ICL, a leading global specialty minerals company, has announced its financial results for the second quarter ended June 30, 2024. The company reported consolidated sales of $1.75 billion, compared to $1.87 billion in the same period last year. Operating income for the quarter was $211 million, with an adjusted operating income of $225 million, down from $300 million in the previous year. Adjusted EBITDA stood at $377 million, compared to $441 million last year. Diluted earnings per share were $0.09, with adjusted diluted EPS of $0.10, versus $0.13 in Q2 2023.
“ICL achieved sequentially improving EBITDA for the third consecutive quarter, driven by our focus on areas within our control, such as introducing innovative solutions and enhancing cost efficiencies while navigating the risks posed by geopolitical uncertainties,” said Raviv Zoller, president and CEO of ICL. “All three of our specialties-driven segments outperformed compared to Q2 2023, contributing to the sequential increase in adjusted EBITDA and margins. Despite exceeding our expectations in the first half of the year, we remain cautious about short-term outlooks for some of the end markets we serve, including electronics, housing and construction, and food.”
Revised Full-Year Guidance
The company has raised its guidance for full-year 2024, now expecting specialties-driven EBITDA to range between $0.8 billion and $1.0 billion, an increase from the previous guidance of $0.7 billion to $0.9 billion. There is no anticipated change in expected potash sales volumes.
Key Financial Metrics for Q2 2024
- Sales: $1,752 million (Q2 2024) vs. $1,868 million (Q2 2023)
- Gross Profit: $568 million (Q2 2024) vs. $679 million (Q2 2023)
- Gross Margin: 32% (Q2 2024) vs. 36% (Q2 2023)
- Operating Income: $211 million (Q2 2024) vs. $300 million (Q2 2023)
- Adjusted Operating Income: $225 million (Q2 2024) vs. $300 million (Q2 2023)
- Net Income Attributable to Shareholders: $115 million (Q2 2024) vs. $163 million (Q2 2023)
- Adjusted Net Income Attributable to Shareholders: $126 million (Q2 2024) vs. $163 million (Q2 2023)
- Adjusted EBITDA: $377 million (Q2 2024) vs. $441 million (Q2 2023)
- Adjusted EBITDA Margin: 22% (Q2 2024) vs. 24% (Q2 2023)
- Diluted EPS: $0.09 (Q2 2024) vs. $0.13 (Q2 2023)
- Diluted Adjusted EPS: $0.10 (Q2 2024) vs. $0.13 (Q2 2023)
- Cash Flows from Operating Activities: $316 million (Q2 2024) vs. $433 million (Q2 2023)
Segment Highlights
- Industrial Products: Sales increased to $315 million from $300 million in Q2 2023. EBITDA remained stable at $74 million. The segment saw a third consecutive quarter of sequential improvement in EBITDA, focusing on cost savings and customer relationship expansion. Key developments included year-over-year sales growth in flame retardants and elemental bromine, while sales in clear brine fluids declined due to weather conditions and changes in oil rig schedules.
- Potash: Sales declined to $422 million from $582 million in Q2 2023, with EBITDA falling to $118 million from $213 million. The Grain Price Index decreased by 15.2% year-over-year, affecting prices for major crops. Potash prices dropped 7% sequentially and 26% year-over-year, with sales volumes down by 108 thousand metric tons compared to last year.
- Phosphate Solutions: Sales rose slightly to $572 million from $565 million in Q2 2023. EBITDA improved to $146 million from $129 million, marking the second quarter of sequential sales growth. Although pricing remained firm, evolving supply dynamics are expected to impact future performance.
