Agrium’s 3Q16 sales
Agrium (AGU) earns revenue from two segments: Retail and Wholesale. The Retail segment accounted for about 78% of Agrium’s revenue in 3Q16, while the remaining share came from Agrium’s Wholesale segment.
Sales by segment
Agrium (AGU) reported ~$2.3 billion in sales in 3Q16, which was better than the analyst estimate of $2.4 billion—by a margin of 2%. YoY (year-over-year), the company’s revenue fell 11% from $2.5 billion in 3Q15. The Retail segment reported sales of $1.8 billion, which represents a 7.5% YoY (year-over-year) fall from $2 billion 3Q15, and the Wholesale segment reported ~$0.52 billion in sales, which represents a 23% YoY fall from $0.67 billion in 3Q15.
Within Retail, the services and other sub-segment fell 15% to ~$140 million from $160 million in 3Q15, followed by the crop nutrients sub-segment sales, which fell 14% to $500 million from $580 million. Crop protection segment fell 5.5% to $0.98 billion from $1 billion, while seed sales fell 1.7% YoY to $60 million. In contrast, the merchandise sales rose 5% to $180 billion over the same period.
The crop protection sub-segment fell 5.5% to $0.98 billion from $1 billion, while seed sales fell 1.7% YoY to $60 million. In contrast, the merchandise sales rose 5% to $180 billion over the same period.
In Wholesale, of the three NPK sub-segments, the nitrogen saw the steepest sales decline, falling by 27% to $220 million, while phosphate sales fell 21% to $130 million, and potash sales fell 18% to $90 million YoY.
Other NPK fertilizer suppliers (MOO) include Potash Corporation of Saskatchewan (POT), CF Industries (CF), and Mosaic (MOS). You can read about Mosaic’s 3Q16 earnings analysis in Market Realist’s series Digging Deeper: Takeaways from Mosaic’s 3Q16 Earnings.
In the next part, we’ll look at Agrium’s Retail segment shipments.