Delivers annual sales of $6,841 million,
adjusted EBITDA of $1,469 million and earnings per share of
$0.38
Specialties-driven EBITDA reaches 70% of total
adjusted EBITDA for the year and 73% in the fourth quarter
ICL (NYSE: ICL) (TASE: ICL), a leading global specialty
minerals company, today reported its financial results for the
fourth quarter and full year ended December 31, 2024. Consolidated
annual sales were $6,841 million versus $7,536 million in 2023. Net
income was $407 million versus $647 million, while adjusted net
income was $484 million versus $715 million in 2023. Annual
adjusted EBITDA was $1,469 million versus $1,754 million in 2023.
Diluted earnings per share for 2024 were $0.32, while adjusted
diluted EPS was $0.38. Operating cash flow was $1,468 million in
2024, similar to adjusted EBITDA, while free cash flow was $758
million. For 2024, the Company distributed $242 million in
dividends to its shareholders.
For the fourth quarter of 2024, consolidated sales were $1,601
million versus $1,690 million in the fourth quarter of 2023. Net
income and adjusted net income for the fourth quarter of 2024 were
$70 million and $104 million, respectively, versus $67 million and
$123 million, respectively, for the fourth quarter of 2023.
Adjusted EBITDA in the fourth quarter was $347 million versus $357
million in the fourth quarter of 2023. Fourth quarter diluted
earnings per share were $0.06, with adjusted diluted EPS of $0.08,
versus $0.05 and $0.10, respectively in the fourth quarter of 2023.
Operating cash flow was $452 million in the fourth quarter of 2024,
similar to the fourth quarter of 2023.
“ICL delivered 2024 adjusted EBITDA of $1,469 million, with our
specialties-driven businesses contributing 70% of that amount, as
we continued to focus on cash generation while increasing market
share across Industrial Products, Phosphate Solutions and Growing
Solutions. We remain committed to growing our leadership position
for these three businesses,” said Raviv Zoller, president and CEO
of ICL. “During 2024, amidst persistent potash price declines and
geopolitical challenges, we achieved strong profitability and
cashflow, introduced dozens of innovative specialties products,
developed new global partnerships, set production records at
multiple sites, completed complementary bolt-on acquisitions, and
continued to be vigilant in the execution of cost savings and
efficiency efforts, all while continuing to drive significant value
to our shareholders through dividends. As a result of these items,
as well as prudent timing of potash deliveries, we are entering
2025 in a solid position and looking forward to improving market
conditions in key end-markets.”
For 2025, the Company expects the specialties-driven segments'
EBITDA to be between $0.95 billion to $1.15 billion. For Potash,
the Company expects 2025 sales volumes to be between 4.5 million
metric tons and 4.7 million metric tons. (1a).
Financial Figures and non-GAAP Financial Measures
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$
millions
% of
Sales
$
millions
% of
Sales
$
millions
% of
Sales
$
millions
% of
Sales
Sales
1,601
-
1,690
-
6,841
-
7,536
-
Gross profit
535
33
560
33
2,256
33
2,671
35
Operating income
147
9
149
9
775
11
1,141
15
Adjusted operating income (1)
190
12
211
12
873
13
1,218
16
Net income attributable to the
Company's shareholders
70
4
67
4
407
6
647
9
Adjusted net income attributable
to the Company’s shareholders (1)
104
6
123
7
484
7
715
9
Diluted earnings per share (in
dollars)
0.06
-
0.05
-
0.32
-
0.50
-
Diluted adjusted earnings per
share (in dollars) (2)
0.08
-
0.10
-
0.38
-
0.55
-
Adjusted EBITDA (2)(3)
347
22
357
21
1,469
21
1,754
23
Cash flows from operating
activities (4)
452
-
452
-
1,468
-
1,710
-
Purchases of property, plant and
equipment and intangible assets (5)
267
-
255
-
713
-
780
-
(1)
See “Adjustments to Reported Operating and
Net income (non-GAAP)” below.
(2)
See "Adjusted EBITDA and Diluted Adjusted
Earnings Per Share for the periods of activity" below.
(3)
In 2024, the Company’s adjusted EBITDA was
positively impacted by an immaterial accounting reclassification.
For further information, see below in our Potash segment
results.
(4)
Commencing Q2 2024, management
reclassified interest received as cash flows from investing
activities and interest paid as cash flows from financing
activities, instead of under cash provided by operating
activities.
(5)
See “Condensed consolidated statements of
cash flows (unaudited)” in the appendix below.
Segment Information
Industrial Products
The Industrial Products segment produces bromine from a highly
concentrated solution in the Dead Sea and bromine‑based compounds
at its facilities in Israel, the Netherlands and China. In
addition, the segment produces several grades of salts, magnesium
chloride, magnesia-based products, phosphorus-based products and
functional fluids.
Results of operations and key
indicators
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
$ millions
Segment Sales
280
299
1,239
1,227
Sales to external customers
275
294
1,220
1,206
Sales to internal customers
5
5
19
21
Segment Operating
Income
55
39
224
220
Depreciation and amortization
15
17
57
57
Segment EBITDA
70
56
281
277
Capital expenditures
38
29
94
91
Significant highlights for the fourth quarter
- Flame retardants: Bromine-based sales decreased year-over-year
while phosphorus-based sales increased year-over-year, with higher
volumes, mainly in Europe, due to the implementation of duties on
imports of tris (2-chloro-1-methylethyl) phosphate (TCPP) from
China.
- Elemental bromine: Sales were nearly flat year-over-year, as
operational efficiencies allowed higher gross margins.
- Clear brine fluids: Sales decreased year-over-year, as oil and
gas demand in the Eastern Hemisphere remained softer, due to the
drilling cycle operations, resulting in lower volumes sold.
- Specialty minerals: Sales increased slightly year-over-year,
due to growth in demand from the pharma and food end-markets, which
was partially offset by lower demand for certain industrial
applications.
