NTR Nutrien

Richard Downey Vice President of Investor and Corporate Relations
Mayo Schmidt President, Chief Executive Officer
Pedro Farah Executive Vice President, Chief Financial Officer
Jeff Tarsi Senior Vice President for North American operations
David Elser Vice President of Strategic Supply Chain Operations
Ken Seitz Executive Vice President, Chief Executive Officer of Potash
Jason Newton Chief Economist, Head of Market Research
Raef Sully Executive Vice President, Chief Executive Officer of Phosphate & Nitrogen
Mark Thompson Executive Vice President, Chief Strategy and Sustainability Officer
Ben Isaacson Scotiabank
P.J. Juvekar Citi
Steve Byrne Bank of America
Jacob Bout CIBC
Jeffrey Zekauskas JPMorgan
Adam Samuelson Goldman Sachs
Vincent Andrews Morgan Stanley
Mark Connelly Stephens Inc.
Joel Jackson BMO Capital Markets
Lucas Beaumont UBS
Andrew Wong RBC Capital Markets
Steven Hansen Raymond James
Michael Tupholme TD Securities
Michael Piken Cleveland Research
Duffy Fischer Barclays
Rikin Patel Exane BNP
Adrien Tamagno Berenberg
Call transcript
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Greetings and welcome to the Nutrien's 2021 second quarter earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to Richard Downey, VP of Investor Relations.

Richard Downey

operator. you Thank and our everyone Nutrien's call conference Good quarter welcome XXXXX discuss second results to morning to and outlook.

with of Pedro On President call us Mr. is the Mayo and CEO our Nutrien Farah, Mr. and CFO. today Schmidt,

our We Units, for Nitrogen Phosphate. Ken for Business also Sully Heads Raef Seitz the and have of Potash,

course, who Strategy and Sustainability Retail, Jeff and Tarsi Jason our For of David Elser Research, And leads of our we have and Head Market Mark Thompson, group. Newton.

various call, plans could this and conduct that forward-looking we Certain in expectations, we As actual were differ conclusions future about statements those contained making our and information. results make from forecasts. Therefore, these contain forward-looking prospects materially applied information. material assumptions in

our as to shareholders commissions direct Information U.S. call Mayo Additional Schmidt. will information about to most these our Form to and now we Mr. turn factors MD&A in quarterly as filed our current and and well securities Annual which contained assumptions Report, recent Canadian Annual over I with report you. the are

Mayo Schmidt

all planned you occur, XX to course, want before of my best later pause into year your years get Nutrien's to remarks. certainly thank your Richard. your will recognize service want The I and family and you thank we for on prepared you I and I wish retirement team at do and which comment Well, the do this of Nutrien. you

years team many this outstanding and an have You member for exceptional enjoyed been career.

know you know be President to be passing Relations. the You Vice who, Jeff over missed. of know pleased many already and very your are I of appreciated our Investor you I you as will torch are Holzman

I Furthermore, the fundamentals earnings the welcome year. on an billion second we EBITDA which increase the the the quarter that XXXX, actions a over $X our an position advantages for will This performance the team momentum taken agriculture that demonstration update have our fully execute decisive us of provide the into increase excellent us that also to have benefit morning to teams XX%. and XXXX everyone value. will will call. outlook carry and first and expect how the delivery So for quarter of to I enhancing Nutrien business we global forward annual over to midpoint drive to of adjusted our to taken recap for guidance will allowed of illustrate integrated and market of half good our allowed and from unique we actions together structure on the are Nutrien's Today, record to well morning have

I of support the So commitment and serve the of the for more six all world. world all million XX as responded low-cost, potash XX increase significantly mine ever production our network our X,XXX to half reliable, very Board and to as to demand employees first especially growers team our are nitrogen our and and to flexible, potash they efforts tons of nearly are customers have busy produced need dedication work food. each grower crop in apparent These we that countries growing growing feed for our they delivered in through globally. every of seasons the the second has Myself, working when all, demonstrate than approximately employees potash the the safely year and and and grower around meet from a with the we ensure thank of how to phosphate proud are our directly day customers would like we advisers the in application

to results. now our turning So

key driver for robust demand. crop billion, EBITDA across and all well-positioned most We level. services. and team year's and impressive for with excellent delivered adjusted half Our first businesses, global was over The XX% fertilizers execution last prices geographies up $X assets, results was products our over higher and

notable free $X.X operations increase the the Ag year-over-year also of first in a adjusted business half XX% achieved Our XXXX. Nutrien EBITDA cash our billion of flow generated Solutions, in retail the first year. for half of

In of businesses, phosphate The or in our focus look on quarter was the our showed pricing. our schedule. year-over-year generated due stronger and billion second significant increase to everything combined targets fact, we almost term longer all and track costs, businesses adjusted we we earnings and do on When managing to making retail EBITDA we XX%. are XX% improvement potash of up by meet metrics excellence $X.X supported a across exceed ahead in toward nitrogen continued up Nutrien operational

