1.
|
Q4 2023 and FY 2023 Results
|
ICL Group Ltd
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|||||
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
Sales
|
1,690
|
-
|
2,091
|
-
|
7,536
|
-
|
10,015
|
-
|
|
Gross profit
|
560
|
33
|
933
|
45
|
2,671
|
35
|
5,032
|
50
|
|
Operating income
|
149
|
9
|
540
|
26
|
1,141
|
15
|
3,516
|
35
|
|
Adjusted operating income (1)
|
211
|
12
|
562
|
27
|
1,218
|
16
|
3,509
|
35
|
|
Net income attributable to the Company's shareholders
|
67
|
4
|
331
|
16
|
647
|
9
|
2,159
|
22
|
|
Adjusted net income attributable to the Company’s shareholders (1)
|
123
|
7
|
358
|
17
|
715
|
9
|
2,350
|
23
|
|
Diluted earnings per share (in dollars)
|
0.05
|
-
|
0.25
|
-
|
0.50
|
-
|
1.67
|
-
|
|
Diluted adjusted earnings per share (in dollars) (2)
|
0.10
|
-
|
0.28
|
-
|
0.55
|
-
|
1.82
|
-
|
|
Adjusted EBITDA (2)
|
357
|
21
|
698
|
33
|
1,754
|
23
|
4,007
|
40
|
|
Cash flows from operating activities
|
415
|
-
|
467
|
-
|
1,595
|
-
|
2,025
|
-
|
|
Purchases of property, plant and equipment and intangible assets (3)
|
255
|
-
|
212
|
-
|
780
|
-
|
747
|
-
|
(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
|
||||||||
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
2023
|
2022
|
Segment operating income
|
39
|
95
|
122
|
340
|
74
|
116
|
(5)
|
32
|
Depreciation and amortization
|
17
|
15
|
46
|
45
|
59
|
49
|
20
|
24
|
Segment EBITDA
|
56
|
110
|
168
|
385
|
133
|
165
|
15
|
56
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
299
|
349
|
1,227
|
1,766
|
Sales to external customers
|
294
|
343
|
1,206
|
1,737
|
Sales to internal customers
|
5
|
6
|
21
|
29
|
Segment Operating Income
|
39
|
95
|
220
|
628
|
Depreciation and amortization
|
17
|
15
|
57
|
61
|
Segment EBITDA
|
56
|
110
|
277
|
689
|
Capital expenditures
|
29
|
27
|
91
|
90
|
• |
Flame retardants: Sales of both bromine and phosphorous-based flame retardants decreased year-over-year due to lower prices, as electronics and
construction end-market demand remained subdued.
|
• |
Industrial solutions: Elemental bromine sales decreased year-over-year, as higher volumes only partially offset lower bromine prices.
|
• |
Oil and gas: Record clear brine fluids sales and operating profit for 2023, due to strong end-market demand.
|
• |
Specialty minerals: Record operating profit for 2023, despite slightly lower volumes.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q4 2022 figures
|
349
|
(254)
|
95
|
|
Quantity
|
63
|
(34)
|
29
|
|
Price
|
(115)
|
-
|
(115)
|
|
Exchange rates
|
2
|
6
|
8
|
|
Raw materials
|
-
|
7
|
7
|
|
Energy
|
-
|
4
|
4
|
|
Transportation
|
-
|
8
|
8
|
|
Operating and other expenses
|
-
|
3
|
3
|
|
Q4 2023 figures
|
299
|
(260)
|
39
|
- |
Quantity – The positive impact on operating income was primarily related to an increase in sales volumes of bromine-based flame retardants
and elemental bromine. This was partially offset by lower sales volumes of phosphorus-based flame retardants, specialty minerals and clear brine fluids.
|
- |
Price – The negative impact on operating income was primarily due to lower selling prices of bromine and phosphorus-based flame retardants,
bromine-based industrial solutions, and specialty minerals.
|
- |
Exchange rates – The favorable impact on operating income was mainly 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, as well as the positive impact on sales resulting from the appreciation of the average exchange rate of the euro against the US dollar.
|
- |
Raw materials – The positive impact on operating income was due to a decrease in raw material costs.
|
- |
Transportation – The positive impact on operating income was due to a decrease in marine and inland transportation costs.
