Delivers annual sales of $7,536 million, with adjusted EBITDA of $1,754 million, and continued strong cash generation of $818 million
TEL AVIV, Israel–(BUSINESS WIRE)–ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today reported its financial results for the fourth quarter and full year ended December 31, 2023. Consolidated annual sales were $7,536 million versus a record $10,015 million in 2022. Net income was $647 million versus $2,159 million, while adjusted net income was $715 million versus $2,350 million. Annual adjusted EBITDA was $1,754 million versus $4,007 million in 2022. Diluted earnings per share for 2023 were $0.50, while adjusted diluted EPS was $0.55. Operating cash flow was $1,595 million in 2023, while free cash flow was $818 million. For 2023, the Company paid out more than $350 million in dividends.
For the fourth quarter of 2023, consolidated sales were $1,690 million versus $2,091 million. Net income was $67 million, with adjusted net income of $123 million, versus $331 million and $358 million, respectively, for fourth quarter 2022. Adjusted EBITDA in the fourth quarter was $357 million versus $698 million. Fourth quarter diluted earnings per share were $0.05, with adjusted diluted EPS of $0.10, versus $0.25 and $0.28, respectively. Operating cash flow was $415 million in the fourth quarter, while free cash flow was $160 million.
“ICL delivered adjusted EBITDA of $1.8 billion and operating cash flow of $1.6 billion, on the backdrop of a record 2022. During 2023, we expanded into additional new end-markets, with the groundbreaking of new advanced facilities and the launch of new innovative products, which will have a long-term impact on growth. We executed against our cost reduction plan and launched further efficiency measures in the fourth quarter, as we continued to respond to challenging market conditions and remained resilient in the face of war,” said Raviv Zoller, president and CEO of ICL. “For the year, ICL delivered significant value to shareholders, with $818 million of free cash flow and more than $350 million in dividend payments, as we diligently managed the areas under our control, swiftly reacting to changing external conditions. We currently see improving demand in our key end-markets and, while we expect there will be new and continued challenges in 2024, we are looking forward to achieving our goals for the year, including inorganic growth.”
The Company also announced it is making a change to guidance practices, in order to provide greater transparency for its shareholders. Going forward, the Company will be providing guidance for expected potash sales volumes and EBITDA guidance for all of its business segments other than potash, which will be referred to as specialties-driven business segments.
For 2024, the Company expects the specialties-driven segments adjusted EBITDA to be between $0.7 billion to $0.9 billion. For potash, the Company expects 2024 sales volumes to be between 4.6 million metric tons and 4.9 million metric tons. The Company’s fourth quarter 2023 Potash segment EBITDA should give a good indication of EBITDA at current prices, and ICL expects every $20 change in the average potash CIF price from current levels to result in a $100 million annual impact to EBITDA (1a).
Financial Figures and non-GAAP Financial Measures
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
||||||||||||
|
|
$ millions |
% of Sales |
$ millions |
% of Sales |
$ millions |
% of Sales |
$ millions |
% of Sales |
||||||||
|
Sales |
1,690 |
– |
2,091 |
– |
7,536 |
– |
10,015 |
– |
||||||||
|
Gross profit |
560 |
33 |
933 |
45 |
2,671 |
35 |
5,032 |
50 |
||||||||
|
Operating income |
149 |
9 |
540 |
26 |
1,141 |
15 |
3,516 |
35 |
||||||||
|
Adjusted operating income (1) |
211 |
12 |
562 |
27 |
1,218 |
16 |
3,509 |
35 |
||||||||
|
Net income attributable to the Company’s shareholders |
67 |
4 |
331 |
16 |
647 |
9 |
2,159 |
22 |
||||||||
|
Adjusted net income attributable to the Company’s shareholders (1) |
123 |
7 |
358 |
17 |
715 |
9 |
2,350 |
23 |
||||||||
|
Diluted earnings per share (in dollars) |
0.05 |
– |
0.25 |
– |
0.50 |
– |
1.67 |
– |
||||||||
|
Diluted adjusted earnings per share (in dollars) (2) |
0.10 |
– |
0.28 |
– |
0.55 |
– |
1.82 |
– |
||||||||
|
Adjusted EBITDA (2) |
357 |
21 |
698 |
33 |
1,754 |
23 |
4,007 |
40 |
||||||||
|
Cash flows from operating activities |
415 |
– |
467 |
– |
1,595 |
– |
2,025 |
– |
||||||||
|
