Air Liquide: H1 2024 Results: Strong Margin Improvement and Major Projects to Prepare the Future
Air Liquide (Paris:AI):
|
H1 2024 |
2024/2023 as
|
2024/2023
|
Group Revenue |
13,379 |
-4.3% |
+2.6% |
of which Gas & Services |
12,796 |
-4.5% |
+2.6% |
Operating Income Recurring (OIR) |
2,601 |
+4.9% |
+10.6% |
Group OIR Margin |
19.4% |
+170 bps |
|
Variation excluding energy(b) |
|
+100 bps |
|
Gas & Services OIR Margin |
21.2% |
+190 bps |
|
Variation excluding energy(b) |
|
+110 bps |
|
Net Profit (Group Share) |
1,681 |
-2.4% |
|
Net Profit Recurring (Group Share)(c) |
1,681 |
+3.3% |
|
Earnings per Share (in euros) |
2.92 |
-2.3% |
|
Cash flow from operating activities before changes in working capital |
3,155 |
-1.7% |
|
Net Debt |
€10.2 bn |
|
|
Return on Capital Employed after tax - ROCE |
9.8% |
-20 bps |
|
Recurring ROCE(d) |
10.7% |
+50 bps |
|
(a) Change excluding the currency, energy and significant scope impacts, see reconciliation and impact of |
|||
(b) See reconciliation in appendix. |
|||
(c) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix. |
|||
(d) Based on the recurring net profit, see reconciliation in appendix. |
Commenting on the results in the first half of 2024,
“Air Liquide once again delivered a very solid financial performance in the first half of 2024 with a significant increase in its operating margin, supported by the acceleration of structural efficiencies. In a persistently subdued market environment, our Group recorded growth in sales on a comparable basis, reflecting the solidity of our business model. We are successfully continuing the rollout of our ADVANCE strategic plan, for which we raised the margin ambition at the beginning of the year. At a time when our Group has never had so many opportunities related to the energy transition and the growth of digital and artificial intelligence, we are also preparing for the future, simplifying our organization to improve our performance and developing major projects that will strengthen our long-term growth momentum.”
In the first half of 2024, Group sales were up by +2.6% on a comparable basis(1), with a sequential improvement between the first and second quarters. On a published basis, sales were at -4.3%, due to negative currency impacts and lower energy prices - for which variations are contractually passed through to
In line with its ADVANCE plan and raised performance ambition, Air Liquide achieved in the first half of 2024 a significant improvement of +100 basis pointsin its operating margin excluding the energy impact. Efficiencies have now reached
The Group’s net profit recurring(2)excluding currency impact rose by +16%, and +5% excluding the contribution of
The investment backlog remains at a very high level of
In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates( 5) .
Highlights
|
Group revenue totaled
Gas & Services revenue reached
Growth(7) in the Industrial Merchant business (+2.0%) continued in the 1st half of 2024 with a price effect of +4.2% in addition to the sharp increase (+10.7%) in the 1st half of 2023, and gas volumes down slightly. Revenue from
-
Gas & Services revenue in the
Americas reached 5,175 millioneuros in the 1st half of 2024 and increased by +7.9% (including the contribution ofArgentina for +5.7%). All businesses grew in the region.Large Industries (+8.1%) benefited from the start-up of a production unit and demand that firmed up in the 2nd quarter. In Industrial Merchant, revenue increased by +5.5%, supported by a price effect (+7.3%) that strengthened in the 2nd quarter. The growth was very strong in Healthcare (+23.3%). In the Electronics business (+9.2%), sales of Carrier Gases and of Equipment & Installations posted double-digit growth. -
In
Europe , sales were down slightly by -1.3% in the 1st half of 2024 and reached4,475 million euros . InLarge Industries (-1.7%), excluding the sale of a cogeneration unit in the first quarter, revenue was up. In Industrial Merchant (-5.2%), volumes contracted but the price effect improved in the 2nd quarter. The Healthcare business posted solid sales growth (+4.4%), supported by the development ofHome Healthcare and Medical Gases. -
Revenue in the
Asia Pacific region was nearly stable (-0.8%) in the 1st half of 2024 and amounted to2,593 million euros . InLarge Industries (-0.9%), the start-up of a new unit in March partially offset customer turnarounds. Industrial Merchant’s sales (-0.6%) were impacted by the marked decline in helium sales, which was largely offset by the increase in volumes of other gases. Electronics revenue was also flattish (-0.6%), with growth in Carrier Gases and Advanced Materials sales offsetting the decline in Equipment & Installation sales. -
Revenue in the
Middle East &Africa region increased sharply by +7.1% to553 million euros in the 1st half of 2024. All business lines grew.
Sales in the Global Markets & Technologies business amounted to
Consolidated revenue from Engineering & Construction totaled
The Group's operating income recurring (OIR) reached
The operating margin (OIR to revenue) stood at 19.4%, a strong improvement of +100 basis points excluding the energy impact (no impact from
Efficiencies
(9) contributed to this margin improvement and amounted to
Net
profit (Group share) amounted to
Cash flows from operating activities
before changes in working
capital amounted to
Net debt at
At 10.7%, recurring ROCE(9) remained above the target of more than 10% in the Advance strategic plan, and was up sharply by +50 basis points compared to the 1st half of 2023.
In the 1st half-year, the Group continued to decarbonize its assets. In particular, Air Liquide announced long-term power purchase agreements (PPAs) for the supply of 500 GWh of renewable electricity per year and has decided on the electrification of a third Air Separation Unit in
In the 1st half of 2024, industrial and financial investment decisions amounted to
The investment backlog maintained a very high level of
The additional contribution to sales of unit start-ups and ramp-ups totaled
The portfolio of 12-month investment opportunities reached a record level of
The Air Liquide Board of Directors met on
Table of Contents of the activity report
H1 2024 PERFORMANCE 7
Income Statement 8
Change in Net debt 18
Extra-financial performance 19
INVESTMENT CYCLE 20
RISK FACTORS 22
OUTLOOK 22
APPENDICES 23
Performance indicators 23
Calculation of performance indicators (Semester) 24
Calculation of performance indicators (Quarter) 27
2nd quarter 2024 revenue 27
Geographic and segment information 28
Consolidated income statement 29
Consolidated balance sheet 30
Consolidated cash flow statement 31
Sales, Operating Income Recurring and investments key figures synthesis 33
H1 2024 PERFORMANCE
Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts.
