Ecolab Q4 Bottom-Line Beats Street View; Predicts Performance Improvement Through 2023

Ecolab Inc ECL reported fourth-quarter FY22 sales growth of 9.1% year-on-year to $3.67 billion, marginally missing the consensus of $3.70 billion.
Sales from Global Industrial rose 14%, Global Institutional & Specialty climbed 11%, Global Healthcare & Life Sciences grew 45% Y/Y in fixed currency.
Adjusted EPS of $1.27 beat the analyst consensus of $1.25.
Selling, general and administrative expenses rose 6% Y/Y. The operating margin was 10.9%, and operating income for the quarter rose 3% to $399.2 million.
The company held $598.6 million in cash and equivalents as of Dec. 31, 2022.
Ecolab has expanded its previously announced $80 million Europe cost savings program to also focus on improving the performance of Institutional and Healthcare in other regions, resulting in an estimated $175 million of total annualized pre-tax savings.
Outlook: Ecolab sees Q1 FY23 adjusted EPS of $0.82 – $0.90 versus the consensus of $0.85.
Ecolab expects to deliver performance that improves throughout 2023 despite a challenging macro environment.
Price Action: ECL shares are trading higher by 5.39% at $155.86 on the last check Tuesday.

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