Air Liquide Revenue Rises 28.4% Following Airgas Integration

The Tip Desk · June 30, 2017 · 2 min read

The industrial gas maker reported a net profit per share of 2.40 euros for the first half of 2017.

Air Liquide reported first-half revenue of 10,292.7 million euros, a 28.4% increase compared to the adjusted first half of 2016. The industrial gas maker attributed this growth to the full-semester consolidation of Airgas. Comparable growth stood at 1.8%, with additional positive effects from energy at 2.2% and currency at 1.7%.

Operating performance was driven by the Gaz & Services segment, which recorded revenue of 9,978.3 million euros. This segment saw a published revenue increase of 31.0% and a comparable increase of 2.8%. The company said the results were supported by a confirmed recovery in the Merchant Industrial business, which now represents nearly half of Gaz & Services sales. Other contributors included strong volumes in Large Industry, the development of Health, and a return to growth in Electronics.

Geographic performance varied by region. In the Americas, the current operating result reached 670.4 million euros, a 55.5% increase. However, the operating margin in the Americas fell 360 basis points to 16.1% excluding energy effects, a move the company attributed to the change in business mix following the Airgas acquisition. In Asia-Pacific, the current operating result rose 16.3% to 400.9 million euros. The operating margin in Asia-Pacific rose 200 basis points to 20.0% excluding energy effects, aided by efficiencies and growth in Electronics.

Group-wide operating margins shifted as the business mix evolved. The current operating margin was 16.1%. Excluding energy effects, the margin was 16.5%, an increase of 70 basis points over the adjusted first half of 2016. The company said it achieved 148 million euros in efficiencies during the semester, tracking toward an annual goal of more than 300 million euros. Additionally, the company reported Airgas synergies of 93 million US dollars since the start of the year.

Net profit for the group share was 927.8 million euros, a 14.5% increase. Net profit per share rose 4.3% to 2.40 euros. The company noted that the average number of shares in circulation used for this calculation was 386,833,119.

Cash flow from operating activities rose 31.2% to 1,593.5 million euros. Net gross debt decreased by 386 million euros between December 31, 2016, and June 30, 2017. This decrease was driven by a 250 million euro bond repayment and a 267 million euro reduction in the commercial paper program, though it was offset by a new 600 million euro bond issuance.

The company is currently executing 2.0 billion euros of industrial investments. Air Liquide stated it is confident in its ability to achieve net profit growth for the full year 2017 in a comparable environment.