Company concludes record year, as sales topped more than $10 billion, with benefit from strong performance of specialties businesses and significant market upside
TEL AVIV, Israel--(BUSINESS WIRE)-- ICL (NYSE: ICL) (TASE: ICL) , a leading global specialty minerals company, today reported its fourth quarter and full year financial results for the year ended December 31, 2022. Consolidated annual sales were $10,015 million, an increase of 44% year-over-year versus $6,955 million recorded in 2021. Annual operating income of $3,516 million was up 191%, while adjusted operating income of $3,509 million was up 194%. Net income of $2,159 million in 2022 was 176%, while adjusted net income of $2,350 million was up 185%. Annual adjusted EBITDA of $4,007 million was up 138% over $1,687 million, and adjusted EBITDA margin of 40% was up significantly versus 24%. Diluted earnings per share for 2022 of $1.67 were up 178% versus $0.60 while adjusted diluted earnings per share of $1.82 were up 185% versus $0.64.
For the fourth quarter ended December 31, 2022, consolidated sales of $2,091 million were up 3% year-over-year versus $2,038 million. Operating income of $540 million was up 17% versus $461 million, while adjusted operating income of $562 million was up 23% versus $458 million. Net income of $331 million was up 17%, while adjusted net income of $358 million was up 6%. Adjusted EBITDA of $698 million was up 19% versus $587 million. Adjusted EBITDA margin of 33% was up versus 29%. Diluted earnings per share of $0.25 were up 19% versus $0.21, while adjusted diluted earnings per share of $0.28 were up 5% versus $0.26.
"ICL delivered record sales of more than $10 billion and EBITDA of more than $4 billion for 2022, and this amount exceeded our guidance, which we raised each quarter. As expected, we saw a return to more traditional seasonality, in the fourth quarter. Throughout the year, we navigated global uncertainty, supply chain challenges and cost inflation, while simultaneously focusing on operating efficiency and productivity, introducing new innovative products, and delivering value to all of our stakeholders,” said Raviv Zoller, president and CEO of ICL. “In 2023, we will remain focused on executing against our five-year plan leveraging new opportunities in our specialties businesses, with consistent cost discipline, and resolve to deliver innovative and sustainable solutions to our customers around the world.”
ICL full year 2023, adjusted EBITDA is expected to be within a range of $2.2 billion to $2.4 billion, with approximately $1.1 billion of this amount estimated to come from the Company’s specialties focused businesses. (1a)
Financial Figures and non-GAAP Financial Measures
10-12/2022
10-12/2021
1-12/2022
1-12/2021
$
millions
% of
sales
Sales
2,091
-
2,038
10,015
6,955
Gross profit
933
45
857
42
5,032
50
2,611
38
Operating income
540
26
461
23
3,516
35
1,210
17
Adjusted operating income (1)
562
27
458
22
3,509
1,194
Net income attributable to the shareholders of the Company
331
16
283
14
2,159
783
11
Adjusted net income - shareholders of the Company (1)
358
339
2,350
824
12
Diluted earnings per share (in dollars)
0.25
0.21
1.67
0.60
Diluted adjusted earnings per share (in dollars) (2)
0.28
0.26
1.82
0.64
Adjusted EBITDA (2)
698
33
587
29
4,007
40
1,687
24
Cash flows from operating activities
467
344
2,025
1,065
Purchases of property, plant and equipment and intangible assets (3)
212
185
747
611
(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
2022
2021
Segment operating income
95
111
340
244
116
87
32
Depreciation and amortization
15
18
49
46
21
Segment EBITDA
110
129
385
284
165
133
56
63
Segment Information
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 salts, magnesium chloride, magnesia-based products, phosphorus-based, products and functional fluids.
Results of operations
$ millions
Segment Sales
349
422
1,766
1,617
Sales to external customers
343
418
1,737
1,601
Sales to internal customers
6
4
Segment Operating Income
628
435
61
65
689
500
Capital expenditures
25
90
74
Significant highlights
Results analysis for the period October – December 2022
Expenses
Q4 2021 figures
(311
)
Quantity
(128
(65
Price
64
Exchange rates
(9
10
1
Raw materials
(18
Energy
(5
Transportation
(3
Operating and other expenses
Q4 2022 figures
(254
- Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of bromine and phosphorus-based flame retardants, elemental bromine, and specialty minerals, partially offset by an increase in sales volumes of clear brine fluids.
