Sales up slightly at Ingevity in 2023, with costs and lower volumes hitting EBITDA

South Carolina, US – Ingevity reported a 1.4% increase in sales in 2023, rising to $1.69bn from $1.67bn in 2022. However, adjusted EBITDA for the year fell by 12.3% to $397m from $453 the year before. The company said the results were impacted by significantly higher crude tall oil costs, and lower volumes resulting from the slowdown in global industrial demand.

In the fourth quarter, net sales fell by 3.1% to $372m. There was a net loss of $116.8m, which includes restructuring charges of $107.5m, predominantly resulting from the repositioning of its performance chemicals business. Adjusted EBITDA was down by 17% to $61.8m in the quarter, reflecting higher raw material costs and lower volumes.

Sales in the Advanced Polymer Technologies segment were down 16.6% for the full year to $204m, and down 29% to $42.4m in the fourth quarter. However, full-year EBITDA was up by 11.3% to $44.5m in the light of lower input costs, price management and cost saving initiatives.

“The Advanced Polymer Technologies team achieved record segment EBITDA for the year and significantly improved the segment’s profitability even as they faced lower demand in end markets such as footwear and industrial equipment,” said John Fortson, the company’s president and CEO. “As we move into 2024, they will remain focused on increasing the use of our technology in areas like bioplastics.”

The company also announced guidance for 2024, with sales expected to fall in the range $1.40bn to $1.55bn. Adjusted EBITDA is predicted to be between $365m and $390m.