February 22, 2024

EBITDA of the Glencore group in 2023 halved compared to last year and amounted to $17 billion.

On February 21, Glencore published preliminary financial performance figures for 2023.

According to the data of the financial report, the group's turnover in 2023 amounted to almost $218 billion, which is 15% less than the previous year.

The company's EBITDA indicator halved y-o-y and amounted to $17 billion, net profit was $4.3 billion ($17.3 billion in 2022).

We can note that the group's profitability figures returned to their normal values after significant growth in 2022, which was primarily due to significant changes in the global energy trade markets caused by Russian aggression against Ukraine and related events.

For comparison, in 2020, the EBITDA of the group amounted to $11.6 billion, in 2021 - $17.1 billion (so the EBITDA of Glencore in 2023 is almost no different from the corresponding value in 2021).

The result of Viterra, the agri-trading division of Glencore: EBITDA at the level of $2.1 billion ($2.0 billion in 2022).

Glencore currently owns 50% stake in Viterra, but in the summer of 2023 an agreement was signed on the merger of Viterra with another international agrs-trader, Bunge. According to this agreement, Bunge will acquire Viterra business, instead, Glencore will receive 15% of the shares in the combined company, as well as an additional cash payment of $1 billion. Closing of the transaction is expected in the summer of 2024. It means the total valuation of Viterra at the time of this deal was about $8 billion.

In 2023, the Bunge Group's revenue amounted to $59.5 billion (-12% compared to the previous year), operating profit $3.3 billion. In 2023, the group recognized a profit in the amount of $29 million due to the reduction of the provision for losses resulted from Russian aggression in Ukraine formed in 2022 ($80 million).

Regarding the results of Viterra in Ukraine, according to the official financial report of Viterra Ukraine, its turnover in 2022 amounted to UAH 13.7 billion, compared to UAH 18.8 billion in 2021. Operating profit for 2022 – 1.3 billion UAH (666 million UAH in 2021), net profit – 1 billion UAH (552 million UAH).

In the first nine months of 2023, Viterra Ukraine revenue decreased by 25% compared to the corresponding period of 2022.