Results analysis for the period October
– December 2024
Sales
Expenses
Operating
income
$ millions
Q4 2023 figures
299
(260
)
39
Quantity
(13
)
10
(3
)
Price
(6
)
-
(6
)
Exchange rates
-
-
-
Raw materials
-
6
6
Energy
-
2
2
Transportation
-
(4
)
(4
)
Operating and other expenses
-
21
21
Q4 2024 figures
280
(225
)
55
- Quantity – The negative impact on
operating income was primarily related to a decrease in sales
volumes of bromine-based flame retardants and clear brine fluids.
This was partially offset by higher sales volumes of
phosphorus-based flame retardants.
- Price – The negative impact on
operating income was primarily due to lower selling prices of
bromine-based industrial solutions and bromine-based flame
retardants.
- Raw materials – The positive
impact on operating income was mainly due to decreased costs of
Bisphenol A (BPA).
- Operating and other expenses – The
positive impact on operating income was primarily related to
operational efficiencies due to higher production.
Potash
The Potash segment produces and sells mainly potash, salts,
magnesium and electricity. Potash is produced in Israel using an
evaporation process to extract potash from the Dead Sea at Sodom
and in Spain using conventional mining from an underground mine.
The segment also produces and sells pure magnesium, magnesium
alloys and chlorine. In addition, the segment sells salt products
produced at its potash site in Spain. The segment operates a power
plant in Sodom, which supplies electricity and steam to ICL
facilities in Israel with any surplus electricity sold to external
customers.
Results of operations and key
indicators
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
$ millions
Segment Sales
422
474
1,656
2,182
Potash sales to external
customers
315
336
1,237
1,693
Potash sales to internal
customers
30
49
95
129
Other and eliminations (1)
77
89
324
360
Gross Profit
162
231
650
1,171
Segment Operating
Income
69
122
250
668
Depreciation and amortization
61
46
242
175
Segment EBITDA (2)
130
168
492
843
Capital expenditures
116
132
332
384
Potash price - CIF ($ per
tonne)
285
345
299
393
(1)
Primarily includes salt produced in Spain, metal magnesium-based
products, chlorine and sales of surplus electricity produced by
ICL’s power plant at the Dead Sea in Israel.
(2)
Following a nonmaterial accounting
reclassification of certain assets, the Potash segment's EBITDA for
Q4 2024 increased by $16 million and for the full year of 2024 by
$65 million.
Significant highlights for the fourth quarter
- ICL's potash price (CIF) per tonne of $285 in the fourth
quarter was 4% lower than the third quarter and 17% lower
year-over-year.
- The Grain Price Index fell by 1.1% during the fourth quarter of
2024, with soybeans, wheat and rice 6.1%, 2.7% and 1.8% lower,
respectively, while corn prices increased by 6.8%.
- The WASDE (World Agricultural Supply and Demand Estimates)
report, published by the USDA in February 2025, showed a continued
decrease in the expected ratio of global inventories of grains to
consumption to 26.5% for the 2024/25 agriculture year, compared to
28.2% for the 2023/24 agriculture year and 28.6% for the 2022/23
agriculture year.
- In December 2024, as part of ICL's 2025-2027 Chinese framework
agreements, ICL signed contracts with its Chinese customers to
supply 2,500,000 metric tonnes of potash with mutual options for an
additional 960,000 metric tonnes in aggregate, over the course of
the three-year term. Prices for the quantities to be supplied
according to the framework agreements will be established in line
with prevailing market prices in China as of the relevant date of
supply.
- Metal Magnesium: Sales decreased year-over-year, as lower
prices offset higher volumes.
Additional segment
information
Global potash market - average prices and imports:
Average prices
10-12/2024
10-12/2023
VS Q4 2023
7-9/2024
VS Q3 2024
Granular potash – Brazil
CFR spot
($ per tonne)
288
336
(14.3
)%
300
(4.0
)%
Granular potash – Northwest
Europe
CIF spot/contract
(€ per tonne)
338
388
(12.9
)%
340
(0.6
)%
Standard potash – Southeast
Asia
CFR spot
($ per tonne)
292
318
(8.2
)%
283
3.2
%
Potash imports
To Brazil
million tonnes
2.9
3.4
(14.7
)%
3.9
(25.6
)%
To China
million tonnes
3.4
3.6
(5.6
)%
2.8
21.4
%
To India
million tonnes
1.2
0.8
50.0
%
0.6
100.0
%
Sources: CRU (Fertilizer Week Historical
Price: December 2024), SIACESP (Brazil), United Port Services
(Brazil), FAI (India), Chinese customs data, Global Trade Tracker
(GTT).
Potash – Production and
Sales
Thousands of tonnes
10-12/2024
10-12/2023
1-12/2024
1-12/2023
Production
1,178
1,139
4,502
4,420
Total sales (including internal
sales)
1,259
1,179
4,556
4,683
Closing inventory
229
284
229
284
Fourth quarter 2024
- Production – Production was 39
thousand tonnes higher year-over-year, mainly due to higher
production in Spain.
- Sales – The quantity of potash
sold was 80 thousand tonnes higher year-over-year, mainly due to
higher sales volumes in India and Europe, partially offset by lower
sales volumes in Brazil, the US and China.
Full year 2024
- Production – Production was 82
thousand tonnes higher year-over-year, mainly due to operational
improvements in Spain, which outweighed operational challenges and
war-related issues at the Dead Sea.
- Sales – The quantity of potash
sold was 127 thousand tonnes lower year-over-year, mainly due to
decreased sales volumes in China and Brazil, partially offset by
higher sales volumes in Europe, India and the US.
Results analysis for the period October
– December 2024
Sales
Expenses
Operating
income
$ millions
Q4 2023 figures
474
(352
)
122
Quantity
38
(19
)
19
Price
(90
)
-
(90
)
Exchange rates
-
1
1
Raw materials
-
(1
)
(1
)
Energy
-
(3
)
(3
)
Transportation
-
10
10
Operating and other expenses
-
11
11
Q4 2024 figures
422
(353
)
69
- Quantity – The positive impact on
operating income was primarily related to an increase in sales
volumes of magnesium, as well as an increase in potash sales
volumes in India and Europe, partially offset by lower potash sales
volumes in Brazil, the US and China.
