Q1 2025 ICL Group Ltd Earnings Call
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Operator: Good morning, ladies and gentlemen, and welcome to the ICL first quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session.
Speaker Change: Good morning, ladies and gentlemen, and welcome to the ICL first quarter Okay.
Speaker Change: 1025 earnings call at this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time. During this call will be quite immediate assistance. Please press star zero for the all B to B School is being recorded on Monday May 19 2025.
Operator: If at any time during this call you require immediate assistance, please press star zero for the operator.
Operator: This call is being recorded on Monday, May 19, 2025.
Peggy Reilly-Tharp: And I would now like to turn the conference over to Peggy Reilly-Tharp, VP, ICL Global Investor Relations. Please go ahead. Thank you.
Speaker Change: And I would now like to turn the conference elevated you Peggy Reilly Tharp VP ICR Global Investor Relations. Please go ahead.
Speaker Change: Thank you.
Peggy Reilly-Tharp: Hello, everyone.
Peggy Reilly-Tharp: I'm Peggy Riley-Tharp, Vice President of Global Investor Relations for IPL. I'd like to welcome you and thank you for joining us today for our earnings conference. This event is being webcast live on our website at icl-group.com and there will be a replay available a few hours after the live call and a transcript will be available shortly thereafter. We filed our reports and our presentation with the Securities and the Stock Exchanges in both Israel and the United States. Those reports, as well as the press release and our presentation, are available on our website. Be sure to review the disclaimer on slide 2 of the presentation.
Speaker Change: Hello, everyone and have you Riley Tharp, Vice President of Global Investor Relations.
Speaker Change: Thank you and thank you for joining us today for our earnings.
Speaker Change: Great.
Speaker Change: This event is being webcast live on our website at ICL group Dotcom.
Speaker Change: And there will be a replay available a few hours after the last call and a transcript.
Speaker Change: Shortly thereafter.
Speaker Change: Earlier today, we filed airports.
Speaker Change: No.
Speaker Change: And the stock exchanges in both Israel and the United States.
Speaker Change: Those reports as well as the press release and our presentation are available on our website.
Speaker Change: Please be sure to review the disclaimer on slide two.
Speaker Change: Yeah.
Peggy Reilly-Tharp: Our comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are not guarantees of future performance. Company undertakes no obligation to update any information discussed on this call at any time.
Speaker Change: Our comments today will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1996.
Speaker Change: These statements are based on management's current expectations and are not guarantees of future performance.
Speaker Change: The company undertakes no obligation to update any information discussed on this call.
Speaker Change: At any time.
Peggy Reilly-Tharp: We will begin with a presentation by our CEO, Mr. Elad Aharonson, followed by Mr. Abraham Lahav, our CFO. After the presentation, we will open the line for the Q&A.
Speaker Change: We will begin with a presentation by our CEO Mr. Aronson.
Speaker Change: Mr <unk> our CFO.
Speaker Change: After the presentation, we will open the lines to Q&A session.
Elad Aharonson: And I would now like to turn the call over to Elad. Thanks, Peggy, and welcome, everyone. And thank you all for joining us for the first quarter 2025 earnings call. It has been an interesting and busy first few months for me, and I'm pleased to share our results with you today. Now, if you will please turn to slide three for a brief overview of the quarter. Sales were $1,767,000,000, up 2% year over year, and up 10% on quarterly basis. As the company demonstrated solid strategic execution. Specialties driven sales of $1,412,000,000 were up 3% versus the first quarter of last year and up 15% versus fourth quarter.
Speaker Change: And I would now like to turn the call over to a lot.
Speaker Change: Thanks, Becky and welcome everyone and thank you all for joining us for the first quarter 'twenty to 'twenty five.
Speaker Change: It has been an interesting and busy few months for me and I am pleased to show results with you today.
Speaker Change: If you would please turn to slide three for a brief overview of the quarter.
Speaker Change: Sales were $1.767 billion up 2% year over year and up 10% on quarterly basis.
Speaker Change: As the company demonstrated solid strategic execution.
Speaker Change: Especially for your Threep instead of $1.412 billion were up 3% versus the first quarter of last year and up 16% record fourth quarter.
Elad Aharonson: Consolidated Digested EBITDA was $359 million, while Specialties Driven EBITDA of $262 million was up 7% year-over-year and 4% on a quarterly basis. Specialties driven EBITDA margin of 19% improve approximately 70 basis points versus the first quarter of last year. Overall market pricing trends begin to gradually improve in the first quarter. However, I would remind you that for many of our businesses there is a timing gap between published and realized prices. Nonetheless, fertilizer fundamentals are threatening and there seems to be a feeling of general optimism. We are of course monitoring the global tariff and trade situation and developing different mitigation responses.
Speaker Change: Consolidated adjusted EBITDA was $359 million was especially driven EBITDA of $262 million was up 7% year over year and 4% on a quarterly basis.
Speaker Change: Especially it's driven EBITDA margin of 19% improved approximately 70 basis points versus the first quarter last year.
Speaker Change: They're all market pricing trends begin to gradually improve in the first quarter. However, I would remind you that many of our businesses. There is a timing gap between published and realized right.
Speaker Change: Nonetheless, fertilizer fundamentals are strengthening and there it seems to be a single from general optimism. We are of course monitoring the global trade situation and developing a different mutation responses.