(in millions of euros) |
H1 2023 |
H1 2024 |
2024/2023
|
2024/2023
|
|
Total Revenue |
13,980 |
13,379 |
-4.3% |
+2.6% |
|
Of which Gas & Services |
13,405 |
12,796 |
-4.5% |
+2.6% |
|
Operating Income Recurring (OIR) |
2,481 |
2,601 |
+4.9% |
+10.6% |
|
Group OIR Margin |
17.7% |
19.4% |
+170 bps |
|
|
Variation excluding energy(b) |
|
|
+100 bps |
|
|
Other Non-Recurring Operating Income and Expenses |
33 |
(87) |
|
|
|
Net Profit (Group Share) |
1,722 |
1,681 |
-2.4% |
|
|
Net Profit Recurring (Group share)(c) |
1,627 |
1,681 |
+3.3% |
|
|
Net earnings per share (in euros)(d) |
2.99 |
2.92 |
-2.3% |
|
|
Cash flow from operating activities before changes in working capital |
3,211 |
3,155 |
-1.7% |
|
|
Net Capital Expenditure(e) |
1,466 |
1,570 |
|
|
|
Net Debt |
€10.6 bn |
€10.2 bn |
|
|
|
Net Debt to Equity ratio(f) |
39.2% |
35.2% |
|
|
|
Return on Capital Employed after tax - ROCE |
10.0% |
9.8% |
-20 bps |
|
|
Recurring ROCE (g) |
10.2% |
10.7% |
+50 bps |
||
(a) Change excluding the currency, energy and significant scope impacts, see reconciliation and impact of |
|||||
(b) See reconciliation in appendix. |
|||||
(c) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix. |
|||||
(d) Adjusted following the free share attribution in |
|||||
(e) Including transactions with minority shareholders. |
|||||
(f) Adjusted to spread the dividend payment in the 1st half out over the full year. |
|||||
(g) Based on the recurring net profit, see reconciliation in appendix. |
Income Statement
REVENUE
Revenue (in millions of euros) |
H1 2023 |
|
H1 2024 |
2024/2023
|
2024/2023
|
Gas & Services |
13,405 |
|
12,796 |
-4.5% |
+2.6% |
Engineering & Construction |
180 |
|
197 |
+9.3% |
+9.9% |
Global Markets & Technologies |
395 |
|
386 |
-2.3% |
-2.0% |
TOTAL REVENUE |
13,980 |
|
13,379 |
-4.3% |
+2.6% |
Revenue by quarter (in millions of euros) |
Q1 2024 |
|
Q2 2024 |
Gas & Services |
6,358 |
|
6,438 |
Engineering & Construction |
92 |
|
105 |
Global Markets & Technologies |
200 |
|
186 |
TOTAL REVENUE |
6,650 |
|
6,729 |
2024/2023 Group published change |
-7.3% |
|
-1.2% |
2024/2023 Group comparable change |
+2.1% |
|
+3.1% |
2024/2023 Gas & Services comparable change |
+2.0% |
|
+3.4% |
Group
Group revenue totaled
The Group’s published sales were down -4.3% in the 1st half of 2024, affected by unfavorable energy (-3.5%) and currency (-3.4%) impacts. There was no significant scope impact.
Gas & Services
Gas & Services revenue reached
Growth in the Industrial Merchant business (+2.0%) continued in the 1st half of 2024 with a price effect of +4.2% in addition to the sharp increase (+10.7%) in the 1st half of 2023, and gas volumes down slightly. Revenue from
As published revenue for Gas & Services were down -4.5% in the 1st half of 2024, penalized by unfavorable energy (-3.7%) and currency (-3.4%) impacts. There was no significant scope impact in the 1st half.
Revenue by geography and business line (in millions of euros) |
H1 2023 |
|
H1 2024 |
2024/2023
|
2024/2023
|
|
5,159 |
|
5,175 |
+0.3% |
+7.9% |
|
4,975 |
|
4,475 |
-10.1% |
-1.3% |
|
2,763 |
|
2,593 |
-6.1% |
-0.8% |
|
508 |
|
553 |
+8.8% |
+7.1% |
GAS & SERVICES REVENUE |
13,405 |
|
12,796 |
-4.5% |
+2.6% |
|
4,060 |
|
3,457 |
-14.9% |
+1.1% |
Industrial Merchant |
6,050 |
|
5,999 |
-0.8% |
+2.0% |
Healthcare |
2,034 |
|
2,121 |
+4.3% |
+9.1% |
Electronics |
1,261 |
|
1,219 |
-3.4% |
+0.3% |
Gas & Services revenue in the
-
Large Industries saw revenue growth of +8.1% in the 1st half-year 2024. Inthe United States , air gas volumes benefited from the start-up of a major new unit in the 1st quarter. In the 2nd quarter, demand for hydrogen strengthened in the Chemicals sector and there were fewer customer maintenance turnarounds than at the beginning of the year. InLatin America , hydrogen volumes were down due to the nationalization of a production unit inMexico at the end of 2023. -
Sales in the Industrial Merchant business posted an increase of +5.5%. The price effect (+7.3%) increased over the half-year, from +6.5% in the 1st quarter to +8.1% in the 2nd quarter. It benefited from proactive price campaigns, particularly in
the United States (50% of the +8.1% increase in the 2nd quarter) and inArgentina to counter hyperinflation (40% of the +8.1% increase). Gas volumes (excluding hardgoods) remained resilient. Inthe United States , the trend is improving in most industrial markets, which remain price-driven. Gas volumes were up mainly in the Aeronautics and Research sectors. -
In the Healthcare business, sales rose sharply by +23.3% in the 1st half-year 2024, driven by the strong increase in prices in the
United-States (+5.8%) in Proximity care and inArgentina in a context of hyperinflation. In the 1st semester, medical gas volumes were slightly up in theUnited-States and the number of newHome Healthcare patients increased inCanada and inLatin America . - Electronics posted a sharp increase in revenue of +9.2% in the 1st half-year. Carrier gas sales saw a double-digit increase, supported by the ramp-up of new units and the increase in helium volumes. Sales of Equipment & Installations reached a historically high level in the 1st half-year 2024, while sales of materials remained down.