- Price – The negative impact on
operating income resulted primarily from a decrease of $60 in the
potash price (CIF) per tonne, year-over-year.
- Transportation – The positive
impact on operating income was due to a decrease in inland costs
and marine costs, primarily to Brazil and the US.
- Operating and other expenses – The
positive impact on operating income was primarily related to lower
operational and maintenance costs.
Phosphate Solutions
The Phosphate Solutions segment operates ICL’s phosphate value
chain and uses phosphate rock and fertilizer-grade phosphoric acid
to produce phosphate-based specialty products with higher added
value, as well as to produce and sell phosphate-based
fertilizers.
Results of operations and key
indicators (1)
10-12/2024 (2)
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
$ millions
Segment Sales
507
515
2,215
2,350
Sales to external customers
475
474
2,049
2,141
Sales to internal customers
32
41
166
209
Segment Operating
Income
81
85
358
350
Depreciation and amortization
51
54
191
207
Segment EBITDA
132
139
549
557
Capital expenditures
147
89
340
270
(1)
In alignment with the Company’s efficiency
plan, which included a change of reporting responsibilities, as of
January 2024, the results of a non-phosphate related business were
allocated from the Phosphate Solutions segment to Other Activities.
Comparative figures have been restated to reflect the
organizational change in the reportable segments.
(2)
For Q4 2024, Phosphate Specialties
accounted for $309 million of segment sales, $44 million of
operating income, $13 million of D&A and $57 million of EBITDA,
while Phosphate Commodities accounted for $198 million of segment
sales, $37 million of operating income, $38 million of D&A and
represented $75 million of EBITDA.
Significant highlights for the fourth quarter
- White phosphoric acid: Sales decreased year-over-year, as
higher volumes mainly in South America were unable to offset lower
prices in all regions.
- Industrial phosphates: Sales decreased year-over-year, as
higher volumes in all major regions did not offset lower prices
related to decreasing cost input prices.
- Food phosphates: Sales were nearly flat year-over-year, as
higher volumes were offset by lower market prices, mainly in North
America, due to reduced raw material costs.
- Battery materials: Sales in Asia increased year-over-year, as
market demand expanded. Elsewhere, the Battery Materials Innovation
and Qualification Center (BM-IQ) in St. Louis is nearing
completion, which will allow ICL to begin qualifying battery
material products for customers. In January 2025, the Company
signed a strategic agreement with Shenzhen Dynanonic Co., Ltd. to
establish LFP production in Europe. The new facility is planned to
be located at ICL's Sallent site in Spain and could substantially
expand the Company’s battery materials business.
- Commodity phosphates: Overall phosphate prices remained stable
in the fourth quarter of 2024, as key markets – including India –
continued to experience a shortage of DAP and export availability
from China remained limited. Key benchmarks were on average 3%
higher quarter-over-quarter.
- Developments in key markets are described below:
- Chinese DAP export prices ended 2024 at $615/mt, $30 above 2023
prices, as the country’s trade policy continued to be a key
determinant of global pricing levels. Offshore shipments were
paused late in the fourth quarter and, at the time of writing,
Chinese DAP/MAP exports for 2024 were estimated at 6 to 7 million
mt – the second lowest amount over the past five years.
- India's DAP price was estimated at $634/mt CFR at the end of
2024 – only $6 lower than at the beginning of the fourth quarter,
defying traditionally lower demand in the Northern Hemisphere.
India imported fewer than 5 million mt of DAP and ended the year
with fewer than 1 million mt of stock versus average annual imports
of 6 million mt and an average end-of-year stock above 2 million mt
between 2019 and 2023.
- Phosphate demand in the US was firm throughout 2024.
Provisional data places fourth quarter arrivals at around 500
thousand mt, consistent with the five-year average. Imports have
been supported by attractive farmer margins during recent years and
the subsequent maximization of planted acreage. Additionally, local
phosphate production has faced various operational challenges.
Recent hurricanes not only interrupted production but also resulted
in stock loss. DAP FOB NOLA ended the fourth quarter at $637/mt,
$25/mt higher than the beginning of the quarter.
- Brazilian MAP/NPS imports accelerated in the third quarter of
2024 and remained firm through the fourth quarter, due to the
planting of the Safra soy crop. Weather conditions improved
consistently through October and November, enabling planting to
progress rapidly and supporting last minute fertilizer demand. The
Brazilian MAP price ended the fourth quarter at $635/mt CFR, flat
compared to the previous quarter.
- Indian phosphoric acid prices are negotiated on a quarterly
basis. The fourth quarter price was settled at $1,060/mt P2O5, $110
higher than the third quarter. For the first quarter of 2025, the
price was settled at $1,055/mt, reflecting a slight decrease in DAP
prices.
- Sulphur FOB Middle East ended the fourth quarter at $165/mt,
$38 higher than prevailing levels at the end of the third quarter.
The increase was driven by strong demand from key end-users,
including Morocco, where a new sulphur burner was ramping up, and,
to a lesser extent, continued tightening of supply.
Additional segment
information
Global phosphate commodities market - average prices:
Average
prices
$ per tonne
10-12/2024
10-12/2023
VS Q4 2023
7-9/2024
VS Q3 2024
DAP
CFR India Bulk Spot
637
594
7
%
598
7
%
TSP
CFR Brazil Bulk Spot
500
422
18
%
513
(3
)%
SSP
CPT Brazil inland 18-20% P2O5
Bulk Spot
270
278
(3
)%
305
(11
)%
Sulphur
Bulk FOB Adnoc monthly Bulk
contract
139
102
36
%
106
31
%
Source: CRU (Fertilizer Week Historical
Prices, December 2024).
