Shares of France-based Air Liquide (FR:AI) surged by around 8% after the industrial gases company delivered strong numbers in its annual results for 2023. The company’s CEO, François Jackow, characterized the results as a “solid performance,” sending the shares to an all-time high on Tuesday.
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Air Liquide provides gases, technologies, and services to the industrial and healthcare sectors, with operations in over 70 countries.
Solid Numbers and Promising Outlook
For the full year, Air Liquide reported a growth of 11.6% in its net profit of €3.08 billion. The group’s revenue was down by 7.8% to €27.6 billion, primarily due to decreasing energy prices and adverse currency effects.
Interestingly, the company’s Industrial Merchant business experienced an 8.5% sales increase, supported by sustained high prices and resilient volumes. Secondly, the Healthcare business saw a growth of 8.4%, driven by higher medical gas prices in an inflationary environment. Among its segments, gas and services revenue also achieved good growth in all its regions.
Air Liquide nearly achieved its margin target, initially set for 2025, under its ADVANCE strategic plan. Consequently, it has now doubled its margin target to a 320 basis points (bp) expansion in the operating margin by 2025, marking a 100% increase from the 160 basis point target set two years ago.
Speaking of shareholders’ returns, the company announced a dividend of €3.2 per share, reflecting an increase of 8.5%.
Is Air Liquide Stock a Good Buy?
On TipRanks, AI stock has received a Moderate Buy consensus rating based on a total of 11 recommendations. It includes six Buys, four Holds, and one Sell rating. The Air Liquide share price target is €179.73, which is 3.34% below the current trading price.