|
In
-
In the 1st half of 2024, revenue from
Large Industries was down by -1.7%. Volumes increased in Chemicals compared to a low level in the 1st half of 2023. They remained stable overall in Steel and Refining. The comparable growth would be positive by excluding the divestiture of a cogeneration unit in the 1st quarter (approximately -4% impact in the 1st half). - Sales in the Industrial Merchant business declined by -5.2% following growth of +18.1% in the 1st half of 2023. The price effect (-1.2%) improved in the 2nd quarter (-0.5%) compared to -1.9% in the 1st quarter. The decrease in the price of bulk (indexed to energy prices) was largely offset by the proactive increase in the price of packaged gases, with a specific focus on the creation of value through innovation and on the quality of service to customers. Volumes were down with the exception of liquefied CO2. They increased in the Manufacturing, Automotive and Aeronautics sectors but declined in the Food and Glass industry markets.
-
In the Healthcare business, sales increased by +4.4% in the 1st half-year.
Home Healthcare continued its dynamic growth, with a sharp increase in the number of patients cared for, particularly for sleep apnea and diabetes. Growth in sales of medical gases remained solid, supported by a balanced contribution from volumes and prices in an inflationary context.
|
Revenue in the
-
Large Industries revenue was down slightly by -0.9% in the 1st half of 2024. InChina , several customer turnarounds were offset by the contribution of the start-up of a large hydrogen production unit in March. In the rest ofAsia , demand was relatively stable. -
In Industrial Merchant, revenue was nearly stable (-0.6%) with a neutral price effect (+0.1%) in the 1st half-year. It turned negative in the 2nd quarter (-1.1%), impacted by the decrease in helium prices. In
China , the Automotive, Manufacturing andSecondary Electronics sectors notably drove volume growth excluding helium; in particular, the volumes of packaged gases increased sharply (+12%). In the rest ofAsia , the increase in sales benefited from a positive price effect and an increase in volumes, particularly of bulk. - Sales in Electronics were flattish (-0.6%) in the 1st half: down by -1.7% in the 1st quarter compared to a high basis of comparison in 2023, they increased by +0.6% in the 2nd quarter. The increase in Carrier Gases sales, with the start-up of three new units in the 1st half of 2024, and advanced materials, almost completely offset the low sales of Equipment & Installations.
Revenue in the
|
Global Markets & Technologies
Sales in the Global Markets & Technologies business amounted to
Order intake for Group projects and third-party customers amounted to
Engineering & Construction
Consolidated revenue from Engineering & Construction totaled
Order intake for the Group and third-party customers amounted to
OPERATING INCOME RECURRING
Operating income recurring before depreciation and amortization totaled
Depreciation and amortization amounted to
The Group's operating income recurring (OIR) reached
Efficiencies
(12) contributed to this margin improvement and amounted to
Management of prices and of the portfolio of activities also contributed to the margin improvement.
Efficiencies
|
Gas & Services
Operating income recurring for the Gas & Services businesses amounted to 2,719 millioneuros, an increase as published of +5.1% compared with the 1st half of 2023. The operatingmargin as published stood at 21.2%, a significant improvement of +110 basis points excluding the energy impact compared with the 1st half of 2023.
Prices in the IndustrialMerchant business were up +4.2% in the 1st half, demonstrating the Group’s ability to pass through cost increases. Prices were also up in
Gas & Services Operating margin(a) |
H1 2023 |
H1 2024 |
2024/2023 excluding
|
||
|
19.9% |
21.5% |
+120 bps |
||
|
17.0% |
20.6% |
+170 bps |
||
|
22.1% |
21.7% |
-50 bps |
||
|
20.0% |
21.9% |
+320 bps |
||
TOTAL |
19.3% |
21.2% |
+110 bps |
||
(a) Operating income recurring / revenue as published |
Operating income recurring in the
Operating income recurring in
In
Operating income recurring in the
Engineering & Construction
Operating income recurring for Engineering & Construction amounted to
Global Markets & Technologies
Operating income recurring for Global Markets & Technologies stood at
Research & Development and Corporate costs
Research & Development expenses and Corporate costs totaled 201million euros, a rise of +6.4% compared with the 1st half of 2023.
NET PROFIT
Other operating income and expenses showed a net balance of -
Financial income and expenses amounted to -216million euros, stable compared with -
The tax expense was
The share of profit of associates amounted to
The share of minority interests in net profit totaled 69 millioneuros, up from
Net
profit (Group share) amounted to
Net earnings per share amounted to
Change in the number of shares
|
H1 2023 |
H1 2024 |
|
Average number of outstanding shares |
575,808,001(a) |
576,342,279 |
|
(a) Adjusted following the free share attribution in |
Change in Net debt
Cash flows from operating activities
before changes in working
capital amounted to
The limited increase of
Gross
capital expenditure totaled
Net debt at
The return on capital employed after tax (ROCE) was 9.8% for the 1st half of 2024. At 10.7%, recurring ROCE(18) remained above the target of more than 10% in the Advance strategic plan, and was up sharply by +50 basis points compared to the 1st half of 2023.
Green Bond emission
|
Extra-financial performance
In the 1st half-year, the Group continued to decarbonize its assets by rolling out actions aligned with the three levers: low-carbon energy supply, asset management and CO2 capture.