Purchases of property, plant and equipment and intangible assets (3) |
255 |
– |
212 |
– |
780 |
– |
747 |
– |
||||||||
|
(1) |
See “Adjustments to Reported Operating and Net income (non-GAAP)” below. |
|
|
(2) |
See “Consolidated Adjusted EBITDA and Diluted Adjusted Earnings Per Share for the periods of activity” below. |
|
|
(3) |
See “Condensed consolidated statements of cash flows (unaudited)” to the accompanying financial statements. |
|
|
Industrial Products |
|
Potash |
|
Phosphate Solutions |
|
Growing Solutions |
|||||||||
|
|
Three-months ended 31 December |
|||||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Segment operating income |
39 |
95 |
122 |
340 |
74 |
116 |
(5) |
32 |
||||||||
|
Depreciation and amortization |
17 |
15 |
46 |
45 |
59 |
49 |
20 |
24 |
||||||||
|
Segment EBITDA |
56 |
110 |
168 |
385 |
133 |
165 |
15 |
56 |
||||||||
Segment Information
Industrial Products
The Industrial Products segment produces bromine from a highly concentrated solution in the Dead Sea and bromine‑based compounds at its facilities in Israel, the Netherlands and China. In addition, the segment produces several grades of salts, magnesium chloride, magnesia-based products, phosphorus-based products, and functional fluids.
Results of operations
|
|
10-12/2023 |
|
10-12/2022 |
|
1-12/2023 |
|
1-12/2022 |
|
|
|
$ millions |
|
$ millions |
|
$ millions |
|
$ millions |
|
|
Segment Sales |
299 |
349 |
1,227 |
1,766 |
||||
|
Sales to external customers |
294 |
343 |
1,206 |
1,737 |
||||
|
Sales to internal customers |
5 |
6 |
21 |
29 |
||||
|
Segment Operating Income |
39 |
95 |
220 |
628 |
||||
|
Depreciation and amortization |
17 |
15 |
57 |
61 |
||||
|
Segment EBITDA |
56 |
110 |
277 |
689 |
||||
|
Capital expenditures |
29 |
27 |
91 |
90 |
Significant highlights
- Flame retardants: Sales of both bromine and phosphorous-based flame retardants decreased year-over-year due to lower prices, as electronics and construction end-market demand remained subdued.
- Industrial solutions: Elemental bromine sales decreased year-over-year, as higher volumes only partially offset lower bromine prices.
- Oil and gas: Record clear brine fluids sales and operating profit for 2023, due to strong end-market demand.
- Specialty minerals: Record operating profit for 2023, despite slightly lower volumes.
Results analysis for the period October – December 2023
|
|
Sales |
Expenses |
Operating income |
|||
|
|
$ millions |
|||||
|
Q4 2022 figures |
349 |
(254) |
95 |
|||
|
Quantity |
63 |
(34) |
29 |
|||
|
Price |
(115) |
– |
(115) |
|||
|
Exchange rates |
2 |
6 |
8 |
|||
|
Raw materials |
– |
7 |
7 |
|||
|
Energy |
– |
4 |
4 |
|||
|
Transportation |
– |
8 |
8 |
|||
|
Operating and other expenses |
– |
3 |
3 |
|||
|
Q4 2023 figures |
299 |
(260) |
39 |
|||
- Quantity – The positive impact on operating income was primarily related to an increase in sales volumes of bromine-based flame retardants and elemental bromine. This was partially offset by lower sales volumes of phosphorus-based flame retardants, specialty minerals and clear brine fluids.
- Price – The negative impact on operating income was primarily due to lower selling prices of bromine and phosphorus-based flame retardants, bromine-based industrial solutions, and specialty minerals.
- Exchange rates – The favorable impact on operating income was mainly due to the positive impact on operational costs resulting from the depreciation of the average exchange rate of the Israeli shekel against the US dollar, as well as the positive impact on sales resulting from the appreciation of the average exchange rate of the euro against the US dollar.
- Raw materials – The positive impact on operating income was due to a decrease in raw material costs.
- Transportation – The positive impact on operating income was due to a decrease in marine and inland transportation costs.
Potash
The Potash segment produces and sells mainly potash, salts, magnesium, and electricity. Potash is produced in Israel using an evaporation process to extract it from the Dead Sea at Sodom and in Spain using conventional mining from an underground mine. The segment also produces and sells pure magnesium, magnesium alloys and chlorine. In addition, the segment sells salt products produced at its potash site in Spain. The segment operates a power plant in Sodom which supplies electricity and steam to ICL facilities in Israel, with surplus electricity sold to external customers.
