1.
|
Q1 2023 Results
|
ICL Group Ltd
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
||||
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
Sales
|
2,098
|
-
|
2,525
|
-
|
10,015
|
-
|
Gross profit
|
828
|
39
|
1,245
|
49
|
5,032
|
50
|
Operating income
|
465
|
22
|
902
|
36
|
3,516
|
35
|
Adjusted operating income (1)
|
480
|
23
|
880
|
35
|
3,509
|
35
|
Net income attributable to the shareholders of the Company
|
280
|
13
|
632
|
25
|
2,159
|
22
|
Adjusted net income - shareholders of the Company (1)
|
292
|
14
|
613
|
24
|
2,350
|
23
|
Diluted earnings per share (in dollars)
|
0.22
|
-
|
0.49
|
-
|
1.67
|
-
|
Diluted adjusted earnings per share (in dollars) (2)
|
0.23
|
-
|
0.48
|
-
|
1.82
|
-
|
Adjusted EBITDA (2)
|
610
|
29
|
1,002
|
40
|
4,007
|
40
|
Cash flows from operating activities
|
382
|
-
|
325
|
-
|
2,025
|
-
|
Purchases of property, plant and equipment and intangible assets (3)
|
164
|
-
|
131
|
-
|
747
|
-
|
(1) |
See “Adjustments to Reported Operating and Net income (non-GAAP)” below.
|
(2) |
Commencing 2022, the Company’s adjusted EBITDA definition was updated. See the disclaimer below.
|
(3) |
See “Condensed consolidated statements of cash flows (unaudited)” in the accompanying financial statements.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Operating income
|
465
|
902
|
3,516
|
Write-off of assets and provision for site closure (1)
|
15
|
-
|
-
|
Divestment related items and transaction costs from acquisitions (2)
|
-
|
(22)
|
(29)
|
Legal proceedings, dispute and other settlement expenses (3)
|
-
|
-
|
22
|
Total adjustments to operating income
|
15
|
(22)
|
(7)
|
Adjusted operating income
|
480
|
880
|
3,509
|
Net income attributable to the shareholders of the Company
|
280
|
632
|
2,159
|
Total adjustments to operating income
|
15
|
(22)
|
(7)
|
Total tax adjustments (4)
|
(3)
|
3
|
198
|
Total adjusted net income - shareholders of the Company
|
292
|
613
|
2,350
|
(1) |
For 2023, reflects a write-off of assets and closure costs due to the closure of the Company’s Summerville site in the US.
|
(2) |
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.
|
(3) |
For 2022, reflects mainly the costs of a mediation settlement regarding the claims related to the Ashalim Stream incident.
|
(4) |
For 2023, reflects the tax impact of adjustments made to operating income. 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,
as well as the tax impact of adjustments made to operating income.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Net income
|
294
|
657
|
2,219
|
Financing expenses, net
|
44
|
34
|
113
|
Taxes on income
|
127
|
211
|
1,185
|
Less: Share in earnings of equity-accounted investees
|
-
|
-
|
(1)
|
Operating income
|
465
|
902
|
3,516
|
Depreciation and amortization
|
130
|
122
|
498
|
Adjustments (1)
|
15
|
(22)
|
(7)
|
Total adjusted EBITDA (2)
|
610
|
1,002
|
4,007
|
(1) |
See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
|
(2) |
Commencing 2022, the Company’s adjusted EBITDA definition was updated, see the disclaimer above.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Net income attributable to the shareholders of the Company
|
280
|
632
|
2,159
|
Adjustments (1)
|
15
|
(22)
|
(7)
|
Total tax adjustments
|
(3)
|
3
|
198
|
Adjusted net income - shareholders of the Company
|
292
|
613
|
2,350
|
Weighted-average number of diluted ordinary shares outstanding (in thousands)
|
1,290,938
|
1,290,965
|
1,289,947
|
Diluted adjusted earnings per share (in dollars) (2)
|
0.23
|
0.48
|
1.82
|
(1) |
See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
|
(2) |
The diluted adjusted earnings per share are calculated as follows: dividing the adjusted net income attributable to the shareholders of the
Company by the weighted-average number of diluted ordinary shares outstanding (in thousands).
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q1 2022 figures
|
2,525
|
(1,623)
|
902
|
|
Total adjustments Q1 2022*
|
-
|
(22)
|
(22)
|
|
Adjusted Q1 2022 figures
|
2,525
|
(1,645)
|
880
|
|
Quantity
|
(324)
|
127
|
(197)
|
|
Price
|
(42)
|
-
|
(42)
|
|
Exchange rates
|
(61)
|
45
|
(16)
|
|
Raw materials
|
-
|
(76)
|
(76)
|
|
Energy
|
-
|
(15)
|
(15)
|
|
Transportation
|
-
|
1
|
1
|
|
Operating and other expenses
|
-
|
(55)
|
(55)
|
|
Adjusted Q1 2023 figures
|
2,098
|
(1,618)
|
480
|
|
Total adjustments Q1 2023*
|
-
|
(15)
|
(15)
|
|
Q1 2023 figures
|
2,098
|
(1,633)
|
465
|
- |
Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of potash, bromine and
phosphorus-based flame retardants, elemental bromine and white phosphoric acid (WPA). This impact was partially offset mainly by higher sales volumes of clear brine fluids.