In order to reduce its Scope 2 emissions, in the 1st half-year Air Liquide announced long-term power purchase agreements (PPAs) for the supply of 500 GWh of renewable electricity per year for its units in
The Group also decided on the electrification of a third Air Separation Unit in
In addition, the Group uses high-performance solutions to reduce its direct CO2 emissions (Scope 1). Thus, a CryocapTMcarbon capture unit is under construction to decarbonize the Group’s largest hydrogen production unit in
Furthermore, in the 1st half-year, Air Liquide continued to develop projects that will significantly reduce the carbon footprint of its customers. In
Finally, in order to actively contribute to the decarbonization of mobility, the Group decided to invest in the logistics chain downstream of the Normand’Hy electrolyzer in
Sustainable development
|
INVESTMENT CYCLE
INVESTMENT DECISIONS AND INVESTMENT BACKLOG
In the 1st half of 2024, industrial and financial investment decisions amounted to
The industrial investment decisions for the 1st half of 2024 reached
Financial
investment decisions totaled 43 millioneuros in the 1st half of 2024. They included in particular several small acquisitions in Industrial Merchant in
The investment backlog maintained a very high level of
Investments
|
START-
The mainstart-ups in the 1st half of 2024 included:
- to supply customers in
- in the Electronics business, in particular, a large ultra-pure carrier gas plant in
The additional contribution to sales of unit start-ups and ramp-ups totaled
INVESTMENT OPPORTUNITIES
The portfolio of 12-month investment opportunities reached a record level of
RISK FACTORS
There was no change in risk factors during the first half. Risk factors are described in the 2023 Universal Registration Document on pages 72 to 89.
OUTLOOK
Air Liquide once again delivered a very solid financial performance in the first half of 2024 with a significant increase in its operating margin, supported by the acceleration of structural efficiencies. In a persistently subdued market environment, the Group recorded growth in sales on a comparable basis, reflecting the solidity of its business model. Air Liquide successfully continued the rollout of its ADVANCE strategic plan, for which the margin ambition was raised at the beginning of the year. At a time when the Group has never had so many opportunities related to the energy transition and to the growth of digital and artificial intelligence, it is also preparing for the future, simplifying its organization to improve its performance and developing major projects that will strengthen its long-term growth momentum.
In the first half of 2024, Group sales were up by +2.6% on a comparable basis(19), with a sequential improvement between the first and second quarters. On a published basis, sales were at -4.3%, due to negative currency impacts and lower energy prices - for which variations are contractually passed through to
In line with its ADVANCE plan and raised performance ambition, Air Liquide achieved in the first half of 2024 a significant improvement of +100 basis pointsin its operating margin excluding the energy impact. Efficiencies have now reached
The Group’s net profit recurring(20) excluding currency impact rose by +16%, and +5% excluding the contribution of
The investment backlog remains at a very high level of
In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates( 22) .
APPENDICES
Performance indicators
Performance indicators used by the Group that are not directly defined in the financial statements have been prepared in accordance with the AMF position 2015-12 about alternative performance measures.
The performance indicators are the following:
- Currency, energy and significant scope impacts
- Comparable sales change and comparable operating income recurring change
- Operating margin and operating margin excluding energy impact
- Recurring net profit Group share
- Recurring net profit excluding currency impact
- Net Profit Excluding IFRS16
- Net Profit Recurring Excluding IFRS16
- Efficiencies
- Return on Capital Employed (ROCE)
- Recurring ROCE
Definition of Currency, energy and significant scope impacts
Since industrial and medical gases are rarely exported, the impact of currency fluctuations on activity levels and results is limited to euro translation impacts with respect to the financial statements of subsidiaries located outside the eurozone. The currency impact is calculated based on the aggregates for the period converted at the exchange rate for the previous period.
In addition, the Group passes on variations in the cost of energy (electricity and natural gas) to its customers via indexed invoicing integrated into their medium and long-term contracts. This indexing can lead to significant variations in sales (mainly in the Large Industries Business Line) from one period to another depending on fluctuations in prices on the energy market.
An energy impact is calculated based on the sales of each of the main subsidiaries in
Energy impact =
Share of sales indexed to energy year (N-1) x (Average energy price in year (N) - Average energy price in year (N-1))
This indexation effect of electricity and natural gas does not impact the operating income recurring.
The significant scope impact corresponds to the impact on sales of all acquisitions or disposals of a significant size for the Group. These changes in scope of consolidation are determined:
- for acquisitions during the period, by deducting from the aggregates for the period the contribution of the acquisition,
-
for acquisitions during the previous period, by deducting from the aggregates for the period the contribution of the acquisition between
January 1 of the current period and the anniversary date of the acquisition, - for disposals during the period, by deducting from the aggregates for the previous period the contribution of the disposed entity as of the anniversary date of the disposal,
- for disposals during the previous period, by deducting from the aggregates for the previous period the contribution of the disposed entity.
Calculation of performance indicators (Semester)
COMPARABLE SALES CHANGE AND COMPARABLE OPERATING INCOME RECURRING CHANGE
Comparable changes for sales and operating income recurring exclude the currency, energy and significant scope impacts described above.
(in millions of euros) |
H1 2024 |
H1 2024/2023 Published Growth |
Currency impact |
Natural gas impact |
Electricity impact |
Significant scope impact |
H1 2024/2023 Comparable Growth |
Revenue |
|
|
|
|
|
|
|
Group |
13,379 |
-4.3% |
(471) |
(363) |
(133) |
0 |
+2.6% |
Impacts in % |
|
|
-3.4% |
-2.6% |
-0.9% |
+0.0% |
|
Gas & Services |
12,796 |
-4.5% |
(468) |
(363) |
(133) |
0 |
+2.6% |
Impacts in % |
|
|
-3.4% |
-2.8% |
-0.9% |
+0.0% |
|
Operating Income Recurring |
|
|
|
|
|
|
|
Group |
2,601 |
+4.9% |
(142) |
- |
- |
0 |
+10.6% |
Impacts in % |
|
|
-5.7% |
- |
- |
+0.0% |
|
Gas & Services |
2,719 |
+5.1% |
(141) |
- |
- |
0 |
+10.5% |
Impacts in % |
|
|
-5.4% |
- |
- |
+0.0% |
|
Contribution of
Contribution of
OPERATING MARGIN AND OPERATING MARGIN EXCLUDING ENERGY IMPACT
The operating margin is the ratio of the operating income recurring divided by revenue. The operating margin excluding energy impact corresponds to the operating income recurring (not affected in absolute value by the cost of energy contractually re-invoiced to
|
|
H1 2024 |
Natural gas
|
Electricity
|
H1 2024
|
||
Revenue |
Group |
13,379 |
(380) |
(145) |
13,904 |
||
|
Gas & Services |
12,796 |
(380) |
(145) |
13,321 |
||
Operating Income Recurring |
Group |
2,601 |
|
|
2,601 |
||
|
Gas & Services |
2,719 |
|
|
2,719 |
||
Operating Margin |
Group |
19.4% |
|
|
18.7% |
||
|
Gas & Services |
21.2% |
|
|
20.4% |
||
(a) Including the currency impact attached to the considered energy impact. |
RECURRING NET PROFIT GROUP SHARE AND RECURRING NET PROFIT GROUP SHARE EXCLUDING CURRENCY IMPACT
The recurring net profit Group share corresponds to the net profit Group share excluding exceptional and significant transactions that have no impact on the operating income recurring.