Our team execution sales and wholesale outstanding. was marketing

all inventories average helping profit. did to we increase across geographies optimized up environment a with due by increase and strategic year-over-year. for growth retail The EBITDA majority product fall overcommitted application crop the of was products were acquisitions. our months Adjusted driven driven performance and Australia was all from ensured increase our last drive fertilizer seasons. the organic system. XX% six this an seed in proprietary performance shelves. firsthand from our higher across product We also year, Canada and retail a first and spring all nearly first our the products significant early and nutrients margins of basis distribution geographies get not in half our the teams half South for crop Volumes proprietary year-over-year a double U.S., team Our of sales American product profits on gross improved business protection volumes. and with up as price in well-placed earnings benefiting was we too representing as second shelves, year-over-year XX% months first over and biggest year, six rising evaluate witnessed in By the their while and well strong by were EBITDA the In record

year, strategic the fertilizer percentages EBITDA to XX.X% partially targets in delivered adjusted also to our compared last performance by We surpassing with XX.X% excellent relative supported of procurement. half retail term long first

The location proportion these as Our significant showed while capital growers' cash target our metrics meeting operating working working needs our proprietary capital network, EBITDA our by is expanding also rationalizing and our coverage sales year-over-year exceeded on and far possible line. our made progress a in ongoing per optimizing focus average continued long improvement. term and of product

We also reported half same our digitally-enabled grower the the in processed XXXX million and approximately X.X sales first of $X.X billion year, through in double system. payments nearly period the in

XX our grow well XX business the the months. our are to acquire in on and Brazil rate Brazil and past an recently acquisition agreement in operate to continued transaction, this $XXX way million by Nova, in also in We value-enhancing With Nutrien Terra to announced retail generating EBITDA fourth run branches we XXXX.

board in geographies retail continues demonstrate operate. in performance across exceptional Our we to all the which team

to Our customers been commitments has action while delivered group product taking production fully ensure to need. and sales potash the significantly Ken his outstanding. they team performance have have to our our and and to responded conditions increase market customers

We year track are capability XXXX to the record. We volumes globally the to and full are a in record respond. delivered on achieve first producer with only half of

contract recovery The demand to in Asia significant year. the exceptional million potash Overall, U.S. China the high produce all-time we We to greater are spot where higher markets potash Brazil Southeast focusing of Canpotex consumption and of market to market in in tons and this in XXXX project to place saw positioned emphasis these nearly demand due we global XX on netback has India. the XXXX. markets compared a

equivalent In million approximately to fact, basis. tons on an quarter, we XX total anticipate annualized the Nutrien's by fourth potash production

reached impressive margins turnaround margins averaged excellent Both be to $XXX continue per achieved a this proactive phosphate activity half XX% delivered will challenges. year-over-year a were quarter We with capturing despite in operating up despite and $XXX teams an nitrogen operating ton first our weather-related rate. in XX% rate input prices increased much for stronger higher results Raef's almost the nitrogen ton. Phosphate ammonia and and and flexible and costs. nitrogen

leverage market to advantages continue product few completed extensive projects competitive flexibility. to which the distribution expansion expanded and our from emerging opportunities. our execute production ability to have years also both the We and benefit results capability the of over These network on increased demonstrate mix brownfield production past

to North of well across the is We there normal bodes for may the Western applications as wide of such by For support continued maturity weather also which near generally areas in favorable North see in conditions crop a window. ahead demand. application range term fertilizer expect strong solid is prices. this fall outlook, conditions drought Crop America. fall. on some very we crop America, input back pull continue demand input Canada crop In Australia, severe Overall, above supported crop average

support season expansion demand the is for have Some challenges crops in yields acreage, which all seeded ongoing will for in certain inputs. Brazil outlook crop weather further a next this for year, but impacted

for For all of price is supported industrial a environment fundamentals. result demand nutrients, by driven fertilizers, agriculture current tee robust market

dynamics support to into today's prices, and to very to We prices even will That to margins average watch expect most continue at market in something fertilizer be to are is close levels But fertilizer said, price XXXX. affordability elevated closely. we indices crop grower these continue XXXX. favorable

million We expect global in record point global no China and at There low. contract inventory tons at with key to this be levels or about potash demand levels potential regions is a and very in between news remain XX XXXX XX to India.

inventories for before been to right future We the and will China draw outlook higher to fully to will netback the is excellent. believe end to our down continue Chinese demand new November is continue continue seen in as need that of domestic Canpotex as company a regions. believe has robust. on year we their committed However, already the focus negotiate contract as to

fertilizer We prices historical expect and tight. remain above well to markets to remain crop levels

keen return We operational execution continued a and investment. value-added will ongoing commitments cost on focus excellence, from growth on and to strengthening our a management, inventory benefit also