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
474
|
713
|
2,182
|
3,313
|
Potash sales to external customers
|
336
|
568
|
1,693
|
2,710
|
Potash sales to internal customers
|
49
|
36
|
129
|
184
|
Other and eliminations (1)
|
89
|
109
|
360
|
419
|
Gross Profit
|
231
|
456
|
1,171
|
2,292
|
Segment Operating Income
|
122
|
340
|
668
|
1,822
|
Depreciation and amortization
|
46
|
45
|
175
|
166
|
Segment EBITDA
|
168
|
385
|
843
|
1,988
|
Capital expenditures
|
132
|
92
|
384
|
346
|
Potash price - CIF ($ per tonne)
|
345
|
594
|
393
|
682
|
(1) |
Primarily includes salt produced in Spain, metal magnesium-based products, chlorine, and sales of excess electricity produced by ICL’s power
plant at the Dead Sea in Israel.
|
• |
ICL's potash price (CIF) per tonne of $345 in the quarter was 1% higher than the third quarter of 2023 and 42% lower year-over-year.
|
• |
The Grain Price Index decreased by 6.7% during the quarter due to decreased prices of wheat, corn and soybean by 16.2%, 12.8% and 8.5%,
respectively, partially offset by an increase in prices of rice by 5.4%.
|
• |
The WASDE (World Agricultural Supply and Demand Estimates) report, published by the USDA in January 2024, showed a continued decrease in the
expected ratio of global inventories of grains to consumption to 27.7% for the 2023/24 agriculture year, compared to 28.1% for the 2022/23 agriculture year and 28.4% for the 2021/22 agriculture year.
|
• |
Freight rates have been increasing, with disruptions in the Red Sea and in Panama. Suez Canal shipments have plummeted due to the security situation in the area with many vessels rerouted around southern
Africa, and the Panama Canal is navigating a historic water crisis, limiting the number of ships crossing.
|
Average prices
|
10-12/2023
|
10-12/2022
|
VS Q4 2022
|
7-9/2023
|
VS Q3 2023
|
Granular potash – Brazil
|
CFR spot
($ per tonne)
|
336
|
570
|
(41.1)%
|
351
|
(4.3)%
|
Granular potash – Northwest Europe
|
CIF spot/contract
(€ per tonne)
|
388
|
813
|
(52.3)%
|
392
|
(1.0)%
|
Standard potash – Southeast Asia
|
CFR spot
($ per tonne)
|
318
|
675
|
(52.9)%
|
309
|
2.9%
|
Potash imports
|
||||||
To Brazil
|
million tonnes
|
3.4
|
1.5
|
126.7%
|
3.6
|
(5.6)%
|
To China
|
million tonnes
|
3.6
|
1.8
|
100.0%
|
2.9
|
24.1%
|
To India
|
million tonnes
|
0.8
|
0.5
|
60.0%
|
0.6
|
33.3%
|
Thousands of tons
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
Production
|
1,139
|
1,224
|
4,420
|
4,691
|
Total sales (including internal sales)
|
1,179
|
1,068
|
4,683
|
4,499
|
Closing inventory
|
284
|
547
|
284
|
547
|
- |
Production – Production was 85 thousand tonnes lower year-over-year, mainly due to operational challenges and war related issues in the Dead Sea, as well as a planned production shutdown in Spain.
|
- |
Sales – The quantity of potash sold was 111 thousand tonnes higher year-over-year, mainly due to increased sales volumes to Brazil, China
and Europe.
|
- |
Production – Production was 271 thousand tonnes lower year-over-year, in the Dead Sea mainly due to operational challenges, such as weather conditions and war related issues in the fourth quarter, as
well as on-going geologic constraints in Spain.
|
- |
Sales – The quantity of potash sold was 184 thousand tonnes higher year-over-year, mainly due to increased sales volumes to Europe and
China, partially offset by lower sales volumes to India, Brazil and the US.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q4 2022 figures
|
713
|
(373)
|
340
|
|
Quantity
|
11
|
2
|
13
|
|
Price
|
(255)
|
-
|
(255)
|
|
Exchange rates
|
5
|
3
|
8
|
|
Raw materials
|
-
|
4
|
4
|
|
Energy
|
-
|
5
|
5
|
|
Transportation
|
-
|
(2)
|
(2)
|
|
Operating and other expenses
|
-
|
9
|
9
|
|
Q4 2023 figures
|
474
|
(352)
|
122
|
- |
Quantity – The positive impact on operating income was primarily related to an increase in sales volumes of potash to China, Brazil and
Europe, partially offset by lower sales volumes to India and the US.
|
- |
Price – The negative impact on operating income resulted primarily from a decrease of $249 in the potash price (CIF) per tonne,
year-over-year.
|
- |
Exchange rates – The favorable impact on operating income was due to a positive impact on sales resulting from the appreciation of the
average exchange rate of the euro and the British pound against the US dollar, as well as 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 positive impact on operating income was primarily due to a decrease in electricity and gas prices.
|
- |
Operating and other expenses – The positive impact on operating income was primarily related to operational savings.
