American firm Ashland sales grow 3% YoY in Q1 FY23

Leading global additives and specialty ingredients company Ashland has reported sales of approximately $525 million in the first quarter (Q1) of fiscal 2023 (FY23), up 3 per cent versus the prior-year period. The company expects income from continuing operations of approximately $42 million, or approximately $0.76 per diluted share, during Q1 FY23.
Adjusted earnings from continuing operations excluding intangibles amortisation are expected to be approximately $54 million, or $0.97 per diluted share. Net income (including discontinued operations) is estimated to be approximately $40 million.
The company’s sales declined in both the specialty additives and personal care segments, driven by the COVID-19 impact in China, general economic weakness in Europe, and aggressive inventory destocking by distributors in both China and Europe, Ashland said in a press release.
In general, ingredient and additive demand from the company’s major customers remained resilient. Destocking by customers was customer-specific with no underlying patterns in any markets. Price and mix performance remained strong across all businesses.
Ashland’s Adjusted EBITDA is expected to be approximately $108 million in Q1 FY23, up two per cent versus the prior year. Adjusted EBITDA on a constant-currency basis increased by approximately 15 per cent.
Based on current expectations and considering external uncertainties, Ashland continues to expect sales in the range of $2.5 billion to $2.7 billion for fiscal 2023, consistent with prior expectations. In addition, the company continues to expect adjusted EBITDA to be within the prior outlook range of $600 million to $650 million, with the current forecast models indicating earnings below the mid-point of that range.
“Ashland is executing its plans and priorities, focusing on high-quality resilient markets, strong price and mix management, disciplined operations, accelerating our innovation initiatives and investing in our future,” said Guillermo Novo, chair and chief executive officer, Ashland.