Ecolab, the water, hygiene, and infection-prevention services company, announced impressive financial results for the second quarter. Despite a slight slowdown in the rate of price hikes, the company’s profit reached $329.7 million, compared to $308.3 million the previous year. This figure fell slightly short of analysts’ expectations of $341 million.
After adjusting for certain one-time items, Ecolab reported adjusted earnings of $1.15 per share, slightly below the projected $1.21 per share. However, the company’s revenue rose by 8% to $3.85 billion, in line with analysts’ estimates.
One of the key factors contributing to Ecolab’s success was its strong pricing power. Despite the deceleration in price hikes, the company’s pricing strategy remained robust, and it did not experience any pullback in volumes.
Ecolab’s margin recovery continued in the second quarter, thanks to its focus on value pricing and productivity improvements. The company is determined to sustain this upward trend throughout the year, even as the impact of inflation-related price hikes tapers off.
Looking ahead, Ecolab expects adjusted earnings per share for the third quarter to be between $1.45 and $1.55, just slightly above analysts’ expectations of $1.47 per share. The company is confident in its prospects for strong earnings and sales growth throughout the remainder of 2023.
