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Dec 31, 2023
Ecolab Q4 2023 Earnings Report
Ecolab reported strong fourth-quarter performance, with adjusted diluted EPS increasing by 22% and sales growing by 7%.
Key Takeaways
Ecolab's fourth-quarter results demonstrated robust sales growth and significant operating margin expansion. The company's adjusted diluted earnings per share increased by 22%, driven by strong pricing, volume growth, and lower delivered product costs.
Reported sales increased by 7% to $3.9 billion, with organic sales up 6% year over year.
Reported operating income increased by 48%, while organic operating income rose by 21%.
Reported operating income margin reached 15.0%, and organic operating income margin expanded by 200 bps to 16.0%.
Reported diluted EPS increased by 52% to $1.41, and adjusted diluted EPS increased by 22% to $1.55.
Revenue by Segment
Forward Guidance
Ecolab anticipates a robust year in 2024, expecting adjusted diluted earnings per share to range from $6.10 to $6.50, representing a 17% to 25% increase compared to 2023.
Positive Outlook
- Sales growth driven by new business gains.
- Continued value-based pricing strategies.
- SG&A productivity improvements throughout the year.
- Attractive operating income margin expansion.
- Benefit from moderately lower delivered product costs, primarily in the first half of the year.
Challenges Ahead
- Soft but stable macroeconomic demand.
- Higher interest expense.
- Higher pension expense.
- Unfavorable foreign currency translation.
- Quantifiable special charges of approximately $0.10 to $0.15 per share, mainly related to restructuring.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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