In 2023, FMC reported a significant decrease in revenue, amounting to $4,486.8 million, which represents a 23% decrease compared to the previous year. The decline in revenue was primarily attributed to reduced purchases by distributors, retailers, and growers across all four regions, leading to a decline in volumes. The company initiated a global restructuring plan, known as "Project Focus," in response to these destocking conditions.
The gross margin for 2023, excluding certain charges, decreased by approximately 20% compared to the previous year, primarily due to reduced volumes across all regions and a decline in prices in Latin America. Despite the challenging environment, revenues from products launched in the last five years and branded diamides showed relatively better performance compared to the rest of the portfolio.
FMC's net income attributable to stockholders increased to $1,321.5 million in 2023, up by $585.0 million from the previous year. This increase was primarily driven by significant one-time tax benefits related to new tax incentives granted to the company's Swiss subsidiaries and the release of FMC Brazil's valuation allowance due to new tax laws enacted in the country.
Looking ahead to 2024, FMC expects its revenue to be in the range of approximately $4.50 billion to $4.70 billion, representing a potential 2.5% increase at the midpoint compared to 2023. The company also anticipates adjusted earnings to be in the range of $3.23 to $4.41 per diluted share, reflecting a 1% increase at the midpoint compared to 2023.
In terms of financial performance, FMC reported an adjusted EBITDA of $978.0 million for 2023, a decrease from $1,406.8 million in the previous year. The company also provided a reconciliation of adjusted earnings and organic revenue growth, both of which are non-GAAP financial measures, to provide investors with useful information regarding its operating results.
Overall, FMC's 10-K report for 2023 highlights the company's response to challenging market conditions, its financial performance, and its outlook for the coming year. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania. It operates in a single distinct business segment, focusing on agricultural sciences. It develops, markets, and sells crop protection chemicals, biologicals, crop nutrition, and seed treatment products, catering to both agricultural and non-agricultural markets across various regions globally.
Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $53.02. For more information, read the company's full 10-K submission here.
