhard Lohr said in a statement.
K+S said it now wants to place its strategic focus on its core business with potash and magnesium products, including plans for expansion and the launch of new business areas, while reducing production costs.
Key fertiliser demand drivers are the need to increase crop yields due to limited arable land as the global population keeps growing and more people move to more protein-based diets, which require large amounts of feed to raise livestock.
($1 = 0.8648 euros)
(Reporting by David Latona in Gdansk Additional reporting by Anthonis Pothitos in Gdansk Editing by Tomasz Janowski)
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