ICL Reports Second Quarter 2024 Results
ICL, a global specialty minerals company, reported its Q2 2024 financial results. Sales reached $1.75 billion, down from $1.87 billion in Q2 2023. Operating income was $211 million, with adjusted operating income of $225 million. Adjusted EBITDA stood at $377 million, compared to $441 million last year. Diluted EPS was $0.09, with adjusted diluted EPS at $0.10.
The company saw sequential growth across its specialties-driven segments and raised its full-year 2024 guidance for these businesses. ICL now expects specialties-driven EBITDA between $0.8 billion to $1.0 billion, up from previous guidance of $0.7 billion to $0.9 billion. The company remains cautious about short-term expectations in electronics, housing, construction, and food markets.
ICL, un'azienda globale di minerali speciali, ha riportato i risultati finanziari per il secondo trimestre del 2024. Le vendite hanno raggiunto 1,75 miliardi di dollari, in calo rispetto a 1,87 miliardi di dollari nel secondo trimestre del 2023. Il reddito operativo è stato di 211 milioni di dollari, con un reddito operativo rettificato di 225 milioni di dollari. L'EBITDA rettificato si è attestato a 377 milioni di dollari, rispetto ai 441 milioni di dollari dell'anno scorso. L'EPS diluito è stato di 0,09 dollari, con un EPS diluito rettificato di 0,10 dollari.
L'azienda ha registrato una crescita sequenziale nei suoi segmenti trainati dalle specialità e ha alzato le sue previsioni per l'intero anno 2024 per queste attività. ICL ora si aspetta un EBITDA trainato dalle specialità compreso tra 0,8 miliardi e 1,0 miliardi di dollari, in aumento rispetto alle previsioni precedenti di 0,7 miliardi a 0,9 miliardi di dollari. L'azienda rimane cauta sulle aspettative a breve termine nei mercati dell'elettronica, dell'edilizia, delle costruzioni e degli alimenti.
ICL, una empresa global de minerales especiales, reportó sus resultados financieros del segundo trimestre de 2024. Las ventas alcanzaron los 1,75 mil millones de dólares, en comparación con 1,87 mil millones de dólares en el segundo trimestre de 2023. El ingreso operativo fue de 211 millones de dólares, con un ingreso operativo ajustado de 225 millones de dólares. El EBITDA ajustado se situó en 377 millones de dólares, en comparación con 441 millones de dólares el año pasado. El EPS diluido fue de 0,09 dólares, con un EPS diluido ajustado de 0,10 dólares.
La compañía vio un crecimiento secuencial en sus segmentos impulsados por especialidades y elevó su guía para todo el año 2024 para estos negocios. ICL ahora espera un EBITDA impulsado por especialidades entre 0,8 mil millones a 1,0 mil millones de dólares, en comparación con la guía anterior de 0,7 mil millones a 0,9 mil millones de dólares. La compañía se mantiene cautelosa sobre las expectativas a corto plazo en los mercados de electrónica, vivienda, construcción y alimentos.
ICL은 글로벌 특수 미네랄 회사로 2024년 2분기 재무 실적을 발표했습니다. 매출은 17억 5천만 달러에 달했으며, 이는 2023년 2분기의 18억 7천만 달러에서 감소한 수치입니다. 영업 이익은 2억 1천 1백만 달러였습니다, 조정된 영업 이익은 2억 2천 5백만 달러입니다. 조정된 EBITDA는 3억 7천 7백만 달러로, 지난해의 4억 4천 1백만 달러와 비교됩니다. 희석 EPS는 0.09달러였고, 조정된 희석 EPS는 0.10달러입니다.
회사는 특수 제품 중심의 분야에서 순차적인 성장을 보였으며, 이러한 비즈니스에 대한 2024년 전체 연도 가이드를 상향 조정했습니다. ICL은 이제 특수 제품 기반의 EBITDA를 8억 달러에서 10억 달러 사이로 예상하며, 이전 가이드는 7억 달러에서 9억 달러 사이였습니다. 회사는 전자, 주택, 건축 및 식품 시장의 단기 기대에 대해 신중한 입장을 유지하고 있습니다.