Results analysis for the period October
– December 2024
Sales
Expenses
Operating
income
$ millions
Q4 2023 figures
515
(430
)
85
Quantity
15
(5
)
10
Price
(24
)
-
(24
)
Exchange rates
1
3
4
Raw materials
-
17
17
Energy
-
1
1
Transportation
-
6
6
Operating and other expenses
-
(18
)
(18
)
Q4 2024 figures
507
(426
)
81
- Quantity – The positive impact on
operating income was due to higher sales volumes of phosphate-based
food additives and MAP used as raw materials for energy storage
solutions, partially offset by lower sales volumes of phosphate
fertilizers and white phosphoric acid (WPA).
- Price – The negative impact on
operating income was primarily due to lower selling prices of WPA,
as well as phosphate-based food additives and salts, partially
offset by higher phosphate fertilizer selling prices.
- Raw materials –The positive impact
on operating income was due to the lower costs of ammonia and
potassium hydroxide (KOH), partially offset by the higher cost of
sulphur.
- Transportation – The positive
impact on operating income was due to a decrease in marine and
inland transportation costs.
- Operating and other expenses – The
negative impact on operating income was primarily related to higher
maintenance and operational expenses.
Growing Solutions
The Growing Solutions segment aims to achieve global leadership
in plant nutrition by enhancing its position in its core markets of
specialty agriculture, ornamental horticulture, turf and
landscaping, fertilizers and FertilizerpluS, and by targeting
high-growth markets such as Brazil, India, and China. The segment
leverages its unique R&D capabilities, substantial agronomic
experience, global footprint, backward integration to potash,
phosphate and polysulphate and its chemistry know-how, as well as
its ability to integrate and generate synergies from acquired
businesses. The segment continuously works to expand its broad
portfolio of specialty plant nutrition, plant stimulation and plant
health solutions, which consists of enhanced efficiency and
controlled release fertilizers (CRF), water-soluble fertilizers
(WSF), liquid fertilizers and straights (MKP/MAP/PeKacid),
FertilizerpluS, soil and foliar micronutrients, biostimulants, soil
conditioners, seed treatment products and adjuvants.
Results of operations and key
indicators
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
millions
Segment Sales
439
478
1,950
2,073
Sales to external customers
435
475
1,932
2,047
Sales to internal customers
4
3
18
26
Segment Operating
Income
31
(5)
128
51
Depreciation and amortization
20
20
74
68
Segment EBITDA
51
15
202
119
Capital expenditures
44
36
98
92
Significant highlights for the fourth quarter
Regional highlights:
- Brazil: Sales decreased year-over-year, mainly due to exchange
rate fluctuations, as lower raw material costs drove higher gross
profit.
- Europe: Sales decreased year-over-year as higher selling prices
were unable to offset lower sales volumes. However, lower raw
material costs drove higher gross profit.
- North America: Sales increased year-over-year due to higher
volumes and higher prices, which contributed to an increase in
gross profit.
- Asia: Sales decreased year-over-year, as higher prices were
unable to offset lower volumes. However, improved product mix drove
higher gross profit.
Product highlights:
- Specialty agriculture (SA): Sales decreased year-over-year, due
to exchange rate fluctuations and lower sales volumes, mainly in
Brazil, which were partially offset by higher sales volumes and
selling prices in the US and India.
- Turf and ornamental (T&O): Sales increased year-over-year,
primarily due to higher sales of ornamental horticulture, driven by
increased demand for CRFs in Europe. In December 2024, the segment
completed its acquisition of GreenBest, a UK-based manufacturer of
specialty fertilizers and tailored solutions. The acquisition
strengthens the Company’s position in the turf and landscape sector
and enhances its presence in the UK market, where GreenBest's
expertise in custom manufacturing capabilities complements the
Company’s existing portfolio.
- FertilizerpluS: Sales decreased year-over-year, driven
primarily by lower sales volumes, mainly in Europe and China, which
were partially offset by higher sales volumes in the US.
Results analysis for the period October
– December 2024
Sales
Expenses
Operating
income
$ millions
Q4 2023 figures
478
(483
)
(5
)
Quantity
(27
)
20
(7
)
Price
10
-
10
Exchange rates
(22
)
18
(4
)
Raw materials
-
32
32
Operating and other expenses
-
5
5
Q4 2024 figures
439
(408
)
31
- Quantity – The negative impact on
operating income was primarily related to lower sales volumes of
specialty agriculture and FertilizerpluS products. This impact was
partially offset by higher sales volumes of turf and ornamental
products.
- Price – The positive impact on
operating income was due to higher selling prices of specialty
agriculture products, mainly in the US and India.
- Exchange rates – The unfavorable
impact on operating income was due to the negative impact on sales
resulting from the depreciation of the average exchange rate of the
Brazilian real against the US dollar, which exceeded the positive
impact from lower operational costs.
- Raw materials – The positive
impact on operating income was primarily related to lower costs for
commodity fertilizers and nitrogen.
- Operating and other expenses – The
positive impact on operating income was primarily related to lower
maintenance and operational costs.
Financing expenses, net
Net financing expenses in the fourth quarter of 2024 amounted to
$33 million, the same as the corresponding quarter of last
year.
Tax expenses
In the fourth quarter of 2024, the Company’s reported tax
expenses amounted to $33 million, compared to $33 million in the
corresponding quarter of last year, reflecting an effective tax
rate of 29% and 28%, respectively.
Liquidity and Capital Resources
As of December 31, 2024, the Company’s cash, cash equivalents,
short-term investments and deposits amounted to $442 million
compared to $592 million as of December 31, 2023. In addition, the
Company maintained about $1.2 billion of unused credit facilities,
as of December 31, 2024.
Outstanding net debt
As of December 31, 2024, ICL’s net financial liabilities
amounted to $1,851 million, a decrease of $244 million compared to
December 31, 2023.
Credit facilities
Sustainability-linked Revolving Credit
Facility (RCF)
In April 2023, the Company entered into a Sustainability-Linked
Revolving Credit Facility Agreement between its subsidiary ICL
Finance B.V., as borrower, and a consortium of 12 international
banks for $1,550 million.
