Mosaic Q2 Highlights: 37% Revenue Decline, Lower Selling Prices, EPS Miss & More

The Mosaic Co MOS shares are trading lower by around 3% after the company reported mixed Q2 FY23 results.

Revenues declined 37% Y/Y to $3.39 billion, beating the consensus of $3.12 billion, reflecting lower selling prices. 

EPS of $1.04 missed the consensus of $1.12.

Adjusted EBITDA stood at $744 million, vs. $2.0 billion a year ago.

Potash's adjusted EBITDA declined to $408 million from $998 million a year ago, reflecting lower prices. 

Phosphate's adjusted EBITDA fell to $385 million from $758 million the prior year on lower prices and higher conversion costs.

Mosaic Fertilizantes' adjusted EBITDA stood at $66 million vs. $444 million a year ago, reflecting the lower pricing for both the production and distribution businesses.

Operating cash flow stood at $1.1 billion, and FCF came in at $197 million.

MOS returned $676 million to shareholders via share repurchases and dividends in H1 2023.

“The investments we've made in our business over the last decade are yielding results. Our Esterhazy potash complex is now the largest in the world and our Fertilizantes business in Brazil accounts for nearly a quarter of all fertilizer sales in one of the most dynamic ag markets in the world. Mosaic is well positioned to capitalize on the fertilizer market's recovery, which is well underway," said Joc O’Rourke, President and CEO.

The company expects capital expenditures at $1.3 billion-$1.4 billion in 2023.

Price Action: MOS shares are trading lower by around 3.06% at $39.00 premarket on the last check Wednesday.