In 2023, Air Liquide achieved a solid performance, highlighting the resilience and quality of its business model as well as the mobilization and agility of its teams in a complex and changing macroeconomic and geopolitical environment. The Group’s performance was characterized by an increase in sales on a comparable basis, a further improvement in its operating margin excluding the energy impact and an accelerating investment momentum, particularly in decarbonization projects.
In particular, the Group has practically reached, in two years, the margin ambition targeted for 2025 as part of its ADVANCE strategic plan. As a consequence, it is announcing today a doubling of its initial ambition.
Air Liquide also confirms its ADVANCE financial objectives, related to sales growth on a comparable basis and Return on Capital Employed, as well as its investment decision ambition. In addition, on the extra-financial level, the many decarbonization initiatives give the Group confidence in its objective to combine growth in its business with a reduction in its CO2 emissions in absolute value from 2025.
Revenue reached 27.61 billion euros, an increase of +3.7% on a comparable basis in 2023. On a published basis, it stood at -7.8%, due to the drop in energy prices – energy costs being contractually passed through to Large Industries customers – as well as negative currency impacts. The Gas & Services business, which represented 95% of the Group’s revenue, was up +4.2% on a comparable basis. Within this activity, all regions saw growth, in particular the Americas and Europe, driven notably by Industrial Merchant and Healthcare.
In line with its ADVANCE strategic plan, Air Liquide continued to improve its operational performance. The Group generated record efficiencies of 466 million euros, up +23% despite an inflationary context unfavorable to savings on procurement, and continued the dynamic management of its business portfolio. Its ability to provide its customers with value-added offerings allows it to adjust its prices in Industrial Merchant. As a result, the operating margin increased further, by +80 basis points in 2023 excluding the energy impact, and therefore the sum of improvements in the operating margin excluding energy impact in 2022 and 2023 reached +150 basis points. Having practically reached its margin target halfway through ADVANCE which was at +160 basis points, Air Liquide now aims for a +320 basis points increase, twice its initial ambition, over the duration of the plan.
Net profit (Group share) amounted to 3.08 billion euros, up +11.6% as published. Net profit recurring(1) Net profit recurring excluding exceptional and significant transactions that have no impact on the operating income recurring. increased by +13.3% excluding the currency impact. Cash flow (2) Cash Flow from Operations after changes in working capital requirement. grew by +12.8% excluding the currency impact. The balance sheet is strong with a net debt to equity ratio of 36.8%. At 10.6% at end-December, recurring ROCE (3) Based on Net profit recurring. remained well above 10%, in line with the objectives of ADVANCE, despite the increase in investments. Reflecting Air Liquide’s confidence in the future, the dividend that will be submitted to the Shareholders’ vote in April amounts to 3.20 euros per share, i.e. an increase of +8.5%. In addition, a free share attribution is scheduled for June 2024, on the basis of one share for every 10 shares held.
The investment dynamic of the Group is accelerating, supported in particular by its projects in the energy transition and electronics. The backlog is historically high at 4.4 billion euros. Investment decisions reached a record level of 4.3 billion euros in 2023.
In 2024, Air Liquide is confident in its ability to further increase its operating margin and to deliver growth in Net profit recurring, at constant exchange rates(4)Operating margin excluding energy passthrough impact. Net profit recurring excluding exceptional and significant transactions that have no impact on the operating income recurring.
