Q1 2024 Ingevity Corp Earnings Call Transcript
Key Points
- Performance Materials segment saw a 3% increase in sales and a 12% increase in EBITDA, with margins reaching nearly 54%.
- Company achieved $20 million in savings related to Performance Chemicals repositioning and other corporate actions, on track for annual savings target of $65 to $75 million.
- Adjusted EBITDA margin remained strong at 22.6%, reflecting the underlying strength of Ingevity Corp (NGVT)'s core portfolio.
- Performance Materials segment benefited from annual price increases, higher activated carbon volumes, and lower input costs.
- Despite challenges, the Advanced Polymer Technologies (APT) segment maintained healthy EBITDA margins of 20%, supported by lower costs and improved SG&A.
- First quarter sales declined by 13% due to repositioning actions in Performance Chemicals, including a plant closure and exit from certain low-margin markets.
- GAAP net loss of $56 million for the quarter, influenced by $64.8 million in restructuring charges and $26.5 million in CTO resale losses.
- Performance Chemicals segment experienced a significant decline in revenue and EBITDA, with negative impacts from higher CTO spend and unfavorable plant throughput.
- First quarter free cash flow was negative $28.7 million, worsened by cash losses on CTO resales and cash spend related to Performance Chemicals repositioning.
- Revenue in the APT segment was down 27% due to continued global demand weakness in many of the segment's end markets.
Good morning or good afternoon. Welcome to the Ingevity first quarter 2024 earnings webcast. My name is Adam, and I'll be your operator for today. (Operator Instructions) I will now hand the call over to begin to John. Please go ahead when you are ready.
Thank you, Adam. Good morning and welcome to Ingevity's first-quarter 2024 earnings call. Earlier this morning, we posted a presentation on our investor site that you can use to follow today's discussion and can be found on ir dot ingevity.com under Events and Presentations. Also throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement not substitute for comparable GAAP measures. Definitions of these non-GAAP financial measures and reconciliations to comparable GAAP measures are included in our earnings release and are also in our most recent Form 10-K.
We may also make forward-looking statements regarding future events and future financial performance of the company during this
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