|
H1 2023 |
H1 2024 |
2024/2023
|
|
(A) Net Profit (Group Share) - As Published |
1,721.6 |
1,680.9 |
-2.4% |
|
(B) Exceptional and significant transactions after-tax with no impact on OIR |
|
|
|
|
- Sales of Group stake in |
156.5 |
|
|
|
- Impairment of an intangible asset and of assets held for sale |
(61.6) |
|
|
|
(A) - (B) = Net Profit Recurring (Group Share) |
1,626.7 |
1,680.9 |
+3.3% |
|
(C) Currency impact |
|
(205.9) |
|
|
(A) - (B) - (C) = Net Profit Recurring (Group Share) excluding currency impact |
|
1,886.8 |
+16.0% |
The net profit recurring (Group share) excluding currency impact is up +5.0% when excluding the contribution of
NET PROFIT EXCLUDING IFRS16 AND NET PROFIT RECURRING EXCLUDING IFRS16
Net Profit excluding IFRS16:
|
H1 2023 |
FY 2023 |
H1 2024 |
|
(A) Net Profit as Published |
1,765.6 |
3,188.4 |
1,749.6 |
|
(B) = IFRS16 Impact(a) |
(7.1) |
(17.8) |
(15.5) |
|
(A) - (B) = Net Profit excluding IFRS16 |
1,772.7 |
3,206.2 |
1,765.1 |
|
(a) The IFRS16 impact includes the reintegration of leasing expenses, less depreciation and other financial expenses booked in relation to IFRS16. |
Net Profit Recurring excluding IFRS16:
|
H1 2023 |
FY 2023 |
H1 2024 |
|
(A) Net Profit as Published |
1,765.6 |
3,188.4 |
1,749.6 |
|
(B) Exceptional and significant transactions after-tax with no impact on OIR |
70.2 |
(266.1) |
0.0 |
|
(A) - (B) = Net Profit recurring |
1,695.4 |
3,454.5 |
1,749.6 |
|
(C) IFRS16 Impact(a) |
(7.1) |
(17.8) |
(15.5) |
|
(A) - (B) - (C) = Net Profit recurring excluding IFRS16 |
1,702.5 |
3,472.3 |
1,765.1 |
|
(a) The IFRS16 impact includes the reintegration of leasing expenses, less depreciation and other financial expenses booked in relation to IFRS16. |
EFFICIENCIES
Efficiencies represent a sustainable cost reduction resulting from an action plan on a specific project. Efficiencies are identified and managed on a per project basis. Each project is followed by a team composed in alignment with the nature of the project (purchasing, operations, human resources...).
RETURN ON CAPITAL EMPLOYED - ROCE
Return on capital employed after tax is calculated based on the Group’s consolidated financial statements, by applying the following ratio for the period in question.
For the numerator: net profit excluding IFRS16 - net finance costs after taxes for the period in question.
For the denominator: the average of (total shareholders' equity excluding IFRS16 + net debt) at the end of the past three half-years.
(in millions of euros) |
H1 2023
|
FY 2023
|
H1 2024
|
ROCE
|
|
Numerator (b)-(a)+(c) |
Net Profit Excluding IFRS16 |
1,772.7 |
3,206.2 |
1,765.1 |
3,198.6 |
Net Finance costs |
(118.4) |
(265.5) |
(129.5) |
(276.6) |
|
Effective Tax Rate(a) |
23.9% |
23.6% |
24.2% |
|
|
Net Finance costs after tax |
(90.1) |
(202.9) |
(98.1) |
(211.0) |
|
Net Profit - Net financial costs after tax |
1,862.8 |
3,409.1 |
1,863.2 |
3,409.6 |
|
Denominator ((a)+(b)+(c))/3 |
Total Equity Excluding IFRS16 |
24,110.1 |
25,117.5 |
25,503.1 |
24,910.2 |
Net Debt |
10,550.4 |
9,220.9 |
10,156.2 |
9,975.8 |
|
Average of (total equity + net debt) |
34,660.5 |
34,338.4 |
35,659.3 |
34,886.0 |
|
ROCE |
|
|
|
|
9.8% |
(a) excluding non-recurring tax impact |
RECURRING ROCE
The recurring ROCE is calculated in the same manner as the ROCE using the recurring net profit excluding IFR16 for the numerator.