|
- |
Price - The negative impact on operating income was primarily related to a decrease of $101 in the price of potash (CIF) per tonne
year-over-year, as well as to a decrease in selling prices of phosphate fertilizers. This impact was partially offset by higher selling prices of phosphate-based food additives, WPA, FertilizerpluS products and specialty minerals
products.
|
- |
Exchange rates - The unfavorable effect on operating income was primarily related to the negative impact on sales due to the depreciation
of the euro and the Chinese yuan against the US dollar, which was partially offset by the positive impact on operational costs due to the depreciation of the Israeli shekel against the US dollar.
|
- |
Raw materials – The negative impact on operating income was primarily due to higher costs of caustic soda and potassium hydroxide (KOH), as well as higher costs of commodity fertilizers and raw materials used in production of industrial products. This impact was partially offset by lower costs of sulphur.
|
- |
Energy – The negative impact on operating income was due to increased electricity and gas prices.
|
- |
Operating and other expenses – The negative impact on operating income was primarily due to higher maintenance and operational costs.
|
1-3/2023
|
1-3/2022
|
|||
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
Europe
|
772
|
37
|
724
|
29
|
Asia
|
437
|
21
|
737
|
29
|
South America
|
420
|
20
|
516
|
20
|
North America
|
358
|
17
|
415
|
16
|
Rest of the world
|
111
|
5
|
133
|
6
|
Total
|
2,098
|
100
|
2,525
|
100
|
- |
Europe – The increase in sales was primarily due to higher selling prices and sales volumes of potash, as well as higher selling prices of
WPA. The increase was partially offset by lower sales volumes of WPA, bromine and phosphorous-based flame retardants, turf and ornamental products, specialty agriculture products and magnesium, together with the negative impact of the
depreciation of the average exchange rate of the euro against the US dollar.
|
- |
Asia – The decrease in sales was primarily due to lower selling prices and sales volumes of potash and elemental bromine, as well as lower
sales volumes of bromine-based flame retardants, bromine-based industrial solutions, and phosphate fertilizers. This decrease was partially offset by higher sales volumes of specialty agriculture products.
|
- |
South America – The decrease in sales was primarily due to lower sales volumes of WPA and specialty agriculture products, as well as lower
selling prices of potash and phosphate fertilizers. This decrease was partially offset by higher sales volumes of phosphate fertilizers.
|
- |
North America – The decrease in sales was primarily due to lower selling prices and sales volumes of potash and phosphate fertilizers, as
well as lower sales volumes of phosphorous-based flame retardants. This decrease was partially offset by higher sales volumes of clear brine fluids and phosphate-based food additives.
|
- |
Rest of the world – The decrease in sales was primarily related to lower sales volumes and selling prices of potash, as well as lower sales
volumes of phosphate fertilizers. This decrease was partially offset by higher selling prices of clear brine fluids.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
361
|
494
|
1,766
|
Sales to external customers
|
351
|
488
|
1,737
|
Sales to internal customers
|
10
|
6
|
29
|
Segment Operating Income
|
90
|
188
|
628
|
Depreciation and amortization
|
15
|
15
|
61
|
Segment EBITDA
|
105
|
203
|
689
|
Capital expenditures
|
26
|
22
|
90
|
• |
Elemental bromine sales decreased year-over-year due to declining bromine prices and soften demand, mainly for bromine-based flame retardants.
|
• |
Sales of bromine-based flame retardants decreased year-over-year, with lower volumes and prices, as electronics end-market demand remained weak.
|
• |
Sales of phosphorus-based flame retardants decreased year-over-year, with lower volumes and prices, as construction end-market demand remained
softened due to both inflation and high interest rates, mainly in the US and Europe.
|
• |
Strong global demand for clear brine fluids drove sales higher year-over-year, with both higher prices and volumes.
|
• |
Sales of specialty minerals increased year-over-year, mainly due to higher deliveries to the deicing, food, pharmaceutical and industrial
end-markets.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q1 2022 figures
|
494
|
(306)
|
188
|
|
Quantity
|
(146)
|
57
|
(89)
|
|
Price
|
17
|
-
|
17
|
|
Exchange rates
|
(4)
|
7
|
3
|
|
Raw materials
|
-
|
(20)
|
(20)
|
|
Energy
|
-
|
(6)
|
(6)
|
|
Transportation
|
-
|
2
|
2
|
|
Operating and other expenses
|
-
|
(5)
|
(5)
|
|
Q1 2023 figures
|
361
|
(271)
|
90
|
- |
Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of bromine and phosphorus-based
flame retardants.
|
- |
Price – The positive impact on operating income was mainly due to higher selling prices of specialty minerals which was partially offset by
lower selling prices of bromine and phosphorus-based flame retardants.
