Fertilizantes Heringer S.A. Announces Earnings and Operating Results for the Second Quarter and First Half of 2018; Provides Earnings Guidance for the Second Half of 2018
August 10, 2018 at 10:00 am
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Fertilizantes Heringer S.A. announced earnings results for the second quarter and first half of 2018. For the quarter, the company reported net revenue of BRL 885 million, higher at 9% than BRL 814 million a year ago. LBITDA at BRL 64 million compared to 39 million a year ago. Net income was BRL 277 million compared to BRL 100 million a year ago. Cash flow from the company's operating activities was BRL 48 million. Free cash flow was BRL 35 million. Cash flow from operating activities was BRL 37,974,000
For the six months, LBITDA at BRL 92 million compared to EBITDA 6 million. Net loss was BRL 324 million compared to BRL 93 million a year ago. Net revenue was BRL 1,926,605,000 compared to BRL 1,820,098,000 a year ago. Despite the slight year- on-year decrease in deliveries in first half of 2018, net revenue moved up due to an increase in the price of fertilizer raw materials and the appreciation of the dollar in the period, resulting in a higher average price per metric ton. The lower net result in first half of 2018 was due to lower margins and the strong depreciation of the real in the period. Cash flow from operating activities was BRL 12,064,000
Deliveries totaled 723,000 metric tons of fertilizers in second quarter of 2018, 5.0% lower than the 761,000 metric tons in second quarter of 2017.
In first half of 2018, deliveries reached 1,588,000 metric tons, 1.8% down on first half of 2017. Although Heringer's volume fell less than that of the market in first half of 2018, the company's deliveries and revenue fell in second quarter 2018, as a result of the truck drivers' strike.
The company provided earnings guidance for the second half of 2018. For the second half, the outlook is quite more positive considering the crop profile of the company, and also the retail efforts by the company, and also owing to the progress, the company made with its specialty products. The outlook is positive due to postponement of deliveries following the truck drivers strike and the implementation of a freight rate table in second quarter of 2018, combined with a 7.7% year-on-year decrease in imports in first half of 2018.
Fertilizantes Heringer SA is a Brazil-based company primarily engaged in the production, marketing and distribution of fertilizers under the Heringer brand name. The Company organizes its business into two segments: Industrial, which constists of sulfuric acid and single super phosphate (SSP) production plant, and Mixing Plants segment, which includes fertilizer mixing industrial units. As of December 31, 2011, the Company operated 19 fertilizer mixing plants. The Companyâs products are used in the crop production sector, including farming of cane, soybeans, corn and coffee, among others. Through its subsidiary Logfert Transportes SA, the Company is also involved in the road transport operations. On January 4, 2012, it acquired Maxifertil Fertilizantes Ltda, located in the municipality of Porto Alegre. On June 29, 2012, the Company completed the operation of merger by incorporation of its subsidiary Maxifertil Fertilizantes Ltda.
Fertilizantes Heringer S.A. Announces Earnings and Operating Results for the Second Quarter and First Half of 2018; Provides Earnings Guidance for the Second Half of 2018
FERTILIZANTES HERINGER S.A. 
