Air Liquide Delivers Solid Q3 2024 Performance Amid Challenging Market

Air Liquide, a global leader in gases, technologies, and services for industry and health, released its Q3 performance report on October 23. It reported strong financial results despite a difficult market environment. The company achieved solid sales growth with 3.3% Year on Year (YoY) revenue growth, as compared to Q3 2023. It reported a total $7.29 billion revenue across all sectors.

Key Financial Highlights:

-              Gas & Services Revenue: $6.95 billion, +3.6% YoY.

-              Engineering and Construction Revenue: $118.6 billion, remained flat.

-              Global Markets and Technologies: $223.25 billion, -4.6%

The company forecasted earlier a higher growth pattern. However, it could not achieve the target due to unfavorable currency and energy impacts on the industry and fell short by 0.7%. The gas and services sector, that comprises of Air Liquide’s 95% of global business, saw the biggest jump. Their most affected sector was Global Markets and Technologies that housed their aeronautical oxygen and nitrogen technology business. It was sold off in the first quarter of 2024 to Safran Aerosystems.

Revenue Performance Across Business Segments:

-              Healthcare: $1.136 billion, +9% YoY.

-              Large Industries: $1.96 billion, +2.8% YoY.

-              Industrial Merchant: $3.18 billion, +1.7% with a solid price effect.

-              Electronics: $0.677 billion, +5.9% increase in revenue.

All business segments showed a robust growth due to a high demand of chemicals in the US. Healthcare business saw the most growth because of the development of Home Healthcare and increase in volume and prices of medical gasses.

Geographical Highlights:

-  USA: Total revenue generated was $2.76 billion, which was up by 8%, driven by strong performances in all business segments. Large Industries saw a significant increase of 11.6%, supported by the start-up of a major unit and increased demand. Industrial Merchant sales grew by 4.7%, boosted by a high price effect. Healthcare revenue surged by 25.3%, and Electronics sales increased by 12.5%.

-  Europe: Total revenue generated in Europe was $2.42 billion. While overall revenue declined by 1.5%. The region showed resilience in certain areas. The Healthcare business grew due to development of Home Healthcare and medical gases. Large Industries experienced a slight decline of -3.6%, but this was partially offset by the divestiture of a cogeneration unit.

-  Asia-Pacific: Total revenue generated was $1.44 billion, with 4.1% increase in revenue. Large Industries saw a significant boost of 6.6%, driven by the start-up of a large hydrogen unit. Industrial Merchant sales declined slightly by 1.8%, impacted by a decline in helium sales. Electronics sales grew by 6.8%, led by strong performances in Carrier Gases and Advanced Materials.

-  Middle East & Africa: Total revenue was $0.319 billion, which was up by 1.1%, or +6.5% excluding the divestiture of businesses in 12 African countries. Large Industries benefited from resilient activity, while Industrial Merchant revenue was down due to the divestiture. Healthcare sales grew due to increased medical gas volumes and the development of diabetes treatment.

Air Liquide is actively working on a transformation plan to streamline its operations and enhance efficiency. Additionally, the company is making substantial investments in key areas like energy transition and electronics, demonstrating its commitment to growth. Looking ahead, Air Liquide is optimistic about its ability to further improve its operating margin and achieve consistent net profit growth.