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
544
|
627
|
2,483
|
3,106
|
Sales to external customers
|
503
|
574
|
2,274
|
2,851
|
Sales to internal customers
|
41
|
53
|
209
|
255
|
Segment Operating Income
|
74
|
116
|
329
|
777
|
Depreciation and amortization*
|
59
|
49
|
221
|
189
|
Segment EBITDA
|
133
|
165
|
550
|
966
|
Phosphate specialties EBITDA
|
55
|
79
|
277
|
436
|
Phosphate commodities EBITDA
|
78
|
86
|
273
|
530
|
Capital expenditures
|
90
|
78
|
272
|
259
|
• |
White phosphoric acid (WPA): Sales decreased year-over-year, as higher volumes - mainly in Europe – only partially offset lower prices.
|
• |
Industrial specialties: Sales decreased year-over-year, with lower prices in key markets, partially offset by higher volumes globally.
|
• |
Food specialties: Volumes in Europe increased year-over-year, while global sales declined versus the prior year, due to lower volumes in the
Americas related to a slower than expected recovery in consumer demand.
|
• |
A positive pricing effect continued into the fourth quarter of 2023 with prices up to 15% higher when compared to the third quarter average.
Negative sentiment was generated early in the quarter due to a reduction of DAP subsidies by India and a reduction of countervailing duties (CVDs) by the US on OCP, partially offset by lower market liquidity due to China’s decision to limit
exports.
|
- |
In India, DAP prices decreased by $7/t from the previous quarter to $593/t CFR, due to the government’s decision to reduce the DAP subsidy for the
rabi crop, which lowered demand for imports.
|
- |
US phosphate imports remained firm in October 2023, as distributors continued to restock depleted inventories. DAP FOB Nola prices increased by 7%
during the quarter, finishing the year at $623/t despite decreased volumes in November and December, and the US Department of Commerce’s decision to decrease OCP’s CVDs from 19.97% to 2.12%.
|
- |
In Brazil, MAP prices were 6% higher in the quarter, reaching $563/t at the end of December. A lack of prompt availability and poor weather, which
created a delayed import window for soy planting, continued to support prices at a time when demand usually begins to wane.
|
- |
In November 2023, China’s economic planning committee, the NDRC, suspended review of new export applications until year-end, in an effort to lower
domestic prices.
|
• |
Indian phosphoric acid prices are negotiated on a quarterly basis. The fourth quarter price was agreed at $985/t P2O5, up $135 from the third
quarter price, reflecting a surge in DAP/MAP prices during the fourth quarter. The price for the first quarter of 2024 is still under negotiation.
|
• |
Spot sulphur FOB Middle East eased to $78/t at the end of December, down from $108/t at the beginning of the quarter, as concerns over Chinese
demand and ample availability weighed on fundamentals.
|
Average prices
|
$ per tonne
|
10-12/2023
|
10-12/2022
|
VS Q4 2022
|
07-09/2023
|
VS Q3 2023
|
DAP
|
CFR India Bulk Spot
|
594
|
734
|
(19)%
|
518
|
15%
|
TSP
|
CFR Brazil Bulk Spot
|
422
|
543
|
(22)%
|
394
|
7%
|
SSP
|
CPT Brazil inland 18-20% P2O5 Bulk Spot
|
278
|
270
|
3%
|
275
|
1%
|
Sulphur
|
Bulk FOB Adnoc monthly Bulk contract
|
102
|
138
|
(26)%
|
82
|
24%
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q4 2022 figures
|
627
|
(511)
|
116
|
|
Quantity
|
(7)
|
8
|
1
|
|
Price
|
(81)
|
-
|
(81)
|
|
Exchange rates
|
5
|
1
|
6
|
|
Raw materials
|
-
|
24
|
24
|
|
Energy
|
-
|
(1)
|
(1)
|
|
Transportation
|
-
|
(3)
|
(3)
|
|
Operating and other expenses
|
-
|
12
|
12
|
|
Q4 2023 figures
|
544
|
(470)
|
74
|
- |
Quantity – The positive impact on operating income was primarily related to higher volumes of phosphate fertilizers and white phosphoric
acid (WPA). This was partially offset by lower sales volumes of phosphate-based food additives and MAP used as raw material for energy storage solutions.