ICL, une entreprise mondiale spécialisée dans les minéraux, a publié ses résultats financiers pour le deuxième trimestre 2024. Les ventes ont atteint 1,75 milliard de dollars, contre 1,87 milliard de dollars au deuxième trimestre 2023. Le résultat opérationnel s'est élevé à 211 millions de dollars, avec un résultat opérationnel ajusté de 225 millions de dollars. L'EBITDA ajusté s'est établi à 377 millions de dollars, contre 441 millions de dollars l'année précédente. Le BPA dilué était de 0,09 dollar, avec un BPA dilué ajusté de 0,10 dollar.
L'entreprise a connu une croissance séquentielle dans ses segments axés sur les spécialités et a relevé ses prévisions pour l'ensemble de l'année 2024 pour ces activités. ICL s'attend maintenant à un EBITDA axé sur les spécialités compris entre 0,8 milliard et 1,0 milliard de dollars, contre des prévisions précédentes de 0,7 milliard à 0,9 milliard de dollars. L'entreprise reste prudente quant aux attentes à court terme sur les marchés de l'électronique, du logement, de la construction et des aliments.
ICL, ein globales Unternehmen für Spezialmineralien, hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Der Umsatz erreichte 1,75 Milliarden US-Dollar, was einen Rückgang von 1,87 Milliarden US-Dollar im zweiten Quartal 2023 darstellt. Der Betriebsgewinn betrug 211 Millionen US-Dollar, mit einem bereinigten Betriebsgewinn von 225 Millionen US-Dollar. Das bereinigte EBITDA lag bei 377 Millionen US-Dollar, im Vergleich zu 441 Millionen US-Dollar im Vorjahr. Der verwässerte EPS betrug 0,09 US-Dollar, während der bereinigte verwässerte EPS bei 0,10 US-Dollar lag.
Das Unternehmen verzeichnete ein sequenzielles Wachstum in seinen spezialisierten Segmenten und erhöhte seine Prognose für das Gesamtjahr 2024 für diese Geschäfte. ICL erwartet nun ein spezialisiertes EBITDA zwischen 0,8 Milliarden und 1,0 Milliarden US-Dollar, gegenüber der vorherigen Prognose von 0,7 Milliarden bis 0,9 Milliarden US-Dollar. Das Unternehmen bleibt hinsichtlich der kurzfristigen Erwartungen in den Märkten für Elektronik, Wohnungsbau, Bau und Lebensmittel vorsichtig.
- Sequential growth in sales, operating income, and adjusted EBITDA for three consecutive quarters
- Raised guidance for specialties-driven businesses, expecting EBITDA of $0.8-$1.0 billion for 2024
- All three specialties-driven segments showed year-over-year improvement
- Increased cash flows from operating activities to $316 million, up from $279 million in Q1 2024
- Growing Solutions segment saw 100% year-over-year EBITDA improvement
- Overall sales decreased to $1.75 billion from $1.87 billion in Q2 2023
- Operating income declined to $211 million from $300 million in Q2 2023
- Adjusted EBITDA decreased to $377 million from $441 million in Q2 2023
- Diluted EPS dropped to $0.09 from $0.13 in Q2 2023
- Potash segment saw significant declines in sales and EBITDA year-over-year
Insights
ICL's Q2 2024 results show a mixed performance. While consolidated sales decreased
The raised guidance for specialties-driven EBITDA (now
Investors should note the declining potash prices (
ICL's performance reflects broader market trends in the specialty minerals sector. The
The company's diversification strategy is proving effective, with Industrial Products, Phosphate Solutions and Growing Solutions all showing resilience. The
The battery materials segment presents a growth opportunity, with increased volumes in China and the upcoming U.S. customer innovation center. This aligns with the global trend towards electrification. However, investors should monitor the competitive landscape in commodity phosphates, where increased availability is pressuring prices.
ICL's Q2 results reflect the complex dynamics in global agricultural markets. The
The Growing Solutions segment's performance is particularly noteworthy, with a
The challenges in the polysulphate market and the impact of lower raw material costs on food phosphate pricing highlight the ongoing volatility in agricultural input markets. Investors should closely monitor global crop production forecasts and trade dynamics, as these will significantly influence ICL's performance in the coming quarters.
