Incitec Pivot (ASX:IPL), a leading manufacturer and distributor of fertilisers, industrial chemicals, and explosives, has reported a net loss of $311m for the financial year ending 30 September 2024, a sharp reversal from its $560m profit the prior year. This shift was primarily due to $712m in non-cash impairments related to its global fertilisers business and associated restructuring costs. Despite this, IPL’s underlying EBIT reached $580m, representing an 18% increase when adjusted for major asset sales and site closures, exceeding expectations.
CEO Mauro Neves emphasised the company’s resilience, pointing to a record EBIT in its Dyno Nobel Asia Pacific division and strong performance in the fertiliser distribution segment. The company’s strategic transformation delivered $64m in EBIT benefits, bolstered by operational improvements and better cost management. However, the sale of the Waggaman, Louisiana ammonia facility in December 2023, along with the January 2023 closure of the Gibson Island site, impacted overall earnings.
The company also reported earnings per share (EPS) excluding individually material items at 20.7 cents, down from 30.0 cents in FY23. This decline reflects the impact of asset sales and restructuring.
IPL pursued shareholder returns through the year, completing a $500m capital return and progressing with a $900m share buyback program, of which $149m was executed by FY24’s end.
Shares are trading 1.61% higher at $3.15.