07.01.22
St. Paul, MN
www.ecolab.com
Sales: $6.3 billion (estimated) for cleaning products, services and equipment. Corporate sales: $12.7 billion
Key Personnel: Christophe Beck, chairman, president and CEO; Scott Kirkland, CFO; Dr. Larry Berger, EVP and CTO; David Bingenheimer, EVP and CIO: Jennifer Bradway, SVP and corporate controller; Darrell Brown, EVP and president, global industrial; Angela Busch, EVP, corporate strategy & business development; Greg Cook, EVP & GM, global institutional; Sam De Boo, EVP and president, global markets; Mike Duijser, EVP and chief supply chain officer; Catherine Loh, VP and treasurer; Christina Kong, EVP and market head, Greater China; Laurie Marsh, EVP, human resources; Michael McCormick, EVP, general counsel and secretary; Timothy P. Mulhere, EVP and president, global institutional & specialty services; Joanne Jirik Mullen, chief compliance officer and chief employment counsel; Gail Peterson, EVP, global marketing & communication; Chris Roberts, EVP & GM, global food & beverage; Thomas Strobel, SVP, global tax & treasury; Gergely Sved, EVP and president, global healthcare & life sciences
Major Products: Cleaning and sanitizing products and services for the industrial and institutional markets.
New Products: Purolite (acquisition)
Comments: Corporate sales rose 8% in 2021. By major category, global industrial sales rose 4% to $6.3 billion. Global institutional & specialty sales increased 10% to nearly $4.0 billion. But global healthcare & life sciences fell 4% to about $1.2 billion. By region, North America accounted for 55% of sales followed by Europe (22%), Asia/Pacific (14%), Latin America (6%) and IMEA (3%).
By segment, global industrial sales were helped along by good growth within food and beverage. F&B sales increased 3% (2% acquisition adjusted) in 2021 primarily reflecting accelerating pricing, recovering markets and new business. Globally, Ecolab posted growth in beverage, brewing and modest growth in dairy, were offset by a decrease in downstream sales growth.
Business is rolling at Ecolab.
Sales within institutional rose as a result of market recovery in the US and Europe, new business (including gains from the Ecolab Science Certified programs), innovation and accelerating pricing. Specialty sales slipped, as modest quick service sales growth were more than offset by lower food retail sales. Quick service sales showed a modest gain as new business more than offset impacts of covid-19 restrictions and labor shortages. Food retail sales declined versus the strong sanitizer demand in 2020 and customer labor shortages that has resulted in reduced in-store services and associated product usage.
As one would expect, healthcare sales fell due to tough comps against strong 2020 covid-19 related hand and surface disinfection sales as well as softer elective surgical procedures activity in 2021 due to the rise in Covid variants during the year.
For Q1 2022, sales rose 13% to more than $3.2 billion. Results were driven by strong institutional & specialty, industrial and other segment sales. By segment, industrial rose 12% to nearly $1.6 billion. Institutional & specialty rose 19% to $1 billion.
Global healthcare and life sciences surged 29% to $362 million. According to Beck, looking ahead, the company expects substantial raw material and cost inflation. Pricing is expected to be in the 6% to 7% range for the balance of the year. To manage rising fuel costs, Ecolab rolled out a global temporary energy surcharge of up to 12%.
Q2 looks a bit dicey. Last month, Ecolab noted that earnings will fall short of expectations—even with the fuel surcharge. Speaking at a recent Deutche Bank online conference, Greg Cook, EVP and GM, global institutional, noted that Ecolab has operations in more than 130 countries, with relationships that have been built on trust. He noted that institutional business is on the rise as more events take place and business travel starts to return.
“Food service is still fighting foot traffic; but hopefully, as travel returns, they’ll pull F&B along with it,” said Cook.