Continued to deliver sequential growth, with sales of
Raising guidance for specialties-driven businesses
“ICL delivered sequentially improving EBITDA for the third consecutive quarter, as we continued to build momentum by focusing on the areas under our control, including the introduction of innovative solutions and continued cost efficiencies, while managing the risks associated with geopolitical uncertainties. All three of our specialties-driven segments were up versus the second quarter of 2023 and contributed to the sequential increase in adjusted EBITDA and margins,” said Raviv Zoller, president and CEO of ICL. “While we were ahead of our expectations in the first half of the year, we remain cautious regarding short-term expectations for some of the end markets we serve, including electronics, housing and construction, and food.”
The company raised its guidance for full year 2024 and now expects specialties-driven EBITDA of between
Key Financials
Second Quarter 2024
US$M Ex. per share data |
2Q'24 |
1Q'24 |
2Q'23 |
Sales |
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Gross profit |
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Gross margin |
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Operating income |
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Adjusted operating income (1) |
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Operating margin |
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Adjusted operating margin (1) |
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Net income attributable to shareholders |
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Adjusted net income attributable to shareholders (1) |
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Adjusted EBITDA (1)(2) |
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Adjusted EBITDA margin (1)(2) |
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Diluted earnings per share |
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Diluted adjusted earnings per share (1) |
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Cash flows from operating activities (3) |
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(1) |
Adjusted operating income and margin, adjusted net income attributable to shareholders, adjusted EBITDA and margin, and diluted adjusted earnings per share are non-GAAP financial measures. Please refer to the adjustments table and disclaimer. |
(2) |
In the first half of 2024, the company’s adjusted EBITDA was positively impacted by an immaterial accounting reclassification. Please refer to the 6-K filing for additional details. |
(3) |
Reclassified - see Note 2 to the company's interim financial statements. |
Industrial Products
Second quarter 2024
-
Sales of
vs.$315 million .$300 million -
EBITDA of
vs.$74 million .$74 million - Third quarter of sequential improvement in EBITDA, with continued focus on cost savings and expanding customer relationships.
Key developments
- Flame retardants: Sales increased year-over-year, as higher volumes for brominated solutions were partially offset by lower prices overall, as demand from both the electronics and construction end-markets remained soft.
- Elemental bromine: Sales increased year-over-year, as higher volumes offset lower prices.
- Oil and gas: Clear brine fluid sales declined versus the prior year, due to inclement weather and a shift in oil rig schedules.
- Specialty minerals: Lower prices drove a year-over-year decrease in sales, despite higher volumes.
Potash
Second quarter 2024
-
Sales of
vs.$422 million .$582 million -
EBITDA of
vs.$118 million .$213 million -
Grain Price Index decreased
15.2% year-over-year, with rice up3.2% , while corn, soybeans and wheat were down30.1% ,18.0% and24.7% , respectively. On a sequential basis, the Grain Price Index increased2.7% , with corn, wheat and rice up4.5% ,5.3% and1.7% , respectively, while soy declined0.5% .
Key developments
-
Potash price:
per ton (CIF).$300
- Down
- Potash sales volumes: 1,153 thousand metric tons.
- Decreased by 108 thousand metric tons year-over-year.
- ICL Dead Sea
- Stable cost per ton, despite lower production year-over-year
- ICL Iberia
- Continued operational improvement, with record second quarter production.
- Metal Magnesium
- Lower prices offset higher volumes, as market prices trended lower versus the prior year.
Phosphate Solutions
Second quarter 2024
-
Sales of
vs.$572 million .$565 million -
EBITDA of
vs.$146 million .$129 million -
Second quarter of sequential improvement in sales, with EBITDA up
11% sequentially and13% year-over-year. Pricing remained firm in the second quarter, however, changing supply dynamics are expected to influence future quarters.
Key developments
-
White phosphoric acid: Sales declined year-over-year, as increased volumes – especially in
Europe andAsia – were unable to offset lower prices globally. - Industrial phosphates: Sales decreased, as improved volumes were offset by weaker pricing.
