On this page of StockholderLetter.com we present the latest annual shareholder letter from FMC CORP — ticker symbol FMC. Reading current and past FMC letters to shareholders can bring important insights into the investment thesis.
FMC Corporation
2023
ANNUAL
REPORT
A Message to Our Shareholders
For more than a century, FMC has successfully delivered some of the
industry   s most advanced, innovative solutions that protect farmers   
crops from destructive pests and disease. We are committed to fulfilling
this mission every day.
in over three decades. This game-changing technology, discovered
at FMC   s Stine Research Center in Delaware, demonstrates FMC   s
extensive investments in innovation and our disciplined approach to
advancing the most promising new molecules.
In 2023, the crop protection market experienced its most severe
destocking in history, significantly impacting the industry and
FMC   s performance. It was the defining factor in our 2023 results.
Annual revenue of $4.49 billion decreased 23 percent compared to
2022. Adjusted EBITDA* of $978 million was down 30 percent
and Adjusted Earnings Per Share* of $3.78 was down 49 percent.
However, we maintained our industry leading EBITDA margins by
effectively holding or raising price across much of the business and
actively managing costs in response to the demand decline. A record
high 13 percent of our total 2023 revenue was attributed to new
product introductions. In light of the challenging market backdrop,
we announced a restructuring of our organization and right-sizing of
our cost base to better reflect market conditions, protect our margins
and position us for future success.
We are investing in one of the agricultural industry   s most productive
crop protection pipelines, featuring over 20 new active areas in discovery
and 18 new active ingredients in development. In fact, four major new
compounds from our development pipeline are expected to launch or
expand into new markets over the next 10 years, including Fluindapyr,
Isoflex    active, Dodhylex    active, and Romisoxafen. Collectively, these
new active ingredients are expected to drive approximately $2 billion
in sales by 2033.
Our safety performance in 2023 was exceptionally strong, with the
fewest recordable injuries and lowest annual injury rate on record
of 0.05. We are proud that FMC is among the safest companies in
the chemicals and crop protection industries, a testament to every
employee   s commitment to safety at manufacturing sites, in offices,
in our laboratories and while traveling.
New Strategic Plan
In 2023 we launched FMC   s new strategic growth plan featuring updated
mid-term targets on a rolling three-year outlook, as well as long-range
financial goals. Our plan is anchored in three core ambitions. The first
is to transform our relationship with growers. We know our technology
better than anyone, so who better than FMC to provide sound, accurate,
timely advice growers need to make the right choices. The second is to
deliver superior growth and returns, which are critical to our long-term
success. Finally, we continually strive to maintain industry leadership
in safety, sustainability and innovation, each an important driver of
our performance and growth.
FMC   s leading diamides franchise, acquired in 2017, has delivered on
every target we have set. This includes substantially growing the business,
increasing our partner base, accelerating registrations, expanding our
geographic footprint and introducing new FMC branded and patented
formulations. Our diamide franchise has a strong track record and is
expected to grow at a rate slightly higher than the overall insecticide
market over the next ten years.
Business Fundamentals are Strong
Despite current market challenges, FMC   s business fundamentals remain
strong. Growers are continuing to apply crop protection products
to protect their crops and enhance yields. Our broad portfolio of
differentiated products, including our market-leading diamides, will
continue to drive business performance. New molecule introductions
and new formulations will contribute to mid- and longer-term profitable
growth targets, augmented by our extensive portfolio of new biologicals
in the FMC Plant Health business.
At FMC, our employees are guided by our purpose: Innovation for
agriculture, Solutions for the planet. We are passionate about the power
of science to solve agriculture   s biggest challenges and committed to
supporting farmers around the world with sustainable technologies
that protect their crops and help feed the world   s growing population.
An Innovative R&D Pipeline
Innovation fuels our success, and 2023 was another year of significant
new technology introductions. FMC announced Dodhylex    active as the
global brand name for tetflupyrolimet, a new mode of action herbicide
effective on the most challenging grass weeds in rice. Dodhylex    active
is the first new herbicide with a novel mode of action in the industry
Mark Douglas
President and Chief Executive Officer
FMC Corporation
*Denotes non-GAAP term. The adjusted EBITDA non-GAAP reconciliation is included within the Form 10-K on page 21. Adjusted EPS is not included in the Form
10-K. See inside back cover for chart that reconciles it to the closest GAAP term.
 • shareholder letter icon 3/15/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/10/2023 FMC Stockholder Letter
 • stockholder letter icon More "Agricultural Chemicals" Category Stockholder Letters
 • Benford's Law Stocks icon FMC Benford's Law Stock Score = 98