- Price – The positive impact on operating income was mainly due to higher selling prices of bromine-based flame retardants and bromine-based industrial solutions, as well as specialty minerals.
- Exchange rates – The positive impact on operational costs due to the depreciation of the average exchange rate of the Israeli shekel and the euro against the US dollar, was almost entirely offset by the negative impact on sales due to the depreciation of the average exchange rate of the euro against the US dollar.
- Raw materials – The negative impact on operating income resulted from higher costs of raw materials.
- Energy - The negative impact on operating income was due to higher electricity and gas prices.
- Operating and other expenses – The positive impact on operating income was primarily due to lower operational costs.
The Potash segment produces and sells mainly potash, salts, magnesium, and electricity. Potash is produced in Israel and Spain using an evaporation process to extract potash from the Dead Sea at Sodom Israel and conventional mining from an underground mine in Spain. The segment also includes the production and sale of pure magnesium and magnesium alloys, as well as the production and sale of 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 to ICL companies in Israel (surplus electricity is sold to external customers) and steam to all facilities at the Sodom site.
713
647
3,313
1,776
Potash sales to external customers
568
541
2,710
1,401
Potash sales to internal customers
36
184
94
Other and eliminations (1)
109
88
419
281
Gross Profit
456
372
2,292
870
1,822
399
166
148
1,988
547
92
85
346
270
Potash price - CIF ($ per tonne)
594
520
682
356
Includes salt produced in Spain, metal magnesium-based products, chlorine, and sales of excess electricity produced by ICL’s power plant at ICL Dead Sea.
ICL Dead Sea:
ICL Iberia:
Metal Magnesium:
Additional segment information
Global potash market - average prices and imports:
Average prices
10-12.2022
10-12.2021
VS Q4 2021
07-09/2022
VS Q3 2022
Granular potash – Brazil
CFR spot ($ per tonne)
570
787
(27.6)%
844
(32.5)%
Granular potash – Northwest Europe
CIF spot/contract (€ per tonne)
813
543
49.7%
875
(7.1)%
Standard potash – Southeast Asia
675
578
16.8%
873
(22.7)%
Potash imports
To Brazil
million tonnes
1.5
3.4
(55.9)%
2.9
(48.3)%
To China
1.8
1.6
12.5%
2.1
(14.3)%
To India
0.5
0.0%
0.6
(9.1)%
Sources: CRU (Fertilizer Week Historical Price: January 2023), FAI, Brazilian and Chinese customs data.
Potash – Production, and Sales
Production
1,224
1,188
4,691
4,514
Total sales (including internal sales)
1,068
1,147
4,499
4,434
Closing inventory
355
Full year 2022
- Production – In 2022, potash production was 177 thousand tonnes higher than the prior year due to ongoing operational improvements at both ICL Dead Sea and ICL Iberia, which include, among others, the connection of the ramp to the Cabanasses mine at ICL Iberia.
- Sales – The quantity of potash sold in 2022 was 65 thousand tonnes higher than the prior year mainly due to higher sales to India, Brazil and Asia, partially offset by lower sales to Europe, and the US.
Fourth quarter 2022
- Production – Production was 36 thousand tonnes higher year-over-year due to operational improvements implemented at ICL Dead Sea and ICL Iberia.
- Sales – The quantity of potash sold was 79 thousand tonnes lower year-over-year, mainly due to lower sales volumes to Brazil and Asia, partially offset by higher sales to India, Europe and the US.
(403)
(72)
(50)
150
(12)
3
(9)
(8)
(373)
- Quantity – The negative impact on operating income was primarily related to decreased potash sales volumes from ICL Dead Sea, partially offset by higher sales volumes from ICL Iberia.
