ICL Group reports annual sales decline amid challenges

Published 26/02/2025, 12:12
© Natali Kadosh, ICL Group PR

ICL (TASE:ICL) Group Ltd. (NYSE:ICL), a global specialty minerals company with a market capitalization of $8 billion, announced its financial results for the fourth quarter and full year ended December 31, 2024. The company experienced a decline in annual sales to $6,841 million from $7,536 million in 2023. Net income also decreased to $407 million compared to $647 million in the previous year, with adjusted net income at $484 million versus $715 million in 2023. According to InvestingPro analysis, despite recent headwinds, ICL maintains a strong free cash flow yield of 8%, suggesting robust cash generation capabilities.

The annual adjusted EBITDA was reported at $1,469 million, a drop from $1,754 million in 2023. Diluted earnings per share (EPS) for 2024 were $0.32, with an adjusted diluted EPS of $0.38, resulting in a P/E ratio of 19.8x. Despite these declines, operating cash flow remained stable at $1,468 million, closely mirroring the adjusted EBITDA, and free cash flow was $758 million. ICL distributed dividends of $242 million to shareholders in 2024, maintaining a dividend yield of 2.49%.

For the fourth quarter of 2024, ICL reported consolidated sales of $1,601 million, a slight decrease from $1,690 million in the same period of 2023. Net income and adjusted net income for the quarter were $70 million and $104 million, respectively, compared to $67 million and $123 million in the fourth quarter of 2023. Adjusted EBITDA for the quarter was $347 million, a slight decline from $357 million in the previous year’s quarter. Fourth-quarter diluted EPS were $0.06, with an adjusted diluted EPS of $0.08, compared to $0.05 and $0.10, respectively, in the fourth quarter of 2023. Operating cash flow for the quarter was consistent year-over-year at $452 million.

ICL’s President and CEO, Raviv Zoller, highlighted the company’s focus on cash generation and market share growth across its Industrial Products, Phosphate Solutions, and Growing Solutions businesses. The company’s strategic execution has contributed to impressive market performance, with the stock trading near its 52-week high of $6.57 and delivering a remarkable 46.7% return over the past six months. Despite challenges such as potash price declines and geopolitical issues, ICL maintained strong profitability and cash flow, introduced new products, formed global partnerships, set production records, completed acquisitions, and continued cost savings and efficiency efforts.

With an overall financial health score of "GOOD" from InvestingPro, which analyzes multiple financial metrics, ICL appears well-positioned for future growth. Looking ahead to 2025, ICL anticipates specialties-driven segments’ EBITDA to be between $0.95 billion to $1.15 billion. Potash sales volumes are expected to range from 4.5 million to 4.7 million metric tons. For detailed analysis and additional insights, investors can access ICL’s comprehensive Pro Research Report, available exclusively on InvestingPro along with reports for 1,400+ other US equities.

This news is based on a press release statement and reflects the company’s performance as of the end of 2024.

In other recent news, ICL Group has announced a joint venture with Shenzhen Dynanonic Co., Ltd. to establish a lithium iron phosphate cathode active material production facility in Europe. This initiative involves an initial investment of approximately €285 million, aiming to capitalize on the growing demand for lithium iron phosphate in the European electric vehicle market. Additionally, ICL has participated in Plantible Foods’ Series B funding round, furthering their collaboration in the food sector. This partnership focuses on innovative solutions, such as the Rovitaris Binding Solution featuring Rubi Protein, which has already garnered industry recognition.

ICL’s CEO, Raviv Zoller, has announced his retirement planned for early 2025, after a seven-year tenure marked by innovation and sustainability advancements. His departure will coincide with the release of ICL’s annual financial statements. The company, which reported revenues of approximately $7.5 billion in 2023, continues to focus on impactful solutions across multiple markets. These developments underscore ICL’s strategic investments and leadership transitions, reflecting its ongoing commitment to sustainability and innovation.

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