(in millions of euros) |
H1 2023
|
FY 2023
|
H1 2024
|
Recurring ROCE
|
|
Numerator (b)-(a)+(c) |
Net Profit Recurring Excluding IFRS16 |
1,702.5 |
3,472.3 |
1,765.1 |
3,534.9 |
Net Finance costs |
(118.4) |
(265.5) |
(129.5) |
(276.6) |
|
Effective Tax Rate(a) |
23.9% |
23.6% |
24.2% |
|
|
Net Finance costs after tax |
(90.1) |
(202.9) |
(98.1) |
(211.0) |
|
Recurring Net Profit Excluding IFRS16 - Net financial costs after tax |
1,792.6 |
3,675.2 |
1,863.2 |
3,745.8 |
|
Denominator ((a)+(b)+(c))/3 |
Total Equity Excluding IFRS16 |
24,110.1 |
25,117.5 |
25,503.1 |
24,910.2 |
Net Debt |
10,550.4 |
9,220.9 |
10,156.2 |
9,975.8 |
|
Average of (total equity + net debt) |
34,660.5 |
34,338.4 |
35,659.3 |
34,886.0 |
|
Recurring ROCE |
|
|
|
|
10.7% |
(a) excluding non-recurring tax impact |
Calculation of performance indicators (Quarter)
|
Q2 2024 |
Q2 2024/2023
|
Currency
|
Natural gas
|
Electricity
|
Significant
|
Q2 2024/2023
|
Revenue |
|
|
|
|
|
|
|
Group |
6,729 |
-1.2% |
(190) |
(65) |
(37) |
- |
+3.1% |
Impacts in % |
|
|
-2.8% |
-1.0% |
-0.5% |
- |
|
Gas & Services |
6,438 |
-1.1% |
(191) |
(65) |
(37) |
- |
+3.4% |
Impacts in % |
|
|
-2.9% |
-1.0% |
-0.6% |
- |
|
2nd quarter 2024 revenue
BY GEOGRAPHY
Revenue (in millions of euros) |
Q2 2023 |
Q2 2024 |
Published change |
Comparable change |
|
|
2,530 |
2,625 |
+3.8% |
+9.5% |
|
|
2,336 |
2,225 |
-4.8% |
-1.0% |
|
|
1,378 |
1,302 |
-5.5% |
-0.7% |
|
|
268 |
286 |
+6.6% |
+4.0% |
|
Gas & Services Revenue |
6,512 |
6,438 |
-1.1% |
+3.4% |
|
Engineering & Construction |
93 |
105 |
+13.2% |
+13.1% |
|
Global Markets & Technologies |
201 |
186 |
-8.0% |
-8.5% |
|
GROUP REVENUE |
6,806 |
6,729 |
-1.2% |
+3.1% |
BY WORLD BUSINESS LINE
Revenue (in millions of euros) |
Q2 2023 |
Q2 2024 |
Published change |
Comparable change |
|
Large industries |
1,858 |
1,721 |
-7.4% |
+1.2% |
|
Industrial Merchant |
3,012 |
3,024 |
+0.4% |
+2.5% |
|
Healthcare |
1,018 |
1,070 |
+5.0% |
+10.2% |
|
Electronics |
624 |
623 |
-0.1% |
+2.6% |
|
GAS & SERVICES REVENUE |
6,512 |
6,438 |
-1.1% |
+3.4% |
Geographic and segment information
|
H1 2023 |
H1 2024 |
|||||
(in millions of euros and %) |
Revenue |
Operating
|
OIR margin |
Revenue |
Operating
|
OIR margin |
|
|
5,159 |
1,029 |
19.9% |
5,175 |
1,112 |
21.5% |
|
|
4,975 |
846 |
17.0% |
4,475 |
922 |
20.6% |
|
|
2,763 |
611 |
22.1% |
2,593 |
564 |
21.7% |
|
|
508 |
101 |
20.0% |
553 |
121 |
21.9% |
|
Gas & Services |
13,405 |
2,587 |
19.3% |
12,796 |
2,719 |
21.2% |
|
Engineering and Construction |
180 |
18 |
9.9% |
197 |
19 |
9.9% |
|
Global Markets & Technologies |
395 |
64 |
16.2% |
386 |
63 |
16.4% |
|
Reconciliation |
- |
(188) |
- |
- |
(201) |
- |
|
TOTAL GROUP |
13,980 |
2,481 |
17.7% |
13,379 |
2,601 |
19.4% |
Contribution from |
Large
|
Industrial
|
Healthcare |
Electronics |
Total G&S |
|
|
|
|
|
|
|
|
Q2 2024 |
+8.1% |
+3.9% |
+21.7% |
- |
+6.2% |
|
H1 2024 |
+7.9% |
+3.7% |
+18.9% |
- |
+5.7% |
|
Gas & Services |
|
|
|
|
|
|
H1 2024 |
+1.6% |
+2.2% |
+4.9% |
- |
+2.2% |
Contribution of
|
H1
|
Energy impact |
Forex impact |
H1 2024/2023 comparable |
||||||||||||||
Growth (in %) |
Group |
Group |
|
Excl.
|
Group |
|
Excl.
|
Group |
|
Excl.
|
||||||||
Revenue |
-4.3% |
-3.5% |
+0.4% |
-3.9% |
-3.4% |
-2.3% |
-1.1% |
+2.6% |
+2.1% |
+0.5% |
||||||||
Operating Income Recurring |
+4.9% |
|
|
|
-5.7% |
-4.3% |
-1.4% |
+10.6% |
+4.4% |
+6.2% |
||||||||
Group OIR margin
|
|
|
|
|
|
|
|
+100 bps |
No impact |
|||||||||
Recurring net profit |
+3.3% |
|
|
|
|
|
|
+16.0% |
+11.0% |
+5.0% |
Consolidated income statement
(in millions of euros) |
H1 2023 |
H1 2024 |
|
Revenue |
13,980.3 |
13,378.6 |
|
Other income |
115.3 |
138.4 |
|
Purchases |
(5,736.8) |
(4,975.4) |
|
Personnel expenses |
(2,545.8) |
(2,598.6) |
|
Other expenses |
(2,103.1) |
(2,114.9) |
|
Operating income recurring before depreciation and amortization |
3,709.9 |
3,828.1 |
|
Depreciation and amortization expenses |
(1,229.2) |
(1,227.0) |
|
Operating income recurring |
2,480.7 |
2,601.1 |
|
Other non-recurring operating income |
205.3 |
37.8 |
|
Other non-recurring operating expenses |
(172.3) |
(125.2) |
|
Operating income |
2,513.7 |
2,513.7 |
|
Net finance costs |
(118.4) |
(129.5) |
|
Other financial income |
9.8 |
3.5 |
|
Other financial expenses |
(102.8) |
(90.4) |
|
Income taxes |
(538.6) |
(542.6) |
|
Share of profit of associates |
1.9 |
(5.1) |
|
PROFIT FOR THE PERIOD |
1,765.6 |
1,749.6 |
|
- Minority interests |
44.0 |
68.7 |
|
- Net profit (Group share) |
1,721.6 |
1,680.9 |
|
Basic earnings per share (in euros) (a) |
2.99 |
2.92 |
|
(a) Adjusted following the free share attribution in |
Consolidated balance sheet
ASSETS (in millions of euros) |
|
|
|
|
14,194.2 |
14,447.1 |
|
Other intangible assets |
1,631.3 |
1,648.6 |
|
Property, plant and equipment |
23,652.2 |
24,529.9 |
|
Non-current assets |
39,477.7 |
40,625.6 |
|
Non-current financial assets |
696.7 |
728.8 |
|
Investments in equity affiliates |
180.1 |
176.1 |
|
Deferred tax assets |
225.2 |
266.6 |