- Food phosphates: Sales decreased, as higher volumes were offset by lower market prices, which reflected reduced raw material input costs.
-
Battery materials: Increased volumes in
China , withU.S. customer innovation and qualification center (CIQC) expected to be completed by year-end. - Commodity phosphates: Sequential sales improvement reflected an increase in volumes, which offset a decrease in prices.
- Competition remains elevated across all global markets, as increased availability pressured prices.
Growing Solutions
Second quarter 2024
-
Sales of
vs.$494 million .$481 million -
EBITDA of
vs.$45 million .$22 million -
Year-over-year improvement in sales and EBITDA of
3% and more than100% , respectively, with second quarter of sequential improvement in both sales and EBITDA.
Key developments
-
Brazil : Sales declined, but a better mix of higher margin foliar sales drove improved profitability. -
Europe : Sales increased, with improved gross profit, as higher quantities and lower raw material costs offset lower prices. -
North America : Sales improved year-over-year on higher volumes. -
Asia : Sales inChina increased, driven by volumes, and as additional production was brought online. - Product trends: Specialty agriculture sales increased versus the prior year, as stronger volumes offset lower prices. Turf and ornamental markets returned to more stable pre-covid demand levels, with higher sales, volumes and gross profit year-over-year. The polysulphate market continued to be challenging, as lower prices impacted profitability.
Financial Items
Financing Expenses
Net financing expenses for the second quarter of 2024 were
Tax Expenses
Reported tax expenses in the second quarter of 2024 were
Available Liquidity
ICL’s available cash resources, which are comprised of cash and deposits, unutilized revolving credit facility, and unutilized securitization, totaled
Outstanding Net Debt
As of June 30, 2024, ICL’s net financial liabilities amounted to
Dividend Distribution
In connection with ICL’s second quarter 2024 results, the Board of Directors declared a dividend of
About ICL
ICL Group Ltd. is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2023 revenue totaled approximately
For more information, visit ICL's website at icl-group.com.
To access ICL's interactive CSR report, visit icl-group-sustainability.com.
You can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram.
Guidance
(1a) The company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting, and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as restructuring, litigation, and other matters, used to calculate projected net income (loss) vary dramatically based on actual events, the company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected GAAP net income (loss) being materially less than projected adjusted EBITDA (non-GAAP). The guidance speaks only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. The company provides guidance for specialties-driven EBITDA, which includes Industrial Products, Growing Solutions and Phosphate Solutions, as the Phosphate Solutions business is now predominantly specialties focused. For the Potash business, the company is providing sales volume guidance. The company believes this information provides greater transparency, as these new metrics are less impacted by fertilizer commodity prices, given the extreme volatility in recent years.
Non-GAAP Statement
The company discloses in this quarterly report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA. Management uses adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA to facilitate operating performance comparisons from period to period. The company calculates adjusted operating income by adjusting operating income to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below. Certain of these items may recur. The company calculates adjusted net income attributable to the company’s shareholders by adjusting net income attributable to the company’s shareholders to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below, excluding the total tax impact of such adjustments. The company calculates diluted adjusted earnings per share by dividing adjusted net income by the weighted-average number of diluted ordinary shares outstanding. Adjusted EBITDA is calculated as net income before financing expenses, net, taxes on income, share in earnings of equity-accounted investees, depreciation and amortization, and certain adjustments presented in the reconciliation table under “Consolidated adjusted EBITDA, and diluted adjusted earnings per share for the periods of activity” below, which were adjusted for in calculating the adjusted operating income.
You should not view adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share or adjusted EBITDA as a substitute for operating income or net income attributable to the company’s shareholders determined in accordance with IFRS, and you should note that the company’s definitions of adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA may differ from those used by other companies. Additionally, other companies may use other measures to evaluate their performance, which may reduce the usefulness of the company’s non-IFRS financial measures as tools for comparison. However, the company believes adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA provide useful information to both management, and investors by excluding certain items that management believes are not indicative of ongoing operations. Management uses these non-IFRS measures to evaluate the company's business strategies and management performance. The company believes these non‑IFRS measures provide useful information to investors because they improve the comparability of financial results between periods and provide for greater transparency of key measures used to evaluate performance.
