Incitec Pivot Limited Unveils FY23 Financial Outcomes

Incitec Pivot Limited (ASX: IPL) reported a AU$582 million Net Profit After Tax (NPAT), excluding significant items, its second-highest since 2008. However, FY23 Earnings Before Interest and Tax (EBIT) excluding IMIs decreased to AU$880 million from the record FY22 performance of AU$1,485 million, influenced by a less favourable commodity price environment. The company disclosed its intention to return up to AU$1.4 billion to shareholders contingent on the successful completion of the Waggaman ammonia facility sale.

Notably, the Total Recordable Injury Frequency Rate (TRIFR) improved to 0.91. Statutory NPAT was AU$560 million, and EBIT ex IMIs, adjusted for commodity and forex impacts, increased by 10% compared to the prior year. Earnings Per Share ex IMIs stood at 30.0 cents, down from 52.9 cps in FY22, while Return on Invested Capital (ROIC) including goodwill was 7.5% (FY22: 13.8%). A final dividend of 5 cents per share (unfranked) was declared, resulting in a total FY23 dividend of 15 cents per share, representing a 50% payout ratio. Plans include returning up to AU$1.0 billion from the Waggaman sale to shareholders, in addition to the previously announced up to AU$400 million on-market buyback.

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