TEL AVIV - ICL (NYSE: ICL), a global specialty minerals company, announced its first quarter results ended March 31, 2024, meeting analyst expectations for adjusted earnings per share (EPS) but falling short on revenue.
The company reported an adjusted EPS of $0.09, which was in line with the consensus estimate. However, revenue for the quarter was $1.74 billion, below the analyst projection of $1.78 billion.
The reported revenue represents a decrease from the $2.1 billion generated in the same quarter of the previous year, marking a significant YoY decline. Despite the revenue shortfall, ICL's President and CEO, Raviv Zoller, highlighted the company's resilience amid global market stabilization and recovery signs in most end-markets. Zoller also emphasized ICL's focus on innovation, strategic partnerships, and cost reduction, contributing to consistent cash generation and dividends for shareholders.
ICL's first quarter sales showed a sequential improvement from the fourth quarter of 2023, with sales rising from $1.69 billion to $1.74 billion. The adjusted EBITDA for the first quarter stood at $362 million, a drop from the $610 million reported in the same period last year. The company's operating income also saw a decline, coming in at $203 million compared to $465 million in the prior year's first quarter.
Looking ahead, ICL reiterated its full-year 2024 guidance, expecting specialties-driven segments' adjusted EBITDA to range between $0.7 billion and $0.9 billion. The potash segment is anticipated to maintain sales volumes between 4.6 million and 4.9 million metric tons.
The company's performance in various segments reflected mixed results. The Industrial Products segment experienced a more than 10% increase in sales and approximately 30% rise in EBITDA sequentially, while the Potash segment saw a decrease in sales and EBITDA compared to the previous year. The Phosphate Solutions and Growing Solutions segments reported sequential quarterly improvements in sales and EBITDA, respectively.
ICL's available liquidity remained robust at $1.7 billion as of March 31, 2024. The company also demonstrated prudent financial management by reducing its net financial liabilities and maintaining a disciplined approach to dividend distributions, declaring a dividend of 4.57 cents per share for the first quarter of 2024.
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