The company presents a discussion in the period-to-period comparisons of the primary drivers of change in the company’s results of operations. This discussion is based in part on management’s best estimates of the impact of the main trends on the company’s businesses. The company has based the following discussion on its financial statements. You should read such discussion together with the company’s financial statements.
Forward Looking Statements
This announcement contains statements that constitute “forward‑looking statements,” many of which can be identified by the use of forward‑looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “strive,” “forecast,” “targets” and “potential,” among others. The company is relying on the safe harbor provided in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in making such forward-looking statements.
Forward‑looking statements appear in a number of places in this announcement and include, but are not limited to, statements regarding intent, belief or current expectations. Forward‑looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties and actual results may differ materially from those expressed or implied in the forward‑looking statements due to various factors, including, but not limited to:
Loss or impairment of business licenses or mineral extractions permits or concessions; volatility of supply and demand and the impact of competition; the difference between actual reserves and reserve estimates; natural disasters and cost of compliance with environmental regulatory legislative and licensing restrictions including laws and regulation related to, and physical impacts of climate change and greenhouse gas emissions; failure to "harvest" salt which could lead to accumulation of salt at the bottom of the evaporation Pond 5 in the Dead Sea; litigation, arbitration and regulatory proceedings; disruptions at seaport shipping facilities or regulatory restrictions affecting the ability to export products overseas; changes in exchange rates or prices compared to those the company is currently experiencing; general market, political or economic conditions in the countries in which the company operates; price increases or shortages with respect to principal raw materials; pandemics may create disruptions, impacting sales, operations, supply chain and customers; delays in termination of engagements with contractors and/or governmental obligations; the inflow of significant amounts of water into the Dead Sea which could adversely affect production at the plants; labor disputes, slowdowns and strikes involving employees; pension and health insurance liabilities; changes to governmental incentive programs or tax benefits, creation of new fiscal or tax related legislation; and/or higher tax liabilities; changes in evaluations and estimates, which serve as a basis for the recognition and manner of measurement of assets and liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; rising interest rates; government examinations or investigations; information technology systems or breaches of the company, or its service providers', data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from the company’s cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of the businesses; the company is exposed to risks relating to its current and future activity in emerging markets; changes in demand for its fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond the company’s control; disruption of the company, or its service providers', sales of magnesium products being affected by various factors that are not within the company’s control; volatility or crises in the financial markets; hazards inherent to mining and chemical manufacturing; the failure to ensure the safety of the company’s workers and processes; exposure to third party and product liability claims; product recalls or other liability claims as a result of food safety and food-borne illness concerns; insufficiency of insurance coverage; war or acts of terror and/or political, economic and military instability in
Forward‑looking statements speak only as of the date they are made, and, except as otherwise required by law, the company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements, targets or goals in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Investors are cautioned to consider these risk and uncertainties and to not place undue reliance on such information. Forward-looking statements should not be read as a guarantee of future performance or results and are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward-looking statements.
