Yara improves results and initiates cost measures

Yara reports EBITDA excluding special items for the second quarter¹ of USD 513 million compared to USD 252 million in the second quarter of 2023. Net profit was USD 3 million compared to a net loss of USD 298 million in the previous year. To strengthen financial performance and improve shareholder returns in the future, Yara is initiating a cost and investment reduction program.

Highlights of the second quarter of 2024:

• EBITDA excluding special items¹ of 513 MUSD, reflecting improved margins

• Strong cash conversion with USD 500 million working capital release

• 150 MUSD cost reduction^{1, 2} and initiated a reduction in capital expenditure by USD 150 million²

• Financial situation to improve through cost reductions and shortage of nitrogen supply

“I am pleased with the improved results with higher margins and deliveries in a more stable price environment. However, earnings are not satisfactory. We have had turbulent, volatile years that Yara has managed well, but now we need to adjust our priorities and cost base to improve Yara’s profitability,” said Svein Tore Holsether, President and CEO.

A cost and capital expenditure reduction program has been initiated with the objective of reducing fixed costs by USD 150 million and capital expenditure by USD 150 million by the end of 2025. This will be achieved through a targeted approach that prioritizes high-return core businesses and reduces tail-return activities. By optimizing costs and strengthening the balance sheet, Yara’s financial performance is expected to improve, enabling it to finance value-enhancing growth and higher shareholder returns.

“Yara has unique competitive advantages as an integrated nitrogen producer with global and downstream presence. This gives us scale, flexibility and choice in optimizing our business, including our ammonia production and trading, and positions Yara well for profitable decarbonization. With a sharpened strategic focus and growing demand for low-carbon crop solutions, Yara will increase value creation and shareholder returns in the future,” said Holsether.

Link to the report, presentation and webcast on 19 July 2024, 12:00 CEST:
https://www.yara.com/investor-relations/latest-quarterly-report/

1) Definitions, explanations and reconciliations of alternative performance measures (APMs) can be found on pages 28-37 of the Q2 2024 report.
2) Fixed costs excluding special items. The run rate is reported as fixed costs for the quarter, annualized (taking seasonality into account). For further details on targets and baseline, see the Q2 2024 presentation.

Contact
Maria Gabrielsen
Head of Investor Relations
Tel: +47 920 900 93
Email: [email protected]

The story goes on

Tonje Naess
Media contact
Tel: +47 40844647
Email: [email protected]

This information is considered inside information within the meaning of the EU Market Abuse Regulation and is subject to the disclosure requirements under Section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Maria Gabrielsen, Head of Investor Relations, at Yara International ASA, on 19 July 2024 at 08:00 CEST.

About Yara

Yara’s mission is to feed the world responsibly and protect the planet. We pursue a strategy of sustainable value growth by reducing emissions from plant-based food production and developing low-emission energy solutions. Yara’s ambition is focused on developing a nature-friendly food future that creates value for our customers, shareholders and society as a whole and delivers a more sustainable food value chain.

To drive the green transition in fertilizer production, transport and other energy-intensive industries, Yara will produce ammonia with significantly lower emissions. We provide digital tools for precision agriculture and work closely with partners at all levels of the food value chain to share knowledge and promote more efficient and sustainable solutions.

Founded in 1905 to combat emerging famine in Europe, Yara has carved out a unique position as the industry’s only global plant nutrition company. With 18,000 employees and offices in more than 60 countries, sustainability is an integral part of our business model. In 2023, Yara reported revenues of USD 15.5 billion.

www.yara.com

This information is subject to the disclosure requirements under sections 5-12 of the Norwegian Securities Trading Act.

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