- Price – The positive impact on operating income resulted primarily from an increase of $74 in the price of potash (CIF) per tonne year-over-year.
- Exchange rates – The unfavorable impact on operating income was due to depreciation of the average exchange rate of the euro against the US dollar, which led to a negative impact on sales that was partially offset by a positive impact on operational costs resulting from depreciation of the average exchange rate of the Israeli shekel against the US dollar.
- Transportation – The positive impact on operating income was due to decreased marine transportation costs.
- Operating and other expenses – The negative impact on operating income was primarily related to higher operational costs.
The Phosphate Solutions segment operates ICL's phosphate value chain and uses phosphate rock and fertilizer-grade phosphoric acid to produce downstream phosphate-based specialty products, as well as to produce and sell phosphate-based fertilizers.
Sales of phosphate specialties of $403 million and operating income of $66 million in the fourth quarter of 2022 were approximately 8% and 47% higher, respectively, compared to the fourth quarter of 2021. The increase in operating income was driven mainly by higher prices which offset increased raw material costs, as well as higher energy and other production costs. Despite ongoing supply chain challenges, the segment’s global production footprint enabled it to provide reliable supply to its customers worldwide.
Sales of phosphate commodities amounted to $224 million, approximately 14% higher than in the fourth quarter of 2021, due to an increase in quantities sold and higher market prices. Operating income of $50 million, a year-over-year increase of $8 million, was primarily due to higher prices, partially offset by higher costs of raw materials, mainly sulphur.
627
571
3,106
2,254
574
527
2,851
2,087
53
44
255
167
777
294
Depreciation and amortization*
189
207
966
501
Phosphate specialties EBITDA
79
60
436
209
Phosphate commodities EBITDA
86
73
530
292
78
62
259
228
* For Q4 2022, comprised of $13 million in phosphate specialties and $36 million in phosphate commodities. For Q4 2021, $15 million in phosphate specialties and $31 million in phosphate commodities.
- In October, the Company announced plans to build a $400 million lithium iron phosphate (LFP) cathode active material manufacturing (CAM) plant in St. Louis, which is expected to be the first large-scale LFP material manufacturing facility in the U.S. The plant is expected to be operational by 2024 and will produce high-quality LFP material for the global lithium battery industry, using a primarily domestic supply chain.
- The Company's YPH joint venture in China continued to experience growing demand for the specialty raw materials used for energy storage solutions.
Global phosphate commodities market - average prices:
$ per tonne
DAP
CFR India Bulk Spot
734
809
(9)%
863
(15)%
TSP
CFR Brazil Bulk Spot
677
(20)%
797
(32)%
SSP
CPT Brazil inland 18-20% P2O5 Bulk Spot
395
423
(36)%
Sulphur
Bulk FOB Adnoc monthly Bulk contract
138
226
(39)%
193
(28)%
Source: CRU (Fertilizer Week Historical Prices, January 2023).
Results analysis for the period October - December 2022
(484)
(20)
(21)
(40)
39
(39)
(19)
(511)
- Quantity – The negative impact on operating income was primarily related to lower sales volumes of white phosphoric acid (WPA), mainly in Europe and South America, as well as lower sales volumes of salts and phosphate-based food additives. This was partially offset by an increase in sales volumes of fertilizers in China.
- Price – The positive impact on operating income was primarily due to higher selling prices of phosphate-based food additives, WPA and salts, in most regions, mainly in Europe. This was partially offset by a decrease in selling prices of fertilizers in America.
- Exchange rates – The negative impact on sales was due to the depreciation of the average exchange rate of the Chinese yuan and the euro against the US dollar, which was almost entirely offset by the positive impact on operational costs.
- Raw materials – The negative impact on operating income was due to higher costs, mainly sulphur, caustic soda and potassium hydroxide (KOH).
- Energy – The negative impact on operating income was due to higher electricity and gas prices, mainly in Europe and North America.
