ICL Group (ICL) Q4 2022 earnings summary

Executive summary

• FY22 sales rose 44% YoY to $10.015B; operating income reached $3.516B and net income attributable to shareholders was $2.159B.

• Adjusted operating income was $3.509B and adjusted net income attributable to shareholders was $2.350B.

• Operating cash flow increased 90% YoY to $2.025B, supported by stronger results.

Financial highlights

• Gross profit was $5.032B, up 93% YoY; operating income was $3.516B, up 191%, and diluted EPS was $1.67, up 178%.

• Net income attributable to shareholders was $2.159B versus $783M in 2021; adjusted net income was $2.350B versus $824M.

• Reported tax expense rose to $1.185B from $260M; adjusted tax expense was $987M versus $203M, with adjusted effective tax rates of 29% and 19%, respectively.

• Cash and cash equivalents were $417M at year-end, with total assets of $11.750B and total equity of $5.713B.

Outlook and guidance

• Global economic momentum was expected to remain weak in H1 2023; softer Industrial Products demand was expected to continue into early 2023.

• Polysulphate output was expected to reach ~1M tonnes in 2023, with further expansion planned; food-grade WPA output at YPH and battery-grade MAP sales were also expected to increase.

• The planned St. Louis LFP cathode-material plant was expected to begin operations by 2024; a $197M federal award remained subject to DOE negotiations.