Organic operating income margin expansion of 400 basis points.
Adjusted earnings per share increased by 52%.
Future Guidance
Anticipate continuous strong execution towards a 20% operating income margin target in the next few years.
Expect organic sales growth to remain stable, driving 2% to 3% price and 1% to 2% volume growth.
Revised full-year 2024 adjusted EPS outlook to a range of $6.40 to $6.70, representing an increase of 23% to 29% versus the previous year.
Anticipated delivered product costs to ease through the third quarter, though the magnitude of cost favorability is expected to gradually diminish.
Quarterly adjusted diluted earnings per share growth in the second half of 2024 to progressively normalize towards the 12% to 15% long-term target.
Trends, Market Conditions, Sentiment
The first quarter’s strong performance demonstrates excellent dedication and execution by the Ecolab team, indicating strong momentum and pace in the business.
Positive market conditions, including anticipated easing of delivered product costs, contributed to significant margin expansion across most business segments and geographical regions.
The divestiture of the surgical drapes business to Midline, pending regulatory clearance, signifies a strategic focus on the core elements of Ecolab’s business model.
The establishment of Pest Elimination as a standalone segment reflects its relevance, promising performance, and strategic importance to Ecolab’s portfolio.
Digital capabilities and technology investments are highlighted as key drivers for future growth and improved productivity.
Notable Quotes
”Ecolab is off to a strong start in 2024 with first-quarter organic sales growth of 5% and organic operating income margin expansion of 400 basis points, driving adjusted earnings per share up 52%."
"We remain firmly on our long-term 12% to 15% earnings growth trajectory."
"This strong performance is a testament to the excellent dedication and execution of the entire Ecolab team."
"We’re encouraged by the current pace and momentum of our business."
"Our leading customer value proposition where our technologies help customers improve their operating performance while reducing their water and energy use is proving to be increasingly relevant."
