NETHERLANDS- Viterra’s revenue reached US$28 billion in the first half of 2023, up 18% from US$24.3 billion recorded in the first half of last year, mostly driven by record sales volumes and the completed acquisition of Gavilon.
In its financial report, released on 13th September, Viterra said that the earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first six months of 2023 ended June 30 was US$1.08 billion, a 23% decrease from 2022.
In this first half, strong margins and volumes in Brazil, Australia, and Europe were offset by relatively lower margins as the industry moved into a lower-price environment compared to 2022.
Additionally, the performance was impacted by the drought in Argentina, where the company has been operating for more than a decade.
Adjusted net income was US$342 million for the period, a decrease of 49% versus the record first half of 2022. Net income attributable to equity holders was US$130 million for the period, a decrease of 77%.
Following Viterra’s decision to exit from its Russian operations in March, an impairment loss of US$163 million has been recorded while it waits for approval of the sale of its entities by Russian regulators.
“Viterra’s strategic focus to expand and diversify our origination capabilities has allowed us to deliver strong results in challenging conditions, welcoming several achievements throughout our business,” said David Mattiske, chief executive officer of Viterra.
“We closed the first half of the year with a record 64 million tonnes of commodities marketed across our network, largely thanks to the addition of our recently acquired US and Mexico business, formerly known as Gavilon.”
The total commodities shipped included 39.1 million tonnes of grain, up 54% from 25.4 million tonnes year-over-year, and 22.4 million tonnes of oilseeds, up 43% from 15.7 million tonnes. Overall, sales volume was up 47% from 43.6 million tonnes in the first half of 2022.
In March, Viterra’s Australian business enjoyed its largest volume of grain shipped across one month, with over 990,000 tonnes loaded onto vessels across South Australia.
In Brazil, Viterra saw bumper soy and corn exports, resulting in a record of 429,000 tonnes export volume at its Itaqui port terminal in June.
During 2023, Viterra also announced the planned expansion of its grain and ingredient storage facility in Etter, Texas, US. Through its US and Mexico business, Viterra also expanded its distribution network across Latin America, exporting to new destinations, including Peru, Ecuador, Chile, Nicaragua, and the Dominican Republic.
In June this year, Bunge and Viterra agreed to a US$18 billion merger that will create one of the world’s largest agribusiness firms, moving the combined company closer in size and scope to leading agribusiness giants Cargill and ADM.
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