ICL Group announces 2023 financial results with consolidated sales of $7.54bn

ICL Group on Wednesday disclosed its financial figures for the fourth quarter and the full year of 2023. The specialty minerals company’s consolidated sales reached $7,536 million for the year, a decline from the $10,015 million peak in 2022. Net income also saw a reduction, coming in at $647 million, compared to the prior year’s $2,159 million. Adjusted for specific financial measures, the net income stood at $715 million, a decrease from $2,350 million in 2022. The annual adjusted EBITDA recorded was $1,754 million, down from $4,007 million the year before.

Diluted earnings per share for the year were reported at $0.50, while the adjusted diluted EPS was $0.55. Notably, the operating cash flow for the year was substantial at $1,595 million, contributing to a free cash flow of $818 million. In 2023, ICL upheld its commitment to shareholder returns, disbursing over $350 million in dividends.

The fourth quarter of 2023 also reflected a downward trend with consolidated sales of $1,690 million against the $2,091 million reported in the same quarter of the previous year. Net income for the quarter was at $67 million, with an adjusted net income of $123 million, which was a step down from $331 million and $358 million, respectively, in 2022. Adjusted EBITDA for the quarter stood at $357 million, compared to $698 million in the prior year. Diluted earnings per share for the quarter were $0.05, and the adjusted figure was $0.10, a decrease from the fourth quarter 2022 values of $0.25 and $0.28, respectively. Operating cash flow for the quarter was solid at $415 million, with free cash flow recorded at $160 million.

Raviv Zoller, the president and CEO of ICL, commented on the results, acknowledging the robust adjusted EBITDA and operating cash flow against the backdrop of an exceptional 2022. He highlighted the company’s expansion into new markets, the initiation of state-of-the-art facilities, and the launching of innovative products expected to drive long-term growth. Zoller also noted the implementation of a cost reduction plan and additional efficiency measures in response to a challenging market landscape, emphasizing resilience in the face of geopolitical tensions.

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Looking ahead to 2024, ICL has revised its guidance practices to enhance shareholder transparency. The company will offer guidance on expected potash sales volumes and provide EBITDA forecasts for all business segments, excluding potash, referred to as specialties-driven segments. ICL anticipates the EBITDA for these specialties-driven segments to range between $0.7 billion to $0.9 billion in 2024, with potash sales volumes projected to be between 4.6 million and 4.9 million tonnes. The company also estimated that each $20 variation in the average potash CIF price would translate to a $100 million annual impact on EBITDA.