Sociedad Química y Minera de Chile (SQM) Q3 2024 earnings summary

Executive summary

• Revenues for 3Q2024 were $1,077 million, down 41% year-over-year; net income for the quarter was $131 million, a 63% decline year-over-year.

• Net loss for the first nine months of 2024 was $524.5M, compared to net income of $1,809.5M last year, mainly due to a one-time $1,103.3M tax expense.

• Achieved strong sales volume growth in lithium (up 18%), iodine (up 9%), and specialty plant nutrition (up 22%) year-over-year, despite lower prices.

• First revenues and sales from Mount Holland lithium project and SQM International division; spodumene concentrate bidding event launched.

• Iodine prices increased slightly due to strong demand and limited supply, with market size estimated at 38,000-39,000 tons and 7% demand growth in 2024.

Financial highlights

• Gross profit for 3Q2024 was $281 million, a 73% decrease year-over-year; gross profit for nine months was $1,033.3M (29.9% margin).

• Adjusted EBITDA for 3Q2024 was $339 million (31% margin); for nine months, $1,155.4M (33.4% margin).

• Lithium sales volumes grew 18% year-over-year, but average realized prices fell 67% in Q3.

• Specialty Plant Nutrition revenues up 4% to $717.3M for nine months; Q3 volumes up 22% year-over-year.

• Iodine sales volumes increased 9% with stable or slightly higher prices; revenues up 10.2% to $742.8M for nine months.

Outlook and guidance

• Lithium sales volume guidance unchanged at 190,000–195,000 MT for 2024; Q4 realized prices expected to be lower than Q3.

• Specialty Plant Nutrition sales volumes expected to grow ~20% in 2024; market size seen up 17% year-over-year.

• Iodine demand projected to grow 7% in 2024, with upward price pressure expected into 2025.

• Potassium sales volumes forecasted at 620,000 MT in 2024; market prices to remain stable.

• No production or sales curtailment planned for 2025; production in Chile expected to reach 210,000 tons in 2024 and 230,000 tons in 2025.