|
- |
Exchange rates – The favorable effect on operating income was due to the positive impact on operational costs resulting from the
depreciation of the average exchange rate of the Israeli shekel against the US dollar, which was partially 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 negative impact on operating income was primarily related to higher operational costs.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
583
|
795
|
3,313
|
Potash sales to external customers
|
455
|
648
|
2,710
|
Potash sales to internal customers
|
34
|
43
|
184
|
Other and eliminations (1)
|
94
|
104
|
419
|
Gross Profit
|
355
|
523
|
2,292
|
Segment Operating Income
|
254
|
410
|
1,822
|
Depreciation and amortization
|
44
|
40
|
166
|
Segment EBITDA
|
298
|
450
|
1,988
|
Capital expenditures
|
84
|
62
|
346
|
Potash price - CIF ($ per tonne)
|
541
|
642
|
682
|
(1) |
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's potash price (CIF) per tonne of $541 in the quarter was 9% lower compared to the fourth quarter of 2022 and 16% lower year-over-year.
|
• |
The Grain Price Index decreased by 0.5% during the quarter, mainly due to a decrease in prices of corn and wheat by 0.6% and 6.5%, respectively,
which was partially offset by an increase in prices of soybean and rice by 5.9% and 1.8%, respectively.
|
• |
The WASDE (World Agricultural Supply and Demand Estimates) report, published by the USDA in April 2023, showed a continued decrease in the
expected ratio of global inventories of grains to consumption to 27.4% for the 2022/23 agriculture year, compared to 28.1% for the 2021/22 agriculture year and 29.0% for the 2020/21 agriculture year.
|
• |
On May 1, 2023, ICL signed a contract with its long-term customer, Indian Potash Limited (IPL), India’s largest importer of potash, for potash
shipments through September 2023, at a price of $422 per tonne CIFFO Indian ports, with similar quantities as in the 2022 contract with IPL, for the respective period. The contract is part of the renewed five-year supply agreement with
IPL for the years 2022-2027, which was signed in March 2022.
|
• |
In March 2023, the Company completed the sealing project of the P-9 pumping station feeder canal in response to the unexpected flow of brine that
was discovered in June 2022 at the outskirts of an alluvial fan area. For further information, see Note 18 to the Company’s 2022 Audited Financial Statements.
|
• |
A production shutdown for annual maintenance took place in March, similar to last year.
|
• |
Geological and operational challenges continued to impact the mine ore output in the quarter. The improvement project at the site's flotation
plant was completed and is expected to enable ICL Iberia to increase its production capacity, while lowering its cost per tonne.
|
• |
Lower sales volumes due to softened demand in non-US markets, were offset by higher selling prices year-over-year.
|
Average prices
|
01-03.2023
|
01-03.2022
|
VS Q1 2022
|
10-12/2022
|
VS Q4 2022
|
Granular potash –
Brazil
|
CFR spot
($ per tonne)
|
495
|
877
|
(43.6)%
|
570
|
(13.2)%
|
Granular potash –
Northwest Europe
|
CIF spot/contract
(€ per tonne)
|
688
|
618
|
11.3%
|
813
|
(15.4)%
|
Standard potash –
Southeast Asia
|
CFR spot
($ per tonne)
|
573
|
656
|
(12.7)%
|
675
|
(15.1)%
|
Potash imports
|
||||||
To Brazil
|
million tonnes
|
2.4
|
3.1
|
(22.6)%
|
1.5
|
60.0%
|
To China
|
million tonnes
|
2.1
|
2.1
|
-
|
1.8
|
16.7%
|
To India
|
million tonnes
|
0.2
|
0.7
|
(72.2)%
|
0.5
|
(60.0)%
|
Thousands of tonnes
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
Production
|
1,070
|
1,093
|
4,691
|
Total sales (including internal sales)
|
963
|
1,150
|
4,499
|
Closing inventory
|
654
|
298
|
547
|
- |
Production – Production was 23 thousand tonnes lower year-over-year, mainly due to operational and geological challenges at ICL Iberia. A
fatal accident at the Cabanasses mine in the beginning of March, was followed by gradual ramp-up due to extraordinary safety measures, which led to production losses.
|
- |
Sales – The quantity of potash sold was 187 thousand tonnes lower year-over-year, mainly due to lower sales volumes to India and China.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q1 2022 figures
|
795
|
(385)
|
410
|
|
Quantity
|
(114)
|
48
|
(66)
|
|
Price
|
(84)
|
-
|
(84)
|
|
Exchange rates
|
(14)
|
3
|
(11)
|
|
Energy
|
-
|
(5)
|
(5)
|
|
Transportation
|
-
|
2
|
2
|
|
Operating and other expenses
|
-
|
8
|
8
|
|
Q1 2023 figures
|
583
|
(329)
|
254
|
- |
Quantity – The negative impact on operating income was primarily related to a decrease in sales volumes of potash to China and
India, as well as sales volumes of magnesium.
|
- |
Price – The negative impact on operating income resulted primarily from a decrease of $101 in potash price (CIF) per tonne year-over-year.