In April 2024, all the banks agreed to extend the RCF agreement
for an additional year which is now due to expire in April 2029. As
of December 31, 2024, the Company had utilized about $520 million
of its $1,550 million credit facility framework.
Securitization
The total amount of the Company's committed securitization
facility framework is $300 million, with an additional $100 million
uncommitted. As of December 31, 2024, ICL had utilized
approximately $176 million of the facility’s framework.
Ratings and financial covenants
Fitch Ratings
In June of 2024, Fitch Ratings reaffirmed the Company’s
long-term issuer default rating and senior unsecured rating at
'BBB-'. The outlook on the long-term issuer default rating is
stable.
S&P Ratings
In July of 2024, S&P reaffirmed the Company’s international
credit rating and senior unsecured rating of 'BBB-'. In addition,
S&P Maalot reaffirmed the Company’s credit rating of 'ilAA'
with a stable rating outlook.
Financial covenants
As of December 31, 2024, the Company was in compliance with all
of the financial covenants stipulated in its financing
agreements.
Dividend Distribution
In connection with ICL’s fourth quarter 2024 results, the Board
of Directors declared a dividend of 4.03 cents per share, or
approximately $52 million. The dividend will be paid on March 25,
2025. The record date is March 12, 2025.
About ICL
ICL Group Ltd. is a leading global specialty minerals company,
which creates impactful solutions for humanity’s sustainability
challenges in the food, agriculture, and industrial markets. ICL
leverages its unique bromine, potash, and phosphate resources, its
global professional workforce, and its sustainability focused
R&D and technological innovation capabilities, to drive the
Company’s growth across its end markets. ICL shares are dual listed
on the New York Stock Exchange and the Tel Aviv Stock Exchange
(NYSE and TASE: ICL). The Company employs more than 12,000 people
worldwide, and its 2024 revenue totaled approximately $7 billion.
For more information, visit the Company’s website at
www.icl-group.com1.
We disclose in this quarterly report non-IFRS financial measures
titled adjusted operating income, adjusted net income attributable
to the Company’s shareholders, diluted adjusted earnings per share,
and adjusted EBITDA. Our management uses adjusted operating income,
adjusted net income attributable to the Company’s shareholders,
diluted adjusted earnings per share, and adjusted EBITDA to
facilitate operating performance comparisons from period to period.
We calculate our adjusted operating income by adjusting our
operating income to add certain items, as set forth in the
reconciliation table under “Adjustments to reported operating, and
net income (non-GAAP)” below. Certain of these items may recur. We
calculate our adjusted net income attributable to the Company’s
shareholders by adjusting our net income attributable to the
Company’s shareholders to add certain items, as set forth in the
reconciliation table under “Adjustments to reported operating, and
net income (non-GAAP)” below, excluding the total tax impact of
such adjustments. We calculate our diluted adjusted earnings per
share by dividing adjusted net income by the weighted-average
number of diluted ordinary shares outstanding. Our adjusted EBITDA
is calculated as net income before financing expenses, net, taxes
on income, share in earnings of equity-accounted investees,
depreciation and amortization, and certain adjustments presented in
the reconciliation table under “Consolidated adjusted EBITDA, and
diluted adjusted Earnings Per Share for the periods of activity”
below, which were adjusted for in calculating the adjusted
operating income.
You should not view adjusted operating income, adjusted net
income attributable to the Company’s shareholders, diluted adjusted
earnings per share or adjusted EBITDA as a substitute for operating
income or net income attributable to the Company’s shareholders
determined in accordance with IFRS, and you should note that our
definitions of adjusted operating income, adjusted net income
attributable to the Company’s shareholders, diluted adjusted
earnings per share, and adjusted EBITDA may differ from those used
by other companies. Additionally, other companies may use other
measures to evaluate their performance, which may reduce the
usefulness of our non-IFRS financial measures as tools for
comparison. However, we believe adjusted operating income, adjusted
net income attributable to the Company’s shareholders, diluted
adjusted earnings per share, and adjusted EBITDA provide useful
information to both management, and investors by excluding certain
items that management believes are not indicative of our ongoing
operations. Our management uses these non-IFRS measures to evaluate
the Company's business strategies and management performance. We
believe that these non IFRS measures provide useful information to
investors because they improve the comparability of our financial
results between periods and provide for greater transparency of key
measures used to evaluate our performance.
(1a) The Company only provides guidance on a non-GAAP basis. The
Company does not provide a reconciliation of forward-looking
adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the
inherent difficulty in forecasting, and quantifying certain amounts
that are necessary for such reconciliation, in particular, because
special items such as restructuring, litigation, and other matters,
used to calculate projected net income (loss) vary dramatically
based on actual events, the Company is not able to forecast on a
GAAP basis with reasonable certainty all deductions needed in order
to provide a GAAP calculation of projected net income (loss) at
this time. The amount of these deductions may be material, and
therefore could result in projected GAAP net income (loss) being
materially less than projected adjusted EBITDA (non-GAAP). The
guidance speaks only as of the date hereof. We undertake no
obligation to update any of these forward-looking statements to
reflect events or circumstances after the date of this news release
or to reflect actual outcomes, unless required by law. The Company
provides guidance for Specialties-driven EBITDA, which includes
Industrial Products, Growing Solutions and Phosphate Solutions, as
the Phosphate Solutions business is now predominantly
specialties-focused. For our Potash business we provide sales
volumes guidance. The Company believes this information provides
greater transparency, as these new metrics are less impacted by
fertilizer commodity prices, given the extreme volatility in recent
years.
We present a discussion in the period-to-period comparisons of
the primary drivers of change in the Company’s results of
operations. This discussion is based in part on management’s best
estimates of the impact of the main trends on our businesses. We
have based the following discussion on our financial statements.
You should read such discussion together with our financial
statements.
_________________
1 The reference to our website is intended to be an inactive
textual reference and the information on, or accessible through,
our website is not intended to be part of this Form 6-K.