|
- |
Price – The negative impact on operating income was primarily due to lower selling prices of WPA, phosphate fertilizers and salts.
|
- |
Exchange rates – The favorable impact on operating income was mainly due to the positive impact on sales resulting from the appreciation of
the average exchange rate of the euro against the US dollar which exceeded its negative impact on operational costs, as well as the positive impact on operational costs due to the depreciation of the average exchange rate of the Israeli
shekel and the Chinese yuan against the US dollar.
|
- |
Raw materials – The positive impact on operating income was mainly due to lower costs of sulphur, potassium hydroxide (KOH) and caustic
soda.
|
- |
Operating and other expenses – The positive impact on operating income was primarily related to lower maintenance and operational costs.
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Segment Sales
|
478
|
527
|
2,073
|
2,422
|
Sales to external customers
|
475
|
513
|
2,047
|
2,376
|
Sales to internal customers
|
3
|
14
|
26
|
46
|
Segment Operating Income
|
(5)
|
32
|
51
|
378
|
Depreciation and amortization
|
20
|
24
|
68
|
70
|
Segment EBITDA
|
15
|
56
|
119
|
448
|
Capital expenditures
|
36
|
38
|
92
|
101
|
• |
Specialty agriculture: Sales slightly decreased year-over-year, due to lower prices, partially offset by an increase in volumes, mainly in
micronutrients, controlled released fertilizers and straight fertilizers.
|
• |
Turf and ornamental: Sales decreased year-over-year, with turf sales decreasing, while ornamental horticulture sales remained stable.
|
• |
Brazil: Weather-related challenges delayed fourth quarter orders, impacting both quarter and full year results.
|
• |
ICL Boulby: Production of Polysulphate decreased by 6% year-over-year for the fourth quarter, declining to 238 thousand tonnes. For 2023
production reached 1,009 thousand tonnes, an annual production record.
|
• |
FertilizerpluS: sales decreased year-over-year, as higher volumes only partially offset lower prices.
|
• |
Planned maintenance in certain facilities was shifted from the first quarter of 2024 to the fourth quarter of 2023, as a response to application
delays in Europe, mainly due to weather, and Israel, mainly due to the war.
|
• |
In the beginning of 2024, the Company completed the acquisition of Nitro 1000, a manufacturer, developer and provider of biological crop inputs in Brazil, for a consideration of $30 million. Nitro 1000’s
products mainly target soybean, corn and sugar cane crops, and their application replaces or optimizes the use of fertilizers. These products help farmers increase profitability, as well as offer more sustainable options.
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q4 2022 figures
|
527
|
(495)
|
32
|
|
Quantity
|
98
|
(67)
|
31
|
|
Price
|
(165)
|
-
|
(165)
|
|
Exchange rates
|
18
|
(16)
|
2
|
|
Raw materials
|
-
|
111
|
111
|
|
Energy
|
-
|
1
|
1
|
|
Transportation
|
-
|
2
|
2
|
|
Operating and other expenses
|
-
|
(19)
|
(19)
|
|
Q4 2023 figures
|
478
|
(483)
|
(5)
|
- |
Quantity – The positive impact on operating income was primarily due to higher sales volumes of specialty agriculture and FertilizerpluS
products.
|
- |
Price – The negative impact on operating income was primarily due to lower selling prices across most product lines, mainly specialty
agriculture and FertilizerpluS products.
|
- |
Exchange rates – The favorable impact on operating income was primarily due to the positive impact on sales resulting from the appreciation
of the average exchange rate of the Brazilian real and the euro against the US dollar, which exceeded their negative impact on operational costs.
|
- |
Raw materials – The positive impact on operating income was primarily related to lower costs of commodity fertilizers, potassium hydroxide
(KOH) and ammonia.
|
- |
Operating and other expenses – The negative impact on operating income was primarily related to higher maintenance and operational costs,
as well as sales commissions.
