Air Liquide reported group sales up by 2.1% on a comparable basis in its first-quarter (Q1) financial results released today (24th April).
However, on a published basis, the industrial gases giant saw its revenue fall 7.3% to €6.65bn ($7.12bn) in the January-March quarter.
Analysts polled by Vara Research had anticipated a 6.2% drop to €6.73bn ($7.2bn).
According to the company, this was due to the decline in energy prices, for which variations are contractually passed through to the company’s Large Industries customers, as well as negative currency impacts.
Its Gas & Services business, which represents 96% of the Group’s revenue, followed a similar pattern.
©Air Liquide
Having seen a 7.8% drop on a published basis due to ‘unfavourable’ energy and currency impacts, Gas & Services was up 2% on a comparable basis, driven by strong movement in the Americas market.
Commenting on the results, Francois Jackow, CEO of the Air Liquide Group, cited a ‘solid performance’, adding, “The Group thus maintains its growth trajectory despite an uncertain environment, and continues to prepare a sustainable future thanks to an investment momentum supported by numerous projects in the energy transition.”
Industrial Merchant business saw comparable growth (+1.5%) despite slightly lower volumes, with a price effect (+3.7%) that ease.
Americas, led by proactive pricing in the US and Argentina, drove the price effect (+6.5%). Large Industries revenue rose slightly (0.9%) due to new units but was affected by customer turnarounds and divestiture in Europe.
Healthcare led growth (8.1%) fuelled by all therapy sales in Home Healthcare and increased medical gas prices.
Electronics revenue dipped by 2% due to softer demand from memory manufacturers, partially offset by carrier gas sales growth (6%)
First quarter results by segment
Gas & Services revenue in the Americas surged by 6.3% to €2.5bn ($2.67bn). All sectors saw growth: Large Industries (4.8%) due to demand uptick and new unit launch, Industrial Merchant (+4.8%) with strong price effect (+6.5%) and steady gas volumes, Healthcare (+20.4%) driven by Medical Gas sales in the US and Home Healthcare in Latin America, and Electronics (+3.3%) boosted by increased carrier gas, equipment, and installation sales.
European sales dipped slightly by 1.6% to €2.25bn ($2.4bn). Large Industries (-1.1%) saw a decline due to divestiture, while Industrial Merchant (-6.4%) faced price drops and lower volumes. However, Healthcare surged by 4.3% driven by Home Healthcare and medical gases.
In the Asia-Pacific, revenue stayed flat (-0.9%) at €1.29bn ($1.38bn). Large Industries (-1.0%) faced weak demand but offset partially by new unit launch. Industrial Merchant grew by +0.7%, buoyed by higher prices. Electronics declined by -1.7%, despite carrier gas sales rise.
Meanwhile, the Middle East & Africa region saw a sharp +10.5% revenue increase to €267m ($285m), with growth across all business lines.
Sustainability and decarbonisation
Citing a 12-month portfolio of investment opportunities worth €3.4bn ($3.6bn), the company states that more than 40% of these opportunities are related to the energy transition – an area that Air Liquide has prioritised in its ADVANCE sustainable development plan.
“Air Liquide’s teams are moreover fully mobilised on continuous performance improvement and structural efficiency projects undertaken as part of our ADVANCE strategic plan, of which the original margin increase ambition we doubled at the beginning of the year,” said Jackow.
©Air Liquide
As part of the renewal of a long-term deal with Dow, Air Liquide recently made an investment of nearly €40m ($42.7m) to increase efficiency and reduce the CO2 emissions of the air Liquide industrial gas production site in Stade, Germany.
Along with Sasol, the company partnered with Enel Green Power in 2023 for a total capacity of 110 megawatts of renewable electricity for the Sasol site in Secunda, South Africa.
To aid in decarbonising mobility, the Group invested in the logistics chain after the Normand’Hy electrolyser in France, forming the TEAL joint venture with TotalEnergies.
TEAL aims to deploy over 100 hydrogen refuelling stations across Europe in the next decade.