|
- |
Exchange rates – The unfavorable impact on operating income was due to the depreciation of the average exchange rate of the euro against
the US dollar, which led to a negative impact on sales. This was partially offset by a positive impact on operational costs resulting from the depreciation of the average exchange rate of the Israeli shekel against the US dollar.
|
- |
Energy – The negative impact on operating income was primarily due to an increase in electricity and gas prices.
|
- |
Operating and other expenses – The positive impact on operating income was primarily related to lower operational costs.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
714
|
798
|
3,106
|
Sales to external customers
|
659
|
748
|
2,851
|
Sales to internal customers
|
55
|
50
|
255
|
Segment Operating Income
|
115
|
200
|
777
|
Depreciation and amortization*
|
55
|
47
|
189
|
Segment EBITDA
|
170
|
247
|
966
|
Phosphate specialties EBITDA
|
84
|
115
|
436
|
Phosphate commodities EBITDA
|
86
|
132
|
530
|
Capital expenditures
|
54
|
49
|
259
|
• |
In the first quarter, higher raw material and production costs negatively impacted the specialty phosphates business, as global phosphates supply
and demand are re-balancing.
|
• |
Phosphate salts: quarterly sales increased year-over-year, primarily due to higher pricing to compensate for elevated production costs. Sales of
food specialties were higher year-over-year, driven by solid demand in North America and Asia, but weaker demand in Europe. For industrial end-markets, demand in North America increased, while additional supply in Europe negatively
impacted sales.
|
• |
White phosphoric acid (WPA): Sales decreased year-over-year, with lower volumes, especially in Europe and China. In most regions, selling prices
remained above the comparable period in 2022.
|
• |
Energy storage solutions (ESS):
|
o |
The Company continued its investment in a lithium iron phosphate (LFP) cathode active material (CAM) manufacturing plant in St. Louis, Missouri,
which is expected to be the first large scale LFP material manufacturing facility in the US.
|
o |
Increased supply in China of energy storage solutions negatively impacted sales of specialty raw materials used for energy storage solutions from
the Company's YPH joint venture.
|
• |
Phosphate fertilizers prices started to increase in the beginning of the quarter, due to lower availability in the market. Towards the end of the
quarter, fertilizers prices were moderated due to lower demand.
|
o |
In India, lower import prices together with speculation over reduced subsidies have led distributors to rebuild DAP stocks.
|
o |
In Brazil, MAP prices increased from an average of $627/t in the fourth quarter of 2022 to $658/t, as imports were supported by good soy
affordability. However, lower soybean prices and weaker sentiment, led to fewer purchases. As such, the MAP CFR Brazil price moderated to a range of $620-630/t at the end of the quarter.
|
o |
In the US, at the beginning of the quarter DAP/MAP prices were $25-31/t higher compared to the end of 2022 due to anticipation of higher demand.
However, prices moderated below $647/t as downstream demand fell short of expectations, due to wet and cold weather. Toward the end of the quarter, prices began to rise again as the planting season approached.
|
• |
Indian phosphoric acid prices which are being revised on a quarterly basis, are at $1,050/t P2O5 in the first quarter of 2023. CIL (India) agreed
to a phosphoric acid supply contract for the second quarter at 970$/t P2O5, down by 80$/t.
|
• |
The Middle East spot price of sulfur decreased from $170/t FOB at the end of 2022 to $108/t in the first quarter of 2023.
|
Average prices
|
$ per tonne
|
01-03.2023
|
01-03.2022
|
VS Q1 2022
|
10-12.2022
|
VS Q4 2022
|
DAP
|
CFR India Bulk Spot
|
648
|
940
|
(31)%
|
809
|
(20)%
|
TSP
|
CFR Brazil Bulk Spot
|
515
|
813
|
(37)%
|
677
|
(24)%
|
SSP
|
CPT Brazil inland 18-20% P2O5 Bulk Spot
|
325
|
435
|
(25)%
|
395
|
(18)%
|
Sulphur
|
Bulk FOB Adnoc monthly Bulk contract
|
139
|
325
|
(57)%
|
226
|
(38)%
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q1 2022 figures
|
798
|
(598)
|
200
|
|
Quantity
|
(68)
|
37
|
(31)
|
|
Price
|
7
|
-
|
7
|
|
Exchange rates
|
(23)
|
24
|
1
|
|
Raw materials
|
-
|
(18)
|
(18)
|
|
Energy
|
-
|
(10)
|
(10)
|
|
Operating and other expenses
|
-
|
(34)
|
(34)
|
|
Q1 2023 figures
|
714
|
(599)
|
115
|
- |
Quantity – The negative impact on operating income was primarily due to lower sales volumes of white phosphoric acid (WPA), fertilizers and
salts. This was partially offset by higher sales volumes of phosphate-based food additives.
|
- |
Price – The positive impact on operating income was primarily related to higher selling prices of phosphate-based food additives, WPA and
salts. This was partially offset by lower selling prices of phosphate fertilizers.
|
- |
Exchange rates – The minor favorable impact on operating income was mainly due to the positive impact on operational costs resulted from
the depreciation of the average exchange rate of the Israeli shekel against the US dollar, which was partially offset by the negative impact on sales due to the depreciation of the average exchange rate of the Chinese yuan and the euro
against the US dollar.
|
- |
Raw materials – The negative impact on operating income was due to higher costs of potassium hydroxide (KOH) and caustic soda, partially offset by lower costs of sulphur.
|
- |
Energy – The negative impact on operating income was primarily due to higher electricity and gas prices, mainly in Europe and the US.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher maintenance and other operational
costs.