This report for the second quarter of 2024 should be read in conjunction with the Annual Report of 2023 published by the company on Form 20-F and the report for the first quarter of 2024 published by the company, including the description of events occurring subsequent to the date of the statement of financial position, as filed with the
Appendix
Condensed Consolidated Statements of Income (Unaudited)
$ millions |
Three-months ended |
Six-months ended |
Year ended |
||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
December 31,
|
||||
Sales |
1,752 |
1,868 |
3,487 |
3,984 |
7,536 |
||||
Cost of sales |
1,184 |
1,189 |
2,362 |
2,459 |
4,865 |
||||
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|
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|
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Gross profit |
568 |
679 |
1,125 |
1,525 |
2,671 |
||||
|
|
|
|
|
|
||||
Selling, transport and marketing expenses |
280 |
279 |
553 |
543 |
1,093 |
||||
General and administrative expenses |
64 |
55 |
128 |
123 |
260 |
||||
Research and development expenses |
14 |
19 |
31 |
37 |
71 |
||||
Other expenses |
2 |
36 |
5 |
70 |
128 |
||||
Other income |
(3) |
(10) |
(6) |
(13) |
(22) |
||||
|
|
|
|
|
|
||||
Operating income |
211 |
300 |
414 |
765 |
1,141 |
||||
|
|
|
|
|
|
||||
Finance expenses |
59 |
89 |
119 |
176 |
259 |
||||
Finance income |
(26) |
(40) |
(51) |
(83) |
(91) |
||||
Finance expenses, net |
33 |
49 |
68 |
93 |
168 |
||||
|
|
|
|
|
|
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Share in earnings of equity-accounted investees |
- |
- |
- |
- |
1 |
||||
|
|
|
|
|
|
||||
Income before taxes on income |
178 |
251 |
346 |
672 |
974 |
||||
|
|
|
|
|
|
||||
Taxes on income |
48 |
84 |
90 |
211 |
287 |
||||
|
|
|
|
|
|
||||
Net income |
130 |
167 |
256 |
461 |
687 |
||||
|
|
|
|
|
|
||||
Net income attributable to the non-controlling interests |
15 |
4 |
32 |
18 |
40 |
||||
|
|
|
|
|
|
||||
Net income attributable to the shareholders of the Company |
115 |
163 |
224 |
443 |
647 |
||||
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|
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|
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Earnings per share attributable to the shareholders of the Company: |
|
|
|
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|
||||
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|
|
|
||||
Basic earnings per share (in dollars) |
0.09 |
0.13 |
0.17 |
0.34 |
0.50 |
||||
|
|
|
|
|
|
||||
Diluted earnings per share (in dollars) |
0.09 |
0.13 |
0.17 |
0.34 |
0.50 |
||||
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|
|
|
|
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Weighted-average number of ordinary shares outstanding: |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Basic (in thousands) |
1,289,901 |
1,289,347 |
1,289,716 |
1,289,293 |
1,289,361 |
||||
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|
|
|
|
|
||||
Diluted (in thousands) |
1,290,158 |
1,290,792 |
1,289,977 |
1,290,950 |
1,290,668 |
||||
Condensed Consolidated Statements of Financial Position as of (Unaudited)
$ millions |
June 30,
|
June 30,
|
December 31,
|
||
Current assets |
|
|
|
||
Cash and cash equivalents |
287 |
372 |
420 |
||
Short-term investments and deposits |
109 |
166 |
172 |
||
Trade receivables |
1,429 |
1,380 |
1,376 |
||
Inventories |
1,544 |
2,006 |
1,703 |
||
Prepaid expenses and other receivables |
298 |
333 |
363 |
||
Total current assets |
3,667 |
4,257 |
4,034 |
||
|
|
|
|
||
Non-current assets |
|
|
|
||
Deferred tax assets |
147 |
149 |
152 |
||
Property, plant and equipment |
6,285 |
6,097 |
6,329 |
||
Intangible assets |
857 |
872 |
873 |
||
Other non-current assets |
249 |
209 |
239 |
||
Total non-current assets |
7,538 |
7,327 |
7,593 |
||
|
|
|
|
||
Total assets |
11,205 |
11,584 |
11,627 |
||
|
|
|
|
||
Current liabilities |
|
|
|
||
Short-term debt |
577 |
674 |
858 |
||
Trade payables |
834 |
893 |
912 |
||