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Operating income
|
149
|
540
|
1,141
|
3,516
|
Provision for early retirement (1)
|
16
|
-
|
16
|
-
|
Write-off of assets and provision for site closure (2)
|
34
|
-
|
49
|
-
|
Legal proceedings, dispute and other settlement expenses (3)
|
(2)
|
22
|
(2)
|
22
|
Charges related to the security situation in Israel (4)
|
14
|
-
|
14
|
-
|
Divestment related items and transaction costs (5)
|
-
|
-
|
-
|
(29)
|
Total adjustments to operating income
|
62
|
22
|
77
|
(7)
|
Adjusted operating income
|
211
|
562
|
1,218
|
3,509
|
Net income attributable to the shareholders of the Company
|
67
|
331
|
647
|
2,159
|
Total adjustments to operating income
|
62
|
22
|
77
|
(7)
|
Total tax adjustments (6)
|
(6)
|
5
|
(9)
|
198
|
Total adjusted net income - shareholders of the Company
|
123
|
358
|
715
|
2,350
|
(1) |
For 2023, reflects provisions for early retirement, due to restructuring at certain sites, as part of the Company’s global efficiency plan.
|
(2) |
For 2023, reflects mainly a write-off of assets related to restructuring at certain sites, including site closures and facility modifications, as
part of the Company’s global efficiency plan.
|
(3) |
For 2023, reflects a reversal of a legal provision. For 2022, reflects mainly the costs of a mediation settlement regarding the claims related to
the Ashalim Stream incident.
|
(4) |
For 2023, reflects charges relating to the security situation in Israel deriving from the war which commenced on October 7, 2023.
|
(5) |
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.
|
(6) |
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.
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Net income
|
84
|
342
|
687
|
2,219
|
Financing expenses, net
|
33
|
41
|
168
|
113
|
Taxes on income
|
33
|
158
|
287
|
1,185
|
Less: Share in earnings of equity-accounted investees
|
(1)
|
(1)
|
(1)
|
(1)
|
Operating income
|
149
|
540
|
1,141
|
3,516
|
Depreciation and amortization
|
146
|
136
|
536
|
498
|
Adjustments (1)
|
62
|
22
|
77
|
(7)
|
Total adjusted EBITDA (2)
|
357
|
698
|
1,754
|
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.
|
10-12/2023
|
10-12/2022
|
1-12/2023
|
1-12/2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Net income attributable to the Company's shareholders
|
67
|
331
|
647
|
2,159
|
Adjustments (1)
|
62
|
22
|
77
|
(7)
|
Total tax adjustments
|
(6)
|
5
|
(9)
|
198
|
Adjusted net income - shareholders of the Company
|
123
|
358
|
715
|
2,350
|
Weighted-average number of diluted ordinary shares outstanding (in thousands)
|
1,290,575
|
1,291,299
|
1,290,668
|
1,289,947
|
Diluted adjusted earnings per share (in dollars) (2)
|
0.10
|
0.28
|
0.55
|
1.82
|
(1) |
See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
|
(2) |
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).
|
Sales
|
Expenses
|
Operating income
|
||
$ millions
|
Q4 2022 figures
|
2,091
|
(1,551)
|
540
|
|
Total adjustments Q4 2022*
|
-
|
22
|
22
|
|
Adjusted Q4 2022 figures
|
2,091
|
(1,529)
|
562
|
|
Quantity
|
170
|
(84)
|
86
|
|
Price
|
(601)
|
-
|
(601)
|
|
Exchange rates
|
30
|
(2)
|
28
|
|
Raw materials
|
-
|
105
|
105
|
|
Energy
|
-
|
10
|
10
|
|
Transportation
|
-
|
5
|
5
|
|
Operating and other expenses
|
-
|
16
|
16
|
|
Adjusted Q4 2023 figures
|
1,690
|
(1,479)
|
211
|
|
Total adjustments Q4 2023*
|
-
|
(62)
|
(62)
|
|
Q4 2023 figures
|
1,690
|
(1,541)
|
149
|
- |
Quantity – The positive impact on operating income was primarily due to higher sales volumes of potash, bromine-based flame retardant,
elemental bromine, specialty agriculture and FertilizerpluS products, as well as phosphate fertilizers and white phosphoric acid (WPA). These were partially offset by lower sales volumes of phosphate-based food additives and magnesium.