The Growing Solutions segment aims to achieve global leadership in plant nutrition markets by enhancing its position in its core markets of specialty agriculture, ornamental horticulture, turf and landscaping, fertilizers and FertilizerpluS, 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, polysulphate and its chemistry know-how, as well as its ability to integrate and generate synergies from acquired businesses. The segment works continuously 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), its FertilizerpluS range, soil and foliar micronutrients, secondary nutrients, biostimulants, soil conditioners, seed treatment products, and adjuvants.
In line with the Company's continued focus on targeting long-term growth through its diversified specialty solutions, in 2022 it changed its managerial structure so that the activities of ICL Boulby and other European business components were transferred from the Potash and Phosphate Solutions segments, respectively, to the Growing Solutions segment. Accordingly, the Company restated comparative figures to reflect the structural change of the reporting segments.
492
2,422
1,670
513
481
2,376
1,644
378
135
70
448
197
101
(450)
(74)
(14)
126
(17)
(108)
(495)
- Quantity – The negative impact on operating income was due to lower sales volumes of specialty agriculture and FertilizerpluS products.
- Price – The positive impact on operating income was due to higher selling prices across most business lines, primarily specialty agriculture and FertilizerpluS products.
- Exchange rates – The negative impact on sales was due to depreciation of the average exchange rate of the euro against the US dollar, which was almost entirely offset by the positive impact on operational costs due to depreciation of the average exchange rate of the euro and the British pound against the US dollar.
- Raw materials – The negative impact on operating income was primarily due to higher costs of commodity fertilizers, potassium hydroxide (KOH) and urea.
- Transportation – The negative impact on operating income resulted from increased marine and inland transportation costs.
Financing expenses, net
Net financing expenses in the fourth quarter of 2022 amounted to $41 million, compared to $38 million in the corresponding quarter last year, an increase of $3 million.
Tax expenses
In 2022, the Company’s reported tax expenses were $1,185 million, which include prior years’ expenses following a settlement agreement with the Israeli Tax Authority regarding the surplus profit levy, compared to $260 million in 2021. The Company’s adjusted tax expenses for 2022 amounted to $987 million, excluding the said prior years expenses, compared to $203 million in 2021, reflecting an effective tax rate of 29% and 19%, respectively.
The Company’s higher effective tax rate for 2022 was mainly due to the surplus profit levy. The Company’s relatively low effective tax rate for the prior year resulted primarily from higher profit deriving from tax jurisdictions with lower effective tax rates.
Liquidity and Capital Resources
As of December 31, 2022, the Company’s cash, cash equivalents, short-term investments and deposits amounted to $508 million compared to $564 million as of December 31, 2021. In addition, the Company maintained $748 million of unused credit facilities as of December 31, 2022.
Outstanding net debt
As of December 31, 2022, ICL’s net financial liabilities amounted to $2,316 million, a decrease of $133 million compared to December 31, 2021.
Dividend Distribution
In connection with ICL’s fourth quarter 2022 results, the Board of Directors declared a dividend of 13.83 cents per share, or approximately $178 million. The dividend will be paid on March 15, 2023. The record date is March 1, 2023.
About ICL
ICL Group Ltd. is a leading global specialty minerals company, which creates impactful solutions for humanity’s sustainability challenges in the food, agriculture, and industrial markets. ICL leverages its unique bromine, potash, and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the Company’s growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The Company employs more than 12,500 people worldwide, and its 2022 revenue totaled approximately $10 billion. For more information, visit the Company’s website at www.icl-group.com1.
We disclose in this quarterly report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the Company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA. Our management uses adjusted operating income, adjusted net income attributable to the Company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA to facilitate operating performance comparisons from period to period. We calculate our adjusted operating income by adjusting our operating income to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below. Certain of these items may recur. We calculate our adjusted net income attributable to the Company’s shareholders by adjusting our net income attributable to the Company’s shareholders to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below, excluding the total tax impact of such adjustments. We calculate our diluted adjusted earnings per share by dividing adjusted net income by the weighted-average number of diluted ordinary shares outstanding. Our adjusted EBITDA is calculated as net income before financing expenses, net, taxes on income, share in earnings of equity-accounted investees, depreciation and amortization, and adjust items presented in the reconciliation table under “Consolidated adjusted EBITDA, and diluted adjusted Earnings Per Share for the periods of activity” below, which were adjusted for in calculating the adjusted operating income. Commencing with the year 2022, the Company’s “adjusted EBITDA” calculation is no longer adding back “minority and equity income, net“. While “minority and equity income, net” reflects the share of an equity investor in one of our owned operations, since adjusted EBITDA measures the Company’s overall performance, its operations and its ability to satisfy cash needs, before profit is allocated to the equity investor, management believes that adjusted EBITDA before deduction of such item is more reflective.