Elad Aharonson: In addition, we expect to leverage our already well-established regional production to continue to drive global growth with local focus and Aviram will elaborate on this a little bit later in the call. Our diversified global approach allows our specialties businesses to focus on local production for our customers and to provide customized solutions for the specific needs. Additionally, at present there are no tariffs on potash and bear in mind that we are able to reallocate products between markets as needed.
Speaker Change: In addition, we expect to leverage our already well established regional production to continue to drive global growth with local.
Speaker Change: And have you done what will elaborate on this a little bit later in the call.
Speaker Change: Diversified global approach allows our specialties business the focus on local production for our customers and to provide customized solutions for the specific commute.
Speaker Change: Additionally, it's present there are no studies on both us and bear in mind that we are able to reallocate product between market.
Elad Aharonson: Let's start with review of our divisions and begin with our industrial products business on slide 4. For the first quarter, sales of $344 million were up 3% versus the first quarter of last year while EBITDA of $76 million was up 6%. EBITDA margin improved to 22% and increased of 60 basis points. This solid performance reflects good quarterly trends, which benefited from higher volume. Better volumes drove overall flame retardant sales to increase year over year, with brominated product sales up slightly. Phosphorus-based flame retardant improved on both higher volumes, mainly in the U.S. and in Europe, and also higher prices.
Speaker Change: Let's start with a review of all the divisions and begin with zinc with our industrial products business on slide four for the first quarter sales of $344 million were up represent breath of the first quarter of last year, while EBITDA was $76 million was up 6% EBITDA margin improve.
Speaker Change: 22%, an increase of 60 basis points.
Speaker Change: This solid performance reflects good quarterly trends, which benefited from higher volume.
Speaker Change: Volumes drove overall flame retardant sales to increase year over year with Brominated products sales up slightly phosphorus based flame retardant improve on both higher volume mainly in the U S and in Europe and also higher prices.
Elad Aharonson: Some of these improvements are related to our recent anti-dumping measures implemented in the EU in 2024 and now also in the US. And we will continue to protect our markets when necessary.
Speaker Change: Some of these improvements is related to our recent anti dumping measures implemented in the EU in 2024 and now also in the U S.
Speaker Change: And we will continue to protect our markets when necessary.
Elad Aharonson: While trends are generally improving, some of our key flame-retarded end markets, such as electronics and especially building and construction, are still somewhat subdued. Bromine market prices ticked up in the first quarter, but there have been different price fluctuations since that time, related to ever-changing global tariffs and trade news. Regardless, change creates opportunities.
Speaker Change: Trends are generally improving some of our key flame retardant end market.
Speaker Change: Such as electronics, and especially building and construction are still somewhat subdued.
Speaker Change: Bromine market prices ticked up in the first quarter, but there have been different price fluctuation.
Speaker Change: Time related to ever changing global tariff and great news.
Speaker Change: Regardless change creates opportunities and this is where our focus on R&D and innovation really stands out.
Elad Aharonson: And this is where our focus on R&D and innovation really stands out. It allows us to create solutions to help our existing customers with issues they might be experiencing and also enables us to develop targeted solutions for new customers.
Speaker Change: It allows us to create solution.
Speaker Change: We help our existing customers with issues they might be experiencing and also enables us to develop targeted solutions for new customers on.
Elad Aharonson: On slide 5, you will see our Potash division results for the first quarter, with sales of $405 million and EBITDA of $118 million. Our average potash price for the first quarter was $300 CIS per ton, down when compared to the first quarter of last year, but up $15 per ton over the fourth quarter. As a reminder, similar to bromine prices, potash price improvement is not immediately reflected in our results, as there is a gap of anywhere from two to three months. In the first quarter, Potash sales volumes of 1,103,000 metric tons increased by about 20,000 tons per year over year, with higher volumes mainly to Brazil and China.
Speaker Change: On slide five you will see our potash division results for the first quarter with sales of $405 million and he'd be though $118 million.
Speaker Change: However, its put us right where.
Speaker Change: The first quarter was $300 yeah your script on Berlin, when compared to the first quarter of last year, but up $15 per tonne over the fourth quarter.
Speaker Change: As a reminder, cumulative bromine price of potash price improvement is not immediately reflected in our resort. If there is a gap anywhere from two to three months.
Speaker Change: In the first quarter, what the sales volume of 1.103 million metric tons increased by about 20000.
Speaker Change: Year over year.
Speaker Change: Higher volumes, mainly Brazil and China.
Elad Aharonson: I would point out that even as we were obligated to fulfill our annual 2024 contracts with China and India, which are at lower prices than the current market rates, we still work to maximize the profitability of our potash resources and to prioritize supply to the best global markets when possible. For the second quarter, we expect to deliver approximately another 150,000 tons to China and India under the existing contracted rate.
Speaker Change: I would point out that even as we were obligated to fulfill our annual 'twenty 'twenty four contract with China, and India, which are at lower prices than the current market rates.
Speaker Change: We feel works to maximize the profitability of our book Us resources and to prioritize supply to the global markets went bust.
Speaker Change: For the second quarter, we expect to deliver approximately another one other than 50000 tons, China and India under the existing contracted rates.
Elad Aharonson: At NFC, in the first quarter, we addressed some operational issues related in part to the war and in April, we completed the full and successful maintenance shutdown there. We invested to stabilize operations and expect these efforts to help drive improved output and efficiency as the year progresses.
Speaker Change: Did you see in the first quarter, we addressed some operational issues related in part to the war.
Speaker Change: Yep.
Speaker Change: We completed the full and successful maintenance shutdown during winter.
