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Albemarle Corp. (NYSE:ALB)

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Common-Size Income Statement
Quarterly Data

Albemarle Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -50.53 -61.80 -50.10 -60.77 -60.18 -73.54 -69.99 -67.90 -68.20 -69.81 -65.98 -69.46 -67.24 -65.90 -64.78 -63.18 -65.93 -65.24 -63.93 -63.54 -62.88
Gross profit 49.47% 38.20% 49.90% 39.23% 39.82% 26.46% 30.01% 32.10% 31.80% 30.19% 34.02% 30.54% 32.76% 34.10% 35.22% 36.82% 34.07% 34.76% 36.07% 36.46% 37.12%
Selling, general and administrative expenses -5.98 -5.65 -6.43 -8.71 -9.98 -13.79 -12.46 -15.70 -11.24 -14.21 -12.87 -14.00 -13.79 -18.66 -12.29 -14.32 -13.62 -13.12 -12.88 -14.48 -12.34
Research and development expenses -0.79 -0.77 -0.88 -1.18 -1.43 -1.36 -1.60 -1.81 -1.76 -1.75 -1.81 -1.86 -2.18 -1.44 -1.77 -1.52 -1.80 -1.78 -2.14 -1.88 -2.55
Gain (loss) on sale of interest in properties 0.00 0.00 0.00 0.00 -0.74 -14.81 -0.12 55.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.90 0.00 25.61 0.00
Operating profit 42.70% 31.78% 42.59% 29.34% 27.66% -3.50% 15.84% 70.08% 18.79% 14.23% 19.34% 14.68% 16.79% 14.01% 21.16% 20.99% 18.65% 18.97% 21.06% 45.72% 22.23%
Interest and financing expenses -1.04 -0.92 -1.42 -2.80 -2.47 -0.59 -0.62 -0.92 -5.29 -2.18 -2.57 -2.34 -2.29 -2.26 -1.26 -1.31 -1.51 -1.36 -1.67 -1.56 -1.65
Other income (expenses), net 3.20 2.06 0.38 0.59 1.37 3.19 -77.44 0.00 1.36 -6.55 -0.49 -0.82 1.13 -3.87 -1.29 -0.80 1.36 -3.53 0.49 -0.61 -3.71
Income (loss) before income taxes and equity in net income of unconsolidated investments 44.86% 32.93% 41.56% 27.13% 26.57% -0.90% -62.22% 69.16% 14.87% 5.51% 16.27% 11.53% 15.63% 7.89% 18.61% 18.88% 18.49% 14.07% 19.87% 43.54% 16.87%
Income tax (expense) benefit -10.73 -0.92 -9.41 -6.02 -7.14 -1.68 13.81 -13.82 -2.67 1.15 -4.10 -2.02 -2.50 0.51 -2.88 -3.44 -4.51 -1.21 -4.26 -9.38 -2.48
Income (loss) before equity in net income of unconsolidated investments 34.13% 32.01% 32.14% 21.12% 19.43% -2.58% -48.42% 55.33% 12.20% 6.66% 12.17% 9.51% 13.13% 8.40% 15.73% 15.44% 13.98% 12.86% 15.61% 34.16% 14.39%
Equity in net income of unconsolidated investments, net of tax 15.35 12.32 12.38 8.66 5.54 3.75 3.34 2.33 1.99 4.96 3.50 4.07 3.60 2.30 3.78 4.33 4.23 2.99 2.84 2.22 2.52
Net income (loss) 49.48% 44.33% 44.52% 29.78% 24.97% 1.17% -45.08% 57.66% 14.19% 11.62% 15.67% 13.58% 16.73% 10.70% 19.51% 19.77% 18.21% 15.85% 18.45% 36.39% 16.91%
Net income attributable to noncontrolling interests -1.48 -1.12 -1.62 -2.29 -2.50 -1.60 -2.21 -2.79 -2.66 -2.00 -2.51 -2.37 -2.22 -1.60 -1.88 -2.35 -2.16 -1.79 -1.77 -0.96 -0.87
Net income (loss) attributable to Albemarle Corporation 48.00% 43.21% 42.89% 27.49% 22.47% -0.43% -47.29% 54.87% 11.54% 9.63% 13.16% 11.21% 14.51% 9.11% 17.63% 17.42% 16.05% 14.06% 16.68% 35.42% 16.04%

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

An analysis of the common-size income statement reveals a significant transition in profitability and operational efficiency over the period from March 2018 to March 2023. While the early years of the period were characterized by relative stability in margins, the latter stages show substantial expansion in both gross and net profit margins, punctuated by significant volatility due to non-recurring items.

Gross Profitability Trends
Cost of goods sold exhibited a general increase as a percentage of net sales between 2018 and 2021, peaking at 73.54% in December 2021. However, a sharp reversal occurred in 2022, with costs dropping to a period low of 50.10% by September 2022. This resulted in a corresponding surge in gross profit, which rose from a low of 26.46% in December 2021 to a peak of 49.90% in September 2022, remaining high at 49.47% in March 2023.
Operating Expense Management
Selling, general, and administrative (SG&A) expenses demonstrated a consistent downward trend relative to net sales. From a range of 12% to 18% between 2018 and 2020, these expenses declined significantly to 5.98% by March 2023. Similarly, research and development expenses decreased from 2.55% in March 2018 to 0.79% in March 2023, indicating strong operational leverage and improved cost efficiency as the company scaled.
Operating Profit and Non-Recurring Volatility
Operating profit experienced extreme fluctuations driven by one-time events. A notable peak occurred in June 2021 at 70.08%, primarily fueled by a gain on the sale of interest in properties amounting to 55.49% of sales. Conversely, a sharp decline was recorded in December 2021, where operating profit fell to -3.50%. By the first quarter of 2023, the operating profit had stabilized at a high level of 42.70%, reflecting the combination of lower COGS and reduced SG&A.
Net Income and Other Income Impacts
The net income attributable to the company was heavily impacted by "Other income (expenses), net," most notably in September 2021, when a loss of 77.44% of net sales led to a net loss of 47.29% for the quarter. Despite this volatility, the overall trajectory shifted upward toward the end of the period, with net income attributable to the company reaching 48.00% of sales by March 2023.
Contributions from Unconsolidated Investments
Equity in the net income of unconsolidated investments showed a steady and significant increase. Starting at approximately 2% to 4% of net sales in 2018 and 2019, this contribution climbed to 15.35% by March 2023, indicating that these investments have become an increasingly critical driver of overall corporate profitability.

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