This than all due As such, XXXX, by EBITDA outlook positive EPS into and believe over or our $X.X competitive our this We adjusted we annual stronger earnings sheet. more further business continue across our nearly XX%. lines learning advantages. outlook balance our will billion by raise to is guidance executing strengthening XX% and consolidated

for We will maintain for of in return capital sheet additional the shareholders. includes deleveraging investment which and potential balance approach to our the disciplined business, the further compete our

for an purpose manner. improve production delivered as globally. additional potash for accounted better of safely XXXX. tons responsiveness bring this example in access of Our the million no in sustainable and production the These There production for $XXX adjusted to quickly the of on to of increase XX% than a for commitment our guidance growers our value to of potash million team one nutrient approximately significant shareholders our also EBITDA actions growers is increase is support help food financial our increase in

outcomes. our in is includes carbon which future Another with ongoing purpose and feeding plan line our on example of focus commitments sustainability the XXXX executing our improving

by and fuel. a at and crop opportunities low which management With our committed exceptional. to footprint prices other on carbon plans. the carbon company in Nutrien outlook a the risk powered a is and remain our growers in facilities, growing is reducing help to and is crop more to world-class We execution recent of our progress our believe are No program remain global strategy level above catalyst as across in integration be term, at making operations carbon world. that and and the is to to the the anticipated ensuring marine chain our our partnership and historic the develop strong We XXXX. is levels fertilizer well ESG world for Nutrien long in system change feed a for farm strategy advantageously the positive great successful around to industry-leading production announcement vessel by over positioned and supported ammonia value our

today your thank joining team to Nutrien forward for looking to you want are I and the all So we questions.


[Operator Instructions].

comes Ben Scotiabank. from the Isaacson question of line with Your

Ben Isaacson

Thank and Pedro. the for raise. congrats much question and you and Mayo on very A beat

billion, So of generate, this %X.X to billion that's even $X free don't a considering any EBITDA capital you you probably major are similar flow especially a next do year. something And moderate going if of cash lot to you projects. prices will little bit, have generate And year.

months? the about talking of terms it's you have in philosophy, whether earmarked How from XX a have expect retail, than give debt actual rather do to compete goalpost authorization. can in did for Brazil? to want year M&A and capital us reduction you some be buyback that context planned? U.S. or with Thank How the your that a in over next So you you Do see much have within you you. in now? You for finished what

Mayo Schmidt

including which Happy Sure. buyback gives strategic it's quite us number I on comment as both year initiatives. And good and and opportunities to mentioned, to those have of a that. strategic discussions Pedro frequently outstanding had you an and relative our also, actually

of I us be will do very options we And through and I run have to that pleased of choices. field in this, are these the will to what we us some ask Pedro front have so, is, to able these

Pedro Farah

we talking nice for do your would which point, will restrictions assets to the what approach COVID a guided you could allocation little Ben, point, sustaining Yes. to to To were little we a past our bit expenditure capital more due we and couldn't at as continue this depressed different again. we do involve in our disciplined facilities. our in we basically that needed bit have

do. will now prices like flexibility will the cycle on We look through this looking in have position will are ourselves earlier above of on the delever. would future. very we much dividends to much balance how we into sheet terms year It we opportunities to how increased we cycle mid we the have depend and and to depend that in are That

a mentioned, have I we terms we do and as as compete and capital too, we of already there starteXd number So for the options that. don't you But approach, to for looking inorganically future. various have organically for both at are in the deploy specific options you our

have in You seen Brazil. do us some acquisitions

the We together ESG in continue we to and you have our will we ones. we are, all some also the projects with out, can nitrogen that investing it pointed be considering still for other will look on those the option we at And NCIB future. as are of

is it environment here. fluid a So

So soon more be our in points to options you come as we with them will back more detail. have going are analyzing we we and we to specific tell and as you can


from Your next line of Citi. P.J. the Juvekar comes question with

P.J. Juvekar

post just of channel Good Hi. I retail Yes. about the inventories level in where if And you stand summer the do NPK? morning. fill? to was talk wondering by can we

Mayo Schmidt

would Jeff, that taking you for question mind us, please?

Jeff Tarsi

We two We glad I too. can talk crop in talked Sure. about inventory protection. be will about different capacities.

get side from supply we we we And you got have in side are then you look look application season plan to at at to to an looking NP don't we if than that pricing guess bit think it. million application inventory credibility in the things at of two, sitting a And really pretty a want give also product in K, anything to start year. as be today on NPK on at add are at got product. early a a of and we we and for want What were year would of, U. probably a we look chain inventory basically with where anticipate higher good That's I have I than to some perspective. higher on it higher more you a inventory to are and from revenue of the S. starting we to product feel little be the from product specific things. looking of to as standpoint last higher logistics how value, to the a about end trying now load fall $XXX quarter normal on have get that. planned we we right you I we perspective But we season. much if well fall move David, what are system, good it. When really and have to ago know else through if our today from

David Elser

well. we I On the our ourselves think side for well-positioned spray. hit you fungicide protection, things facility were quite Jeff, No. of upcoming just crop

Jeff, it. no, So that's think I

Jeff Tarsi



from Byrne America. of line comes the Bank with of next Your Steve question

Steve Byrne

hear to could quarter you what had third Thank you. how I on realizations already where in and you if on through think visibility any that both wanted offshore much have and at forward visibility in sold you be price? potash is North Yes. Do Canpotex just America?