Speaker Change: We invested to stabilize operations and expect these efforts to drive improved output and efficiency as the year progresses.
Elad Aharonson: At our Potash operations in both Spain and Israel, we remain intent to driving operational and efficiency efforts. In Spain, we are focused on debuzzlenecking and also using innovation to optimize mining activity, improve reliability, and to meet sustainability targets.
Speaker Change: It's our potash operations in both Spain, and Israel, we remain intent on driving operational efficiency airports.
Speaker Change: We are focused on Debottlenecking and also using innovation to optimize mining activity improved reliability and to meet sustainability targets.
Aviram Lahav: Turning to slide six, and our phosphate solutions division, where first quarter sales of $573 million were up 3%, while EBITDA of $139 million increased 6% and EBITDA margin expanded to 24%. The improvement in the quarter was generally driven by strength in commodities, due to firm global demand and higher price. As expected, our phosphate specialties results were in line with market dynamics, as pricing remained under pressure due to overcapacity of purified phosphoric acid, including TPA and WPA. Industrial phosphate saw increases in both sales and volumes in all major regions. However, an increase in food phosphate volumes was not able to offset lower market price.
Speaker Change: Turning to slide six and our phosphate solutions division, where first quarter sales of $573 million were up 3%, while EBITDA of $139 million increased 6% and EBITDA margin expanded to 24% the improvement in the quarter was generally driven by.
Speaker Change: Strength in commodities due to film global demand and higher prices.
Speaker Change: As expected our phosphate specialties results were in line with market dynamics.
Speaker Change: As pricing remained under pressure due to overcapacity of purified phosphoric acid, including DPA and W. P.
Speaker Change: Industrial phosphate so increases in both sales and volumes in all major region. However, an increase in footfall straight volume was not able to offset lower market price.
Aviram Lahav: In China, sales for our YPH joint venture increased year-over-year with higher prices and volumes and favorable product. As a reminder, our YPH operation serves both phosphate commodities and specialties and also growing solution business. and the team there does an excellent job of optimizing its resources.
Speaker Change: In China third for Ypa's joint venture increased year over year with higher prices and volumes and favorable product mix as a reminder, our ypa's operations it looks.
Speaker Change: It looks like commodities and specialties and also growing solution business.
Speaker Change: And the team does an excellent job.
Speaker Change: Its resources.
Aviram Lahav: We recently had a management change in Phosphate Solutions, and Nadav Tuner, who successfully served as CEO of YPH for the past five years, has been appointed President of Phosphate Solutions, replacing Phil Brown. The business will continue to be focused on maintaining market share and volume gains and on targeting geographic expansion for both the food and industrial specialty phosphate solution.
Speaker Change: We recently had a management change in phosphate solution and no deaths tuna was successfully served in white ph for the past five years.
Speaker Change: Has been appointed president of solution, replacing steel Brown.
Speaker Change: The business will continue to be focused on maintaining market share and volume gains and on targeting geographic expansion.
Speaker Change: For both the food and industrial specialty phosphate solutions.
Aviram Lahav: Turning now to slide seven, and our growing solutions business division, where first quarter sales of $495 million were up 3% year over year, while EBITDA of $47 million increased 12%. This improvement was driven by a solid strategic execution of our growth plan, including the addition of regional acquisitions in 2024, like Custom Ag Formulators in the US and GreenBets in the UK, and as we expanded locally in China. We saw higher sales in China in the first quarter with strong volume growth and meaningful contribution from our Gaia stimulant product offering. In North America, we saw strong start of the year with both higher sales and profitability due to good demand for specialty fertilizers.
Speaker Change: Turning now to slide seven and our growing solutions business Division, where first quarter sales of $495 million were up 3% year over year, while EBITDA of $47 million increased with percent.
Speaker Change: This improvement was driven by a solid strategic execution of our growth plan, including the addition of regional acquisitions in 'twenty 'twenty four like custom formulated in the U S. In Green Bay in the UK and as we extended locally in China.
Speaker Change: We saw higher sales in China in the first quarter with strong volume growth and meaningful contribution per MAU.
Speaker Change: Product for free.
Speaker Change: In North America, we saw a strong start of the year with both the higher sales and profitability due to good demand for specialty fertilizers.
Aviram Lahav: In Brazil, cells increased year over year as did volumes, and both B2B and B2C cells also improved. Going forward, we expect Brazil to be a beneficiary of recent uncertainty related to tariffs, and we plan to maximize our business there to benefit from any shifts in global trade.
Speaker Change: In Brazil sales increased year over year as the volume in both B to B and B to C sales also improved.
Speaker Change: Going forward, we expect Brazil to be a beneficiary of recent uncertainty related to tariffs and we plan to maximize our business. There are two benefits from any shifts in global trade.
Aviram Lahav: in Europe. So good growth in our turf and ornamental business, and we expect to continue to drive growth from our innovative new offerings and a shift to bio-stimulant products.
Speaker Change: In Europe.
Speaker Change: So good growth you know turf and ornamental business.
Speaker Change: And we expect to continue to drive growth from our innovative new offerings and a shift.
Speaker Change: Stimulant product.
Aviram Lahav: As you know, biologicals have been a big focus for ICL, and in early April, we acquired Lavie Bio, a leading ag-biological technology company. This acquisition further advances our goal of becoming a global powerhouse in ag-biologicals and helps us to position ICL at the forefront of this vibrant and sustainable new market.
Speaker Change: As you know biologicals, it's been a big focus for ICL and in early April we acquired <unk>, a leading AG biological technology company.