Provisions |
49 |
75 |
85 |
||
Other payables |
802 |
789 |
783 |
||
Total current liabilities |
2,262 |
2,431 |
2,638 |
||
|
|
|
|
||
Non-current liabilities |
|
|
|
||
Long-term debt and debentures |
1,850 |
2,117 |
1,829 |
||
Deferred tax liabilities |
500 |
467 |
489 |
||
Long-term employee liabilities |
330 |
362 |
354 |
||
Long-term provisions and accruals |
218 |
236 |
224 |
||
Other |
61 |
61 |
56 |
||
Total non-current liabilities |
2,959 |
3,243 |
2,952 |
||
|
|
|
|
||
Total liabilities |
5,221 |
5,674 |
5,590 |
||
|
|
|
|
||
Equity |
|
|
|
||
Total shareholders’ equity |
5,746 |
5,670 |
5,768 |
||
Non-controlling interests |
238 |
240 |
269 |
||
Total equity |
5,984 |
5,910 |
6,037 |
||
|
|
|
|
||
Total liabilities and equity |
11,205 |
11,584 |
11,627 |
||
Condensed Consolidated Statements of Cash Flows (Unaudited)
$ millions |
Three-months ended |
Six-months ended |
Year ended |
||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
December 31,
|
|||||||||
Cash flows from operating activities |
|
|
|
|
|
||||||||
Net income |
130 |
167 |
256 |
461 |
687 |
||||||||
Adjustments for: |
|
|
|
|
|
||||||||
Depreciation and amortization |
152 |
141 |
299 |
271 |
536 |
||||||||
Exchange rate, interest and derivative, net |
37 |
30 |
96 |
48 |
24 |
||||||||
Tax expenses |
48 |
84 |
90 |
211 |
287 |
||||||||
Change in provisions |
(11) |
(13) |
(53) |
(28) |
(32) |
||||||||
Other |
2 |
2 |
4 |
6 |
29 |
||||||||
|
228 |
244 |
436 |
508 |
844 |
||||||||
|
|
|
|
|
|
||||||||
Change in inventories |
58 |
113 |
109 |
164 |
465 |
||||||||
Change in trade receivables |
26 |
268 |
(115) |
233 |
252 |
||||||||
Change in trade payables |
(55) |
(71) |
(29) |
(108) |
(101) |
||||||||
Change in other receivables |
(14) |
1 |
4 |
(5) |
26 |
||||||||
Change in other payables |
(28) |
(184) |
(18) |
(207) |
(210) |
||||||||
Net change in operating assets and liabilities |
(13) |
127 |
(49) |
77 |
432 |
||||||||
|
|
|
|
|
|
||||||||
Income taxes paid, net of refund |
(29) |
(105) |
(35) |
(214) |
(253) |
||||||||
|
|
|
|
|
|
||||||||
Net cash provided by operating activities (*) |
316 |
433 |
608 |
832 |
1,710 |
||||||||
|
|
|
|
|
|
||||||||
Cash flows from investing activities |
|
|
|
|
|
||||||||
Proceeds (payments) from deposits, net |
11 |
(35) |
61 |
(79) |
(88) |
||||||||
Purchases of property, plant and equipment and intangible assets |
(142) |
(170) |
(287) |
(334) |
(780) |
||||||||
Interest received (*) |
3 |
3 |
10 |
5 |
10 |
||||||||
Proceeds from divestiture of assets and businesses, net of transaction expenses |
3 |
- |
18 |
3 |
4 |
||||||||
Business combinations |
- |
- |
(22) |
- |
- |
||||||||
Other |
- |
- |
- |
1 |
1 |
||||||||
Net cash used in investing activities |
(125) |
(202) |
(220) |
(404) |
(853) |
||||||||
|
|
|
|
|
|
||||||||
Cash flows from financing activities |
|
|
|
|
|
||||||||
Dividends paid to the Company's shareholders |
(59) |
(146) |
(120) |
(324) |
(474) |
||||||||
Receipt of long-term debt |
140 |
95 |
338 |
353 |
633 |
||||||||
Repayments of long-term debt |
(226) |
(228) |
(612) |
(398) |
(836) |
||||||||
Repayments of short-term debt |
(18) |
(54) |
(1) |
(17) |
(25) |
||||||||
Interest paid (*) |
(43) |
(45) |
(63) |
(64) |
(125) |
||||||||
Receipts from transactions in derivatives |
- |
- |
3 |
6 |
5 |
||||||||
Dividend paid to the non-controlling interests |
(57) |
(15) |
(57) |
(15) |
(15) |
||||||||
Net cash used in financing activities |
(263) |
(393) |
(512) |
(459) |
(837) |
||||||||
|
|
|
|
|
|
||||||||
Net change in cash and cash equivalents |
(72) |
(162) |
(124) |
(31) |
20 |
||||||||
Cash and cash equivalents as of the beginning of the period |
363 |
552 |
420 |
417 |
417 |
||||||||
Net effect of currency translation on cash and cash equivalents |
(4) |
(18) |
(9) |
(14) |
(17) |
||||||||
Cash and cash equivalents as of the end of the period |
287 |
372 |
287 |
372 |
420 |
||||||||
(*) Reclassified - see Note 2 to the Company's Interim Financial Statements.