You should not view adjusted operating income, adjusted net income attributable to the Company’s shareholders, diluted adjusted earnings per share or adjusted EBITDA as a substitute for operating income or net income attributable to the Company’s shareholders determined in accordance with IFRS, and you should note that our definitions of adjusted operating income, adjusted net income attributable to the Company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA may differ from those used by other companies. Additionally, other companies may use other measures to evaluate their performance, which may reduce the usefulness of our non-IFRS financial measures as tools for comparison. However, we believe adjusted operating income, adjusted net income attributable to the Company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA provide useful information to both management, and investors by excluding certain items that management believes are not indicative of our ongoing operations. Our management uses these non-IFRS measures to evaluate the Company's business strategies, and management performance. We believe that these non IFRS measures provide useful information to investors because they improve the comparability of our financial results between periods and provide for greater transparency of key measures used to evaluate our performance.
1The reference to our website is intended to be an inactive textual reference and the information on, or accessible through, our website is not intended to be part of this Form 6-K.
(1a) The Company only provides guidance on a non-GAAP basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting, and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as restructuring, litigation, and other matters, used to calculate projected net income (loss) vary dramatically based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected GAAP net income (loss) being materially less than projected adjusted EBITDA (non-GAAP). The guidance speaks only as of the date hereof. We undertake no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Specialties focused businesses are represented by the Industrial Products, and Growing Solutions segments, and the specialties part of the Phosphate Solutions segment. We present EBITDA from the phosphate specialties part of the Phosphate Solutions segment as we believe this information is useful to investors in reflecting the specialty portion of our business
We present a discussion in the period-to-period comparisons of the primary drivers of change in the Company’s results of operations. This discussion is based in part on management’s best estimates of the impact of the main trends on our businesses. We have based the following discussion on our financial statements. You should read such discussion together with our financial statements.
Adjustments to Reported Operating and Net income (non-GAAP)
Divestment related items and transaction costs from acquisitions (1)
(16)
(29)
(22)
Legal proceedings, dispute and other settlement expenses (2)
13
5
Impairment and disposal of assets, provision for closure and restoration costs (3)
Total adjustments to operating income
(7)
Adjusted operating income
Total tax adjustments (4)
59
198
57
Total adjusted net income - shareholders of the Company
For 2022, reflects a capital gain related to the sale of an asset in Israel and the Company’s divestment of a 50%-owned joint venture, Novetide. For 2021, reflects a capital gain related to the sale of an asset in Israel and the divestment of the Industrial Products segment's Zhapu site in China, partially offset by an earnout adjustment relating to a divestment in previous years, as well as transaction costs related to acquisitions in Brazil.
For 2022, reflects mainly the costs of a mediation settlement regarding the claims related to the Ashalim Stream incident. For 2021, reflects settlement costs related to the termination of a partnership between ICL Iberia and Nobian, as well as reimbursement of arbitration costs related to a potash project in Ethiopia, which was partially offset by a reversal of a VAT provision following a court ruling in Brazil.
For 2021, reflects the write-off of a pilot investment in Spain that did not materialize and an increase in restoration costs, offset by a reversal of impairment due to the strengthening of phosphate prices.
(4)
For 2022, reflects tax expenses in respect of prior years following a settlement with Israel’s Tax Authority regarding Israel's surplus profit levy, which outlines understandings for the calculation of the levy, including the measurement of fixed assets and the tax impact of adjustments made to operational income. For 2021, the amount includes tax expenses related to the release of accumulated profits of the Company and certain Israeli subsidiaries that were exempt from tax until their distribution as a dividend, following a temporary provision to Israel’s Encouragement Law, as well as the tax impact of adjustments made to operational income.