Speaker Change: This acquisition further advances our goal of becoming a global powerhouse and AG biological.
Speaker Change: And it helps us with <unk>.
Speaker Change: <unk> ICL at the forefront of this vibrant and sustainable new market.
Aviram Lahav: This is in addition to other innovative new products we have developed, including the recent launch of BIOS in Italy, Poland, France, Spain, and Germany. BIOS is a new range of bio-simulants for Europe, which was engineered to ensure crops reach their full potential by improving establishment, promoting growth, increasing flowering and fruit setting, and enhancing tolerance to and recovery from stress.
Speaker Change: This is in addition to other innovative new products, we have developed including the recent launch of <unk> in Italy, Poland, France, Spain and Germany.
Speaker Change: <unk> is new range of plus two minutes for Europe, which was engineered to ensure crops reached their full potential by improving establishment promoting growth increasing flooring and route setting.
Speaker Change: And enhancing tolerance to and recovery from Chris and with that I would now like to turn the call over it would be wrong for a brief financial overview before I share an update on our guidance and outlook for 2025.
Aviram Lahav: And with that, I would now like to turn the call over to Aviram for a brief financial overview, before I share an update on our guidance and outlook for 2025. Thank you, Elad, and to all of you for joining us.
Speaker Change: And to all of you also joining us today.
Aviram Lahav: Let us get started on slide nine and take a look at some key market metrics. As a truly global company supplying a wide variety of end markets, we look at the number of macro metrics, including inflation. Rates were fairly stable for the US and EU in the first quarter, but Brazil saw a 30 basis point increase.
Speaker Change: Get started on slide nine.
Speaker Change: Some key market metrics.
Speaker Change: A truly global company supplying a wide variety of end markets, we look at the number of macro metrics, including inflation.
Speaker Change: Greg was fairly stable for the U S and EU and to support them, but Brazil, So 30 basis points increase in China inflation turned slightly negative by quarter and it is consumer.
Aviram Lahav: In China, inflation turned slightly negative by quarter end as consumer prices fell by 0.1% year-over-year in March, marking the second consecutive monthly decrease. Turning to interest rates, which increased again in Brazil this quarter, up approximately 200 basis points versus the fourth quarter of 2024. Rates in the US and Israel were flat in the first quarter, while the EU, UK and India also decreased by between 20 to 50 basis points. Global industrial production growth was 2.9% in the first quarter, up approximately 80 basis points versus the fourth quarter. Growth is forecasted to ease slightly in the second quarter, and then level off to 3.1% for the remainder of 2025.
Speaker Change: Consumer prices fell by 1% year over year in March marking the second consecutive monthly increase.
Speaker Change: Turning to interest rates, which increased again in Brazil. This quarter up approximately 200 basis points versus the fourth quarter of 2020 call rights in the U S and Israel.
Speaker Change: While the EU U K and India also decreases of between 20 basis.
Speaker Change: Basis points.
Speaker Change: Global industrial production growth was two 9% in the first quarter up approximately 80 basis points versus the fourth quarter.
Speaker Change: Growth is forecasted to east like it in the second quarter and then the level of three 1% of the remainder of 2020 sites.
Aviram Lahav: Lastly, on this slide, let us look at first quarter housing starts in the U.S., which decreased 13% after improving at roughly the same rate in the fourth quarter of 2020.
Speaker Change: Lastly on this slide.
Speaker Change: Luke It's first quarter housing starts in the U S, which decreased 13% up to including at roughly the same rate in the fourth quarter.
Aviram Lahav: Turning to slide 10 and key fertilizer market metrics, which are clearly relevant for our potash business, but also for our growing solutions and phosphate community. In the first quarter, the grain price index was up slightly on a sequential basis. Corn, wheat, and soybean prices all improved, with corn seeing both the biggest quarterly gain and growth on a year-over-year basis. In the U.S., corn annually uses more than 2 million tons of potash, and that is about a half a million tons more than the amount used by soybean crops and significantly more than we farmer sentiment in the first quarter increased slightly on a sequential basis but was up significantly versus the first quarter of last year.
Speaker Change: Turning to slide 10, and Keith fertilizer market metrics, which are cleared on the relevance of our potash business, but also our growing solutions as possible.
Speaker Change: In the first quarter, Glenn price index was up slightly on a sequential basis, corn wheat, and soybean prices volume pools with quality in both the biggest quarterly gain in growth on a year over year basis.
Speaker Change: The U S corn annually.
Speaker Change: More than 2 million tonnes of potash from that is about a half a million tons more than the amounts was by soybean clocks and significantly more than a week.
Speaker Change: Farmer sentiment in the first quarter increased slightly on a sequential basis, but was up significantly versus the first quarter of last year.
Aviram Lahav: In April, farmer sentiment improved further, with increases in both current conditions and future expectations, as farmers overwhelmingly reported that they expect the increased use of tariffs by the U.S. to prove beneficial to the U.S. agricultural economy in the long run. Cottage and phosphate prices both increased sequentially in the first quarter, with cottage prices up approximately 9 percent, while phosphate growth was at approximately 4 percent, as the charted data showed.
Speaker Change: In April farmer sentiment in concert with increases in both current.
Speaker Change: And future expectations.
Speaker Change: Most of the when the court.
Speaker Change: Expect the increased use as far as like the U S will prove beneficial to the U S agricultural economy in the long run potash.
