Summary
Ecolab Inc. (ECL) reported its first quarter 2021 financial results, showing a net sales decrease of 4% to $2.89 billion compared to the prior year. This decline was primarily driven by the ongoing impacts of the COVID-19 pandemic, particularly on the Global Institutional & Specialty segment, and supply chain disruptions including the Texas freeze. Despite the sales dip, the company demonstrated resilience with improved operational efficiency initiatives. Net income attributable to Ecolab decreased by 34% to $193.6 million, resulting in diluted EPS of $0.67. The company continued to generate strong operating cash flow, supporting its strategic investments and shareholder returns through dividends and share repurchases. Ecolab also enhanced its liquidity by amending and extending its revolving credit facility.
Financial Highlights
53 data points| Revenue | $2.88B |
| Cost of Revenue | $1.71B |
| Gross Profit | $1.17B |
| SG&A Expenses | $862.90M |
| Operating Income | $297.30M |
| Interest Expense | $53.80M |
| Net Income | $193.60M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 286.00M |
| Shares Outstanding (Diluted) | 288.80M |
Key Highlights
- 1Net sales decreased by 4% to $2.89 billion in Q1 2021 compared to Q1 2020, impacted by ongoing COVID-19 effects and supply chain disruptions.
- 2Operating income decreased by 21% to $297.3 million, and net income attributable to Ecolab decreased by 34% to $193.6 million.
- 3Diluted EPS from continuing operations was $0.67, a decrease from $1.00 in the prior year's quarter.
- 4The Global Healthcare & Life Sciences segment showed strong growth with a 14% increase in fixed currency sales, benefiting from COVID-19 related demand.
- 5The Global Institutional & Specialty segment experienced a significant 21% decline in fixed currency sales due to continued pandemic-related restrictions affecting customer demand.
- 6Ecolab generated $295.3 million in cash from operating activities, demonstrating continued strong cash flow generation.
- 7The company amended and extended its $2.0 billion revolving credit facility in April 2021, extending maturity to April 2026, reinforcing its liquidity position.