Mayo Schmidt

Soviet We to And of comment of as Why don't next majority Belarusian Eurochem. of supply and couple ask to the there's the around the Union certainly political couple it's course, Ken sanctions. producers, the I see going just in from to years come make of and relatively expect then particularly limited will former well. issue I a new comments

So we think we are very well-positioned.

time fill out Ken, prices. of that? on to you a for And period continuing are of We strong And do thoughts at to these in here. your sold want look some

Ken Seitz

Mayo. Thanks you, And yes, for question. thank the Steve

So we do have visibility through Canpotex.

In weeks fact, ago now. committed few released they that are just they into November

right are In for the we similarly, and uncommitted the we are October shrinking. So again, year. committed are through to remaining year the to volumes small committed America be relatively doing in compared volumes what North

three always will this reported we the reported that follow has what to based So in two being and realizing. There's on to at those prices. are with also are lag and realizations, benchmark at times I with can delivery. do respect what volume. And quarter months we between are prices the a benchmark it price to environment, rising say lag trade contracting prices on third

level could for take firm weeks up to prices at as that few it well. a So

do certainly are So, quarter. we yes, we visibility have a third strong good and expecting


Your CIBC. of Jacob line Bout next question from with the comes

Jacob Bout

the morning. maybe are question level? U. potash any for not first, also seeing global seen just of levels. on you of S.? demand your are XXXX, you for retail talk in potash bit to guess maybe My And we inventory then markets at destruction? key demand if you evidence, evidence spot I Are back But XXXX. can is a inventory about other Good since and some seeing the what levels to back pricing potash, going

Mayo Schmidt

today that I with he really question. offer into insights some is us Jason Well, valuable question. think thanks can for and your

Jason Newton

Yes. Good morning Jacob.

spot course, U. fall during the inventories, at is to extremely the right we important are what's vast driving because being and being market have I of as really being guess applied season China look market the with is the And within We we But demand the affordability stage of as the now and expecting around look course said, with at engagement it's firm priced the the levels, just the the within that good really and average, weather sold ground. to the end demand ahead we Brazilian we drawn and are prices or that think fall inventories then Jeff As markets. a application given where inventories of is S. world we down, market, domestic starting the contract up. are normal at out as current the can which both been in seeing crop And market. at are markets, spot look domestic keeping expect and almost you season. they pace and of see we

So supply evidence really it has of if tight I pass there. maybe other a any to balance he Ken will comments. see demand to

Ken Seitz

summed are be think, critical a well, we it you fall and think have inventory Jason. Heading which we a levels expecting I reasonable point. I is, up the into fall, assuming here to low,

through balance lower So our and the our and of of through October with and million certainly inventories year. volume the tons committed November this end at homes

Jeff Tarsi

We one it. might component about weather. Hi add I talked other Jason. to

are But factor We something yields couple like have talked it's about standpoint. right think feels little trend we from yield line a predicted if standpoint, ahead timing a of a harvest. And maturity is looking at yield. at been being mentioned level. the look crop other And bit a what's we at big it's is times or from of that moving I

going we real me to have is, a off. tells crop are strong comes And this rate so as removal what that

such demand massive out field again of should fall. testing agronomist drive soil doing which the drive, and should be on amounts obviously for our will out the We with


Jeffrey Your with of next Zekauskas line question JPMorgan. comes from the

Jeffrey Zekauskas

in And that? coming the better much. crop that your wasn't shouldn't margins. and be operation that very your protection pricing really business, There is Why costs? what's sub-business Why for than change outlook retail Thanks any year? over

Mayo Schmidt

you that take question. David,

You lead for that our group, please?

David Elser

question. Thanks. appreciate Yes. the And Jeff,

from purchasing think on and as fairly with that strengthen pressurized our through industry well suppliers. the The really of globally continues term perspective. and strategic expansion backs margins And our move long crop continue and acreage volumes half relationships I to right the our generic of margins position. Cp stable be stayed sales we as to a our the whole look proprietary to monitor to some a in protection as position one,

our was I going forward. upfront to our on will margins to business strong moving half think and through look proprietary make one, continue we progress


Sachs. comes Your Goldman line Samuelson of next from Adam question with the

Adam Samuelson

actually movements Yes. was square on for says adjusted retail the Is look up and that an a FX much seem guess good. on trying But Is I California? get on Thanks. to it the am there? color and have in. basis. same benefits gain function I market hoping segment Good the and that results like color from which Canada morning any the reported Because context Western that there in proprietary was sales for X% And it up X% been with of first basis, store performance organic additional half in everyone. I results? we the of and in doesn't weather fertilizer a I in pricing share to that the in to was specifically thought there, evidence some reported more have the year-on-year disclosures products that overall, would quite in

Mayo Schmidt

the And we XXXX Well, seed with for question. selling with the start are very just pleased me thanks saying, season. Adam let

your between full likely fill crop strong grow acreage some share the and some major area. area? of next shifting across or season we point didn't to increase, But And that David, that want to correct crops. the brands. to from half between we But of really that really a and and crops in seed see the has on And Canadian share we in in four are do in we the You you growth lot might expect been that momentum it build them. dry continue seed follow-through see

