Incitec Pivot Full Year 2023 Earnings: EPS Misses Expectations

Incitec Pivot (ASX:IPL) Full Year 2023 Results

Key Financial Results

• Revenue: AU$5.44b (down 2.0% from FY 2022).
• Net income: AU$276.3m (down 57% from FY 2022).
• Profit margin: 5.1% (down from 12% in FY 2022). The decrease in margin was primarily driven by higher expenses.
• EPS: AU$0.14 (down from AU$0.33 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Incitec Pivot EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 47%.

The primary driver behind last 12 months revenue was the Asia Pacific - Fertilisers APAC segment contributing a total revenue of AU$2.20b (40% of total revenue). Notably, cost of sales worth AU$3.40b amounted to 62% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to AU$924.4m (52% of total expenses). Explore how IPL's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Chemicals industry in Australia.

Performance of the Australian Chemicals industry.

The company's shares are up 6.1% from a week ago.

Risk Analysis

Before you take the next step you should know about the 2 warning signs for Incitec Pivot (1 is potentially serious!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.