FMC Shareholder/Stockholder Letter Transcript:

FMC Corporation
2023
ANNUAL
REPORT

A Message to Our Shareholders
For more than a century, FMC has successfully delivered some of the
industry   s most advanced, innovative solutions that protect farmers   
crops from destructive pests and disease. We are committed to fulfilling
this mission every day.
in over three decades. This game-changing technology, discovered
at FMC   s Stine Research Center in Delaware, demonstrates FMC   s
extensive investments in innovation and our disciplined approach to
advancing the most promising new molecules.
In 2023, the crop protection market experienced its most severe
destocking in history, significantly impacting the industry and
FMC   s performance. It was the defining factor in our 2023 results.
Annual revenue of $4.49 billion decreased 23 percent compared to
2022. Adjusted EBITDA* of $978 million was down 30 percent
and Adjusted Earnings Per Share* of $3.78 was down 49 percent.
However, we maintained our industry leading EBITDA margins by
effectively holding or raising price across much of the business and
actively managing costs in response to the demand decline. A record
high 13 percent of our total 2023 revenue was attributed to new
product introductions. In light of the challenging market backdrop,
we announced a restructuring of our organization and right-sizing of
our cost base to better reflect market conditions, protect our margins
and position us for future success.
We are investing in one of the agricultural industry   s most productive
crop protection pipelines, featuring over 20 new active areas in discovery
and 18 new active ingredients in development. In fact, four major new
compounds from our development pipeline are expected to launch or
expand into new markets over the next 10 years, including Fluindapyr,
Isoflex    active, Dodhylex    active, and Romisoxafen. Collectively, these
new active ingredients are expected to drive approximately $2 billion
in sales by 2033.
Our safety performance in 2023 was exceptionally strong, with the
fewest recordable injuries and lowest annual injury rate on record
of 0.05. We are proud that FMC is among the safest companies in
the chemicals and crop protection industries, a testament to every
employee   s commitment to safety at manufacturing sites, in offices,
in our laboratories and while traveling.
New Strategic Plan
In 2023 we launched FMC   s new strategic growth plan featuring updated
mid-term targets on a rolling three-year outlook, as well as long-range
financial goals. Our plan is anchored in three core ambitions. The first
is to transform our relationship with growers. We know our technology
better than anyone, so who better than FMC to provide sound, accurate,
timely advice growers need to make the right choices. The second is to
deliver superior growth and returns, which are critical to our long-term
success. Finally, we continually strive to maintain industry leadership
in safety, sustainability and innovation, each an important driver of
our performance and growth.
FMC   s leading diamides franchise, acquired in 2017, has delivered on
every target we have set. This includes substantially growing the business,
increasing our partner base, accelerating registrations, expanding our
geographic footprint and introducing new FMC branded and patented
formulations. Our diamide franchise has a strong track record and is
expected to grow at a rate slightly higher than the overall insecticide
market over the next ten years.
Business Fundamentals are Strong
Despite current market challenges, FMC   s business fundamentals remain
strong. Growers are continuing to apply crop protection products
to protect their crops and enhance yields. Our broad portfolio of
differentiated products, including our market-leading diamides, will
continue to drive business performance. New molecule introductions
and new formulations will contribute to mid- and longer-term profitable
growth targets, augmented by our extensive portfolio of new biologicals
in the FMC Plant Health business.
At FMC, our employees are guided by our purpose: Innovation for
agriculture, Solutions for the planet. We are passionate about the power
of science to solve agriculture   s biggest challenges and committed to
supporting farmers around the world with sustainable technologies
that protect their crops and help feed the world   s growing population.
An Innovative R&D Pipeline
Innovation fuels our success, and 2023 was another year of significant
new technology introductions. FMC announced Dodhylex    active as the
global brand name for tetflupyrolimet, a new mode of action herbicide
effective on the most challenging grass weeds in rice. Dodhylex    active
is the first new herbicide with a novel mode of action in the industry
Mark Douglas
President and Chief Executive Officer
FMC Corporation
*Denotes non-GAAP term. The adjusted EBITDA non-GAAP reconciliation is included within the Form 10-K on page 21. Adjusted EPS is not included in the Form
10-K. See inside back cover for chart that reconciles it to the closest GAAP term.



shareholder letter icon 3/15/2024 Letter Continued (Full PDF)
 

FMC Stockholder/Shareholder Letter (FMC CORP) | www.StockholderLetter.com
Copyright © 2023 - 2024, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.