David Elser

strategic to it strategically Mayo, business to context I customers' priority more seeds, canola, crops, ours four corn. well. of our the across as think soybeans look and a I it's Yes. major of hit gain mean our overall of cotton, No, share in well grow you as

underway in the price worked for are gains we selling to some going themes half. underlying season. overarchingly through gained those trade launches, well heavily some our there strength think relative speak. we share next And strength Preparation that said, first of was, as soybeans this Mayo pressure new this herbicide through I XXXX some and teams going but seeing As in into


line comes with Your Andrews next Vincent from Morgan Stanley. of the question

Vincent Andrews

you Thank and morning just on to everyone. good wanted I Mayo, potash. you ask

ton You capability. referenced million asking the rate $XX perspective you reach a that juxtaposition sort And in think of rate quarter. obviously that the will How about year? the we I production run production am guess run should fourth of from going into next I

You into that. But the coming American being mentioned potentially perspective. North are maybe distribution then a market, affordability and advantaged to sensitive which tons less there's also Belarusian from obviously into

So, how I about variables. you just see high to few go of want maybe that's basis? price versus you you how are forward how a much recognize But a potash thinking a produce philosophically, to want on

Mayo Schmidt

X% X% an global that expect continue to with year. Well, start let we to comment important Thanks think I grow Vincent. demand a by me to Yes.

So if fourth And you why as next would million annualized Ken of do XX the are and XX by talked years the his that's tons. metric XX math about group we that's rate I thinking on about, million quarter. about, over to run the nine say the that tons eight, that

of to higher some these mine have the at sitting to as When really to we at opportunity prices. $XXX, tends we shareholders. get level you But get be concern our time, whether the soil. there we same at this value the destruction for look simply they will Brazil when So

for it sight five we also further million So capacity. a another the the then brownfield I if of good But tons cost leveraged market the us, have additional think about production needs of capability in I be line could additional low and think to XXXX. that's

are that in cost industry flexible So we have going and network. already the position with that to leading we mine to our in invest continue low

to is price service being on our while And focus are so positioned we how sensitive. our this the be going potash and operations time market to

keep enjoy you the continue Ken, we prices. And that? how add and growers going want prices and to about to that's price to these game some enjoying are are And in servicing want do accordingly. to to to our we think anything We them

Ken Seitz

Vincent. through well. and couple obviously and fundamentals that Everything a on but the Yes, XXXX, of said just thanks Mayo strong Mayo demand, comments Thanks obviously, expectation of XXXX maybe. as

levels And I fall, critical and that we to inventory lows. levels. at expect the with already moment one is point in a think continue. a multi--year reasonable is we that discussed that inventory And have

the On announcements Mosaic, haven't price we production our than we supply if already. side, would of these be new And seen own. levels I true expect the the bit we think are uncertainty. consequence does to happened sanctions of will create be the back. it a it's have at any But while in that situation were some they Belarus at the other there and unknown moment, announcements additional

there surge customers for XXXX our exactly in XXXX, can production we them levels. are be will and Mayo if we for said, as So asking beyond


the Connelly from Mark comes question Inc. with next of Stephens Your line

Mark Connelly

I how what meaningful far? does impact and the you. help how most is progress being drought impacted is retail Thank understand assuming so this was continues, it? could portfolio that part us you of hoping California your in And

Mayo Schmidt

market? you do for that please California to take want the Jeff,

Jeff Tarsi

too. market be from California irrigated. look impact I an Sure. haven't would those the Obviously, glad of at crops of I the Yes. seen all standpoint, If majority impact. a we are dramatic

very they reservoir aren't We right now. are alarming reading are, the with levels all it

upon much the biggest lot use going season depend later release they getting think I a to fall for planning fall with into is those to growers planning come how to now. of are water impXact going that And a we as planning. might those

of doesn't when down. you really that and are are in crops. And they create obviously, condition, dry our will that permanent very We a in be especially some disease, seeing indications a hot lot

has So I anything. so say, out the more affected than West probably would been our fungicide

conducive in we think have into that to start into will has we it can little reservoir some get very a business see fall then in to XXXX. hopefully But and with later I of been well circumstances going as the levels the up out our snowfall Our into performed get considering these And planning. there. fall actually the winter that's bit we fall later we some business


of Your comes line the next question BMO Capital from with Markets. Joel Jackson

Joel Jackson

morning Lot about, are range gave lot when moving both right maybe topics guidance interesting Hi. you of because you a and a uncertainty now. for Good There's very Maybe it's this of about a talking you couple and on EBITDA lot call potash can parts. a everyone. for the talk of year us time. for

are bigger to look and So fall of on in when some what range and you always Western is weather a dry take higher Canada source I it's the the weather, range, of the fall, know, your uncertainty? So wanted lower assumption important. about at are making talked you

For to U. have they actually are and you abilities, of you they be of found second. end your think out make of The range? fertilizer around, it. export assumption all problems, Mosaic your production problems a said aren't they sanctions, but assumptions he raised stake. production the relieve Europe What sanctions, the BPC's then will having will the whether Belarusian So at volumes, Belarusian bad as those as just seem restrictions on not high you have for way and around S. when are Chinese it's assumption assumptions, seeing to have what side, lost? there the maybe be low And end then you your the the an or you got than