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
564
|
566
|
2,422
|
Sales to external customers
|
553
|
556
|
2,376
|
Sales to internal customers
|
11
|
10
|
46
|
Segment Operating Income
|
32
|
93
|
378
|
Depreciation and amortization
|
13
|
17
|
70
|
Segment EBITDA
|
45
|
110
|
448
|
Capital expenditures
|
24
|
17
|
101
|
• |
FertilizerpluS: Sales increased year-over-year, with both higher volumes and prices.
|
• |
Specialty Agriculture (SA): Sales decreased year-over-year as lower volumes of straights fertilizer, Biostimulants, MicroNutrients and Liquid
NPKs, mainly to Europe and the US offset higher selling prices.
|
• |
Turf and Ornamental (T&O): Sales decreased year-over-year, as higher prices were unable to offset lower ornamental and horticulture sales
volumes.
|
• |
ICL Boulby: The production of polysulphate increased by 9% year-over-year, with record production of 259 thousand tonnes.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q1 2022 figures
|
566
|
(473)
|
93
|
|
Quantity
|
(31)
|
17
|
(14)
|
|
Price
|
47
|
-
|
47
|
|
Exchange rates
|
(18)
|
5
|
(13)
|
|
Raw materials
|
-
|
(59)
|
(59)
|
|
Energy
|
-
|
(2)
|
(2)
|
|
Transportation
|
-
|
(2)
|
(2)
|
|
Operating and other expenses
|
-
|
(18)
|
(18)
|
|
Q1 2023 figures
|
564
|
(532)
|
32
|
- |
Quantity – The negative impact on operating income was primarily due to lower sales volumes of specialty agriculture products.
|
- |
Price – The positive impact on operating income was due to higher selling prices across most business lines, mainly FertilizerpluS and
specialty agriculture products.
|
- |
Exchange rates – The unfavorable impact on operating income was primarily due to the depreciation of the average exchange rate of the euro
and the Chinese Yuan against the US dollar, which had a negative impact on sales that exceeded the positive impact on operational costs.
|
- |
Raw materials – The negative impact on operating income was primarily related to higher costs of commodity fertilizers, potassium hydroxide
(KOH) and caustic soda.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher maintenance and operational costs.
|
ICL Group Ltd
|
March 31,
2023 |
March 31,
2022 |
December 31,
2022
|
|
$ millions
|
$ millions
|
$ millions
|
Current assets
|
|||
Cash and cash equivalents
|
552
|
439
|
417
|
Short-term investments and deposits
|
129
|
93
|
91
|
Trade receivables
|
1,631
|
1,898
|
1,583
|
Inventories
|
2,116
|
1,673
|
2,134
|
Prepaid expenses and other receivables
|
316
|
355
|
323
|
Total current assets
|
4,744
|
4,458
|
4,548
|
Non-current assets
|
|||
Deferred tax assets
|
155
|
142
|
150
|
Property, plant and equipment
|
6,066
|
5,797
|
5,969
|
Intangible assets
|
867
|
889
|
852
|
Other non-current assets
|
213
|
378
|
231
|
Total non-current assets
|
7,301
|
7,206
|
7,202
|
Total assets
|
12,045
|
11,664
|
11,750
|
Current liabilities
|
|||
Short-term debt
|
704
|
506
|
512
|
Trade payables
|
967
|
1,078
|
1,006
|
Provisions
|
79
|
56
|
81
|
Other payables
|
985
|
1,049
|
1,007
|
Total current liabilities
|
2,735
|
2,689
|
2,606
|
Non-current liabilities
|
|||
Long-term debt and debentures
|
2,278
|
2,402
|
2,312
|
Deferred tax liabilities
|
442
|
406
|
423
|
Long-term employee liabilities
|
385
|
511
|
402
|
Long-term provisions and accruals
|
239
|
275
|
234
|
Other
|
68
|
64
|
60
|
Total non-current liabilities
|
3,412
|
3,658
|
3,431
|
Total liabilities
|
6,147
|
6,347
|
6,037
|
Equity
|
|||
Total shareholders’ equity
|
5,631
|
5,083
|
5,464
|
Non-controlling interests
|
267
|
234
|
249
|
Total equity
|
5,898
|
5,317
|
5,713
|
Total liabilities and equity
|
12,045
|
11,664
|
11,750
|
For the three-month
period ended
|
For the year ended
|
||
March 31, 2023
|
March 31, 2022
|
December 31, 2022
|
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