Results of operations
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
|
|
$ millions |
$ millions |
$ millions |
$ millions |
|
Segment Sales |
474 |
713 |
2,182 |
3,313 |
|
Potash sales to external customers |
336 |
568 |
1,693 |
2,710 |
|
Potash sales to internal customers |
49 |
36 |
129 |
184 |
|
Other and eliminations (1) |
89 |
109 |
360 |
419 |
|
Gross Profit |
231 |
456 |
1,171 |
2,292 |
|
Segment Operating Income |
122 |
340 |
668 |
1,822 |
|
Depreciation and amortization |
46 |
45 |
175 |
166 |
|
Segment EBITDA |
168 |
385 |
843 |
1,988 |
|
Capital expenditures |
132 |
92 |
384 |
346 |
|
Potash price – CIF ($ per tonne) |
345 |
594 |
393 |
682 |
|
(1) |
Primarily includes salt produced in Spain, metal magnesium-based products, chlorine, and sales of excess electricity produced by ICL’s power plant at the Dead Sea in Israel. |
Significant highlights
- ICL’s potash price (CIF) per tonne of $345 in the quarter was 1% higher than the third quarter of 2023 and 42% lower year-over-year.
- The Grain Price Index decreased by 6.7% during the quarter due to decreased prices of wheat, corn and soybean by 16.2%, 12.8% and 8.5%, respectively, partially offset by an increase in prices of rice by 5.4%.
- The WASDE (World Agricultural Supply and Demand Estimates) report, published by the USDA in January 2024, showed a continued decrease in the expected ratio of global inventories of grains to consumption to 27.7% for the 2023/24 agriculture year, compared to 28.1% for the 2022/23 agriculture year and 28.4% for the 2021/22 agriculture year.
- Freight rates have been increasing, with disruptions in the Red Sea and in Panama. Suez Canal shipments have plummeted due to the security situation in the area with many vessels rerouted around southern Africa, and the Panama Canal is navigating a historic water crisis, limiting the number of ships crossing.
Additional segment information
Global potash market – average prices and imports:
|
Average prices |
|
10-12/2023 |
10-12/2022 |
VS Q4 2022 |
7-9/2023 |
VS Q3 2023 |
||||||
|
Granular potash – Brazil |
CFR spot ($ per tonne) |
336 |
570 |
(41.1)% |
351 |
(4.3)% |
||||||
|
Granular potash – Northwest Europe |
CIF spot/contract (€ per tonne) |
388 |
813 |
(52.3)% |
392 |
(1.0)% |
||||||
|
Standard potash – Southeast Asia |
CFR spot ($ per tonne) |
318 |
675 |
(52.9)% |
309 |
2.9% |
||||||
|
Potash imports |
|
|
|
|
|
|
||||||
|
To Brazil |
million tonnes |
3.4 |
1.5 |
126.7% |
3.6 |
(5.6)% |
||||||
|
To China |
million tonnes |
3.6 |
1.8 |
100.0% |
2.9 |
24.1% |
||||||
|
To India |
million tonnes |
0.8 |
0.5 |
60.0% |
0.6 |
33.3% |
Sources: CRU (Fertilizer Week Historical Price: January 2024), SIACESP (Brazil), World Shipping Agenciamentos (WSA), FAI, Brazil and Chinese customs data.
Potash – Production and Sales
|
Thousands of tons |
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
||||
|
Production |
1,139 |
1,224 |
4,420 |
4,691 |
||||
|
Total sales (including internal sales) |
1,179 |
1,068 |
4,683 |
4,499 |
||||
|
Closing inventory |
284 |
547 |
284 |
547 |
Fourth quarter 2023
- Production – Production was 85 thousand tonnes lower year-over-year, mainly due to operational challenges and war related issues in the Dead Sea, as well as a planned production shutdown in Spain.
- Sales – The quantity of potash sold was 111 thousand tonnes higher year-over-year, mainly due to increased sales volumes to Brazil, China and Europe.
Full year 2023
- Production – Production was 271 thousand tonnes lower year-over-year, in the Dead Sea mainly due to operational challenges, such as weather conditions and war related issues in the fourth quarter, as well as on-going geologic constraints in Spain.
