Sales at Innophos Fall in First Half But Company Says Cost Managements Efforts Are Bearing Fruit

Innophos said that volumes of speciality phosphates are expected to fall by between six and eight percent for the full year.

 

Overall, sales at the company were down 11 percent to $372m, with sales of speciality phosphates down nine percent on the year previous.

 

Innophos said that volumes of speciality phosphates are expected to fall by between six and eight percent for the full year.

 

EBITDA (Earnings before Interest, Tax and Depreciation) came in at $30m, compared to $33m the year previous.

 

Kim Ann Mink, chief executive, said: "In the second quarter, we made very good progress in executing against the strategic pillars of our transformation, namely, operational excellence, commercial excellence and strategic growth.”

 

“We continued to deliver improved margins and solid bottom line results particularly from our operational excellence pillar, driven by decreased SG&A expenses and improved procurement and sourcing of raw materials.
We generated adjusted EBITDA of $30 million, in line with our first quarter 2016results as expected, and delivered $35 million of free cash flow. “

 

“We are pleased with the commitment to our cost management efforts that allowed us to maintain our margins under difficult conditions, along with our strong cash flow delivery. These will remain a priority for the company.”

 

Dr. Mink added:  “As we look to the second half of the year, we are focused on finalizing our road map for strategic growth, while continuing to capitalize on near-term actions and opportunities by executing the value creation levers that will drive sustainable improvement in the Company’s financial performance.”

 

“In addition, to help move Innophos significantly down our transformational path by bringing into the Company required new skill sets, new ideas, and external best practices, I am pleased to have further strengthened the foundation of my management team this quarter with the appointment of Sherry Duff as Vice President, Chief Marketing Officer.”

 

“Since the first quarter, we made three excellent senior-level hires, whose knowledge base and skillset advance our collective management team to the next level, creating a solid foundation upon which we can effectively execute our initiatives. I remain encouraged by the momentum of our progress and confident in our ability to continue creating value for our shareholders.”