WILMINGTON, DE — Ashland Inc. (NYSE: ASH) has reported its financial results for the fourth quarter of fiscal year 2024, ending September 30. The company revealed a sales increase to $522 million, marking a 1% rise from the previous year, despite ongoing portfolio optimization efforts.
The company’s net income reached $16 million, a turnaround from a loss of $4 million the previous year. Adjusted income from continuing operations, excluding intangibles amortization, was $61 million, a significant leap from $21 million. The adjusted EBITDA also saw a substantial rise to $124 million, up 68%.
Ashland’s portfolio optimization, including the sale of its nutraceuticals business and adjustments in its carboxymethylcellulose (CMC) and methylcellulose (MC) sectors, reduced sales by about $24 million. These actions reflect the company’s strategy to focus on high-value sectors and improve its product mix.
CEO Guillermo Novo commented, “Customer demand was generally consistent with our expectations in the fourth quarter and all business units delivered organic sales volume growth.” He noted improvements in profitability due to increased sales volume aligning with customer demand and compared against last year’s inventory reduction actions.
In specific segments, Life Sciences saw a 5% drop in sales to $192 million, largely due to portfolio optimization, though pharma sales grew by 6%. Personal Care reported an 11% increase in sales to $162 million, driven by higher demand in skin and hair care products. Specialty Additives maintained steady sales at $144 million, and Intermediates reported a slight decline to $36 million.
Looking ahead to fiscal year 2025, Ashland forecasts sales between $1.90 billion and $2.05 billion, with an expected Adjusted EBITDA of $430 million to $470 million. The company plans to continue its restructuring efforts to boost manufacturing productivity and reduce costs, particularly in its HEC and VP&D businesses.
Novo emphasized the company’s strategic focus, saying, “Our portfolio optimization actions allow us to focus on high-value areas where we have technical and market leadership. Although overall demand trends are improving, there is uncertainty around specific industry and regional dynamics, primarily related to challenging market conditions in China.”
Ashland’s strategy involves strengthening its core operations and maximizing performance amid moderate growth and economic uncertainty, aiming for long-term profitable growth through its Execute, Globalize, and Innovate initiatives.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.