|
- |
Price – The negative impact on operating income was primarily related to a decrease of $249 in the potash price (CIF) per tonne
year-over-year, as well as lower selling prices of specialty agriculture and FertilizerpluS products, bromine-based flame retardants, bromine-based industrial solutions, white phosphoric acid (WPA) and phosphate fertilizers.
|
- |
Exchange rates – The favorable impact on operating income was mainly due to a positive impact on sales resulting from the appreciation of
the average exchange rate of the euro and the Brazilian Real against the US dollar, which was partially offset by a negative impact on operational costs resulting from the above-mentioned appreciation, together with a positive impact due to
the depreciation of the average exchange rate of the Israeli shekel against the US dollar.
|
- |
Raw materials – The positive impact on operating income was due to lower costs of sulphur, commodity fertilizers, potassium hydroxide
(KOH), raw materials used in the production of industrial solutions products, and caustic soda.
|
- |
Energy – The positive impact on operating income was due to lower gas and electricity prices.
|
- |
Transportation – The positive impact on operating income resulted from decreased marine transportation costs.
|
- |
Operating and other expenses – The positive impact on operating income was primarily related to lower operational costs and sales
commissions.
|
10-12/2023
|
10-12/2022
|
|||
$ millions
|
% of Sales
|
$ millions
|
% of Sales
|
Europe
|
464
|
27
|
608
|
29
|
|
Asia
|
440
|
26
|
592
|
28
|
|
South America
|
364
|
22
|
396
|
19
|
|
North America
|
318
|
19
|
358
|
17
|
|
Rest of the world
|
104
|
6
|
137
|
7
|
|
Total
|
1,690
|
100
|
2,091
|
100
|
- |
Europe – The decrease in sales was primarily due to lower selling prices of potash, phosphate fertilizers, FertilizerpluS and specialty
agriculture products and WPA, as well as lower sales volumes and selling prices of bromine-based flame retardants and salts, together with lower volumes of bromine-based industrial solutions. The decrease was partially offset by higher
sales volumes of potash, phosphate fertilizers, FertilizerpluS and specialty agriculture products and WPA, together with a positive impact on sales resulting from the appreciation 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 MAP used as raw material for energy
storage solutions, as well as lower selling prices of bromine-based flame retardants, bromine-based industrial solutions, specialty agriculture products, together with lower volumes of clear brine fluids and phosphate fertilizers. The
decrease was partially offset by higher sales volumes of bromine-based flame retardants, bromine-based industrial solutions, specialty agriculture products and WPA.
|
- |
South America – The decrease in sales was primarily due to lower selling prices of potash and specialty agriculture products, partially
offset by higher sales volumes of the above-mentioned products.
|
- |
North America – The decrease in sales was primarily due to lower selling prices and sales volumes of potash, magnesium and phosphate-based
flame retardants, as well as lower sales volumes of phosphate-based food additives. This was partially offset by higher sales volumes of phosphate fertilizers and specialty agriculture products, together with higher prices of
phosphate-based food additives.
|
- |
Rest of the world – The decrease in sales was primarily due to lower sales volumes and selling prices of potash and phosphate fertilizers,
as well as lower volumes of FertilizerpluS products, together with lower selling prices of specialty agriculture products and bromine-based industrial solutions, partially offset by higher sales volumes of bromine-based industrial solutions
and specialty agriculture products.