Speaker Change: Potash and phosphate prices both increased sequentially in the first quarter potash prices up approximately 9%.
Speaker Change: Foster growth.
Speaker Change: Proximately, 4% is the chart that data shows in the first quarter Ocean freight rates increased by about 8% sequentially, but were down nearly 30%.
Aviram Lahav: In the first quarter, ocean freight rates increased by about 8% sequentially, but were down nearly 30% since the first quarter of last year.
Speaker Change: The first quarter of last year, turning to slide 11, and some new market indicators, which are more relevant pall industrial products and possible solutions businesses.
Aviram Lahav: Turning to slide 11 and some new market indicators which are more relevant for our industrial products and phosphate solution business. Let us start with Chinese roaming prices, which improved in the first quarter and then fluctuated down and then back up since quarter end. While there are no available forecasts for growing prices, there are for specialty phosphate demand, which is expected to continue to increase at a steady pace over the next five years. Since 2020, global demand for LFP-grade phosphate grew at a kager of more than 100%, while technical MAP improved at a more sedate but still impressive pace of 17%.
Speaker Change: To start with Chinese bromine prices, which improved in the first quarter and is slightly down and then back up since quarter end.
Speaker Change: No available forecast for Goldman prices go up for specialty phosphate demand, which is expected to continue to increase at a steady pace over the next five years since 2020 global demand for NFC, great phosphate Prolexic CAGR.
Speaker Change: More than 100% by technical MEP improved and more states are still aggressive space.
Speaker Change: 17%.
Aviram Lahav: As many of you know, we currently produce LFP-grade phosphates for use in EV batteries in China. However, we also supply bromine and phosphate-based solutions to the global auto market, which is expected to grow approximately 25% over the next 15 years. From semiconductor chips to windchips, and from seats to tires, ICL solutions make cars safer and more efficient. They even make the roads you drive on smoother and safer by extending the life of asphalt and preventing potholes. So regardless of what kind of engine your next car has, we are an important and necessary part of the automotive end market.
Speaker Change: As many of you know we currently produce NFC like phosphates for use EV batteries in China. However, we also supply bromine and phosphate based solutions to the global auto market, which is expected to grow approximately 25% over the next 15 years.
Speaker Change: Some semiconductor chips, the windshields and from seats to tires, Ics solutions make car safer and more efficient.
Speaker Change: You can make the roads to drive on smoothed unsafe.
Speaker Change: Extending the life of asphalt and preventing postcodes.
Speaker Change: Regardless of what type of engine no next house that.
Speaker Change: We are an important and necessary part of the automotive end market.
Aviram Lahav: Our bromine and phosphate solutions are also used in many everyday consumer goods, including pharma, nutraceutical products, and food and beverage. Over the past five years, revenues for the consumer products industry have improved more than 7%. While companies have relied on price increases for some of that expansion, they have also looked to innovation and efficiency to drive profits and growth. And our specialty solutions have helped them achieve their goals.
Speaker Change: Our bromine and phosphate solutions are also used in many everyday consumer goods.
Speaker Change: Summer nutraceutical products and food and beverages.
Speaker Change: For the past five years revenue cycle consumer products into suites have improved more than 7%.
Speaker Change: While companies have relied on price increases for some of that expansion.
Speaker Change: <unk> also looked to innovation and efficiency to drive profits and growth.
Speaker Change: Specialty solutions that help them achieve their goals.
Aviram Lahav: If you will now turn to slide 12, for a look at our year-over-year sales bridges for the first quarter, sales came in at $1,767,000,000, up 2% versus last year. On the left side, you can see the change of each of our business divisions with all, excluding Potash, demonstrating growth. Turning to the right of the slide, you can see the benefit received from higher quantities, but also the impact of lower prices and exchange rate fluctuations on year-over-year sales growth.
Speaker Change: Thank you, we'll now turn to slide 12 for a look at our year over year sales bridges.
Speaker Change: First quarter sales came in at $1.767 billion up 2% versus last year.
Speaker Change: On the left side you can see the change of each of our business decisions with all excluding park us demonstrating growth.
Speaker Change: Turning to the right of the slide you can see the benefits of the seats from high quality, but also the impact of lower prices and exchange rate fluctuations on a year over the year. Thanks tools.
Aviram Lahav: On slide 13, you can once again see the impact lower potash prices had on our first quarter EBITDA of $359 million. We were, however, able to offset some of the price impact to overall higher quantities and lower raw material and transportation costs.
Speaker Change: On slide 13, we can once again.
Speaker Change: But lower potash prices had on our first quarter EBITDA was $359 million.
Speaker Change: We were however, able to offset some of the pricing.
Speaker Change: So overall higher quantities and lower raw material and transportation costs.
Aviram Lahav: Turning to slide 14 and a look at some of our leading positions in terms of cost, quality, and price, even as we continue to service our 2024 POTASH contracts with China and India in the first quarter, we still maintain our leadership position in terms of average real-life POTASH price. On the right side of the slide, you can see ICL leadership position in the global bromine market. Bromine prices appear to be somewhat stabilizing, and the Dead Sea remains the most cost-competitive source of bromine and accounts for approximately two-thirds of global supply capacity.
Speaker Change: Turning to slide 14, and a look at some of our leading positions in terms of cost quality and price.
Speaker Change: Even as we continued to service our 2020 for potash contracts with China, and India, South quarter, which seem to maintain our leadership position in terms of average realized potash price.
