This result is the result of a 30.3% drop in income compared to the previous year.
The Chilean lithium producer SQM recorded a net profit of US$ 2,012 million in 2023, which represents a decrease of approximately 48.5% compared to the US$ 3,906 million it earned in 2022.
This result is explained, among others, by the drop in income by 30.3% compared to the previous year, leaving a turnover of US$ 7,467 million at the end of 2023.
By business segments, revenue from lithium and derivatives totaled US$5,180 million, a decrease of 36.5% compared to 2022. For its plant nutrition business, SQM also billed a lower amount. Specifically, it reduced its sales to US$913.9 million, 22% less.
In the potassium segment, revenues fell 36.2% compared to the previous year, to US$ 437 million, and revenues from sales of other commodity fertilizers fell 5.6%.
Meanwhile, revenue from sales of iodine and derivatives increased by 18.3% year-on-year, and from the industrial chemicals division they grew by 6.1%, also compared to 2022.
Costs of sales, excluding total expenses for depreciation and amortization, exceeded US$ 4,111 million, which represents a decrease of 13.1% compared to the same period in 2022.
For its part, the adjusted gross operating result (Ebitda) was US$ 3,180 million, 45.5% lower than that recorded in the previous year. The Ebitda margin contracted by 11.9 percentage points, to 42.6%.
2024, YEAR OF SOLID GROWTH
SQM general manager Ricardo Ramos has anticipated that 2024 will be another solid year of growth in the lithium market, with global demand increasing by at least 20%, supported by the growth in sales of electric vehicles to worldwide and a growing demand for battery materials.
However, the excess lithium and battery materials capacity seen over the past year is expected to continue into this year, maintaining pressure on lithium market prices.
"We expect our average lithium prices to remain relatively stable throughout the year and our sales volumes to increase slightly during this year, subject to market conditions and any changes in the balance between supply and demand," he noted.