|
Fair value of non-current derivatives (assets) |
35.1 |
29.8 |
|
Other non-current assets |
1,137.1 |
1,201.3 |
|
TOTAL NON-CURRENT ASSETS |
40,614.8 |
41,826.9 |
|
Inventories and work-in-progress |
2,027.6 |
2,080.4 |
|
Trade receivables |
2,993.7 |
3,075.1 |
|
Other current assets |
862.7 |
908.3 |
|
Current tax assets |
42.9 |
78.3 |
|
Fair value of current derivatives (assets) |
70.7 |
39.5 |
|
Cash and cash equivalents |
1,624.9 |
1,785.3 |
|
TOTAL CURRENT ASSETS |
7,622.5 |
7,966.9 |
|
ASSETS HELD FOR SALE |
95.1 |
97.9 |
|
TOTAL ASSETS |
48,332.4 |
49,891.7 |
EQUITY AND LIABILITIES (in millions of euros) |
|
|
|
Share capital |
2,884.8 |
3,179.7 |
|
Additional paid-in capital |
2,447.7 |
2,057.5 |
|
Retained earnings |
16,063.7 |
17,987.4 |
|
|
(152.7) |
(208.4) |
|
Net profit (Group share) |
3,078.0 |
1,680.9 |
|
Shareholders' equity |
24,321.5 |
24,697.1 |
|
Minority interests |
721.6 |
716.2 |
|
TOTAL EQUITY |
25,043.1 |
25,413.3 |
|
Provisions, pensions and other employee benefits |
2,004.8 |
1,941.6 |
|
Deferred tax liabilities |
2,329.0 |
2,447.0 |
|
Non-current borrowings |
8,560.5 |
8,120.2 |
|
Non-current lease liabilities |
1,046.3 |
1,102.5 |
|
Other non-current liabilities |
454.7 |
468.2 |
|
Fair value of non-current derivatives (liabilities) |
48.0 |
31.0 |
|
TOTAL NON-CURRENT LIABILITIES |
14,443.3 |
14,110.5 |
|
Provisions, pensions and other employee benefits |
363.8 |
440.4 |
|
Trade payables |
3,310.5 |
3,188.7 |
|
Other current liabilities |
2,310.1 |
2,291.1 |
|
Current tax payables |
236.4 |
294.6 |
|
Current borrowings |
2,285.3 |
3,821.3 |
|
Current lease liabilities |
219.7 |
227.4 |
|
Fair value of current derivatives (liabilities) |
76.2 |
50.8 |
|
TOTAL CURRENT LIABILITIES |
8,802.0 |
10,314.3 |
|
LIABILITIES HELD FOR SALE |
44.0 |
53.6 |
|
TOTAL EQUITY AND LIABILITIES |
48,332.4 |
49,891.7 |
Consolidated cash flow statement
(in millions of euros) |
1st half 2023 |
1st half 2024 |
|
Operating activities |
|
|
|
Net profit (Group share) |
1,721.6 |
1,680.9 |
|
Minority interests |
44.0 |
68.7 |
|
Adjustments: |
|
|
|
• Depreciation and amortization expense |
1,229.2 |
1,227.0 |
|
• Changes in deferred taxes |
66.3 |
(25.8) |
|
• Changes in provisions |
115.9 |
(10.3) |
|
• Share of profit of equity affiliates |
(1.9) |
5.1 |
|
• Profit/loss on disposal of assets |
(149.4) |
33.8 |
|
• Net finance costs |
90.7 |
91.7 |
|
• Other non cash items |
94.4 |
83.8 |
|
Cash flow from operating activities before changes in working capital |
3,210.8 |
3,154.9 |
|
Changes in working capital |
(298.4) |
(282.0) |
|
Other cash items |
47.9 |
(28.1) |
|
Net cash flows from operating activities |
2,960.3 |
2,844.8 |
|
Investing activities |
|
|
|
Purchase of property, plant and equipment and intangible assets |
(1,713.9) |
(1,656.3) |
|
Acquisition of consolidated companies and financial assets |
(31.7) |
(42.7) |
|
Proceeds from sale of property, plant and equipment and intangible assets |
34.8 |
22.7 |
|
Proceeds from the sale of subsidiaries, net of net debt sold and from the sale of financial assets |
252.2 |
97.1 |
|
Dividends received from equity affiliates |
1.2 |
11.0 |
|
Net cash flows used in investing activities |
(1,457.4) |
(1,568.2) |
|
Financing activities |
|
|
|
Dividends paid |
|
|
|
• |
(1,578.4) |
(1,715.1) |
|
• Minority interests |
(34.0) |
(56.1) |
|
Proceeds from issues of share capital |
20.4 |
22.8 |
|
Purchase of treasury shares |
(82.6) |
(174.3) |
|
Net financial interests paid |
(135.4) |
(134.2) |
|
Increase (decrease) in borrowings |
238.7 |
1,104.3 |
|
Lease liabilities repayments |
(116.2) |
(116.6) |
|
Net interests paid on lease liabilities |
(18.3) |
(21.4) |
|
Transactions with minority shareholders |
(8.4) |
(1.7) |
|
Net cash flows from (used in) financing activities |
(1,714.2) |
(1,092.3) |
|
Effect of exchange rate changes and change in scope of consolidation |
(39.8) |
(19.0) |
|
Net increase (decrease) in net cash and cash equivalents |
(251.1) |
165.3 |
|
|
1,760.9 |
1,403.6 |
|
|
1,509.8 |
1,568.9 |
The analysis of net cash and cash equivalents at the end of the period is as follows:
(in millions of euros) |
|
|
|
|
Cash and cash equivalents |
1,712.2 |
1,624.9 |
1,785.3 |
|
Bank overdrafts (included in current borrowings) |
(202.4) |
(221.3) |
(216.4) |
|
|
1,509.8 |
1,403.6 |
1,568.9 |
Net debt calculation
(in millions of euros) |
|
|
|
|
Non-current borrowings |
(8,762.1) |
(8,560.5) |
(8,120.2) |
|
Current borrowings |
(3,500.5) |
(2,285.3) |
(3,821.3) |
|
TOTAL GROSS DEBT |
(12,262.6) |
(10,845.8) |
(11,941.5) |
|
Cash and cash equivalents |
1,712.2 |
1,624.9 |
1,785.3 |
|
TOTAL NET DEBT AT THE END OF THE PERIOD |
(10,550.4) |
(9,220.9) |
(10,156.2) |
Statement of changes in net debt
(in millions of euros) |
H1 2023 |
FY 2023 |
|
H1 2024 |
Net debt at the beginning of the period |
(10,261.3) |
(10,261.3) |
(9,220.9) |
|
Net cash flows from operating activities |
2,960.3 |
6,263.0 |
2,844.8 |
|
Net cash flows used in investing activities |