Speaker Change: On the right side of the slide you can see ICL leadership position in the global bromine market roaming prices appear to be somewhat stabilizing in the dead Sea remains the most cost competitive source of bromine and it caused salt proximity to global supply capacity.
Aviram Lahav: If you turn to slide 15, you can see how our global business looks on both the regional and regional basis. For the first quarter, Europe represented approximately 35% of sales, with Asia at 24%, North America came in at 20%, and South America represented 16% of total sales.
Speaker Change: If you turn to slide 15, you can see how our global business look on both divisional and regional basis.
Speaker Change: For the first quarter Europe represented approximately 35% of stake with Asia, 24% North America came in at 20% and South America represented 16%.
Aviram Lahav: I would like to stress the importance of our regional strategy by asking you to turn to slide 16. Here you can see the breadth and depth of ICL's footprint. In total, we operate more than 40 production sites in 13 different countries, with many of our specialties products manufactured and sold regionally. For example, between 60% to 70% of our specialty sales in the US are produced in the US.
Speaker Change: I would like to stress the importance of our regional strategy by asking you to turn to slide 16, you can see the breadth and depth crises footprint.
Speaker Change: Total we operate more than 40 production sites in 13 different countries many of our specialty spot that's manufactured and so regionally.
Speaker Change: For example between 60% to 70% cost specialty sales in the U S are produced in the U S.
Aviram Lahav: And this is an important strategic advantage for ICL. Additionally, as Portage is currently exempt from US tariffs, we believe the implication of the new global trade situation will not be material to ICL.
This is an important strategic advantage for ICF.
Speaker Change: It's potash it's Alex.
Speaker Change: Exempt from your theories we believe.
Speaker Change: Vacation of global trade situation will not materialize yet.
Aviram Lahav: Before I turn the call back over to Elad, I would like to share a few highlights on slide 17. Our balance sheet remains strong, and we ended the quarter with available resources of approximately $1.5 billion. Our net debt to adjusted EBITDA rate at quarter end remained at 1.2 times, and we delivered operating cash flow of $165 million.
Speaker Change: Before I turn the call back over to it that I would like to share a few highlights on slide 17, our balance sheet remains strong and we ended the quarter with available resources.
Speaker Change: <unk>, one 5 billion, our net debt to adjusted EBITDA range at quarter end remained at one two times and we delivered operating cash flow was $165 million. Once again, we are distributing 60% of adjusted net income for ourselves.
Aviram Lahav: Once again, we are distributing 50% of adjusted net income to our shareholders, which translates to a total dividend of $55 million this quarter, resulting in a trailing 12-month dividend yield of 3.5%. In the quarter, we maintained our consistent and disciplined approach to capital allocation and also remained focused on cost savings and efficiency.
Speaker Change: This translates to a dose.
Speaker Change: A dividend of $55 million this quarter, resulting in a trailing 12 month dividend.
Speaker Change: Keith.
Speaker Change: In the quarter, we maintained our consistent and disciplined approach to capital allocation and also remains focused on cost savings and efficiencies.
Elad Aharonson: And with that, I would like to turn the call back over to Elad for a review of our guidance. Thank you, Aviram. If you will turn to slide 19, I would like to confirm that we are maintaining our 2025 guidance. For specialties driven business divisions, which include industrial products, growing solutions and phosphate solutions, we continue to expect EBITDA to be between $0.95 billion to $1.15 billion in 2025. We expect potash sales volumes to be between 4.5 million to 4.7 million metric tons. And we expect our effective annual tax rate for 2025 to be approximately 30% in anticipation of higher potash prices.
Speaker Change: And with that I would like to turn the call back over to allow us for a review of our guidance.
Amit: Thank you Amit.
Speaker Change: You will turn to slide 19, I would like to confirm that we are maintaining our 2025 guidance.
Speaker Change: For efficiencies driven business divisions, which include industrial products growing solutions and full suite solution. We continue to expect EBITDA to be between zero point 95 billion $115 billion in 2025.
Speaker Change: We expect potash sales volumes to be between $4 5 million to $4 7 million metric tons.
Speaker Change: And we expect our effective annual tax rate for 2025 to be approximately 30% in anticipation of higher prices.
Elad Aharonson: However, I would remind everyone once again that we will still be fulfilling our annual potash contract with China and India in the second quarter. In addition, our annual potash guidance does not include price parameters. However, we support the market expectation that prices will improve. Additionally, we have not made any guidance concessions for potential tariffs, as we await further clarity on this topic. With that said, our calculations based on the current situation indicate any impact for 2025 would be de minimis. However, we are aware of the possibility for further changes.
Speaker Change: However, I would remind everyone. Once again that we would still be fulfilling our annual potash contracts in China and India in the second quarter.
Speaker Change: In addition, our annual potash guidance does not include <unk>.
Speaker Change: However, which support the market expectation that prices will increase.
Speaker Change: Additionally, we have not made any guidance consistent for potential targets.
Speaker Change: As we await further clarity on this topic, we visit our calculation based on the current situation indicate any impact for 2025 would be de Minimis. However, we are aware of the possibility for further changes.
Elad Aharonson: On slide 20, you can see a few of the areas we are focused on this year.
Speaker Change: On Slide 20, you can see a few of the areas. We are focused on this year, while there's been a change in the leadership at ICL and I plan to share more clarity about my vision for the company later this year.