Consolidated adjusted EBITDA and diluted adjusted Earnings Per Share for the periods of activity
Calculation of adjusted EBITDA was made as follows:
Net income
342
298
2,219
832
41
113
122
Taxes on income
158
128
1,185
260
Less: Share in earnings of equity-accounted investees
136
498
493
Adjustments (1)
Total adjusted EBITDA (2)
See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
Commencing 2022, the Company’s adjusted EBITDA definition was updated, see the disclaimer above.
Calculation of diluted adjusted earnings per share was made as follows:
Total tax adjustments
Adjusted net income - shareholders of the Company
Weighted-average number of diluted ordinary shares outstanding (in thousands)
1,291,299
1,288,963
1,289,947
1,287,051
The diluted adjusted earnings per share is calculated by dividing the adjusted net income‑shareholders of the Company by the weighted-average number of diluted ordinary shares outstanding (in thousands).
ConsolidatedResults Analysis
(1,577)
Total adjustments Q4 2021*
Adjusted Q4 2021 figures
(1,580)
(261)
132
(129)
393
(79)
(6)
(106)
(15)
(5)
(28)
Adjusted Q4 2022 figures
(1,529)
Total adjustments Q4 2022*
(1,551)
- Quantity - The negative impact on operating income was primarily due to lower sales volumes of potash, bromine and phosphorus-based flame retardant, elemental bromine, specialty minerals, specialty agriculture and FertilizerpluS products, as well as white phosphoric acid (WPA). These were partially offset by increased sales volumes of phosphate fertilizers and clear brine fluids.
- Price - The positive impact on operating income was primarily related to an increase of $74 in the potash price (CIF) per tonne year-over-year, as well as higher selling prices of specialty agriculture and FertilizerpluS products, phosphate-based food additives, WPA, salts and bromine-based flame retardants. These were partially offset by a decrease in selling prices of phosphate fertilizers.
- Exchange rates – The unfavorable impact on operating income was due to a negative impact on sales caused by the depreciation of the average exchange rate of the euro and the Chinese yuan against the US dollar. This was partially offset by the positive impact on operational costs due to depreciation of the average exchange rate of the euro, Chinese yuan, and the Israeli shekel against the US dollar.
- Raw materials – The negative impact on operating income was due to higher costs of raw materials used in the production of industrial solutions products, as well as higher costs of commodity fertilizers, sulphur, caustic soda and potassium hydroxide (KOH).
- Energy – The negative impact on operating income was due to increased electricity and gas prices, mainly in Europe.
- Transportation – The negative impact on operating income resulted from increased inland transportation costs.
- Operating and other expenses – The negative impact on operating income was primarily related to higher maintenance and operational costs.
The following table sets forth sales by geographical regions based on the location of the customers:
% of Sales
Europe
608
517
Asia
592
28
554
South America
396
19
509
North America
329
Rest of the world
137
7
Total
100
- Europe – The increase primarily relates to higher selling prices and sales volumes of potash, FertilizerpluS products and bromine-based industrial solutions, as well as higher selling prices of white phosphoric acid (WPA), phosphate-based food additives, salts and bromine-based flame retardants. The increase was partially offset by lower sales volumes of bromine and phosphorous-based flame retardants, WPA, phosphate-based food additives and salts.
- Asia – The increase primarily relates to higher selling prices of potash and bromine-based flame retardants, as well as higher sales volumes of phosphate fertilizers and clear brine fluids. The increase was partially offset by lower sales volumes of bromine-based flame retardants, bromine-based industrial solutions, potash and WPA, as well as lower sales volumes and selling prices of elemental bromine.
- South America – The decrease primarily relates to lower selling prices and sales volumes of potash and phosphate fertilizers, as well as lower sales volumes of specialty agriculture and FertilizerpluS products, WPA and clear brine fluids. This was partially offset by higher selling prices of specialty agriculture products, phosphate-based food additives and WPA.