2,098
|
2,525
|
10,015
|
Cost of sales
|
1,270
|
1,280
|
4,983
|
Gross profit
|
828
|
1,245
|
5,032
|
Selling, transport and marketing expenses
|
264
|
279
|
1,181
|
General and administrative expenses
|
68
|
69
|
291
|
Research and development expenses
|
18
|
18
|
68
|
Other expenses
|
16
|
-
|
30
|
Other income
|
(3)
|
(23)
|
(54)
|
Operating income
|
465
|
902
|
3,516
|
Finance expenses
|
87
|
67
|
327
|
Finance income
|
(43)
|
(33)
|
(214)
|
Finance expenses, net
|
44
|
34
|
113
|
Share in earnings of equity-accounted investees
|
-
|
-
|
1
|
Income before taxes on income
|
421
|
868
|
3,404
|
Taxes on income
|
127
|
211
|
1,185
|
Net income
|
294
|
657
|
2,219
|
Net income attributable to the non-controlling interests
|
14
|
25
|
60
|
Net income attributable to the shareholders of the Company
|
280
|
632
|
2,159
|
Earnings per share attributable to the shareholders of the Company:
|
|||
Basic earnings per share (in dollars)
|
0.22
|
0.49
|
1.68
|
Diluted earnings per share (in dollars)
|
0.22
|
0.49
|
1.67
|
Weighted-average number of ordinary shares outstanding:
|
|||
Basic (in thousands)
|
1,289,238
|
1,285,811
|
1,287,304
|
Diluted (in thousands)
|
1,290,938
|
1,290,965
|
1,289,947
|
For the three-month period ended
|
For the year ended
|
||
March 31, 2023
|
March 31, 2022
|
December 31, 2022
|
|
$ millions
|
$ millions
|
$ millions
|
Net income
|
294
|
657
|
2,219
|
Components of other comprehensive income that will be reclassified subsequently to net income
|
|||
Foreign currency translation differences
|
59
|
57
|
(146)
|
Change in fair value of cash flow hedges transferred to the statement of income
|
24
|
17
|
101
|
Effective portion of the change in fair value of cash flow hedges
|
(24)
|
(19)
|
(119)
|
Tax relating to items that will be reclassified subsequently to net income
|
-
|
1
|
4
|
59
|
56
|
(160)
|
|
Components of other comprehensive income that will not be reclassified to net income
|
|||
Actuarial gains from defined benefit plans
|
10
|
42
|
83
|
Tax relating to items that will not be reclassified to net income
|
(3)
|
(7)
|
(12)
|
7
|
35
|
71
|
|
Total comprehensive income
|
360
|
748
|
2,130
|
Comprehensive income attributable to the non-controlling interests
|
18
|
25
|
40
|
Comprehensive income attributable to the shareholders of the Company
|
342
|
723
|
2,090
|
For the three-month period ended
|
For the year ended
|
||
March 31,
2023
|
March 31,
2022
|
December 31,
2022
|
|
$ millions
|
$ millions
|
$ millions
|
Cash flows from operating activities
|
|||
Net income
|
294
|
657
|
2,219
|
Adjustments for:
|
|||
Depreciation and amortization
|
130
|
122
|
498
|
Exchange rate, interest and derivative, net
|
18
|
41
|
157
|
Tax expenses
|
127
|
211
|
1,185
|
Change in provisions
|
(15)
|
(18)
|
(83)
|
Other
|
4
|
(20)
|
(15)
|
264
|
336
|
1,742
|
|
Change in inventories
|
51
|
(87)
|
(527)
|
Change in trade receivables
|
(35)
|
(469)
|
(215)
|
Change in trade payables
|
(37)
|
(6)
|
(42)
|
Change in other receivables
|
(6)
|
(1)
|
(46)
|
Change in other payables
|
(23)
|
43
|
107
|
Net change in operating assets and liabilities
|
(50)
|
(520)
|
(723)
|
Interest paid, net
|
(17)
|
(16)
|
(106)
|
Income taxes paid, net of refund
|
(109)
|
(132)
|
(1,107)
|
Net cash provided by operating activities
|
382
|
325
|
2,025
|
Cash flows from investing activities
|
|||
Payments for deposits, net
|
(44)
|
(8)
|
(36)
|
Business combinations
|
-
|
-
|
(18)
|
Purchases of property, plant and equipment and intangible assets
|
(164)
|
(131)
|
(747)
|
Proceeds from divestiture of assets and businesses, net of transaction expenses
|
3
|
20
|
33
|
Other
|
1
|
12
|
14
|
Net cash used in investing activities
|
(204)
|
(107)
|
(754)
|
Cash flows from financing activities
|
|||
Dividends paid to the Company's shareholders
|
(178)
