Compass Minerals reports turnaround with $15.5 million net income By Investing.com

OVERLAND PARK, KS – Compass Minerals International, Inc. (NYSE:) announced a significant financial recovery for fiscal 2023, with net income of $15.5 million, rebounding from the year’s net loss former. The company’s adjusted EBITDA also increased 7% to $200.8 million, despite lower sales volumes in its Salt and Plant Nutrition divisions.

In a detailed breakdown of its performance for fiscal 2023:

• Consolidated revenue fell 3% to $1.2 billion.
• The Salt business remained stable with revenue of $1.0 billion, with a substantial increase in operating profit and adjusted EBITDA.
• The Salt segment’s fourth-quarter revenue fell slightly by 1%, but operating profit jumped 91%.
• The plant-based nutrition segment saw a sharp 39% year-over-year fourth-quarter revenue decline, as well as an operating loss for the quarter.
• Over the entire financial year, the Plant Nutrition business was faced with a decline in its turnover, its operating profit and its adjusted EBITDA.

The below-average defrost season and unfavorable weather conditions were cited as factors affecting performance, particularly in the Plant Nutrition sector. However, improved profitability within the Salt division contributed to an increase in consolidated operating profit to $79.1 million.

Strategically, Compass Minerals completed the acquisition of Fortress North America and decided to shut down its lithium project due to regulatory uncertainties. The Company concluded fiscal 2023 with liquidity of $317.0 million.

Looking ahead to fiscal 2024, Compass Minerals forecasts a 3% to 5% increase in salt sales volumes, setting an optimistic tone for performance in the year ahead.

InvestingPro Insights

Compass Minerals International (CMP) operates with significant debt, which is a factor to consider when considering its financial turnaround. Despite this, the company’s net income is expected to grow this year, according to InvestingPro Tips. This is reflected in the fact that 4 analysts have revised their results upwards for the coming period. CMP’s P/E ratio stands at 95.33, demonstrating the company’s earnings growth potential in the near term.

InvestingPro data shows that CMP’s market capitalization is adjusted to $1,020 million, indicating the size and importance of the company in the market. The company’s revenue for the trailing twelve months in the third quarter of 2023 was $1,220.5 million, a slight increase of 1.17% despite the challenges faced during the defrosting season and adverse weather conditions. However, it is worth noting that CMP’s revenue growth for Q3 2023 decreased by -3.31%, in line with the company’s reported consolidated revenue decline.

For those who want more information and advice, InvestingPro has a wealth of additional information. Notably, there are 7 other InvestingPro tips and many other real-time measurements on Compass Minerals International available on the site. InvestPro platform.

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