Air Liquide: Lower Profits, Higher Operating Margin

Air Liquide reported a 2.4% decline in net profit for the first half of 2024, to €1.68 billion.
This decline was due to the absence of exceptional gains, such as the disposal of a stake in Hydrogenics in 2023, and to unfavorable currency effects, notably the devaluation of the Argentine peso.
Sales fell by 4.3% to 13.38 billion euros, mainly due to lower energy prices.
Nevertheless, on a like-for-like basis, revenues showed organic growth of 2.6%, underpinned by the healthcare sector, with the distribution of medical gases to hospitals and individuals.
Recurring net income, excluding exceptional items, rose by 3.3%, reflecting the strength of the Group’s core businesses.

Improvement in Operating Margin

Air Liquide’s operating margin, excluding the energy effect, rose by 1 percentage point to 19.4%.
This improvement is the result of savings achieved through digitalization and process optimization.
The Group confirms its objective of further increasing its operating margin in 2024, while continuing to grow its recurring net profit at constant exchange rates. Air Liquide is focusing on the development of its activities related to energy transition, decarbonization and electronics.
Demand for rare gases, notably helium for semiconductors, is expected to increase in the third and fourth quarters of 2024 and in 2025, driven by the need for servers and artificial intelligence.

Perspectives and Strategic Projects

In the Americas, where Air Liquide generates around 40% of its sales, the Group signed major contracts with ExxonMobil and Micron, totalling $1.1 billion.
The portfolio of investment opportunities reached a record level of 4 billion euros at the end of June 2024, illustrating strong growth momentum. The Group’s largest investment, to produce oxygen and nitrogen for ExxonMobil in Baytown, Texas, is awaiting final decision in early 2025.
In Europe, the Dartagnan project, which captures and liquefies excess CO2 from cement and lime plants around Dunkirk, is receiving 160 million euros in financial support from the European Commission.
Air Liquide continues to demonstrate its resilience despite a difficult economic environment.
Solid organic growth is underpinned by strategic initiatives in healthcare, electronics and the energy transition.
Development prospects in America and Europe remain promising, although challenges persist in China and Europe.
Our strategy of digitalization and cost optimization is boosting profitability and opening up new opportunities for sustainable growth.