Investor Relations

Economic performance 2008

In 2008, Yara recorded its best financial ­performance so far, while continuing to make a positive impact to society – globally and locally.

Yara consistently pursued its strategy for profitable and sustainable growth, delivering solid results on its strategic goals. Despite the deteriorating financial climate towards the end of 2008, Yara recorded the best financial results to date, on several accounts.

Financial results

In 2008, Yara’s total revenues and other income amounted to NOK 88.8 billion [1], up from 57.5 billion in 2007. Net income after minority interest was NOK 8,228 million [2], a 36 percent increase from 2007, and return on capital was well above Yara’s ten percent target. The strong results were primarily due to high fertilizer prices throughout much of the year, until the market slowed down during the latter half, as well as continued optimization of the operation.

Yara has increased its market share in recent years, primarily through the acquisitions of Fertibras (Brazil) in 2006, Kemira GrowHow (Finland) in 2007 and Saskferco (Canada) in 2008. The company’s biggest market is Europe, which accounted for more than half of its fertilizer sales in 2008.


Yara 2008 revenues View graph

Net income

Net income View graph

Global impacts

Through capital investments, knowledge transfer and global trade, Yara contributes to both globalization and economic development worldwide. Economic growth and social development is closely linked to agriculture, with increased populations calling for more food to be produced and increased purchasing power causing changed dietary patterns, both requiring improved agricultural productivity. This again is largely depending on the supply of crop nutrients in the way of mineral fertilizer – and of enhanced application knowledge.

In its ‘World Development Report 2008’, the World Bank underlined the importance of improving agricultural productivity to foster growth and reduce poverty in agricultural-based economies, primarily in Sub-Saharan Africa. Several high-level meetings and key international reports in 2008 emphasized the importance of investing in improved agricultural productivity.

The economic benefits of fertilizers have been demonstrated for several years by the Food and Agricultural Organization of the UN (FAO), with their value-to-cost ratio calculations documenting the additional value of crop yield achieved by fertilizer use.

Local impacts

Yara provides crop nutrients and application knowledge to the world; in 2008 selling its fertilizer products to over 120 countries. In every market, Yara aims to meet the needs of local farmers by supplying the right product for the right purpose and by sharing its unique agricultural know-how with farmers. In 2008, Yara organized roughly 5000 farmer meetings worldwide to assist them in increasing their yields and achieve higher crop value.

In 2008, Yara also participated in innovative development projects to support the African green revolution, a movement which aims to increase food productivity and increase economic growth in Sub-Saharan Africa. Promoting private-public partnerships, Yara has initiated such projects in Ghana, Malawi and Tanzania. In 2008, Yara also announced its decision to invest in agricultural growth corridors partnerships in Mozambique and Tanzania.

Yara’s operations worldwide support a variety of community projects and local initiatives for the benefit of the public. In 2008, local operations reported spending about NOK 14 million on various community involvement programs.

Economic value generated and distributed, 2008

Direct economic value





Economic value distributed


Operating costs



Employee wages and benefits



Payments to providers of capital



Payments to government



Community investments





Economic value retained


Note: Figures are presented in accordance with the GRI reporting framework and are not necessarily comparable to figures in other Yara publications, including Financial Review 2008.

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