Adjustments to Reported Operating and Net income
(non-GAAP)
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
$ millions
Operating income
147
149
775
1,141
Charges related to the security
situation in Israel (1)
17
14
57
14
Impairment and write-off of
assets and provision for site closure (2)
20
34
35
49
Provision for early retirement
(3)
4
16
4
16
Legal proceedings (4)
2
(2
)
2
(2
)
Total adjustments to operating
income
43
62
98
77
Adjusted operating
income
190
211
873
1,218
Net income attributable to the
shareholders of the Company
70
67
407
647
Total adjustments to operating
income
43
62
98
77
Total tax adjustments (5)
(9
)
(6
)
(21
)
(9
)
Total adjusted net income -
shareholders of the Company
104
123
484
715
(1)
For 2024 and 2023, reflects charges
relating to the security situation in Israel.
(2)
For 2024, reflects mainly a write-off of
assets resulting from the closure of small sites in Israel and
Turkey, and an impairment of assets due to a regulatory decision
that mandated the cessation of a certain project. 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 2024 and 2023, reflects provisions for
early retirement, due to restructuring at certain sites, as part of
the Company’s global efficiency plan.
(4)
For 2024, reflects reimbursement of
arbitration costs associated with the Ethiopian potash project. For
2023, reflects a reversal of a legal provision.
(5)
For 2024 and 2023, reflects the tax impact
of adjustments made to operating income.
Consolidated adjusted EBITDA and diluted adjusted Earnings
Per Share for the periods of activity
Calculation of adjusted EBITDA was made as follows:
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
$ millions
Net income
81
84
464
687
Financing expenses, net
33
33
140
168
Taxes on income
33
33
172
287
Less: Share in earnings of
equity-accounted investees
-
(1
)
(1
)
(1
)
Operating income
147
149
775
1,141
Depreciation and amortization
157
146
596
536
Adjustments (1)
43
62
98
77
Total adjusted EBITDA
(2)
347
357
1,469
1,754
(1)
See "Adjustments to Reported Operating and
Net income (non-GAAP)" above.
(2)
In 2024, the Company’s adjusted EBITDA was
positively impacted by an immaterial accounting reclassification.
For further information, see our Potash segment results above.
Calculation of diluted adjusted earnings per share was made as
follows:
10-12/2024
10-12/2023
1-12/2024
1-12/2023
$ millions
$ millions
$ millions
$ millions
Net income attributable to the
Company's shareholders
70
67
407
647
Adjustments (1)
43
62
98
77
Total tax adjustments
(9
)
(6
)
(21
)
(9
)
Adjusted net income -
shareholders of the Company
104
123
484
715
Weighted-average number of
diluted ordinary shares outstanding (in thousands)
1,290,330
1,290,575
1,290,039
1,290,668
Diluted adjusted earnings per
share (in dollars) (2)
0.08
0.10
0.38
0.55
(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).
Consolidated Results Analysis
Results analysis for the period October – December
2024
Sales
Expenses
Operating
income
$ millions
Q4 2023 figures
1,690
(1,541
)
149
Total adjustments Q4 2023
-
62
62
Adjusted Q4 2023
figures
1,690
(1,479
)
211
Quantity
26
(7
)
19
Price
(92
)
-
(92
)
Exchange rates
(23
)
22
(1
)
Raw materials
-
51
51
Energy
-
(1
)
(1
)
Transportation
-
11
11
Operating and other expenses
-
(8
)
(8
)
Adjusted Q4 2024
figures
1,601
(1,411
)
190
Total adjustments Q4 2024*
-
(43
)
(43
)
Q4 2024 figures
1,601
(1,454
)
147
* See "Adjustments to reported Operating
and Net income (non-GAAP)" above.
- Quantity – The positive impact on
operating income was primarily due to higher sales volumes of
potash, magnesium, MAP used as a raw material for energy storage
solutions, and phosphate-based food additives. These were partially
offset by lower sales volumes of specialty agriculture
products.
- Price – The negative impact on
operating income was primarily related to a decrease of $60 in the
potash price (CIF) per tonne year-over-year, as well as lower
selling prices of white phosphoric acid (WPA) and phosphate-based
food additives. These were partially offset by higher selling
prices of specialty agriculture products and phosphate
fertilizers.
- Exchange rates – The unfavorable
impact on operating income was mainly due to a negative impact on
sales resulting from the depreciation of the average exchange rate
of the Brazilian real against the US dollar, which slightly
exceeded its positive impact on operational costs.
- Raw materials – The positive
impact on operating income was due to the lower cost of commodity
fertilizers and raw materials used in the production of industrial
solutions products, ammonia and nitrogen. This impact was partially
offset by higher costs for sulphur.
- Transportation – The positive
impact on operating income resulted from lower inland and marine
transportation costs.
- Operating and other expenses - The
negative impact on operating income was primarily related to higher
maintenance and operational costs, which was partially offset by
operational efficiencies, mainly in the Industrial Products
segment.
Security situation in Israel
In October 2023, the Israeli government declared a state of war
in response to attacks on its civilians in the south of the
country, which escalated to other areas. The security situation has
presented several challenges, including disruptions in supply
chains and shipping routes, personnel shortages due to recurring
rounds of mobilization for reserve duty, additional costs to
protect Company sites/assets, effects of reluctance to perform
contractual obligations in Israel during hostilities, various bans
and limitations on trade and cooperation with Israel related
entities, and fluctuations in foreign currency exchange rates
relative to the Israeli shekel. Additionally, regional tensions
involving Houthis attacks and threats to commercial vessels have
intensified, disrupting shipping routes and commercial shipping
arrangements, leading to increased shipping costs.
The Company continues to take measures to ensure the safety of
its employees and business partners, as well as the communities in
which it operates. It has also implemented supportive measures to
accommodate employees called for reserve duty, aiming to minimize
any potential impact on its business, and to avoid disruptions to
production activities at its facilities in Israel.