- Sales – The quantity of potash sold was 184 thousand tonnes higher year-over-year, mainly due to increased sales volumes to Europe and China, partially offset by lower sales volumes to India, Brazil and the US.
Results analysis for the period October – December 2023
|
|
Sales |
Expenses |
Operating |
|||
|
|
$ millions |
|||||
|
Q4 2022 figures |
713 |
(373) |
340 |
|||
|
Quantity |
11 |
2 |
13 |
|||
|
Price |
(255) |
– |
(255) |
|||
|
Exchange rates |
5 |
3 |
8 |
|||
|
Raw materials |
– |
4 |
4 |
|||
|
Energy |
– |
5 |
5 |
|||
|
Transportation |
– |
(2) |
(2) |
|||
|
Operating and other expenses |
– |
9 |
9 |
|||
|
Q4 2023 figures |
474 |
(352) |
122 |
|||
- Quantity – The positive impact on operating income was primarily related to an increase in sales volumes of potash to China, Brazil and Europe, partially offset by lower sales volumes to India and the US.
- Price – The negative impact on operating income resulted primarily from a decrease of $249 in the potash price (CIF) per tonne, year-over-year.
- Exchange rates – The favorable impact on operating income was due to a positive impact on sales resulting from the appreciation of the average exchange rate of the euro and the British pound against the US dollar, as well as a positive impact on operational costs resulting from the depreciation of the average exchange rate of the Israeli shekel against the US dollar.
- Energy – The positive impact on operating income was primarily due to a decrease in electricity and gas prices.
- Operating and other expenses – The positive impact on operating income was primarily related to operational savings.
Phosphate Solutions
The Phosphate Solutions segment operates ICL’s phosphate value chain and uses phosphate rock and fertilizer-grade phosphoric acid to produce phosphate-based specialty products with higher added value, as well as to produce and sell phosphate-based fertilizers.
Phosphate specialties sales of $343 million and operating income of $38 million in the fourth quarter of 2023 were approximately 15% and 42% lower, respectively, compared to the fourth quarter of 2022. The decrease in operating income was driven mainly by lower selling prices and sales volumes, partially offset by lower costs of raw materials.
Sales of phosphate commodities amounted to $201 million, approximately 10% lower than in the fourth quarter of 2022. Operating income of $36 million decreased year-over-year by $14 million, primarily due to lower prices, partially offset by higher volumes sold and lower raw material costs, mainly sulphur.
Results of operations
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
||||
|
|
$ millions |
$ millions |
$ millions |
$ millions |
||||
|
Segment Sales |
544 |
627 |
2,483 |
3,106 |
||||
|
Sales to external customers |
503 |
574 |
2,274 |
2,851 |
||||
|
Sales to internal customers |
41 |
53 |
209 |
255 |
||||
|
Segment Operating Income |
74 |
116 |
329 |
777 |
||||
|
Depreciation and amortization* |
59 |
49 |
221 |
189 |
||||
|
Segment EBITDA |
133 |
165 |
550 |
966 |
||||
|
Phosphate specialties EBITDA |
55 |
79 |
277 |
436 |
||||
|
Phosphate commodities EBITDA |
78 |
86 |
273 |
530 |
||||
|
Capital expenditures |
90 |
78 |
272 |
259 |
|
* |
For Q4 2023, comprised of $17 million in phosphate specialties and $42 million in phosphate commodities. For Q4 2022, comprised of $13 million in phosphate specialties and $36 million in phosphate commodities. |
Significant highlights
- White phosphoric acid (WPA): Sales decreased year-over-year, as higher volumes – mainly in Europe – only partially offset lower prices.
- Industrial specialties: Sales decreased year-over-year, with lower prices in key markets, partially offset by higher volumes globally.
- Food specialties: Volumes in Europe increased year-over-year, while global sales declined versus the prior year, due to lower volumes in the Americas related to a slower than expected recovery in consumer demand.
-
A positive pricing effect continued into the fourth quarter of 2023 with prices up to 15% higher when compared to the third quarter average. Negative sentiment was generated early in the quarter due to a reduction of DAP subsidies by India and a reduction of countervailing duties (CVDs) by the US on OCP, partially offset by lower market liquidity due to China’s decision to limit exports.
- In India, DAP prices decreased by $7/t from the previous quarter to $593/t CFR, due to the government’s decision to reduce the DAP subsidy for the rabi crop, which lowered demand for imports.