Adjustments to Reported Operating and Net Income (non-GAAP)
$ millions |
Three-months ended |
Six-months ended |
|||||
|
June 30,
|
June 30,
|
|
June 30,
|
June 30,
|
||
Operating income |
211 |
300 |
414 |
765 |
|||
Charges related to the security situation in |
14 |
- |
26 |
- |
|||
Write-off of assets and provision for site closure (2) |
- |
- |
- |
15 |
|||
Total adjustments to operating income |
14 |
- |
26 |
15 |
|||
Adjusted operating income |
225 |
300 |
440 |
780 |
|||
Net income attributable to the shareholders of the Company |
115 |
163 |
224 |
443 |
|||
Total adjustments to operating income |
14 |
- |
26 |
15 |
|||
Total tax adjustments (3) |
(3) |
- |
(6) |
(3) |
|||
Total adjusted net income - shareholders of the Company |
126 |
163 |
244 |
455 |
|||
(1) |
For 2024, reflects charges relating to the security situation in |
(2) |
For 2023, reflects mainly a write-off of assets related to restructuring at certain sites, including site closures and facility modifications, as part of the Company’s global efficiency plan. |
(3) |
For 2024 and 2023, reflects the tax impact of adjustments made to operating income. |
Consolidated EBITDA for the Periods of Activity
$ millions |
Three-months ended |
Six-months ended |
|||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||
Net income |
130 |
167 |
256 |
461 |
|||
Financing expenses, net |
33 |
49 |
68 |
93 |
|||
Taxes on income |
48 |
84 |
90 |
211 |
|||
Operating income |
211 |
300 |
414 |
765 |
|||
Depreciation and amortization |
152 |
141 |
299 |
271 |
|||
Adjustments (1) |
14 |
- |
26 |
15 |
|||
Total adjusted EBITDA (2) |
377 |
441 |
739 |
1,051 |
|||
(1) |
See "Adjustments to Reported Operating and Net income (non-GAAP)" above. |
(2) |
In the first half of 2024, the Company’s adjusted EBITDA was positively impacted by an immaterial accounting reclassification. For further information, see below in our Potash segment results. |
Calculation of Segment EBITDA
$ millions |
Industrial Products |
Potash |
Phosphate Solutions (1) |
Growing Solutions |
|||||||||||
|
Three-months ended |
||||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||||||
Segment operating income |
60 |
60 |
60 |
167 |
93 |
73 |
25 |
4 |
|||||||
Depreciation and amortization |
14 |
14 |
58 |
46 |
53 |
56 |
20 |
18 |
|||||||
Segment EBITDA |
74 |
74 |
118 |
213 |
146 |
129 |
45 |
22 |
|||||||
(1) |
In alignment with the Company’s efficiency plan, which includes a change of reporting responsibilities as of January 2024, the results of a non-phosphate related business were allocated from the Phosphate Solutions segment to Other Activities. Comparative figures have been restated to reflect the organizational change in the reportable segments. |
(2) |
For Q2 2024, Phosphate Specialties comprised |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813642054/en/
Investor and Press Contact – Global
Peggy Reilly Tharp
VP, Global Investor Relations
+1-314-983-7665
Peggy.ReillyTharp@icl-group.com
Investor and Press Contact -
Adi Bajayo
ICL Spokesperson
+972-3-6844459
Adi.Bajayo@icl-group.com
Source: ICL Group LTD
FAQ
What were ICL's Q2 2024 financial results?
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What is ICL's updated guidance for specialties-driven EBITDA in 2024?
How did ICL's Potash segment perform in Q2 2024?