|
(169)
|
(1,166)
|
Receipt of long-term debt
|
258
|
343
|
1,045
|
Repayments of long-term debt
|
(170)
|
(356)
|
(1,181)
|
Receipts (repayments) of short-term debt
|
37
|
(97)
|
(21)
|
Receipts from transactions in derivatives
|
6
|
19
|
20
|
Net cash used in financing activities
|
(47)
|
(260)
|
(1,303)
|
Net change in cash and cash equivalents
|
131
|
(42)
|
(32)
|
Cash and cash equivalents as of the beginning of the period
|
417
|
473
|
473
|
Net effect of currency translation on cash and cash equivalents
|
4
|
8
|
(24)
|
Cash and cash equivalents as of the end of the period
|
552
|
439
|
417
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the three-month period ended March 31, 2023
|
|||||||||
Balance as of January 1, 2023
|
549
|
233
|
(570)
|
127
|
(260)
|
5,385
|
5,464
|
249
|
5,713
|
Share-based compensation
|
-
|
-
|
-
|
3
|
-
|
-
|
3
|
-
|
3
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(178)
|
(178)
|
-
|
(178)
|
Comprehensive income
|
-
|
-
|
55
|
-
|
-
|
287
|
342
|
18
|
360
|
Balance as of March 31, 2023
|
549
|
233
|
(515)
|
130
|
(260)
|
5,494
|
5,631
|
267
|
5,898
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the three-month period ended March 31, 2022
|
|||||||||
Balance as of January 1, 2022
|
548
|
224
|
(444)
|
138
|
(260)
|
4,321
|
4,527
|
209
|
4,736
|
Share-based compensation
|
-
|
1
|
-
|
1
|
-
|
-
|
2
|
-
|
2
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(169)
|
(169)
|
-
|
(169)
|
Comprehensive income
|
-
|
-
|
57
|
(1)
|
-
|
667
|
723
|
25
|
748
|
Balance as of March 31, 2022
|
548
|
225
|
(387)
|
138
|
(260)
|
4,819
|
5,083
|
234
|
5,317
|
Attributable to the shareholders of the Company
|
Non-controlling interests
|
Total
equity
|
|||||||
Share
capital
|
Share premium
|
Cumulative translation adjustments
|
Capital reserves
|
Treasury shares,
at cost
|
Retained earnings
|
Total shareholders' equity
|
|||
$ millions
|
For the year ended December 31, 2022
|
|||||||||
Balance as of January 1, 2022
|
548
|
224
|
(444)
|
138
|
(260)
|
4,321
|
4,527
|
209
|
4,736
|
Share-based compensation
|
1
|
9
|
-
|
3
|
-
|
-
|
13
|
-
|
13
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
(1,166)
|
(1,166)
|
-
|
(1,166)
|
Comprehensive income
|
-
|
-
|
(126)
|
(14)
|
-
|
2,230
|
2,090
|
40
|
2,130
|
Balance as of December 31, 2022
|
549
|
233
|
(570)
|
127
|
(260)
|
5,385
|
5,464
|
249
|
5,713
|
A. |
The Reporting Entity
|
A. |
Basis of Preparation
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended March 31, 2023
|
|||||||
Sales to external parties
|
351
|
530
|
659
|
553
|
5
|
-
|
2,098
|
Inter-segment sales
|
10
|
53
|
55
|
11
|
1
|
(130)
|
-
|
Total sales
|
361
|
583
|
714
|
564
|
6
|
(130)
|
2,098
|
Segment operating income (loss)
|
90
|
254
|
115
|
32
|
(2)
|
(9)
|
480
|
Other expense not allocated to the segments
|
(15)
|
||||||
Operating income
|
465
|
||||||
Financing expenses, net
|
(44)
|
||||||
Income before income taxes
|
421
|
||||||
Depreciation and amortization
|
15
|
44
|
55
|
13
|
1
|
2
|
130
|
Capital expenditures
|
26
|
84
|
54
|
24
|
3
|
2
|
193
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended March 31, 2022
|
|||||||
Sales to external parties
|
488
|
728
|
748
|
556
|
5
|
-
|
2,525
|
Inter-segment sales
|
6
|
67
|
50
|
10
|
1
|
(134)
|
-
|
Total sales
|
494
|
795
|
798
|
566
|
6
|
(134)
|
2,525
|
Segment operating income (loss)
|
188
|
410
|
200
|
93
|
(3)
|
(8)
|
880
|
Other income not allocated to the segments
|
22
|
||||||
Operating income
|
902
|
||||||
Financing expenses, net
|
(34)
|
||||||
Income before income taxes
|
868
|
||||||
Depreciation and amortization
|
15
|
40
|
47
|
17
|
1
|
2
|
122
|
Capital expenditures
|
22
|
62
|
49
|
17
|
1
|
2
|
153
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2022
|
|||||||
Sales to external parties
|