The security situation in the last year has not had a material
impact on the Company's business results. However, as the
developments related to the war, as well as its duration, are
unpredictable, the Company is unable to estimate the extent of the
war’s potential impact on its future business and results. The
Company continuously monitors developments and will take all
necessary actions to minimize any negative consequences to its
operations and assets.
Forward-looking Statements
This announcement contains statements that constitute
“forward‑looking statements”, many of which can be identified by
the use of forward‑looking words such as “anticipate”, “believe”,
“could”, “expect”, “should”, “plan”, “intend”, “estimate”,
“strive”, “forecast”, “targets” and “potential”, among others.
Forward‑looking statements appear in a number of places in this
announcement and include, but are not limited to, statements
regarding our intent, belief or current expectations.
Forward‑looking statements are based on our management’s beliefs
and assumptions and on information currently available to our
management. Such statements are subject to risks and uncertainties,
and the actual results may differ materially from those expressed
or implied in the forward‑looking statements due to various
factors, including, but not limited to:
Changes in exchange rates or prices compared to those we are
currently experiencing; loss or impairment of business licenses or
mineral extractions permits or concessions; volatility of supply
and demand and the impact of competition; the difference between
actual reserves and our reserve estimates; natural disasters and
cost of compliance with environmental regulatory legislative and
licensing restrictions including laws and regulation related to,
and physical impacts of climate change and greenhouse gas
emissions; failure to "harvest" salt which could lead to
accumulation of salt at the bottom of the evaporation Pond 5 in the
Dead Sea; disruptions at our seaport shipping facilities or
regulatory restrictions affecting our ability to export our
products overseas; general market, political or economic conditions
in the countries in which we operate; price increases or shortages
with respect to our principal raw materials; delays in termination
of engagements with contractors and/or governmental obligations;
the inflow of significant amounts of water into the Dead Sea which
could adversely affect production at our plants; labor disputes,
slowdowns and strikes involving our employees; pension and health
insurance liabilities; Pandemics may create disruptions, impacting
our sales, operations, supply chain and customers; changes to
governmental incentive programs or tax benefits, creation of new
fiscal or tax related legislation; and/or higher tax liabilities;
changes in our evaluations and estimates, which serve as a basis
for the recognition and manner of measurement of assets and
liabilities; failure to integrate or realize expected benefits from
mergers and acquisitions, organizational restructuring and joint
ventures; currency rate fluctuations; rising interest rates;
government examinations or investigations; disruption of our, or
our service providers', information technology systems or breaches
of our, or our service providers', data security; failure to retain
and/or recruit key personnel; inability to realize expected
benefits from our cost reduction program according to the expected
timetable; inability to access capital markets on favorable terms;
cyclicality of our businesses; changes in demand for our fertilizer
products due to a decline in agricultural product prices, lack of
available credit, weather conditions, government policies or other
factors beyond our control; sales of our magnesium products being
affected by various factors that are not within our control; our
ability to secure approvals and permits from the authorities in
Israel to continue our phosphate mining operations in Rotem Amfert
Israel; volatility or crises in the financial markets; hazards
inherent to mining and chemical manufacturing; the failure to
ensure the safety of our workers and processes; litigation,
arbitration and regulatory proceedings; exposure to third party and
product liability claims; product recalls or other liability claims
as a result of food safety and food-borne illness concerns;
insufficiency of insurance coverage; closing of transactions,
mergers and acquisitions; war or acts of terror and/or political,
economic and military instability in Israel and its region;
including the current state of war declared in Israel and any
resulting disruptions to our supply and production chains; filing
of class actions and derivative actions against the Company, its
executives and Board members; The Company is exposed to risks
relating to its current and future activity in emerging markets;
and other risk factors discussed under ”Item 3 - Key Information—
D. Risk Factors" in the Company's Annual Report on Form 20-F for
the year ended December 31, 2023, filed with the U.S. Securities
and Exchange Commission (the “SEC”) on March 14, 2023 (the “Annual
Report”).
Forward looking statements speak only as at the date they are
made, and we do not undertake any obligation to update them in
light of new information or future developments or to release
publicly any revisions to these statements in order to reflect
later events or circumstances or to reflect the occurrence of
unanticipated events.
This report for the fourth quarter of 2024 (the “Quarterly
Report”) should be read in conjunction with the Annual Report and
the report for the first, second and third quarters of 2024
published by the Company (the “prior quarterly reports”), including
the description of the events occurring subsequent to the date of
the statement of financial position, as filed with the U.S.
SEC.
Appendix:
Condensed Consolidated Statements of
Financial Position as of (Unaudited)
December 31,
2024
December 31,
2023
$ millions
$ millions
Current assets
Cash and cash equivalents
327
420
Short-term investments and
deposits
115
172
Trade receivables
1,260
1,376
Inventories
1,626
1,703
Prepaid expenses and other
receivables
258
363
Total current assets
3,586
4,034
Non-current assets
Deferred tax assets
143
152
Property, plant and equipment
6,462
6,329
Intangible assets
869
873
Other non-current assets
261
239
Total non-current
assets
7,735
7,593
Total assets
11,321
11,627
Current liabilities
Short-term debt
384
858
Trade payables
1,002
912
Provisions
63
85
Other payables
879
783
Total current
liabilities
2,328
2,638
Non-current
liabilities
Long-term debt and debentures
1,909
1,829
Deferred tax liabilities
481
489
Long-term employee
liabilities
331
354
Long-term provisions and
accruals
230
224
Other
55
56
Total non-current
liabilities
3,006
2,952
Total liabilities
5,334
5,590
Equity
Total shareholders’ equity
5,724
5,768
Non-controlling interests
263
269
Total equity
5,987
6,037
Total liabilities and
equity
11,321
11,627
Condensed Consolidated Statements of
Income (Unaudited)
(In millions except per share data)
For the three-month period
ended
December 31
For the year ended
December 31
2024
2023
2024
2023
$ millions
$ millions
$ millions
$ millions
Sales
1,601
1,690
6,841
7,536
Cost of sales
1,066
1,130
4,585
4,865
Gross profit
535
560
2,256
2,671
Selling, transport and marketing
expenses
281
286
1,114
1,093
General and administrative
expenses
68
71
259
260
Research and development
expenses
19
17
69
71
Other expenses
33
44
60
128
Other income
(13
)
(7
)
(21
)
(22
)
Operating income
147
149
775
1,141
Finance expenses
71
38
181
259
Finance income
(38
)
(5
)
(41
)
(91
)
Finance expenses, net
33
33
140
168
Share in earnings of
equity-accounted investees
-
1
1
1
Income before taxes on
income
114
117
636
974
Taxes on income
33
33
172
287
Net income
81
84
464
687
Net income attributable to the
non-controlling interests
11
17
57
40
Net income attributable to the
shareholders of the Company
70
67
407
647
Earnings per share
attributable to the shareholders of the Company:
Basic earnings per share (in
dollars)
0.06
0.05
0.32
0.50
Diluted earnings per share (in
dollars)
0.06
0.05
0.32
0.50
Weighted-average number of
ordinary shares outstanding:
Basic (in thousands)
1,290,260
1,289,449
1,289,968
1,289,361
Diluted (in thousands)
1,290,330
1,290,575
1,290,039
1,290,668
The accompanying notes are an integral part of these condensed
consolidated interim financial statements.