- US phosphate imports remained firm in October 2023, as distributors continued to restock depleted inventories. DAP FOB Nola prices increased by 7% during the quarter, finishing the year at $623/t despite decreased volumes in November and December, and the US Department of Commerce’s decision to decrease OCP’s CVDs from 19.97% to 2.12%.
- In Brazil, MAP prices were 6% higher in the quarter, reaching $563/t at the end of December. A lack of prompt availability and poor weather, which created a delayed import window for soy planting, continued to support prices at a time when demand usually begins to wane.
- In November 2023, China’s economic planning committee, the NDRC, suspended review of new export applications until year-end, in an effort to lower domestic prices.
- Indian phosphoric acid prices are negotiated on a quarterly basis. The fourth quarter price was agreed at $985/t P2O5, up $135 from the third quarter price, reflecting a surge in DAP/MAP prices during the fourth quarter. The price for the first quarter of 2024 is still under negotiation.
- Spot sulphur FOB Middle East eased to $78/t at the end of December, down from $108/t at the beginning of the quarter, as concerns over Chinese demand and ample availability weighed on fundamentals.
Additional segment information
Global phosphate commodities market – average prices:
|
Average prices |
$ per tonne |
10-12/2023 |
10-12/2022 |
VS Q4 2022 |
07-09/2023 |
VS Q3 2023 |
||||||
|
DAP |
CFR India Bulk Spot |
594 |
734 |
(19)% |
518 |
15% |
||||||
|
TSP |
CFR Brazil Bulk Spot |
422 |
543 |
(22)% |
394 |
7% |
||||||
|
SSP |
CPT Brazil inland 18-20% P2O5 Bulk Spot |
278 |
270 |
3% |
275 |
1% |
||||||
|
Sulphur |
Bulk FOB Adnoc monthly Bulk contract |
102 |
138 |
(26)% |
82 |
24% |
Source: CRU (Fertilizer Week Historical Prices, January 2024).
Results analysis for the period October – December 2023
|
|
Sales |
Expenses |
Operating |
|||
|
|
$ millions |
|||||
|
Q4 2022 figures |
627 |
(511) |
116 |
|||
|
Quantity |
(7) |
8 |
1 |
|||
|
Price |
(81) |
– |
(81) |
|||
|
Exchange rates |
5 |
1 |
6 |
|||
|
Raw materials |
– |
24 |
24 |
|||
|
Energy |
– |
(1) |
(1) |
|||
|
Transportation |
– |
(3) |
(3) |
|||
|
Operating and other expenses |
– |
12 |
12 |
|||
|
Q4 2023 figures |
544 |
(470) |
74 |
|||
- Quantity – The positive impact on operating income was primarily related to higher volumes of phosphate fertilizers and white phosphoric acid (WPA). This was partially offset by lower sales volumes of phosphate-based food additives and MAP used as raw material for energy storage solutions.
- Price – The negative impact on operating income was primarily due to lower selling prices of WPA, phosphate fertilizers and salts.
- Exchange rates – The favorable impact on operating income was mainly due to the positive impact on sales resulting from the appreciation of the average exchange rate of the euro against the US dollar which exceeded its negative impact on operational costs, as well as the positive impact on operational costs due to the depreciation of the average exchange rate of the Israeli shekel and the Chinese yuan against the US dollar.
- Raw materials – The positive impact on operating income was mainly due to lower costs of sulphur, potassium hydroxide (KOH) and caustic soda.
- Operating and other expenses – The positive impact on operating income was primarily related to lower maintenance and operational costs.
Growing Solutions
The Growing Solutions segment aims to achieve global leadership in plant nutrition by enhancing its position in its core markets of specialty agriculture, ornamental horticulture, turf and landscaping, fertilizers and FertilizerpluS, and by targeting high-growth markets such as Brazil, India, and China. The segment also looks to leverage its unique R&D capabilities, substantial agronomic experience, global footprint, backward integration to potash, phosphate and polysulphate and its chemistry know-how, as well as its ability to integrate and generate synergies from acquired businesses. ICL continuously works to expand its broad portfolio of specialty plant nutrition, plant stimulation and plant health solutions, which consist of enhanced efficiency and controlled release fertilizers (CRF), water-soluble fertilizers (WSF), liquid fertilizers and straights (MKP/MAP/PeKacid), FertilizerpluS, soil and foliar micronutrients, secondary nutrients, biostimulants, soil conditioners, seed treatment products, and adjuvants.
