Ingevity Reports Second Quarter 2019 Financial Results

Ingevity Corporation reported second quarter net sales of $352.8 million, representing an increase of 14.3% versus $308.6 million in the prior year’s second quarter. Net income of $56.8 million, increased 8.8% versus $52.2 million in the previous year’s quarter. Ingevity’s second quarter net income margin was 16.1% versus 16.9% in the second quarter of 2018. The second quarter diluted earnings per share were $1.34 compared to $1.10 in the prior year period.
 
Adjusted earnings of $57.5 million were up 21.8% versus prior year quarter of $47.2 million. Diluted adjusted earnings per share were $1.36 excluding certain items of $0.02 per share which are primarily costs related to the acquisition of the Capa caprolactone business from Perstorp Holding AB. 
 
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $108.3 million were up 21.1% versus second quarter 2018 adjusted EBITDA of $89.4 million. Adjusted EBITDA margin of 30.7% was up 170 basis points from the prior year’s second quarter adjusted EBITDA margin of 29%.
 
“Our second quarter results reflect the benefits of our combined inorganic and organic growth strategy,” said Michael Wilson, Ingevity’s president and CEO. “In the face of softening macroeconomic conditions – particularly in industrial demand – we delivered strong revenue growth. What’s more, our continued strategic focus on driving earnings growth and margin accretion manifested itself in the quarter as we posted a 21% increase in EBITDA on a 14% increase in revenues. For the second consecutive quarter, we achieved an adjusted EBITDA margin of more than 30%.”