Mayo Schmidt

Thanks Joel.

the of are volatility in talk you of commodity good me make Let that that's and got comments and and a couple business questions a in. there have you just about lot we

of just and the an I strong follow-through. that the do the capable I expect we of what still think Belarusians, be we us see of position. going regardless think combination And to of very It on. are for to bringing in are are strong potash sort results that creates we of amplifier the happens with fundamentals

with a the full the to EBITDA, performance $X.X delivered over year, in we the year. significant you perspective point, new I is As your the and of mean, in billion. company adjusted $X year, earning EBITDA talk you is guidance XX% our our record know, increase half would year and an When as billion about of which first with

are look you I to the at So ability we flat mean, for But yet the markets crop. that's necessarily see but this delivered into a we there's corn strong new inverse demand signals are a through next all are demonstrating the same you the really in not up I be XX%. mean, prices trading that there's the follow-through not this when corn nearby, with do they it's crop. even at to the new time crop, big deferred. only

if an hard these they you So period They we really and sustain when right of and prices mean, particularly now cycles. is look see I we into to supply a at extended type quickly. for opportunity the real the end. get And here to the it's of time. demand, low supply But end dramatically when tell these side. on

in security to here terms happy in and a crop We want And that both Thank am crop system. to comment to to certain already Ken, what internal the Jason? who I China or asking to contribute. do look bang terms food production at to we of are hold countries inventories, But they leaders where system to have a of are want of you level almost make with in in ask our chime Raef, down Okay. their got perhaps and then some have they bit? are producers, the of in you you. their seeing inputs their and focus that over

Ken Seitz

a parts created XXX is today. moving moving we the at business And these Mayo. agree parts potash an I million talking net of But on of are I believe in to Thanks this of tons. the for us Great. those number that Yes. some it's do moment the Joel, about there opportunity and are year call

a our capabilities just that's think and demonstration to here. testament I really

October. XXXX, are through committed and with through For domestically Canpotex we November

do is uncommitted some large We part, us. for table the have So volumes. set in

we to guidance in look continues opportunity is our some ranges, at many higher also but to levels, volumes Prices firm without So inventories there if do markets. an price. additional to moving

say And high. the variances but ranges, in level hence so will confidence those that is quite I

Raef Sully

take committed the think the think We the in Yes. We basically Jason Pricing And fundamental has here we And third is North pricing America. have I at nitrogen suite remain export across through will minute. second take We happened. will nitrogen thought the of raises. solid. some be that on will quarter out the side, would It I hasn't products. there remained firm. through let situation. Chinese half firm

said, at the Ken pretty tight full as So year is this point.

range So mentioned. are pretty confident the that Mayo we that

Jason Newton

Yes. John.

Chinese export the situation. on up follow to Just

attempts several the industry export several seen have phosphate. and now seen government associations, to not put Chinese by the this the to And have domestic pressure and in step enterprises. We we state-owned week, urea industry on associations pressure members

at of will the urea the highs we what that that taken and have have you of if off we market I to week. seen say, doesn't little think I the has. impact see hold. last global action bit over market to look The prices and will restrictions what the come has a wait believe

into are to today. there where into don't with from work, past, And the Mayo a have food which are informal from seen the certainly are priority supplying the that positive. from, security action And mentioned, that think need. we restrictions I we be incrementally would market they place on standpoint, Chinese more in the place, So the if put fertilizer formal as also restrictions that's if seeing come positive to restrictions is take


next the from line comes John question with of Roberts Your UBS.

Lucas Beaumont

morning. get This if want to to just we I on is retail, Good for John. can. Beaumont, Lucas back

is the of now location basis. half. So exceed spot like on to it sort above for targets of you per year And EBITDA first XXXX going sort the full probably the year-to-date there your there target are a to the looks XX%

should need U. we raising sort Or and think about kind do are the S. you X.X us trend to environment of of should any Thanks. other factors telling the in expect your locations that that to is million temporarily back sort we towards that consider? or targets So overrunning current there target? of retail

Mayo Schmidt

Jeff, in supplying just before retail the margins. let you call XXX,XXX certainly and course, just Well, round. of performance that growth over delivered I results know, revenue digit in And we with year would record comment the both are in farmers double that me half first

with this the pleased area. progress in we made have certainly are We

to proprietary and value where seeds and focused driving be going have we the that's on digital over X,XXX are We supported from, tools if services. you by proprietary think about

So fill in followed, if of we maybe, real David, more like to please? wish, see then local that strong in you you going view, I to a Jeff think or by are area. would momentum

Jeff Tarsi

go we look, And too opportunities Sure. to backwards. Yes. don't get many

We year the marketplace. this pleased are in with really our performance

center seeing I and think And are hit have look too it's fertilizer, that. chain is, that Financial look retail. proprietary times, I But able retail those seeing we it's business, but our our the about our seed at of our crop supply many group are with when whether platform, Nutrient David platform what are you really in in what I are flanked ourselves our us our what are think you stride I job we all at we we just and invested and we his protection, of pieces. and the really in strides leveraging across do it's those it's logistics, whether best-in-class think with, leverage digital hitting to off areas what technology, and

