KASSEL (dpa-AFX) - Agricultural products supplier K+S AG (SDF.DE) reported that its preliminary EBITDA for the second quarter of 2023 was about 24 million euros and underperforms the market expectation, in particular due to price effects.
In the second quarter, the potassium chloride selling price in the Brazilian market faced a more significant drop than previously expected. The price recovery which is currently observed has also started later than assumed.
For the year as a whole, it will not be possible to compensate for the EBITDA shortfall of the second quarter. Furthermore, sales-related optimization of the product portfolio will have an impact on production volumes. In addition, as a result of the port strike in Canada, negative effects from the still ongoing normalization of supply chains cannot be ruled out, the company said.
If the positive demand impetus and price trends currently observed continue in the further course of the year, it would still be possible to achieve the current market expectation for K+S Group EBITDA of about 800 million euros at the upper end of the range, the company said.
In case of a renewed reluctance to buy in key sales regions, however, this could lead to negative volume and price effects. In this case, EBITDA could be at the lower end of the range at about 600 million euros.
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