Name: Albemarle Corp. (NYSE:ALB) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Albemarle Corp., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Cost of goods sold	(4,245,517)	(2,329,986)	(2,134,056)	(2,331,649)	(2,157,694)
Gross profit	3,074,587)	997,971)	994,853)	1,257,778)	1,217,256)
Selling, general and administrative expenses	(524,145)	(441,482)	(429,827)	(533,368)	(446,090)
Research and development expenses	(71,981)	(54,026)	(59,214)	(58,287)	(70,054)
Gain (loss) on sale of business/interest in properties, net	(8,400)	295,971)	—)	—)	210,428)
Operating profit	2,470,061)	798,434)	505,812)	666,123)	911,540)
Interest and financing expenses	(122,973)	(61,476)	(73,116)	(57,695)	(52,405)
Other income (expenses), net	86,356)	(603,340)	(59,177)	(45,478)	(64,434)
Income before income taxes and equity in net income of unconsolidated investments	2,433,444)	133,618)	373,519)	562,950)	794,701)
Income tax expense	(390,588)	(29,446)	(54,425)	(88,161)	(144,826)
Income before equity in net income of unconsolidated investments	2,042,856)	104,172)	319,094)	474,789)	649,875)
Equity in net income of unconsolidated investments, net of tax	772,275)	95,770)	127,521)	129,568)	89,264)
Net income	2,815,131)	199,942)	446,615)	604,357)	739,139)
Net income attributable to noncontrolling interests	(125,315)	(76,270)	(70,851)	(71,129)	(45,577)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial performance from 2018 to 2022 is characterized by a period of relative stability and moderate decline followed by an exceptional surge in both revenue and profitability in the final year. Net sales remained largely stagnant between 2018 and 2021, fluctuating between 3.13 billion and 3.59 billion US dollars, before experiencing a 120% increase to 7.32 billion US dollars in 2022.

Gross Profitability and Margin Trends: Gross profit experienced a downward trend from 2018 to 2020, falling from 1.22 billion to 994 million US dollars. However, 2022 marked a significant pivot, with gross profit rising to 3.07 billion US dollars. This indicates a substantial expansion in gross margin, which rose from approximately 31.8% in 2020 to 42% in 2022, suggesting enhanced pricing power or favorable shifts in the cost of goods sold relative to sales.
Operating Expense Management: Selling, general and administrative expenses and research and development expenses remained relatively controlled throughout the five-year period. While net sales more than doubled in 2022, SG&A expenses increased by only 21% compared to 2021 levels, and R&D expenses rose by 33%. This divergence demonstrates strong operating leverage, as the company was able to scale revenue significantly without a proportional increase in fixed operating costs.
Operating Income Volatility: Operating profit showed a declining trend from 2018 (911 million US dollars) through 2020 (505 million US dollars) before recovering in 2021 and expanding exponentially to 2.47 billion US dollars in 2022. This trajectory highlights a shift from a period of contracting operational efficiency to one of high profitability.
Non-Operating Impact and Net Income: Net income attributable to the corporation showed a steady decline from 693 million US dollars in 2018 to a low of 123 million US dollars in 2021. The 2021 dip was heavily influenced by a substantial negative entry in other income (expenses), net, which reached 603 million US dollars. In contrast, 2022 saw net income surge to 2.69 billion US dollars, bolstered not only by operating performance but also by a dramatic increase in equity in net income of unconsolidated investments, which rose from 95.7 million US dollars in 2021 to 772 million US dollars in 2022.

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