CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR), the chemical industry titan, has recently unveiled its financial achievements in the fourth quarter and the entire financial year of 2023.
Suffering a minor decline of 4% in net sales in Q4 from the previous year’s corresponding quarter, the company’s net sales still marked an impressive figure of $467.1 million. The slide can primarily be attributed to a 4% decrease in selling prices and product mix, along with a 1% fall in sales volumes.
On the brighter side, Quaker Houghton witnessed a momentous swing in net income, reporting $20.2 million in Q4, 2023, in stark contrast to the net loss of $76.0 million in Q4, 2022. The considerable boost stemmed from the improvement in gross margins, with the company’s adjusted EBITDA scaling up by 13% to hit $77.0 million.
Sharing his optimism, Andy Tometich, Quaker Houghton’s CEO and President, applauded the team’s exceptional performance amid market challenges. He stated that record net sales and earnings reflect the team’s ability to improve their profitability. Tometich expressed confidence in their strategy and assured that they are well-prepared to outshine their markets.
In the regional performance breakdown for Q4, the Americas segment experienced a decline in net sales from Q4, 2022, due to lower sales volumes and a change in selling price and product mix. By comparison, the EMEA and Asia/Pacific segments stood their ground, with net sales remaining consistent with the results from Q4, 2022.
In a well-rounded report for the entire financial year, net sales became a source of pride, amounting to a staggering $1.95 billion, while net income stood at $112.7 million. Factor out non-recurring and non-core items from both these totals, and Quaker Houghton’s non-GAAP net income and earnings per diluted share still shine at $137.6 million and $7.65 respectively.
The company’s commitment to financial excellence reflected in their record full-year adjusted EBITDA of $320.4 million and operating cash flow of $279.0 million. The Board of Directors greenlit a new share repurchase program as well, authorizing a buyback of up to $150 million of its own common stock.
As the company strides into 2024, it foresees the persistence of current market conditions into the first half of the year. However, Quaker Houghton remains committed to profitable growth, backed by a robust balance sheet and strong cash generation capabilities.
With a proven track of outperforming markets and a robust balance sheet, Quaker Houghton is keen to unlock its potential further and ensure another prosperous year for its stakeholders.
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