Results of operations
|
|
10-12/2023 |
10-12/2022 |
1-12/2023 |
1-12/2022 |
||||
|
|
$ millions |
$ millions |
$ millions |
$ millions |
||||
|
Segment Sales |
478 |
527 |
2,073 |
2,422 |
||||
|
Sales to external customers |
475 |
513 |
2,047 |
2,376 |
||||
|
Sales to internal customers |
3 |
14 |
26 |
46 |
||||
|
Segment Operating Income |
(5) |
32 |
51 |
378 |
||||
|
Depreciation and amortization |
20 |
24 |
68 |
70 |
||||
|
Segment EBITDA |
15 |
56 |
119 |
448 |
||||
|
Capital expenditures |
36 |
38 |
92 |
101 |
Significant highlights
- Specialty agriculture: Sales slightly decreased year-over-year, due to lower prices, partially offset by an increase in volumes, mainly in micronutrients, controlled released fertilizers and straight fertilizers.
- Turf and ornamental: Sales decreased year-over-year, with turf sales decreasing, while ornamental horticulture sales remained stable.
- Brazil: Weather-related challenges delayed fourth quarter orders, impacting both quarter and full year results.
- ICL Boulby: Production of Polysulphate decreased by 6% year-over-year for the fourth quarter, declining to 238 thousand tonnes. For 2023 production reached 1,009 thousand tonnes, an annual production record.
- FertilizerpluS: sales decreased year-over-year, as higher volumes only partially offset lower prices.
- Planned maintenance in certain facilities was shifted from the first quarter of 2024 to the fourth quarter of 2023, as a response to application delays in Europe, mainly due to weather, and Israel, mainly due to the war.
- In the beginning of 2024, the Company completed the acquisition of Nitro 1000, a manufacturer, developer and provider of biological crop inputs in Brazil, for a consideration of $30 million. Nitro 1000’s products mainly target soybean, corn and sugar cane crops, and their application replaces or optimizes the use of fertilizers. These products help farmers increase profitability, as well as offer more sustainable options.
Results analysis for the period October – December 2023
|
|
Sales |
Expenses |
Operating |
|||
|
|
$ millions |
|||||
|
Q4 2022 figures |
527 |
(495) |
32 |
|||
|
Quantity |
98 |
(67) |
31 |
|||
|
Price |
(165) |
– |
(165) |
|||
|
Exchange rates |
18 |
(16) |
2 |
|||
|
Raw materials |
– |
111 |
111 |
|||
|
Energy |
– |
1 |
1 |
|||
|
Transportation |
– |
2 |
2 |
|||
|
Operating and other expenses |
– |
(19) |
(19) |
|||
|
Q4 2023 figures |
478 |
(483) |
(5) |
|||
- Quantity – The positive impact on operating income was primarily due to higher sales volumes of specialty agriculture and FertilizerpluS products.
- Price – The negative impact on operating income was primarily due to lower selling prices across most product lines, mainly specialty agriculture and FertilizerpluS products.
- Exchange rates – The favorable impact on operating income was primarily due to the positive impact on sales resulting from the appreciation of the average exchange rate of the Brazilian real and the euro against the US dollar, which exceeded their negative impact on operational costs.
- Raw materials – The positive impact on operating income was primarily related to lower costs of commodity fertilizers, potassium hydroxide (KOH) and ammonia.
- Operating and other expenses – The negative impact on operating income was primarily related to higher maintenance and operational costs, as well as sales commissions.
Financing expenses, net
Net financing expenses in the fourth quarter of 2023 amounted to $33 million, compared to $41 million in the corresponding quarter last year, a decrease of $8 million. This decrease is mainly due to a decrease of $10 million in account receivables factoring expenses, partially offset by an increase of $2 million in interest expenses.
Tax expenses
In the fourth quarter of 2023, the Company’s reported tax expenses amounted to $33 million, compared to $158 million in the corresponding quarter of last year, reflecting an effective tax rate of 28% and 32%, respectively. The Company’s relatively low effective tax rate for this quarter was mainly due to the devaluation of the shekel against the US dollar.
Liquidity and Capital Resources
As of December 31, 2023, the Company’s cash, cash equivalents, short-term investments and deposits amounted to $592 million compared to $508 million as of December 31, 2022.
Contacts
Investor and Press Contact – Global
Peggy Reilly Tharp
VP, Global Investor Relations
+1-314-983-7665
[email protected]
Investor and Press Contact – Israel
Adi Bajayo
ICL Spokesperson
+972-3-6844459
[email protected]
