Company: SQM
Filing Date: 2025-04-24
Form Type: 20-F
Source: 0000909037-25-000020
Chunk: 146

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-24
Form: 20-F
Item: Item 5
Chunk 146
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 of revenues, from US$0.6 million in 2023, which represented 0.01% of revenues.
Foreign Currency Exchange Differences
Losses from foreign currency exchange differences amounted to US$8.6 million in 2024, which represented 0.2% of revenues, compared with a loss of US$22.3 million in 2023, which represented 0.3% of revenues. A significant portion of 
our costs is related to the Chilean peso as most of our operations occur in Chile. Because the U.S. dollar is our functional currency, we are subject to currency fluctuations. We seek to mitigate this impact through an active hedging program.
Profit Before Taxes
Profit before taxes decreased by US$1,832.6 million or 65.3%, to US$974.4 million in 2024 from US$2,807.0 million in 2023. This decrease was primarily attributable to a decrease in revenues by US$2,938.7 million and an increase in administrative expenses by US$10.2 million, partially offset by a decrease in cost of sales by US$1,190.8 million and an increase in net finance income (finance income less finance expenses) by US$78.2 million.
Income Tax Expense
The Company reported an income tax expense of US$282.6 million for the year ended December 31, 2024, lower than the income tax expense of US$1,876.8 million reported in for the year ended December 31, 2023. The income tax expense reported for the year 2023 was impacted by a one time charge described described in Note 20 of the Financial Statements. 
Net income
The net income for the year decreased US$238.5 to a loss of US$691.8 million in 2024 from US$930.3 million in 2023, primarily due to lower average prices in all of our business lines except the iodine and derivative business line. Net income for the year 2023 considers in the income tax expense a net effect in the total amount of US$1,089.5 million related to the income tax expense adjustment of the specific tax on mining activity in Chile applied to lithium exploration. (See Note 20.3 to the consolidated financial statements, “Item 3.D. Risk Factors— Risks Relating to Chile—The Chilean government could levy additional taxes on mining companies, which may include lithium exploitation companies, operating