Condensed Consolidated Statements of
Cash Flows (Unaudited)
For the three-month period
ended
For the year ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
$ millions
$ millions
$ millions
$ millions
Cash flows from operating
activities
Net income
81
84
464
687
Adjustments for:
Depreciation and amortization
157
146
596
536
Fixed assets impairment
7
-
14
-
Exchange rate, interest and
derivative, net
47
(51
)
152
24
Tax expenses
33
33
172
287
Change in provisions
3
9
(50
)
(32
)
Other
7
22
13
29
254
159
897
844
Change in inventories
(102
)
50
(7
)
465
Change in trade receivables
68
47
26
252
Change in trade payables
87
66
104
(101
)
Change in other receivables
66
37
39
26
Change in other payables
39
16
43
(210
)
Net change in operating assets
and liabilities
158
216
205
432
Income taxes paid, net of
refund
(41
)
(7
)
(98
)
(253
)
Net cash provided by operating
activities (*)
452
452
1,468
1,710
Cash flows from investing
activities
Proceeds (payments) from
deposits, net
(5
)
(10
)
56
(88
)
Purchases of property, plant and
equipment and intangible assets
(267
)
(255
)
(713
)
(780
)
Proceeds from divestiture of
assets and businesses, net of transaction expenses
-
-
19
4
Interest received (*)
3
3
17
10
Business combinations
(2
)
-
(74
)
-
Other
1
-
1
1
Net cash used in investing
activities
(270
)
(262
)
(694
)
(853
)
Cash flows from financing
activities
Dividends paid to the Company's
shareholders
(68
)
(68
)
(251
)
(474
)
Receipts of long-term debt
278
149
889
633
Repayments of long-term debt
(383
)
(183
)
(1,302
)
(836
)
Receipts (Repayments) of
short-term debt
(8
)
64
(1
)
(25
)
Interest paid (*)
(43
)
(40
)
(122
)
(125
)
Receipts (payments) from
transactions in derivatives
(3
)
(1
)
(2
)
5
Dividend paid to the
non-controlling interests
-
-
(57
)
(15
)
Net cash used in financing
activities
(227
)
(79
)
(846
)
(837
)
Net change in cash and cash
equivalents
(45
)
111
(72
)
20
Cash and cash equivalents as of
the beginning of the period
393
307
420
417
Net effect of currency
translation on cash and cash equivalents
(21
)
2
(21
)
(17
)
Cash and cash equivalents as
of the end of the period
327
420
327
420
(*) Reclassification - of interest
received as cash flows from investing activities and interest paid
as cash flows from financing activities, instead of under cash
provided by operating activities.
Operating segment data
Industrial
Products
Potash
Phosphate
Solutions
Growing
Solutions
Other
Activities
Reconciliations
Consolidated
$ millions
For the three-month period
ended December 31, 2024
Sales to external parties
275
373
475
435
43
-
1,601
Inter-segment sales
5
49
32
4
-
(90
)
-
Total sales
280
422
507
439
43
(90
)
1,601
Cost of sales
177
260
344
313
44
(72
)
1,066
Segment operating income
(loss)
55
69
81
31
(8
)
(38
)
190
Other expenses not allocated to
the segments
(43
)
Operating income
147
Financing expenses, net
(33
)
Income before income taxes
114
Depreciation, amortization and
impairment
15
61
51
20
4
13
164
Capital expenditures
38
116
147
44
3
12
360
Capital expenditures as part of
business combination
-
-
-
4
-
-
4
Operating segment data (cont'd)
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
474
475
39
-
1,690
Inter-segment sales
5
66
41
3
(1
)
(114
)
-
Total sales
299
474
515
478
38
(114
)
1,690
Cost of sales
217
243
348
375
45
(98
)
1,130
Segment operating income
(loss)
39
122
85
(5
)
(12
)
(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
54
20
6
3
146
Capital expenditures
29
132
89
36
6
12
304
Information based on geographical location
The following table presents the distribution of the operating
segments sales by geographical location of the customer:
10-12/2024
10-12/2023
$
millions
% of
sales
$
millions
% of
sales
USA
280
17
295
17
Brazil
276
17
347
21
China
274
17
284
17
Spain
73
5
77
5
Israel
69
4
72
4
Germany
65
4
68
4
India
64
4
29
2
United Kingdom
58
4
74
4
France
48
3
63
4
Netherlands
37
2
27
2
All other
357
23
354
20
Total
1,601
100
1,690
100
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224694694/en/
Investor and Press Contact – Global Peggy Reilly Tharp VP,
Global Investor Relations +1-314-983-7665
Peggy.ReillyTharp@icl-group.com
Investor and Press Contact - Israel Adi Bajayo ICL Spokesperson
+972-3-6844459 Adi.Bajayo@icl-group.com
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