FMC reported revenue of $1.34 billion in the first quarter of 2023, with record year-over-year growth in North America

FMC recently reported first-quarter 2023 revenue of $1.34 billion, which was flat compared to the first quarter of 2022, with growth of 4%. The earnings report includes analysis of 2023 first quarter earnings, and full year 2023 earnings forecast, the details are as follows.

 Highlights in the first quarter of 2023

Revenue was $1.34 billion, flat from the first quarter of 2022 and up 4% organically

Consolidated GAAP net income was $196 million, down 7% from the first quarter of 2022

Adjusted EBITDA was $362 million, up 2% from the first quarter of 2022

Consolidated GAAP diluted earnings per share were $1.55, down 6% from the first quarter of 2022

Annual Forecast in 2023

Revenue guidance was maintained at $608 billion to $6.22 billion, up 6 % from the 2022 midpoint

Raised its adjusted EBITDA forecast to $150 billion to $1.56 billion, a median 9% increase from 2022

Raised its adjusted diluted earnings per share forecast to $7.34 to $7.94, reflecting a median increase of 3% compared to 2022, excluding any impact from potential additional share repurchases in 2023

FMC reported revenue of $1.34 billion for the first quarter of 2023, unchanged from the first quarter of 2022 and up 4% organically. On a GAAP basis, earnings per diluted share for the first quarter were $1.55, down 6% from the first quarter of 2022. Adjusted earnings per diluted share for the first quarter were $1.77, down 6% from the first quarter of 2022. Adjusted earnings, however, were $0.02 higher than the median of the guidance range.

Mark Douglas, President and Chief Executive Officer, commented, "FMC delivered solid results in the first quarter with strong pricing, rapid introduction of new products, and cost control driving margin growth. New product additions and expanded market access contributed to strong sales growth in North America, helping to offset sales headwinds elsewhere." 

In Latin America, revenue fell 12% from the first quarter of 2022 as drought reduced pesticide application in southern Brazil and Argentina. Sales in Mexico and the Andean region remained stable. Sales in Asia fell 22% from a year earlier as dry weather in Australia and aggressive inventory management in India impacted revenues.

On a global basis, the company's plant Health segment revenue for the quarter decreased 2%, mainly due to strong sales growth in EMEA and Latin America, driven by foreign exchange and a decrease in North American sales volume following strong growth in the fourth quarter.

FMC's adjusted EBITDA for the first quarter was $362 million, up 2% from the same period last year, and EBITDA margin increased by more than 60 points from the same period last year. This was primarily due to pricing increases, new product launches and cost controls, partially offset by the continued impact of foreign exchange.

Annual forecast

Full-year 2023 revenue is forecast to be between $6.08 billion and $6.22 billion, unchanged from its last guidance range and up 6% from the mid-point in 2022. FMC raised its full-year adjusted EBITDA guidance by $10m. Full-year adjusted EBITDA is expected to be in the range of $1.5 billion to $1.56 billion, an increase of 9% year-over-year based on first quarter results, continued price increases, an aggressive product mix and projected input costs. The 2023 adjusted diluted earnings per share range also increased to $7.34 to $7.94, representing a median year-over-year increase of 3%. FMC maintained its full-year free cash flow guidance of between $530m and $720m.

We expected that the  second-quarter results to be broadly in line with last year. Based on the first quarter results and our expectations for pricing gains, the mix of new products and input cost benefits that are expected to materialise in the second half, particularly in the third quarter, we are raising our full-year EBITDA guidance and narrowing the range. The strength of our product mix, the diversity of our crop mix, and our investments in market access are well positioned for revenue growth and margin improvement in the coming year."