10-KPeriod: FY2021

ECOLAB INC. Annual Report, Year Ended Dec 31, 2021

Filed February 25, 2022For Securities:ECL

Summary

Ecolab Inc. (ECL) reported strong sales growth of 8% to $12.7 billion for the fiscal year ended December 31, 2021. This performance was driven by double-digit sales growth in the Institutional & Specialty and Other segments, coupled with robust growth in the Industrial segment. Despite facing significant headwinds from cost inflation and supply chain disruptions, Ecolab effectively managed these challenges through pricing increases and volume growth, which more than offset higher delivered product costs. The company also successfully integrated the Purolite acquisition, a significant transaction that closed in December 2021 for $3.7 billion, bolstering its Life Sciences segment. Financially, Ecolab demonstrated solid operational performance, with adjusted operating income increasing by 11% on a fixed currency basis. The company maintained a strong balance sheet, supported by 'A' range credit ratings, and generated robust cash flow from operations of $2.1 billion. Ecolab continues its commitment to returning capital to shareholders, marked by its 30th consecutive annual dividend rate increase. The company is strategically positioned to navigate ongoing economic uncertainties and capitalize on growth opportunities across its diverse end markets.

Financial Highlights

56 data points
Beta

Revenue

$12.73B

40.2% Gross Margin

Net Income

$1.14B

9.0% Net Margin

EPS (Diluted)

$3.91

Total Assets

$21.21B

Cash & Equivalents

$359.90M

Free Cash Flow

$1.42B

Financial Statements
Beta
Revenue$12.73B
Cost of Revenue$7.62B
Gross Profit$5.12B
R&D Expenses$186.00M
SG&A Expenses$3.42B
Operating Income$1.60B
Interest Expense$230.60M
Net Income$1.14B
EPS (Basic)$3.95
EPS (Diluted)$3.91
Shares Outstanding (Basic)286.30M
Shares Outstanding (Diluted)289.10M

Key Highlights

  • 1Reported sales increased 8% to $12.7 billion in 2021, driven by strong performance across key segments.
  • 2Acquired Purolite for $3.7 billion, significantly strengthening the Life Sciences segment.
  • 3Adjusted operating income (fixed currency) increased by 8% compared to the prior year, reflecting effective cost management and pricing strategies.
  • 4Generated $2.1 billion in cash flow from continuing operations, demonstrating strong financial health.
  • 5Increased quarterly dividend by 6%, marking the 30th consecutive annual dividend rate increase.
  • 6Maintained strong credit ratings (A-/A3/A-) with a commitment to 'A' range metrics.
  • 7Successfully navigated supply chain disruptions and cost inflation through pricing and volume management.

Frequently Asked Questions

Ecolab reported a strong increase in net sales of 8% to $12.7 billion for the fiscal year ended December 31, 2021. This growth was driven by the Institutional & Specialty and Other segments showing double-digit increases, and strong performance in the Industrial segment, which helped offset a decline in the Healthcare & Life Sciences segment compared to a very strong prior year.

Ecolab acquired Purolite for $3.7 billion in cash on December 1, 2021. Purolite is a leading global provider of ion exchange resins for separation and purification, significantly enhancing Ecolab's Life Sciences segment. The acquisition is expected to be complementary to Ecolab's current offerings and critical for drug production and biopharma product purification.

Ecolab stated that it undertook extraordinary measures to ensure customers were supplied with critical products and services amidst significantly higher delivered product costs and supply constraints. The company implemented accelerating pricing and increased volumes, which more than offset these cost pressures.

Ecolab generated strong cash flow from operations, amounting to $2.1 billion in 2021. The company continues its commitment to returning capital to shareholders, demonstrated by a 6% increase in its quarterly cash dividend, marking its 30th consecutive annual dividend rate increase.