Elad Aharonson: While there has been a change in the leadership at ICL, and I plan to share more clarity about my vision for the company later this year, there has not been a shift in our overall strategy. We will continue to drive growth in our specialty businesses, which help to differentiate ICL from our more commodity-based peers. We will also continue to maximize our potash sales volumes by prioritizing the market with the highest prices when possible, as we have done in the past. Market prices are improving in many areas, including for potash and bromine, and we expect to benefit from higher rates as the year progresses.
Speaker Change: Not being a shift in our overall strategy.
Speaker Change: We will continue to drive growth.
Speaker Change: Our specialty businesses, which help to differentiate ICL from our more commodity based views. We will also continue to maximize our sales volumes by prioritizing the markets with the highest prices when possible as we have done in the past.
Speaker Change: Market prices are improving in many areas, including for potash and bromine and we expect to benefit from higher rates.
Elad Aharonson: But we do not intend to relay on just passing through price increases for growth. Rather, we will continue to drive cost savings efficiencies. We will also look to operational enhancement to address some of our recent production issues.
Speaker Change: But we do not intend to relay on just passing through price increases for growth rather we will continue to drive cost savings efficiencies. We will also look to operational enhancement to address some of our recent production issues.
Elad Aharonson: Innovation will remain key to ICL future growth and we will continue to develop new products in partnership with existing clients and to provide solutions to new clients. Our acquisition strategy remains the same, and you can expect to see additional complementary M&A activity. Indeed, some of our recent acquisitions, like custom ag formulators, have helped to extend our presence in regional markets and allows us to provide local production for local customers. And we have been moving in this direction for quite some time. This is one of the benefits of having a truly global workforce. It enables us to look to our trusted co-workers in different regions for their insights and to work with them on finding the right solutions.
Speaker Change: Innovation will remain key to fuel future growth and we will continue to develop new products in partnership with existing clients and to provide solutions to new clients.
Speaker Change: Our acquisition strategy remains the same and you can expect to see additional complementary M&A activity. Indeed, some of our recent acquisitions like custom formulated it help to expand our presence in regional markets and allows us to provide local production for local customers and we have been moving in this direction.
Speaker Change: For quite some time. This is one of the benefits of having a truly global workforce. It enables us to look to our trusted co workers in different regions.
Speaker Change: Their insight and to work with them on finding the right solution I would like to thank all of my colleagues around the world for a good quarter and I look forward to sharing many more with them and with that I would like to turn the call back over to the operator for Q&A.
Elad Aharonson: I would like to thank all of my colleagues around the world for a good quarter, and I look forward to sharing many more with them.
Operator: And with that, I would like to turn the call back over to the operator for Q&A. Thank you.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one on your telephone keypad, you'll hear a prompt that Johanna has been raised and should you wish to cancel your request. Please press star followed later too.
Operator: Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star, followed by the one on your telephone keypad. You will hear a prompt that your hand has been raised. And should you wish to cancel the request, please press star, followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys.
Speaker Change: Thank you speakers for this lift the handset before pressing.
Operator: One moment, please, for your first question.
One moment. Please for your first question.
Benjamin Theurer: Your first question comes from the line of Benjamin Theurer from Barclays. Please go ahead. Hi everyone, this is Rahi on for Ben. First off, congrats on the results. Just wanted to zoom into Potash. So do you see any different trade flows with the Eurasian players saying that to shut down capacity in 2Q? And there are some market ideas that these players, if they produce above their normal capacity utilization, maybe 96% versus their normal high 80%, then there won't be any undersupply, but just relative tightness given low spot availability. So just wondering what you think about that.
Benjamin: Your first question comes from the line of Benjamin <unk> from Barclays. Please go ahead.
Benjamin: Hi, everyone. This is Ross <unk> on for Ben first off congrats on the results just wanted to women to potash. So do you see any different trade flows in theory, your Asian players, saying that they shut down capacity in <unk>.
Speaker Change: And there are some market ideas that these players if they produce above their normal cat capacity utilization, maybe 96% birthday normal high 80% and there won't be any under supply, but just relative tightness given low spot availability.
Speaker Change: Just wondering what you think about that is it likely that they would like performed by.
Rahi Parikh: Is it likely that they would perform like a 96% capitalization or what do you think the tightness will be in the market in 2Q, just ideas on that in terms of pricing impact? Thank you so much.
Speaker Change: The 96% copyright basin or what it was what why do you think the tightness will be in the market on Q2, just a D is on long term debt pricing. Thank you so much.
Rahi Parikh: Rahi, can you repeat the first part of that question for me, please? Yeah, of course. Here's easier if I talk like this. Right. So first, I'm asking about if you see any different trade flows with the Eurasian players saying they have to shut down capacity in 2Q. So just if you see anything different happening, if you actually see the impact from cut capacity, as they had announced. And then again, there's some market ideas, like some of our data platforms that if these Eurasian players produce above their normal capacity utilization, so I think normally it's high 80%.
Speaker Change: Brian can you repeat the first part of that question for me. Please.
Speaker Change: Yeah Yeah.
Speaker Change: Is it quite like that.
Speaker Change: <unk>.
Speaker Change: So first of all I'm asking about if you see any different trade flows with the Euro Asian players Dana to shutdown capacity.
Speaker Change: And so Joseph do you see anything different happening if you actually see the impact from cut capacity as they had announced and then again there is some market ideas.
Speaker Change: Some of our data platform that is easy reason players produce above their normal cabinet capacity utilization. So I think normally it's high 80 percents, but if they go to maybe high ninety's, there wont be under supply, but still about the tightness just maybe what you think about that if you think high 96% is is normal.
