Ecolab Inc (ECL) Reports 8% Increase in Net Sales and 18% Growth in Adjusted Diluted EPS in Q3 2023
Ecolab Inc (NYSE:ECL) reported an 8% increase in net sales and a 18% growth in adjusted diluted EPS in Q3 2023.
The company's operating income increased by 17% and net income attributable to Ecolab rose by 16%.
Ecolab Inc (NYSE:ECL) expects strong growth in adjusted earnings in the fourth quarter, with this momentum continuing into 2024.
The company's long-term fundamentals are stronger than ever, with a focus on driving new business wins and further pricing improvements.
On October 31, 2023, Ecolab Inc (NYSE:ECL) released its earnings report for the third quarter of 2023. The company reported strong sales and earnings growth despite unpredictable macro conditions. The net sales for Q3 2023 were $3,958.1 million, an 8% increase from $3,669.3 million in Q3 2022. The operating income also saw a significant rise of 17%, from $483.0 million in Q3 2022 to $566.0 million in Q3 2023.
Financial Highlights
The net income attributable to Ecolab increased by 16%, from $347.1 million in Q3 2022 to $404.0 million in Q3 2023. The diluted earnings per share attributable to Ecolab also saw a significant increase of 17%, from $1.21 in Q3 2022 to $1.41 in Q3 2023. The adjusted diluted earnings per share saw an 18% increase, from $1.30 in Q3 2022 to $1.54 in Q3 2023.
CEO's Commentary
Christophe Beck, Ecolabs chairman and chief executive officer, commented on the company's performance. He said,
Ecolab continued to deliver very strong sales and earnings growth despite unpredictable macro conditions. Consistent execution by our team drove further pricing, accelerating volume trends, and very strong organic operating income growth. Importantly, organic operating income margin continued to expand significantly, driven by robust gross margin expansion."
Outlook for Q4 2023 and 2024
Ecolab Inc (NYSE:ECL) expects strong growth in adjusted earnings in the fourth quarter, with this momentum continuing into 2024. The company remains focused on driving new business wins and further pricing improvements, supported by the unmatched value it creates for customers through reduced water and energy consumption, and enhanced productivity. Ecolabs long-term fundamentals are stronger than ever, and the company remains confident in its outlook.
Segment Review
The Industrial segment saw a 4% increase in organic sales, while the Institutional & Specialty segment saw an 11% increase. The Healthcare & Life Sciences segment reported an 11% increase in organic sales, and the Other segment reported an 8% increase in organic sales.
Overall, Ecolab Inc (NYSE:ECL) reported a strong third quarter in 2023, with significant increases in net sales, operating income, and net income attributable to Ecolab. The company expects this strong performance to continue into the fourth quarter of 2023 and into 2024.
Explore the complete 8-K earnings release (here) from Ecolab Inc for further details.
This article first appeared on GuruFocus.