- North America – The increase primarily relates to higher selling prices of phosphate-based food additives, WPA and salts. This increase was partially offset by lower sales volumes of phosphorous-based flame retardants, as well as lower selling prices and sales volumes of phosphate fertilizers.
- Rest of the world – The increase in sales was primarily related to higher selling prices of potash, as well as higher sales volumes of phosphate fertilizers. This increase was partially offset by lower sales volumes of specialty agriculture products.
Forward-looking Statements
This announcement contains statements that constitute “forward‑looking statements”, many of which can be identified by the use of forward‑looking words such as “anticipate”, “believe”, “could”, “expect”, “should”, “plan”, “intend”, “estimate”, “strive”, “forecast”, “targets” and “potential”, among others.
Forward‑looking statements appear in a number of places in this announcement and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward‑looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward‑looking statements due to various factors, including, but not limited to :
Changes in exchange rates or prices compared to those we are currently experiencing; loss or impairment of business licenses or mineral extractions permits or concessions; volatility of supply and demand and the impact of competition; the difference between actual reserves and our reserve estimates; natural disasters and cost of compliance with environmental regulatory legislative and licensing restrictions including laws and regulation related to, and physical impacts of climate change and greenhouse gas emissions; failure to "harvest" salt which could lead to accumulation of salt at the bottom of the evaporation Pond 5 in the Dead Sea; disruptions at our seaport shipping facilities or regulatory restrictions affecting our ability to export our products overseas; general market, political or economic conditions in the countries in which we operate; price increases or shortages with respect to our principal raw materials; delays in termination of engagements with contractors and/or governmental obligations; the inflow of significant amounts of water into the Dead Sea which could adversely affect production at our plants; labor disputes, slowdowns and strikes involving our employees; pension and health insurance liabilities; Pandemics may create disruptions, impacting our sales, operations, supply chain and customers; changes to governmental incentive programs or tax benefits, creation of new fiscal or tax related legislation; and/or higher tax liabilities; changes in our evaluations and estimates, which serve as a basis for the recognition and manner of measurement of assets and liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; rising interest rates; government examinations or investigations; disruption of our, or our service providers', information technology systems or breaches of our, or our service providers', data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from our cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of our businesses; changes in demand for our fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond our control; sales of our magnesium products being affected by various factors that are not within our control; our ability to secure approvals and permits from the authorities in Israel to continue our phosphate mining operations in Rotem Amfert Israel; volatility or crises in the financial markets; hazards inherent to mining and chemical manufacturing; the failure to ensure the safety of our workers and processes; litigation, arbitration and regulatory proceedings; exposure to third party and product liability claims; product recalls or other liability claims as a result of food safety and food-borne illness concerns; insufficiency of insurance coverage; closing of transactions, mergers and acquisitions; war or acts of terror and/or political, economic and military instability in Israel and its region; filing of class actions and derivative actions against the Company, its executives and Board members; The Company is exposed to risks relating to its current and future activity in emerging markets; and other risk factors discussed under ”Item 3 - Key Information— D. Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 23, 2022 (the “Annual Report”).
Forward‑looking statements speak only as at the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.
This report for the fourth quarter of 2022 (the “Quarterly Report”) should be read in conjunction with the Annual Report and the report for the first, second and third quarter of 2022 published by the Company (the “prior quarterly report”), including the description of the events occurring subsequent to the date of the statement of financial position, as filed with the U.S. SEC.