I Growth if growth this have times Mayo come rationalize continue to don't in Only had companies what I business. to nutrition we a are have the on And look hard operational our a cycle. with year, our customers. strong year excellence opportunities pushing our us those every to have And at investments From we opportunity call we our really an business several with It back agronomists where doesn't our It's plant them has look solution and offering standpoint, focused great really those that ends. really business, the think mentioned given that And look continue of our the scrub we across we great Agrison, investment. as matter We proprietary that and out Active again, to customers. today. group, solutions a in products. you are at like made differentiated for has return growth products or that really to XX% our products given

efforts we put are branches last around going lot in together XX I the business retail our more basically efficient rationalized our North a think greenfield making three years, America forward. to we out there to-date of over that

into are tailwinds got There that think I But coming have we lot we of hitting had a some is we So year. no lot we think gains this doubt the of things a on. have made have any and are this I if can going year additional comments. going diligent we you work we that forward. and we are know as don't as as hard got David, sustainable to

David Elser

to business our Jeff is, a of relative nailed and of they your of the our space, have built Growers return And add suppliers and I relationships, nutritional I lastly, full it digital Nutritional strategic then in I on terms point particularly context of mean, farm. economic the The put on think solutions, end-to-end assets are in together the there a to Nutien in products two on performing agronomic I have spend trending to you only well. Jeff, things are proprietary commentary Yes. your obviously that products launching, our well. our willing say capabilities both about, how can as new products has high we talked we looking investment. Financial, to outstanding would

key through So been owning too. grower our agronomist has relationship that local

what add. that's I Jeff, would So,


Wong next Markets. line Andrew Capital of Your question the from with comes RBC

Andrew Wong

Hi. Good morning.

Just a quick on for me.

producers. a people Thanks. with lot Nutrien We commodity the yet? Saskatchewan, anything like of all potash recently at issues up back? pricing ramping And like that Has on talk hiring shortage issues Any pressures were that? heard terms about production in anything of issues have inflationary there labor seen or or any

Mayo Schmidt

in I Thanks may a for to he pull comment that, Andrew. wish and to am Pedro make going first. here

Pedro Farah

question. some seen thanks as scaled Andrew, kind for we we Yes. production. of the pressures Yes, our across have inflationary

against been also that of those would offset kind on up an ramp that inflationary as volume we has our Although pressures. volumes say I

in potash. be by think at in this point the disadvantaged cycle. those of will balance, in not do felt time So I feel we But like I most think perhaps,

comments add any will I there? maybe would to Ken So like ask if

Ken Seitz

And a maybe standing people respect of Yes. keep don't potash. to obviously just Thanks we additional to with million Andrew, around produce tons Pedro. resources, human

finding hiring success So been in we we that. that are have

have we to up So been productions. ramp the we resources, able need individuals the human get to

Our confidence level there is quite high.


comes Steven with question Your from of Raymond line next James. Hansen the

Steven Hansen

on XXX,XXX It capability at. opposed are a create strikes surge and problems. term some near production. high whether your the as just term just I you given potash prior the the tons on appreciate that price morning in waiting, just Good decisions another curious But or commentary recent me of can more am on already to perhaps adding levels million we to longer prices contemplate can I everyone. Yes. add

that into And just of might side well? on the maybe so next year? what of vector terms trying waiting adding new the in decision versus to Any as be limitations sooner operational production understand just

Ken Seitz

Thank you Yes. Steven. again. Ken here Seitz

asking So production that yes, led conclusion the the what to opportunity appropriate. extra the and are customers we in did frankly million was a of that tons market And at look our for. a have

million We worth annualized tons basis, have about this XX that. demonstrate tons of of long talked XX alone an year capability. million On will

the Could the Again So we with that surge capability customers there. we are is for million we that what if XXXX, year. we additional it, tons for there for and have production to get we for time are if could. next can certainly our thought people led and lead asking enough asking opportunity


TD of Tupholme next the comes with Securities. line from Michael Your question

Michael Tupholme


mix? the off, half. come can guess incremental the first the you in which in do expect mine secondly, expect second potash come as of a from? mix? on to year I question production that you mines And potash production or and potential the expected increase production other Is and in evolve the cost you second all that from planned half the do about there result to increased that in to are talk Another then shift how Vanscoy production to mine of

Ken Seitz

It's Ken Michael. again. Good. you here Thank Seitz

also role additional that Cory Lanigan. integral yes, an is million But that correct in So from getting tons. you and playing tons we are are additional Vanscoy

the basis, the that year to Lanigan if that at respect here And produce? we volumes is market there's On was that with our you sure With combination for is and year. That tell last said, for competitive additional Cory answer. the our and probably path post the first to costs Canadian And we calling similar strengthening quartile to I cost with bring what full own what's Vanscoy, low offset Dollars, can levels, cost, opportunity of production? a Canadian I cost us year look S. What will Dollar cash costs be report production there there, at an really our cash the we says, in this our of down. to U. that do production And work most that our levels, production for? Dollars. can so one efficient is an given


Your with Cleveland line Piken Michael of from comes next question Research. the

Michael Piken

on And year the questions Yes. rest well? Good XXXX? kind narrowed look schedule your what looking couple type the guide in be does of some. as of of What range nitrogen into of volume morning. A next Number at the And turnaround business. in I you capacity one, of saw we then the like for your could nitrogen? year

Mayo Schmidt

he's to have know and keen participate I that. for year a here. am Raef had to ask I thanks They great to going Michael, comment.

