Important business figures: K+S on track despite volatile factors - experts expect stable market expectations

Important business figures: K+S on track despite volatile factors - experts expect stable market expectations

According to a report by www.finanzen.net,

The fertilizer company K+S has confirmed its annual targets after potash prices stabilized in the Brazilian market. Demand increased compared to the second quarter, supporting prices. Despite an operating result of 550 million euros in the first nine months, the forecast for EBITDA remains in the range of 600 to 800 million euros. The wide target range is attributed to volatile factors such as fluctuations in gas prices and potential strikes. The company's shares staged a recovery attempt, rising nearly five percent.

The full year 2023 is expected to generate an operating profit of 696 million euros, according to analysts. Last year, K+S made a record profit of 2.4 billion euros, but due to weak potash prices, the annual profit target for 2023 was reduced.

The company's stock had taken a hit after announcing lowered annual targets in June 2023, but it began to recover in the following months. Still, the share price is far from previous highs and analysts are skeptical about a stronger business recovery.

In the third quarter just ended, K+S recorded a decline in sales of around 40 percent compared to the same period last year, accompanied by a decline in operating profits of almost 90 percent. The company's new distribution policy stipulates that 30 to 50 percent of operating free cash flow should go to shareholders in the form of a dividend.

Overall, the development points to ongoing challenges and the company is likely to face further pressures that could impact the market, shareholders and the industry as a whole.