|
December 31,
2023 |
December 31,
2022 |
|
$ millions
|
$ millions
|
Current assets
|
||
Cash and cash equivalents
|
420
|
417
|
Short-term investments and deposits
|
172
|
91
|
Trade receivables
|
1,376
|
1,583
|
Inventories
|
1,703
|
2,134
|
Prepaid expenses and other receivables
|
363
|
323
|
Total current assets
|
4,034
|
4,548
|
Non-current assets
|
||
Deferred tax assets
|
152
|
150
|
Property, plant and equipment
|
6,329
|
5,969
|
Intangible assets
|
873
|
852
|
Other non-current assets
|
239
|
231
|
Total non-current assets
|
7,593
|
7,202
|
Total assets
|
11,627
|
11,750
|
Current liabilities
|
||
Short-term debt
|
858
|
512
|
Trade payables
|
912
|
1,006
|
Provisions
|
85
|
81
|
Other payables
|
783
|
1,007
|
Total current liabilities
|
2,638
|
2,606
|
Non-current liabilities
|
||
Long-term debt and debentures
|
1,829
|
2,312
|
Deferred tax liabilities
|
489
|
423
|
Long-term employee liabilities
|
354
|
402
|
Long-term provisions and accruals
|
224
|
234
|
Other
|
56
|
60
|
Total non-current liabilities
|
2,952
|
3,431
|
Total liabilities
|
5,590
|
6,037
|
Equity
|
||
Total shareholders’ equity
|
5,768
|
5,464
|
Non-controlling interests
|
269
|
249
|
Total equity
|
6,037
|
5,713
|
Total liabilities and equity
|
11,627
|
11,750
|
For the three-month
period ended
|
For the year ended
|
|||
December 31, 2023
|
December 31, 2022
|
December 31, 2023
|
December 31, 2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Sales
|
1,690
|
2,091
|
7,536
|
10,015
|
Cost of sales
|
1,130
|
1,158
|
4,865
|
4,983
|
Gross profit
|
560
|
933
|
2,671
|
5,032
|
Selling, transport and marketing expenses
|
286
|
281
|
1,093
|
1,181
|
General and administrative expenses
|
71
|
78
|
260
|
291
|
Research and development expenses
|
17
|
15
|
71
|
68
|
Other expenses
|
44
|
24
|
128
|
30
|
Other income
|
(7)
|
(5)
|
(22)
|
(54)
|
Operating income
|
149
|
540
|
1,141
|
3,516
|
Finance expenses
|
4
|
65
|
259
|
327
|
Finance income
|
29
|
(24)
|
(91)
|
(214)
|
Finance expenses, net
|
33
|
41
|
168
|
113
|
Share in earnings of equity-accounted investees
|
1
|
1
|
1
|
1
|
Income before taxes on income
|
117
|
500
|
974
|
3,404
|
Taxes on income
|
33
|
158
|
287
|
1,185
|
Net income
|
84
|
342
|
687
|
2,219
|
Net income attributable to the non-controlling interests
|
17
|
11
|
40
|
60
|
Net income attributable to the shareholders of the Company
|
67
|
331
|
647
|
2,159
|
Earnings per share attributable to the shareholders of the Company:
|
||||
Basic earnings per share (in dollars)
|
0.05
|
0.26
|
0.50
|
1.68
|
Diluted earnings per share (in dollars)
|
0.05
|
0.25
|
0.50
|
1.67
|
Weighted-average number of ordinary shares outstanding:
|
||||
Basic (in thousands)
|
1,289,449
|
1,289,100
|
1,289,361
|
1,287,304
|
Diluted (in thousands)
|
1,290,575
|
1,291,299
|
1,290,668
|
1,289,947
|
For the three-month period ended
|
For the year ended
|
|||
December 31, 2023
|
December 31, 2022
|
December 31, 2023
|
December 31, 2022
|
|
$ millions
|
$ millions
|
$ millions
|
$ millions
|
Cash flows from operating activities
|
||||
Net income
|
84
|
342
|
687
|
2,219
|
Adjustments for:
|
||||
Depreciation and amortization
|
146
|
136
|
536
|
498
|
Exchange rate, interest and derivative, net
|
(51)
|
(4)
|
24
|
157
|
Tax expenses
|
33
|
158
|
287
|
1,185
|
Change in provisions
|
9
|
(8)
|
(32)
|
(83)
|
Other
|
22
|
4
|
29
|
(15)
|
159
|
286
|
844
|
1,742
|
|
Change in inventories
|
50
|
(72)
|
465
|
(527)
|
Change in trade receivables
|
47
|
149
|
252
|
(215)
|
Change in trade payables
|
66
|
(100)
|
(101)
|
(42)
|
Change in other receivables
|
37
|
12
|
26
|
(46)
|
Change in other payables