Appendix:
Condensed Consolidated Statements of Financial Position as of (Unaudited)
December 31, 2022
December 31, 2021
Current assets
Cash and cash equivalents
417
473
Short-term investments and deposits
91
Trade receivables
1,583
1,418
Inventories
2,134
1,570
Prepaid expenses and other receivables
323
357
Total current assets
4,548
3,909
Non-current assets
Deferred tax assets
147
Property, plant and equipment
5,969
5,754
Intangible assets
852
867
Other non-current assets
231
403
Total non-current assets
7,202
7,171
Total assets
11,750
11,080
Current liabilities
Short-term debt
512
577
Trade payables
1,006
1,064
Provisions
81
Other payables
1,007
912
Total current liabilities
2,606
2,612
Non-current liabilities
Long-term debt and debentures
2,312
2,436
Deferred tax liabilities
384
Long-term employee liabilities
402
564
Long-term provisions and accruals
234
278
Other
Total non-current liabilities
3,431
3,732
Total liabilities
6,037
6,344
Equity
Total shareholders’ equity
5,464
4,527
Non-controlling interests
249
Total equity
5,713
4,736
Total liabilities and equity
Condensed Consolidated Statements of Income (Unaudited)
(In millions except per share data)
For the three-month period ended
For the year ended
Cost of sales
1,158
1,181
4,983
4,344
Selling, transport and marketing expenses
304
1,067
General and administrative expenses
291
276
Research and development expenses
68
Other expenses
30
Other income
(23)
(54)
(63)
Finance expenses
327
216
Finance income
(24)
(62)
(214)
(94)
Finance expenses, net
Share in earnings of equity-accounted investees
Income before taxes on income
426
3,404
1,092
Net income attributable to the non-controlling interests
Earnings per share attributable to the shareholders of the Company:
Basic earnings per share (in dollars)
1.68
0.61
Weighted-average number of ordinary shares outstanding:
Basic (in thousands)
1,289,100
1,284,722
1,287,304
1,282,807
Diluted (in thousands)
Condensed Consolidated Statements of Cash Flows (Unaudited)
Adjustments for:
490
Fixed assets impairment (reversal of)
Exchange rate, interest and derivative, net
157
99
Change in provisions
9
(83)
286
264
1,742
818
Change in inventories
(155)
(527)
(267)
Change in trade receivables
149
(218)
(215)
(426)
Change in trade payables
(100)
(42)
274
Change in other receivables
(46)
Change in other payables
48
107
Net change in operating assets and liabilities
37
(97)
(723)
(303)
Interest paid, net
(38)
(89)
Income taxes paid, net of refund
(160)
(105)
(1,107)
(193)
Net cash provided by operating activities
Cash flows from investing activities
Proceeds (payments) from deposits, net
(36)
Business combinations
2
(18)
(365)
Purchases of property, plant and equipment and intangible assets
(212)
(185)
(747)
(611)
Proceeds from divestiture of assets and businesses, net of transaction expenses
Net cash used in investing activities
(207)
(754)
(579)
Cash flows from financing activities
Dividends paid to the Company's shareholders
(314)
(107)
(1,166)
(276)
Receipt of long-term debt
311
1,045
1,230
Repayments of long-term debt
(383)
(1,181)
(1,120)
Receipts (repayments) of short-term debt, net
(58)
Receipts (payments) from transactions in derivatives
20
Net cash used in financing activities
(355)
(153)
(1,303)
(244)
Net change in cash and cash equivalents
(95)
169
(32)
242
Cash and cash equivalents as of the beginning of the period
301
214
Net effect of currency translation on cash and cash equivalents
Cash and cash equivalents as of the end of the period
A. Operating segment data
Activities
Reconciliations
Consolidated
For the three-month period ended December 31, 2022
Sales to external parties
656
Inter-segment sales
(131)
Total sales
Segment operating income (loss)
Other expense not allocated to the segments
(41)
Income before income taxes
A. Operating segment data (cont'd)
For the three-month period ended December 31, 2021
606
(101)
(25)
Other income not allocated to the segments
Depreciation amortization and impairment
219
B. Information based on geographical location
The following table presents the distribution of the operating segments sales by geographical location of the customer:
Brazil
359
477
USA
333
302
China
272
India
153
United Kingdom
108
84
Germany
82
Spain
80
Israel
76
83
France
66
Netherlands
All other
495
497
Investor and Press Contact – Global Peggy Reilly Tharp VP, Global Investor Relations +1-314-983-7665 Peggy.ReillyTharp@icl-group.com
Investor and Press Contact - Israel Adi Bajayo ICL Spokesperson +972-3-6844459 Adi.Bajayo@icl-group.com
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