Rahi Parikh: But if they go to maybe high 90s, there won't be undersupply, but still relative tightness. Just maybe what you think about that if you think high 96% is normal, or sorry, high 96% is doable is the word. Just maybe your thoughts on general tightness that could happen in 2Q.
Speaker Change: Normal I'm, sorry 90.
Speaker Change: 96% is doable is the word.
Speaker Change: Maybe your thoughts on general takeaways that could happen in <unk>.
Elad Aharonson: I guess my question would be who are you lumping in with Eurasian players that would be. Oh, sorry. Yeah, of course. I was like, I'm gonna pronounce some words. I'm a European. You really like those, those three players that are cutting the Russian and fellow Russian players. Yeah, yeah, let's do those two. Well, there's there's been a lot in the news and even analyst reports that I'm sure you've seen, which, you know, first Those players say they're going to be not able to keep up to production. then they actually exceed expectations. So to be honest with you, Ed, what they say and what they do isn't always the same thing.
Speaker Change: I guess my question would be who are you lumping in Eurasia players that would be very key.
Speaker Change: Oh, sorry, yes.
Speaker Change: And then some words on the Euro Tan.
Speaker Change: We like those those new players that are okay.
Speaker Change: The rationale Belo Russian players.
Speaker Change: Yes, it does.
Well theres been a lot in the news and even analysts reports that I'm sure you've seen with <unk>.
Speaker Change: First.
Speaker Change: Those players say theyre going to be not able to keep up to production than.
Speaker Change: Then they actually exceed expectations, so to be honest with you add what they say and what they do isn't always the same thing and obviously, we do keep an eye on that.
Elad Aharonson: And obviously, we do keep an eye on that. But I think.
Speaker Change: But I think it's actually kind of difficult to answer the question when they're a little bit.
Speaker Change: So not very transparent and their actions if that helps at all but I think it looks like.
Elad Aharonson: Transcription by CastingWords Transcription by CastingWords Unknown Attendee, Elad Aharonson, Philip Brown, Lee Botvin, Rahim Laharonson, Abhi Laharonson, Lee Botvin, Abhi Laharonson, Abhi Laharonson, Abhi Laharonson, Abhi Laharonson, Very clear on the call is that we know we still are supplying those Indian Unknown Person, Unknown Team, Brian Companies, Tony Women under that'll be going into the second quarter. So it'd be great if you know, we would see more of that benefit from improving pricing, but it will be a little bit delayed for us if that helps at all. Yeah, for sure. Thanks so much, Peggy.
Speaker Change: Prices are moving in the right direction.
Speaker Change: Supply is pretty stable demand should be good.
Speaker Change: What we said about corn in potash in the U S.
Speaker Change: My only caution and I think a lot Nathan.
Speaker Change: On the call is that we know we still are supply, there's India and China contract.
Speaker Change: For 2024, and we know theyre at much lower rates and that'll be going into the second quarter. So it'd be great. If we would see more of that benefit come through in pricing, but it will be a little bit delayed for us if that helps at all.
Speaker Change: Yeah for sure. Thanks, so much Peggy and then just wanted to see if you have more color on the mix shift that you mentioned for Brazil, and got inflation and that will be it. Thank you so much.
Elad Aharonson: And then just wanted to see if you have more color on the mixed shifts that you mentioned for Brazil and growing solutions. And that would be it. Thank you so much. Oh, sure. Excellent. Yes, Brazil had, you know, obviously good B2B and B2C business, specialties are very strong there. So it's Seahawks We added custom egg formulators. and in fact, saw, you know, higher specialty growth for growing solutions there as well. So just, and that's going around, actually, you know, the world, we mentioned that in the EU, we're seeing good bio-stimulus. sales.
Speaker Change: Oh sure.
Speaker Change: But yes, Brazil had you know obviously good.
Speaker Change: <unk> business specialties are very strong there.
Speaker Change: It's doing very well with the acquisitions, we made several years ago and I would say we saw something similar in North America, where you know we added custom formulated.
Speaker Change: And in fact.
Speaker Change: Our specialty growth growing solutions, there as well, so and that's going well actually the world we mentioned that in.
Speaker Change: You were seeing good bio stimulant.
Elad Aharonson: So I hope that helps. For sure. Thanks so much. Thank you.
Speaker Change: So.
Speaker Change: I hope that helps.
Speaker Change: Sure. Thanks, so much.
Speaker Change: Yeah.
Speaker Change: Thank you.
Operator: Operator, do we have any further questions? Thank you. Once again, should you have a question, please press star four by the one on your telephone keypad.
Speaker Change: Operator, do we have any further questions.
Speaker Change: Thank you once again should you have a question. Please press star followed by the one on your telephone keypad.
Operator: And there are no further questions at this time.
Speaker Change: And there are no further questions at this time I would now hand, the call back to thank you Riley Tharp for any closing remarks.
Peggy Reilly-Tharp: I would now hand the call back to Peggy Riley-Tharp for any closing remarks. Well, thank you all for joining us today. We really appreciate you learning more about our first quarter results, and we look forward to sharing our second quarter results with you later this summer.
Speaker Change: Well. Thank you all for joining US today, we really appreciate you learning more about our first quarter results and we look forward to sharing our second quarter results with you later this summer.
Peggy Reilly-Tharp: Take care.
Operator: And this concludes today's call. Thank you for participating. You may all disconnect.
Speaker Change: And this concludes today's call. Thank you for participating you may all disconnect.
Speaker Change: Okay.
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