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Sep 30, 2022
Ashland Q4 2022 Earnings Report
Ashland's financial performance increased in Q4 2022, driven by disciplined pricing and strong demand across all segments.
Key Takeaways
Ashland reported a 7% increase in sales to $631 million for the fourth quarter of fiscal year 2022. Net income rose to $57 million, or $1.04 per diluted share, while income from continuing operations reached $60 million, or $1.09 per diluted share. Adjusted EBITDA was $147 million, a slight decrease of 1% from the prior-year quarter. The company issued its outlook for fiscal year 2023, expecting sales to be in the range of $2.5 billion to $2.7 billion, and adjusted EBITDA to be in the range of $600 million to $650 million.
Sales increased by 7% to $631 million compared to the prior-year quarter.
Net income increased to $57 million, or $1.04 per diluted share.
Adjusted income from continuing operations excluding intangibles amortization expense increased to $80 million, or $1.46 per diluted share.
Cash flows provided by operating activities increased to $179 million; ongoing free cash flow was $93 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
For fiscal year 2023, Ashland expects sales to be in the range of $2.5 billion to $2.7 billion, and adjusted EBITDA to be in the range of $600 million to $650 million.
Positive Outlook
- Profile of consumer-focused specialty ingredients and additives business portfolio to provide more demand resilience as we enter a more recessionary macro environment
- Carry-over impact of pricing
- Mix improvement
- Productivity actions should provide some tailwind to our growth and earnings
- New product development pipeline remains robust
Challenges Ahead
- Impact of a global recession
- The war in Ukraine
- Foreign currency headwinds
- Energy cost and availability in Europe impacting customer and supplier operations
- Additional pandemic-related lockdowns
Revenue & Expenses
Visualization of income flow from segment revenue to net income