IPL continues to deliver strong underlying earnings growth in 1H24
May 16, 20241H24 highlights – Statutory results
Incitec Pivot Limited (ASX:IPL) today reported a net loss after tax including individually material items (IMIs) of $148m (prior corresponding period (pcp): $354m profit). This result included IMIs totaling $312m (after tax) relating primarily to a non-cash impairment of the fertilisers business which was partially offset by a gain on the sale of IPL’s ammonia manufacturing facility in Waggaman, Louisiana. IPL also reported Earnings Before Interest and Tax (EBIT) excluding IMIs of $249m down from $552m in the pcp. The principal driver of the reduced earnings relates to the discontinuation of Waggaman (sold on 1 December 2023) and the closure of fertiliser manufacturing at Gibson Island, Queensland.
1H24 highlights – Underlying results
IPL delivered underlying EBIT growth of 18% compared to the pcp after adjusting for re-basing items which relate primarily to the closure of manufacturing at Gibson Island and the sale of Waggaman (refer table on following page and associated footnotes for more details). Key drivers of the improved performance include growth in all customer-facing businesses, including record first half EBIT for the Dyno Nobel Asia Pacific business and the Fertilisers Distribution
business.
1H24 highlights – Underlying results
IPL delivered underlying EBIT growth of 18% compared to the pcp after adjusting for re-basing items which relate primarily to the closure of manufacturing at Gibson Island and the sale of Waggaman (refer table on following page and associated footnotes for more details). Key drivers of the improved performance include growth in all customer-facing businesses, including record first half EBIT for the Dyno Nobel Asia Pacific business and the Fertilisers Distribution
business.
Financial performance
- Zero Harm: Tragically, IPL lost a valued employee as a result of a fatal incident on apublic road. Total Recordable Injury Frequency Rate (TRIFR) for the rolling twelve-monthperiod ended 31 March 2024 was 1.06, up from 0.781 at 31 March 2023
- Statutory Net Loss After Tax and IMIs2: $148m (1H23: $354m profit)
- NPAT ex IMIs: $164m (1H23: $362m)
- EBITDA ex IMIs: $425m (1H23: $724m)
- Earnings Per Share ex IMIs: 8.4 cents per share (1H23: 18.6 cps)
- Return on Invested Capital including goodwill (ROIC): 5.1% (1H23: 12.8%)
- Interim dividend of 4.3 cents per share (unfranked) representing a 51% payout ratio
- Capital management: $500m capital return completed; $900m on-market buyback remains on hold while the fertilisers business divestment process continues
- Fertilisers divestment: in advanced negotiations (refer to today’s ASX announcement)
To read the full ASX announcement, please click here.
For more information:
Media
Matthew Flugge
Vice President Group Corporate Affairs Manager
Tel: +61 409 705 176
Email: matthew.flugge@incitecpivot.com.au
Investors
Geoff McMurray
General Manager Investor Relations
Tel: +61 3 8695 4553
Mobile: +61 418 312 773
Email: geoff.mcmurray@incitecpivot.com.au