Nutrien Ltd.: Does It Have A Sustainable Competitive Advantage?

Nutrien reported an adjusted EBITDA of $1.1 billion for Q1 2024, attributed to higher margins in crop inputs, increased fertiliser production, greater sales volumes, and lowered operating costs. The company’s Ag Solutions division reported a 15% increase per tonne margins compared to Q1 2023, supported by robust grower demand and a return to standardised margins in North America. In relation to operational and market developments, Nutrien increased crop protection inventory in Brazil to manage high inventory levels and reduce operating costs. The strong demand in key international markets and improved supply chain performance drove a rise in offshore potash sales volumes. Also, despite weather-related outages, Nutrien increased nitrogen and phosphate production leading to higher sales volumes compared to 2023, thus adding to its favourable result.