FMC (FMC) Q4 2021 earnings summary

Executive summary

• 2021 revenue rose 9% to $5.05B; adjusted EBITDA increased 6% to $1.324B and adjusted EPS rose 12% to $6.93. Record free cash flow reached $713.3M.

• Growth reflected strong volumes and pricing across regions, while inflation in raw materials, packaging and logistics pressured gross margin.

• Products launched in the prior five years contributed about $400M of revenue; the pipeline included 25+ active ingredients in discovery and 11 in development.

Financial highlights

• Revenue was $5,045.2M, up $403.1M YoY; organic growth, excluding FX, was 8%, with volume contributing about 7% and pricing about 1%.

• Gross margin increased 6% to $2,171.7M, but margin declined to 43% from 44% as input, packaging and logistics costs rose.

• Net income attributable to shareholders rose 34% to $736.5M; adjusted after-tax earnings from continuing operations increased 11% to $894.9M.

• Adjusted EBITDA was $1,324.2M versus $1,250.4M; GAAP diluted EPS was $5.70 versus $4.22, while adjusted EPS was $6.93 versus $6.20.

• Operating cash flow from continuing operations was $898.6M; free cash flow was $713.3M, up 31% YoY.

Outlook and guidance

• 2022 revenue guidance: $5.25B–$5.55B, about 7% growth at midpoint; adjusted EBITDA: $1.32B–$1.48B, 6% growth at midpoint.

• 2022 adjusted EPS guidance is $6.80–$8.10 per diluted share, 8% growth at midpoint, excluding potential share repurchases.

• 2022 free cash flow guidance is $515M–$735M; midpoint decline reflects working-capital growth and higher capital spending.

• Inflation, raw-material availability, freight, labor costs and currency headwinds could pull results toward the low end; mid- to high-single-digit price increases or easing FX headwinds could support the high end.

• Planned 2022 capital additions and contract-manufacturer spending: $145M–$175M, primarily to expand capacity for growing demand and new products.