Ecolab Inc. reported significant financial performance improvements for the third quarter and the first nine months of 2024, driven by strategic initiatives and operational efficiencies. For Q3 2024, net income reached $736.5 million, an 82% increase from $404.0 million in Q3 2023. The nine-month net income also rose to $1,639.5 million, up 70% from $967.1 million in the same period last year. The company’s total comprehensive income for Q3 2024 was $789.3 million, compared to $370.4 million in Q3 2023.
Total net sales for Q3 2024 were $3,998.5 million, reflecting a 1% increase from $3,958.1 million in Q3 2023. Organic sales grew by 4%, with notable increases in the Global Institutional & Specialty segment, which saw sales rise to $1,403.6 million, up from $1,314.1 million in the prior year. The Global Industrial segment also reported growth, with Q3 sales of $1,993.0 million compared to $1,940.8 million in Q3 2023.
Ecolab's operating income for Q3 2024 surged 85% to $1,044.8 million, up from $566.0 million in Q3 2023. The gross margin improved to 43.4%, compared to 41.1% in the same quarter of the previous year. The company attributed these gains to effective cost management and increased operational efficiencies.
Strategically, Ecolab completed the divestiture of its global surgical solutions business on August 1, 2024, generating a pre-tax gain of $365.3 million. This sale was part of a broader restructuring initiative, the One Ecolab initiative, which aims to enhance growth and margin expansion. Restructuring costs related to this initiative are expected to total $175 million by the end of 2027.
Ecolab's balance sheet showed total assets of $22.1 billion as of September 30, 2024, an increase from $21.8 billion at the end of 2023. Total liabilities decreased to $13.5 billion, down from $13.8 billion. The company’s long-term debt also declined to $6.97 billion from $7.55 billion, improving its net debt to EBITDA ratio to 1.7 from 2.4.
In terms of cash flow, Ecolab generated $2,047.2 million from operating activities in the first nine months of 2024, a significant increase from $1,559.3 million in the same period of 2023. The company also reported cash proceeds of $890 million from the divestiture of its surgical solutions business.
Overall, Ecolab's robust financial performance in 2024 reflects successful strategic initiatives, operational efficiencies, and a focus on core business segments, positioning the company for continued growth.
About ECOLAB INC.
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