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Dec 31, 2022
Ecolab Q4 2022 Earnings Report
Ecolab delivered a strong fourth quarter operating performance, with sales and operating income increasing and adjusted EPS decreasing slightly.
Key Takeaways
Ecolab reported a 9% increase in sales to $3.7 billion in the fourth quarter of 2022. Reported diluted EPS was $0.93, while adjusted diluted EPS was $1.27. The company expects further performance improvement through 2023, anticipating double-digit growth in adjusted operating income.
Reported sales increased by 9% compared to the previous year, reaching $3.7 billion.
Reported operating income rose by 3%, with adjusted fixed currency operating income growth accelerating to 14%.
Reported diluted EPS was $0.93, while adjusted diluted EPS, excluding special gains and charges and discrete tax items, was $1.27, a decrease of 1%. Currency translation had a $0.10 per share unfavorable impact on EPS.
Cash flow from operating activities for the fourth quarter was $859 million, resulting in a 97% free cash flow conversion for the full year 2022.
Ecolab
Ecolab
Ecolab Revenue by Segment
Revenue by Segment
Institutional & Specialty Revenue
CapyFin.comPest Elimination Revenue
CapyFin.com Forward Guidance
Ecolab anticipates performance to improve throughout 2023, driven by strong sales growth, easing inflation, and productivity improvements, expecting double-digit growth in adjusted operating income.
Positive Outlook
- Strong sales growth
- Easing delivered product cost inflation
- Improved productivity
- Additional pricing actions
- New business wins and innovation
Challenges Ahead
- Challenging macro environment
- High delivered product costs
- Easing demand
- Higher interest expense
- Unfavorable currency translation impacts
Revenue & Expenses
Visualization of income flow from segment revenue to net income