1,737
|
3,031
|
2,851
|
2,376
|
20
|
-
|
10,015
|
Inter-segment sales
|
29
|
282
|
255
|
46
|
3
|
(615)
|
-
|
Total sales
|
1,766
|
3,313
|
3,106
|
2,422
|
23
|
(615)
|
10,015
|
Segment operating income (loss)
|
628
|
1,822
|
777
|
378
|
(9)
|
(87)
|
3,509
|
Other income not allocated to the segments
|
7
|
||||||
Operating income
|
3,516
|
||||||
Financing expenses, net
|
(113)
|
||||||
Share in earnings of equity-accounted investees
|
1
|
||||||
Income before income taxes
|
3,404
|
||||||
Depreciation and amortization
|
61
|
166
|
189
|
70
|
3
|
9
|
498
|
Capital expenditures
|
90
|
346
|
259
|
101
|
9
|
17
|
822
|
1-3/2023
|
1-3/2022
|
1-12/2022
|
||||
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
Brazil
|
390
|
19
|
490
|
19
|
2,200
|
22
|
USA
|
334
|
16
|
380
|
15
|
1,457
|
15
|
China
|
282
|
13
|
449
|
18
|
1,495
|
15
|
United Kingdom
|
170
|
8
|
119
|
5
|
448
|
4
|
Germany
|
110
|
5
|
114
|
5
|
417
|
4
|
Spain
|
99
|
5
|
95
|
4
|
365
|
4
|
France
|
85
|
4
|
78
|
3
|
305
|
3
|
Israel
|
66
|
3
|
83
|
3
|
344
|
3
|
Netherlands
|
58
|
3
|
61
|
2
|
264
|
3
|
Italy
|
52
|
2
|
53
|
2
|
156
|
2
|
All other
|
452
|
22
|
603
|
24
|
2,564
|
25
|
Total
|
2,098
|
100
|
2,525
|
100
|
10,015
|
100
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended March 31, 2023
|
|||||||
Europe
|
142
|
237
|
207
|
234
|
5
|
(53)
|
772
|
Asia
|
86
|
97
|
178
|
84
|
-
|
(8)
|
437
|
South America
|
6
|
157
|
100
|
159
|
-
|
(2)
|
420
|
North America
|
109
|
40
|
178
|
38
|
-
|
(7)
|
358
|
Rest of the world
|
18
|
52
|
51
|
49
|
1
|
(60)
|
111
|
Total
|
361
|
583
|
714
|
564
|
6
|
(130)
|
2,098
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended March 31, 2022
|
|||||||
Europe
|
156
|
149
|
212
|
251
|
5
|
(49)
|
724
|
Asia
|
211
|
232
|
239
|
66
|
-
|
(11)
|
737
|
South America
|
11
|
244
|
117
|
146
|
-
|
(2)
|
516
|
North America
|
97
|
100
|
170
|
49
|
-
|
(1)
|
415
|
Rest of the world
|
19
|
70
|
60
|
54
|
1
|
(71)
|
133
|
Total
|
494
|
795
|
798
|
566
|
6
|
(134)
|
2,525
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the year ended December 31, 2022
|
|||||||
Europe
|
574
|
698
|
881
|
880
|
18
|
(242)
|
2,809
|
Asia
|
664
|
1,008
|
817
|
286
|
-
|
(32)
|
2,743
|
South America
|
40
|
938
|
496
|
849
|
-
|
(8)
|
2,315
|
North America
|
401
|
365
|
654
|
166
|
1
|
(10)
|
1,577
|
Rest of the world
|
87
|
304
|
258
|
241
|
4
|
(323)
|
571
|
Total
|
1,766
|
3,313
|
3,106
|
2,422
|
23
|
(615)
|
10,015
|
March 31, 2023
|
March 31, 2022
|
December 31, 2022
|
||||
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
|
$ millions
|
$ millions
|
$ millions
|
Loans bearing fixed interest
|
343
|
297
|
370
|
360
|
339
|
302
|
Debentures bearing fixed interest
|
||||||
Marketable
|
1,228
|
1,144
|
1,399
|
1,434
|
1,335
|
1,270
|
Non-marketable
|
193
|
187
|
193
|
199
|
195
|
191
|
1,764
|
1,628
|
1,962
|
1,993
|
1,869
|
1,763
|
Level 2
|
March 31,
2023
|
March 31,
2022
|
December 31, 2022
|
$ millions
|
$ millions
|
$ millions
|
Derivatives designated as economic hedge, net
|
(25)
|
5
|
(25)
|
Derivatives designated as cash flow hedge, net
|
(18)
|
82
|
9
|
(43)
|
87
|
(16)
|
Up to 33% credit:
|
SOFR/EURIBOR + 0.8%
|
From 33% to 66% credit:
|
SOFR/EURIBOR + 0.9%
|
66% credit or more:
|
SOFR/EURIBOR + 1.05%
|
Decision date for dividend distribution by the Board of Directors
|
Actual date of dividend distribution
|
Distributed amount
($ millions)
|
Dividend per share ($)
|
February 14, 2023
|
March 15, 2023
|
178
|
0.14
|
May 9, 2023 *
|
June 14, 2023
|
146
|
0.11
|
|
ICL Group Ltd.
|
|||
|
|
|||
|
By:
|
/s/ Aviram Lahav
|
||
|
|
Name:
|
Aviram Lahav
|
|
|
|
Title:
|
Chief Financial Officer
|
|
ICL Group Ltd.
|
|||
|
|
|||
|
By:
|
/s/ Aya Landman
|
||
|
|
Name:
|
Aya Landman
|
|
|
|
Title:
|
VP, Chief Compliance Officer & Corporate Secretary
|