In This Article:
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Sales Growth: Increased by 3% on a comparable basis.
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Operating Margin Improvement: Improved by 110 basis points, excluding energy pathway effects.
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Recurring ROCE: Reached 10.7% despite increased investment.
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CO2 Emissions: Decreased by 11% below 2020 levels.
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Investment Backlog: EUR4.2 billion in signed growth investment projects under construction.
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Efficiencies Achieved: Record level of EUR500 million in 2024.
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Dividend Proposal: EUR3.3 per share, a 13.7% increase from last year.
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Net Profit Growth: Up 7%, with recurring net profit excluding ForEx up 11.5%.
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CapEx: EUR3.8 billion gross value or EUR3.6 billion net.
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Investment Decisions: Record high level of EUR4.4 billion in 2024.
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Start-up/Ramp-up Contribution: EUR250 million in 2024, expected to increase to over EUR310 million in 2025.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Air Liquide SA (AIQUF) achieved a record year in 2024 with a significant operating margin improvement of over 100 basis points.
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The company reported a strong backlog of EUR 4.2 billion in signed growth investment projects, indicating secured future growth.
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Air Liquide SA (AIQUF) successfully reduced CO2 emissions by 11% below 2020 levels, showcasing its commitment to sustainability.
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The company proposed a dividend per share increase of 13.7% to EUR 3.3, reflecting a strong commitment to shareholder value.
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Investment decisions reached a record high of EUR 4.4 billion, with major projects signed across the USA, Asia, and Europe, indicating robust future growth opportunities.
Negative Points
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Despite overall growth, the Global Market Technologies segment saw a decline of 2.5%, impacted by divestitures in aerospace and defense.
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The company faced challenges in Europe with soft volumes in the Industrial Merchant segment, partly due to the divestiture of activities in 12 African countries.
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There is uncertainty in the US regarding clean energy projects, with investment decisions likely delayed until the second half of 2025 due to policy uncertainties.
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The restructuring costs amounted to over EUR 200 million, reflecting significant expenses related to the company's transformation initiatives.
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The company anticipates continued soft volumes in the EMEA region for 2025, requiring active pricing strategies to maintain resilience.
Q & A Highlights
Q: Can you provide insights on the future margin improvement plans beyond 2026? A: Francois Jackow, CEO, stated that while it's early to comment on specifics beyond 2026, the structural transformations underway will continue to deliver margin improvements. The commitment to margin enhancement is ongoing, and the transformations will have effects in 2025, 2026, and beyond.