Incitec pin (ASX:IPL)leading manufacturer and distributor of fertilizers, industrial chemicals and explosives, reported a net loss of $311 million for the financial year ending September 30, 2024, a sharp reversal from the previous year’s profit of $560 million. This change was primarily due to $712 million in non-cash impairment charges related to the global fertilizer business and related restructuring costs. Despite this, IPL’s underlying EBIT reached $580 million, up 18% when adjusted for major asset sales and site closures, beating expectations.
CEO Mauro Neves underlined the company’s resilience, highlighting record EBIT in the Dyno Nobel Asia Pacific division and strong performance in the fertilizer distribution segment. The company’s strategic transformation delivered EBIT benefits of $64 million, supported by operational improvements and improved cost management. However, the sale of the Waggaman, Louisiana, ammonia plant 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 relevant individual items of 20.7 cents, down from 30.0 cents in fiscal 23. This decline reflects the impact of sales and restructurings of assets.
IPL pursued shareholder returns throughout the year, completing a $500 million capital return and proceeding with a $900 million share buyback program, of which $149 million was executed by end of fiscal year 24.
The shares are trading up 1.61% at $3.15.