|
16
|
48
|
(210)
|
107
|
Net change in operating assets and liabilities
|
216
|
37
|
432
|
(723)
|
Interest paid, net
|
(37)
|
(38)
|
(115)
|
(106)
|
Income taxes paid, net of refund
|
(7)
|
(160)
|
(253)
|
(1,107)
|
Net cash provided by operating activities
|
415
|
467
|
1,595
|
2,025
|
Cash flows from investing activities
|
||||
Proceeds (payments) from deposits, net
|
(10)
|
1
|
(88)
|
(36)
|
Purchases of property, plant and equipment and intangible assets
|
(255)
|
(212)
|
(780)
|
(747)
|
Proceeds from divestiture of assets and businesses, net of transaction expenses
|
-
|
4
|
4
|
33
|
Business combinations
|
-
|
-
|
-
|
(18)
|
Other
|
-
|
-
|
1
|
14
|
Net cash used in investing activities
|
(265)
|
(207)
|
(863)
|
(754)
|
Cash flows from financing activities
|
||||
Dividends paid to the Company's shareholders
|
(68)
|
(314)
|
(474)
|
(1,166)
|
Receipt of long-term debt
|
149
|
311
|
633
|
1,045
|
Repayments of long-term debt
|
(183)
|
(383)
|
(836)
|
(1,181)
|
Receipts (repayments) of short-term debt
|
64
|
30
|
(25)
|
(21)
|
Receipts (repayments) from transactions in derivatives
|
(1)
|
1
|
5
|
20
|
Dividend paid to the non-controlling interests
|
-
|
-
|
(15)
|
-
|
Net cash used in financing activities
|
(39)
|
(355)
|
(712)
|
(1,303)
|
Net change in cash and cash equivalents
|
111
|
(95)
|
20
|
(32)
|
Cash and cash equivalents as of the beginning of the period
|
307
|
498
|
417
|
473
|
Net effect of currency translation on cash and cash equivalents
|
2
|
14
|
(17)
|
(24)
|
Cash and cash equivalents as of the end of the period
|
420
|
417
|
420
|
417
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended December 31, 2023
|
|||||||
Sales to external parties
|
294
|
408
|
503
|
475
|
10
|
-
|
1,690
|
Inter-segment sales
|
5
|
66
|
41
|
3
|
(1)
|
(114)
|
-
|
Total sales
|
299
|
474
|
544
|
478
|
9
|
(114)
|
1,690
|
Segment operating income (loss)
|
39
|
122
|
74
|
(5)
|
(1)
|
(18)
|
211
|
Other expenses not allocated to the segments
|
(62)
|
||||||
Operating income
|
149
|
||||||
Financing expenses, net
|
(33)
|
||||||
Share in earnings of equity-accounted investees
|
1
|
||||||
Income before income taxes
|
117
|
||||||
Depreciation and amortization
|
17
|
46
|
59
|
20
|
1
|
3
|
146
|
Capital expenditures
|
29
|
132
|
90
|
36
|
5
|
12
|
304
|
Industrial Products
|
Potash
|
Phosphate Solutions
|
Growing Solutions
|
Other
Activities
|
Reconciliations
|
Consolidated
|
|
$ millions
|
For the three-month period ended December 31, 2022
|
|||||||
Sales to external parties
|
343
|
656
|
574
|
513
|
5
|
-
|
2,091
|
Inter-segment sales
|
6
|
57
|
53
|
14
|
1
|
(131)
|
-
|
Total sales
|
349
|
713
|
627
|
527
|
6
|
(131)
|
2,091
|
Segment operating income (loss)
|
95
|
340
|
116
|
32
|
(2)
|
(19)
|
562
|
Other expenses not allocated to the segments
|
(22)
|
||||||
Operating income
|
540
|
||||||
Financing expenses, net
|
(41)
|
||||||
Share in earnings of equity-accounted investees
|
1
|
||||||
Income before income taxes
|
500
|
||||||
Depreciation and amortization
|
15
|
45
|
49
|
24
|
1
|
2
|
136
|
Capital expenditures
|
27
|
92
|
78
|
38
|
2
|
7
|
244
|
10-12/2023
|
10-12/2022
|
|||
$
millions
|
% of
sales
|
$
millions
|
% of
sales
|
Brazil
|
347
|
21
|
359
|
17
|
USA
|
295
|
17
|
333
|
16
|
China
|
284
|
17
|
283
|
14
|
Spain
|
77
|
5
|
80
|
4
|
United Kingdom
|
74
|
4
|
108
|
5
|
Israel
|
72
|
4
|
76
|
4
|
Germany
|
68
|
4
|
94
|
4
|
France
|
63
|
4
|
66
|
3
|
India
|
29
|
2
|
153
|
7
|
Austria
|
28
|
2
|
38
|
2
|
All other
|
353
|
20
|
501
|
24
|
Total
|
1,690
|
100
|
2,091
|
100
|
|
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
|