Despite the challenges within institutional, Ecolab is well-positioned to deliver solutions on megatrends like healthy environments, water efficiency and food safety. Last year, Ecolab helped save 206 billion gallons of water and 28 trillion BTUs of energy. At the same time, it helped clean 66 billion hands and make 36% of the world’s processed food safe.
www.ecolab.com
Sales: $6.3 billion (estimated) for cleaning products, services and equipment. Corporate sales: $12.7 billion
Key Personnel: Christophe Beck, chairman, president and CEO; Scott Kirkland, CFO; Dr. Larry Berger, EVP and CTO; David Bingenheimer, EVP and CIO: Jennifer Bradway, SVP and corporate controller; Darrell Brown, EVP and president, global industrial; Angela Busch, EVP, corporate strategy & business development; Greg Cook, EVP & GM, global institutional; Sam De Boo, EVP and president, global markets; Mike Duijser, EVP and chief supply chain officer; Catherine Loh, VP and treasurer; Christina Kong, EVP and market head, Greater China; Laurie Marsh, EVP, human resources; Michael McCormick, EVP, general counsel and secretary; Timothy P. Mulhere, EVP and president, global institutional & specialty services; Joanne Jirik Mullen, chief compliance officer and chief employment counsel; Gail Peterson, EVP, global marketing & communication; Chris Roberts, EVP & GM, global food & beverage; Thomas Strobel, SVP, global tax & treasury; Gergely Sved, EVP and president, global healthcare & life sciences
Major Products: Cleaning and sanitizing products and services for the industrial and institutional markets.
New Products: Purolite (acquisition)
Comments: Corporate sales rose 8% in 2021. By major category, global industrial sales rose 4% to $6.3 billion. Global institutional & specialty sales increased 10% to nearly $4.0 billion. But global healthcare & life sciences fell 4% to about $1.2 billion. By region, North America accounted for 55% of sales followed by Europe (22%), Asia/Pacific (14%), Latin America (6%) and IMEA (3%).
By segment, global industrial sales were helped along by good growth within food and beverage. F&B sales increased 3% (2% acquisition adjusted) in 2021 primarily reflecting accelerating pricing, recovering markets and new business. Globally, Ecolab posted growth in beverage, brewing and modest growth in dairy, were offset by a decrease in downstream sales growth.
Business is rolling at Ecolab.
Sales within institutional rose as a result of market recovery in the US and Europe, new business (including gains from the Ecolab Science Certified programs), innovation and accelerating pricing. Specialty sales slipped, as modest quick service sales growth were more than offset by lower food retail sales. Quick service sales showed a modest gain as new business more than offset impacts of covid-19 restrictions and labor shortages. Food retail sales declined versus the strong sanitizer demand in 2020 and customer labor shortages that has resulted in reduced in-store services and associated product usage.
As one would expect, healthcare sales fell due to tough comps against strong 2020 covid-19 related hand and surface disinfection sales as well as softer elective surgical procedures activity in 2021 due to the rise in Covid variants during the year.
For Q1 2022, sales rose 13% to more than $3.2 billion. Results were driven by strong institutional & specialty, industrial and other segment sales. By segment, industrial rose 12% to nearly $1.6 billion. Institutional & specialty rose 19% to $1 billion.
Global healthcare and life sciences surged 29% to $362 million. According to Beck, looking ahead, the company expects substantial raw material and cost inflation. Pricing is expected to be in the 6% to 7% range for the balance of the year. To manage rising fuel costs, Ecolab rolled out a global temporary energy surcharge of up to 12%.
Q2 looks a bit dicey. Last month, Ecolab noted that earnings will fall short of expectations—even with the fuel surcharge. Speaking at a recent Deutche Bank online conference, Greg Cook, EVP and GM, global institutional, noted that Ecolab has operations in more than 130 countries, with relationships that have been built on trust. He noted that institutional business is on the rise as more events take place and business travel starts to return.
“Food service is still fighting foot traffic; but hopefully, as travel returns, they’ll pull F&B along with it,” said Cook.
Despite the challenges within institutional, Ecolab is well-positioned to deliver solutions on megatrends like healthy environments, water efficiency and food safety. Last year, Ecolab helped save 206 billion gallons of water and 28 trillion BTUs of energy. At the same time, it helped clean 66 billion hands and make 36% of the world’s processed food safe.
