The result is clear
At K+S things are going less dramatically than expected
April 30, 2024, 4:45 p.m
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The competition has not yet concluded any delivery contracts with customers in the major markets of India and China. But K+S still expects potash prices to be below the previous year’s level. Nevertheless, the first quarter falls less dramatically than feared. The lower end of the annual forecast seems too pessimistic.
The fertilizer and salt manufacturer K+S has started the current financial year better than expected despite a slump in profits. According to preliminary figures, the operating result fell by more than half to around 200 million euros. However, analysts had expected an even greater decline. The Kassel-based company said K+S benefited from strong European, specialty and industrial business. After the slump in profits last year due to lower potash prices, K+S is expecting a further decline this year too.
For 2024, the group continues to expect an operating result of between 500 million and 650 million euros. The lower end of the range has become less likely with the results of the first quarter. Since the conclusion of contracts with China and India by major competitors is still pending, this cannot yet be ruled out. The contracts with the two countries are crucial for the price orientation of the entire potash market. K+S plans to publish its full quarterly figures on May 13th.
Two years ago, the company was still flying high as the war in Ukraine made fertilizers more scarce and more expensive and prices for potash, one of the main nutrients for plants, rose to record levels. But prices have been on the decline since 2023. For 2024, K+S had recently assumed average prices would be lower than in the previous year, thereby justifying the expected further decline in earnings.
K+S was still able to score points on the stock exchange: According to the business figures, the shares rose by more than six percent.