FMC adjusted its 2023 revenue forecast to $5.2 billion to $5.4 billion for the full year

The company recently updated its revenue guidance for the second quarter and full year 2023.

• Distributors in North America, Latin America and Europe, the Middle East and Africa began to sharply reduce inventory at the end of May, which had a significant impact on sales during the quarter

• Actual sales by growers remained at roughly the same level as last year

• Input costs continue to improve and significant gains are expected in the second half of the year

• Initiated significant cost reduction measures, originally planned to reduce operating expenses by $60 million to $70 million in the second half of the year

The company expects second-quarter revenue to be between $1 billion and $1.03 billion. Adjusted EBITDA is expected to be in the range of $185 million to $190 million. Due to the sudden large-scale reduction of inventory by channel partners, sales volumes were significantly lower than expected. In North America, Latin America and Europe, the Middle East and Africa, the situation only began to show up at the end of May and will continue through the end of the quarter.

Based on current channel dynamics, FMC is revising its full-year financial outlook. Full-year revenue is now expected to reach $5.2 billion to $5.4 billion. Adjusted EBITDA is expected to be $1.3 billion to $1.4 billion.

Mark Douglas, President and Chief Executive Officer, said: "As of the end of May, we experienced an unexpected and unprecedented decline in sales in three of our four business regions as channel partners rapidly reduced inventory. The outlook for full-year revenue and adjusted EBITDA has been revised to reflect these channel dynamics and their impact on volume, as well as the benefits of improved cost inputs and our significant operating cost reduction initiatives. "We managed to cope with a weak market and significant inventory reduction by our channel partners, while the actual volume of our products remained strong and in line with last year."