K&S Goes Full Throttle With Earnings Announcement

An old gentleman with his grandson are enjoying gardening, with the K&S AG emblem on the left on a white backdrop.

K&S AG (SDF: GR) is a Germany-based chemical producing company. With its history crawling all the way back to the mid-19 century, the company is now one of the torchbearers in its field for the production of potash and other minerals for use in fertilizers.

On March 10, 2022, the company unveiled its earnings for the Fourth Quarter of 2021. It would be an understatement to say that the results are more eye-catching than one hoped.

  • Revenue for Q4 rose to hit EUR 3.2 billion. This is an increase of 32% compared to the earnings in 2020 which were a total EUR 2.4 billion.
  • The cost of goods sold according to K&S’s 2021 Annual Report, was €734 million, which was significantly low compared to the results of previous years. This can be attributed to the reversal of the impairment loss which amounted to €1854.4 million.
  • EBITDA took off by a whopping 262%. It reached EUR 969 million. (including REKS one-off gain of EUR 219 million, 2020: EUR 267 million).

Another course of events that the company following in the past year included:

  • The company completed the sale of Americas Salt business to the Stone Canyon Industries. In a press release dated April 30, 2021, the company hoped this would result in an improved EBITDA.
  • The organization underwent a renewed structure. Additionally, Holger Riemensperger joined K&S as the latest addition to their Board of Directors on March 11, 2021.
  • On December 22, 2021, K&S and REMEX fulfilled the transactions for a new REKS joint venture that hopes to step into the European market.
  • In a drive to expand and optimize its operations, K&S stated that it will align its strategies solely for potash and magnesium product making.

Unsurprisingly, this report was followed by high hopes and expectations for 2022:

  • The agriculture sector’s future looks promising and optimistic enough to keep the company’s success and growth moving.
  • The company is vying for an EBITDA ranging from EUR 1.6 billion to EUR 1.9 billion (2021: EUR 969 million)
  • Adjusted free cash flow will most likely be EUR 600 to 800 million. (2021: EUR 93 million)

$SDF started 2022 with a value of 15.10 EUR. Since then, the price has climbed all the way up to 23.55 EUR, marking a rise of 45.7%. In the last 5 days, the stock rose by 2.59%.

Additionally, the company’s last reported insider buying was dated June 15, 2021, when COO, Holger Riemensperger, bought 1,000 registered shares at a value of $14,480. So far, none of the company’s Insiders have actively traded stock in 2022.

Although, this earnings announcement can be pivotal in marking a great end to the company’s first-quarter of 2022.

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