2023 was another year of solid performance for Air Liquide! Once again, this reflects the resilience and quality of our business model, along with our teams’ remarkable dedication. Despite the continued complexity of the global environment, all indicators are positive: sales growth increased by +3.7%(1), revenue reached 27.61 billion euros, our operating margin increased to reach 18.4%, recurring net profit(2) rose by +13.3%(3) and investment decisions reached their highest level, amounting to 4.3 billion euros in 2023.
This gives us confidence in our ADVANCE strategy to such an extent that we have decided to go further by doubling our initial ambition for improving the Group’s operating margin. In two years, we have almost achieved our initial ambition, which was an increase in operating margin of +160 basis points. Consequently, we are going to double our ambition for the duration of the plan to reach +320 basis points (that is 3.20%) in four years. We are also maintaining our other financial objectives for sales growth(1) and return on capital employed, along with our target in terms of investment decisions.
Likewise, from an extra-financial standpoint, thanks to our numerous decarbonization initiatives, we are confident in our ability to combine growth in our business with a reduction in our CO2 emissions in absolute value from 2025.
In short, I would say that the Group’s performance in 2023 confirms the relevance of our ADVANCE strategic plan and our teams’ ability to provide our customers with specific solutions with high added value to address their challenges, both now and in the future.
Decarbonization, both ours and that of our customers, is at the heart of our strategy. I strongly believe that the Group can be a driving force in the creation of a low-carbon industry. This challenge is now a global priority and we are having a tangible impact, thanks to our portfolio of technological solutions and services. Our partnerships with industry giants in Europe, where projects are rapidly gaining momentum, are proof of this.
For instance, our agreement with TotalEnergies to provide their Gonfreville refinery in Normandy with renewable and low-carbon hydrogen is an example of the development of a sustainable hydrogen industry to decarbonize the entire industrial basin in Normandy. The renewable hydrogen that will be supplied will be produced by our PEM(4) electrolyzer, Air Liquide Normand’Hy, the largest electrolyzer ever built, and will feature latest-generation equipment manufactured by our Berlin gigafactory, a joint venture with Siemens Energy. In the Netherlands, we are involved in major electrolyzer projects that are supported by the government and we are also going to develop a large-scale CO2 capture unit on our hydrogen plant in Rotterdam. These developments will make a significant contribution to the decarbonization of industry in the Netherlands and neighboring countries.
Things are also gathering pace in the United States. We are thrilled to have been chosen by the American Department of Energy as a strategic partner of six out of seven regional hydrogen hubs. Our solutions are making a difference in Asia as well. In Japan, our autothermal reforming technology has been chosen for a pilot project for the large-scale production of low-carbon hydrogen and ammonia.
We are also working with ENEOS, Japan’s leading energy company, to develop the low-carbon hydrogen market; this partnership will cover the entire hydrogen value chain.
Although these projects underline hydrogen’s key role in decarbonizing the industry, the solution will lie in a combination of different options. As such, we use other technologies to help our customers on their decarbonization journeys, including oxy-combustion, biomethane and carbon capture with our Cryocap™ solution. Indeed, Holcim has chosen this technology; we are going to work with the company to decarbonize their new cement plant in Belgium.
We owe this major and tangible progress to the efficiency of our technologies, our ability to devise and provide innovative solutions for our customers and our ability to bring together key players for large-scale, forward looking projects. Because today, it’s clear that we must work with industry as a whole and with the support of government authorities to collectively develop integrated ecosystems to accelerate the energy transition.
(1) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts.
(2) Recurring net profit excluding exceptional and significant transactions that do not impact operating income recurring.
(3) Excluding the impact of foreign exchange rates.
(4) Proton Exchange Membrane.
