Air Liquide Reports Q1 2024 Results: Revenue Declines but Confident in Future Growth

Air Liquide, the French industrial gases company, reported its first-quarter 2024 results on Tuesday. The group's revenue reached €6.65 billion, representing a 7.3% decrease on a published basis compared to the same period last year. However, on a comparable basis, revenue increased by 2.1%, indicating underlying growth despite the overall decline.

The company's Gas & Services segment, which accounts for 96% of total revenue, saw a 7.8% drop in published revenue to €6.36 billion. This decline was primarily attributed to lower energy prices and negative currency impacts. Nevertheless, on a comparable basis, Gas & Services revenue grew by 2.0%, driven by strong performance in the Americas region and contributions from the Healthcare, Industrial Merchant, and Large Industries business lines.

Air Liquide's other business segments also showed growth in the first quarter. Global Markets & Technologies revenue totaled €200 million, up 4.7% compared to Q1 2023. Engineering & Construction revenue reached €92 million, a 6.5% increase from the previous year.

Why this matters: Air Liquide's Q1 2024 results demonstrate the company's resilience and ability to achieve growth in a challenging economic environment. The company's focus on sustainable development and the energy transition positions it well to contribute to global decarbonization efforts and capture future growth opportunities.

Despite the decline in published revenue, Air Liquide remains confident in its ability to further increase its operating margin and deliver recurring net profit growth at constant exchange rates in 2024. The company highlighted its strong pricing management, efficiency gains, and a high backlog of over €4 billion as key factors supporting its growth outlook.

Air Liquide also emphasized its commitment to sustainable development and the energy transition. Over 40% of the company's €3.4 billion investment portfolio is dedicated to projects related to the energy transition. Recent initiatives include investments in efficiency improvements and CO2 emission reductions at industrial gas production sites, as well as partnerships with companies like Enel Green Power and TotalEnergies to deploy hydrogen refueling stations across Europe.

In Q1 2024, Air Liquide continued to execute its strategic plan, focusing on operational performance, selective investments, and portfolio management. The company divested businesses in 12 African countries and made new investments in Electronics in Asia and the United States. Air Liquide also expanded its biomethane production capacities in the US and announced joint ventures with TotalEnergies for hydrogen distribution and with Sasol for renewable electricity in South Africa.

Commenting on the results, Air Liquide CEO François Jackow stated, "Air Liquide delivered a solid performance in the first quarter of 2024, despite a high comparison basis and an uncertain economic environment. Our resilient business model, strong pricing management, and efficiency gains position us well to achieve our 2024 guidance and enhanced 2025 objectives."

Key Takeaways

• Air Liquide's Q1 2024 revenue declined 7.3% but grew 2.1% on a comparable basis.
• Gas & Services revenue fell 7.8% but grew 2.0% on a comparable basis, driven by Americas.
• Other segments saw growth: Global Markets & Technologies +4.7%, Engineering & Construction +6.5%.
• Air Liquide remains confident in ability to increase operating margin and net profit in 2024.
• Over 40% of €3.4B investment portfolio is for energy transition projects, including hydrogen.