(1,457.4) |
(3,079.0) |
(1,568.2) |
|
Net cash flows used in financing activities excluding changes in borrowings |
(1,817.6) |
(2,041.6) |
(2,062.4) |
|
Total net cash flows |
(314.7) |
1,142.5 |
(785.8) |
|
Effect of exchange rate changes, opening net debt of newly acquired companies and others |
171.5 |
150.6 |
(42.8) |
|
Adjustment of net finance costs |
(145.9) |
(252.7) |
(106.7) |
|
Change in net debt |
(289.1) |
1,040.4 |
(935.3) |
|
NET DEBT AT THE END OF THE PERIOD |
(10,550.4) |
(9,220.9) |
(10,156.2) |
Sales, Operating Income Recurring and investments key figures synthesis
The following tables gather data already available in this report. They complement the key figures indicated in the table on the first page.
Sales
H1 2024 split of revenue and comparable growth in % |
Total |
|
Industrial
|
Electronics |
Healthcare |
|
100% |
14% |
70% |
5% |
11% |
+7.9% |
+8.1% |
+5.5% |
+9.2% |
+23.3% |
|
|
100% |
32% |
34% |
2% |
32% |
-1.3% |
-1.7% |
-5.2% |
N.C. |
+4.4% |
|
|
100% |
35% |
28% |
33% |
4% |
-0.8% |
-0.9% |
-0.6% |
-0.6% |
N.C. |
|
|
100% |
N.C. |
N.C. |
N.C. |
N.C. |
+7.1% |
|
|
|
|
|
Gas & Services |
100% |
27% |
47% |
9% |
17% |
+2.6% |
+1.1% |
+2.0% |
+0.3% |
+9.1% |
|
Engineering & Construction |
+9.9% |
|
|
|
|
Global Markets & Technologies |
-2.0% |
|
|
|
|
GROUP TOTAL |
+2.6% |
|
|
|
|
N.C.: Not communicated. |
Operating Income Recurring
Operating margin in %(a) Operating Income Recurring in million euros |
H1 2023 |
H1 2024 |
2024/2023
|
Operating Income
|
|
|
19.9% |
21.5% |
+120 bps |
1,112 |
|
|
17.0% |
20.6% |
+170 bps |
922 |
|
|
22.1% |
21.7% |
-50 bps |
564 |
|
|
20.0% |
21.9% |
+320 bps |
121 |
|
Gas & Services |
19.3% |
21.2% |
+110 bps |
2,719 |
|
Engineering & Construction |
10.0% |
9.9% |
-10 bps |
19 |
|
Global Markets & Technologies |
16.2% |
16.4% |
+20 bps |
63 |
|
Reconciliation |
|
|
|
(201) |
|
GROUP |
17.7% |
19.4% |
+100 bps |
2,601 |
|
(a) Operating income recurring / revenue as published. |
Investments
in billion euros |
H1 2024 |
12-month portfolio of investment opportunities(a) |
4.0 |
Investment decisions(b) |
1.6 |
Investment backlog(a) |
4.1 |
Additional contribution to revenue of unit start-ups and ramp-ups(b)(in million euros) |
108 |
(a) At the end of the reporting period. |
|
(b) Cumulated from the beginning of the calendar year until the end of the reporting period. |
The slideshow that accompanies this release is available as of
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UPCOMING EVENTS
2024 3rd Quarter Revenue:
Air Liquide is a world leader in gases, technologies and services for industry and healthcare. Present in 60 countries with 66,300 employees, the Group serves more than 4 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the Group’s activities since its creation in 1902.
Taking action today while preparing the future is at the heart of Air Liquide’s strategy. With ADVANCE, its strategic plan for 2025, Air Liquide is targeting a global performance, combining financial and extra-financial dimensions. Positioned on new markets, the Group benefits from major assets such as its business model combining resilience and strength, its ability to innovate and its technological expertise. The Group develops solutions contributing to climate and the energy transition—particularly with hydrogen—and takes action to progress in areas of healthcare, digital and high technologies.
Air Liquide’s revenue amounted to more than
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1 See appendix for impact of
2 Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix.
3 Cash flows from operating activities before changes in working capital.
4 Based on the recurring net profit, see reconciliation in appendix.
5 Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that have no impact on the operating income recurring.
6 See impact of
7 Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts.
8 Including a contribution of
9 See definition and reconciliation in appendix.
10 See impact of
11 Including a contribution of
12 See definition in appendix.
13 The average cost of net debt in the 1st half of 2023 does not include the exceptional proceeds related to the early redemption of bonds denominated in US dollars.
14 Temporary increase of Commercial papers (variable rate) in a context of potential liquidity tensions.
15 With no impact on operating income recurring.
16 See definition and reconciliation in appendix.
17 Including transactions with minority shareholders and dividends received from equity affiliates.
18 See definition and reconciliation in appendix.
19 See appendix for impact of
20 Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix.
21 Based on the recurring net profit, see reconciliation in appendix.
22 Operating margin excluding energy passthrough impact. Recurring net profit excluding exceptional and significant transactions that have no impact on the operating income recurring.
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Source: Air Liquide