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Jun 30, 2023
Ashland Q3 2023 Earnings Report
Ashland's financial performance was impacted by customer destocking actions across supply chains, with sales down 15 percent compared to the prior-year quarter.
Key Takeaways
Ashland reported sales of $546 million, a 15% decrease compared to the prior-year quarter. Net income was $50 million, and adjusted EBITDA was $133 million, down 24% from the prior-year quarter. The company's financial results were consistent with the earnings update issued on June 28, and the company continues to manage inventory levels in response to customer destocking actions.
Sales were $546 million, down 15% compared to the prior-year quarter.
Net income was $50 million, or $0.94 per diluted share.
Adjusted income from continuing operations excluding intangibles amortization expense was $65 million, or $1.23 per diluted share.
Cash flows provided by operating activities totaled $137 million; ongoing free cash flow totaled $97 million.
Ashland
Ashland
Ashland Revenue by Segment
Revenue by Segment
Life Sciences Revenue
CapyFin.comPersonal Care Revenue
CapyFin.comSpecialty Additives Revenue
CapyFin.comIntermediates Revenue
CapyFin.com Forward Guidance
Assuming the prevailing fiscal-third quarter dynamics persist throughout the fiscal-fourth quarter, the company expects sales to be in the range of $2.2 billion and Adjusted EBITDA to be in the range of $500 million for fiscal year 2023.
Positive Outlook
- Focus on things we can control to maximize our near-term performance.
- Maintain disciplined capital allocation.
- Increase momentum on our longer-term growth opportunities.
- Take additional targeted restructuring actions to reduce costs over the coming quarters.
- Refocusing some of its resources toward our innovation-driven growth platforms and opportunities.
Challenges Ahead
- Impact from customer destocking actions across many supply chains continues to impact the markets we serve.
- Significant macroeconomic uncertainty.
- Limited visibility into near-term global consumer demand.
- Limited visibility as to when the customer destocking dynamics will end.
- Continuing its own previously announced actions to reduce inventory levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income