So over Raef, you. to

Raef Sully

Yes. appreciate Michael, question. it. for thanks the I

volumes as turnarounds normal larger a go, had far as than look, year. this few we have So

some have we there. to a We is to largest also XX.X. going done one major It in. because volumes XX.X, and close we of through old of take have items. some years coming brownfield have to year fifty see both the have closer have ever the said, projects one we Redwater. up there. one the That got at over ever we the should sites finished done the was into care next at expansion of This But we XX, third probably are And are got largest we Again, Borger. way

the one We Borger. have finished

out are from in are addition we as we sites. to the to increasing reliability going of work the trying us expansions of brownfield help on schedule, that turnaround well. will continue continue that course, the And So to

take. Just basis. got we allow a that liability about ammonia planned our And think include when an on numbers, talk normal note, have outages to they a for X% about planned point average to about the outages to you plant, you we have if

about towards us make get are see you And us So you reporting will to you best-in-class. XX%. see could time that trying it's we over point, at which some that the maximum XX%, XX%,


Barclays. comes next Fischer from line Duffy with question of the Your

Duffy Fischer

A maybe parter. three couple morning. nitrogen, a Good more around

business anti-dumping, what on is favorable would for wholesale favorable, Two, either it open would of a kind then validity intermediate U. if And what's S. view footprint impact So that opportunities if the any on in or the up different UAN term? the for invest in to your of your retail you the producers, one, have nitrogen? is it three, claim? around that that

Raef Sully

can sure answering I the I comment from am will in question. are Commission. it. good that come a that we really Trade I tell look on you Well, questions not

in duties As one. actively not case, we are Mosaic owing did with we this participating

just the questions that answering through. are come We

on a taking stance okay? are it, We neutral


BNP. comes question Patel from line Exane next Rikin Your the of with

Rikin Patel

all. Hi taking my question. Thanks

for one retail. me, on Just

lower hit You margin are for line, year-to-date. XXXX. your end of that's guess, to the XX.X% in with the able target And I

given you do if a hitting can could what curious on, bit should hitting we target that? us on an I the guess that whether Just to annualized assuming little And is more in aggressive the whether you roadmap update guys map are Thanks. are we be now, basis? you XX.X%

Pedro Farah

is This Pedro. Yes.

our those targets what we of we Day, refreshing think very progress we we I Investor we have look are to be our we all this go even cycle, update as will have at to of the to-date into achieve. are And And all and we pleased next planning to though on with through year. targets. obviously probably the

of made today have retail the we accelerated. The right. that's have in business other that progress So parts and

for will So we future. that. But are to now pleased the need reset about we them


question the next Tamagno comes your Berenberg. from line with of And Adrien

Adrien Tamagno

And can taking in buybacks And deal, quarter? will Thank it explain very Thank to was for it actually locally? With market share just the morning. bring was you. related, Good you you the Hello. of little my there where Brazilian regards question. the you if during rationale? terms

Mayo Schmidt

ask, Thanks Head Business our Sustainability. bring going Development and in Mark I am Mark. of Adrian. Thompson Group here, And to Thanks

Mark Thompson

Thanks, question. Adrian, Good morning. the for Yes.

That in to your acquisition the I Terra recent announcement the was question that of So Brazil. was think pertaining Nova. we signed

S. to and America And and across commentary, have in on the comprehensive so, U. to our we build as in Brazil, world. North Mayo the said around model similar in continue his retail a we out what focus constructing

footprint in the to Nova as have four it's months Terra have progress. now made that last a our in nine the operation, We Minas announced Mayo Gerais. acquisitions are respect helping good attractive very business With of region contribute said, there. specifically, XX And branch very to footprint

also We a this region. do in have already presence

our gives so market And Whereas we will strong XX%-plus in S., us continue share, have this strong strengthen competitive U. footprint. very advantages. a to which the

Brazil. in opportunity are potential in early of We the our very stages

with give And for market, us so solutions in earlier, model that good forward. does our products integrated location expand full-acre while look as of involves this proprietary there's a retail foothold country, to the and in Jeff model a bringing both lot acquisitions us described also, continue but to our room to

are acquisition optimistic about we the to value continuing in for enhancing look Brazil. So opportunity opportunities and


I Q&A to the Thank you. Downey turn back does This now Richard portion. closing call conclude will over the for remarks.

Richard Downey

a help you out. available Have us joining any follow-up this there's you Relations And questions, if day. to Thank Thanks Thanks Investor everyone. for joining is always good us. morning. for


does today's you. call. Thank This conclude conference

You may now disconnect.