Name: Ecolab Inc. (NYSE:ECL) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Ecolab Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Product and equipment sales	10,153,300)	9,466,600)	12,238,900)	12,128,600)	—)
Service and lease sales	2,579,800)	2,323,600)	2,667,400)	2,539,600)	—)
Net sales (legacy)	—)	—)	—)	—)	13,838,300)
Net sales	12,733,100)	11,790,200)	14,906,300)	14,668,200)	13,838,300)
Product and equipment cost of sales	(6,100,900)	(5,481,300)	(7,106,400)	(7,078,500)	—)
Service and lease cost of sales	(1,514,900)	(1,424,500)	(1,617,000)	(1,547,400)	—)
Cost of sales, including special charges (legacy)	—)	—)	—)	—)	(7,405,100)
Cost of sales, including special charges	(7,615,800)	(6,905,800)	(8,723,400)	(8,625,900)	(7,405,100)
Gross profit	5,117,300)	4,884,400)	6,182,900)	6,042,300)	6,433,200)
Selling, general and administrative expenses	(3,416,100)	(3,309,100)	(3,957,500)	(3,968,600)	(4,417,100)
Restructuring activities	(11,900)	(71,400)	(116,800)	(89,400)	(39,900)
ChampionX separation	—)	—)	(77,300)	—)	—)
Acquisition and integration activities	(29,900)	(8,500)	(5,600)	(8,800)	(15,400)
Disposal and impairment activities	—)	(41,400)	—)	—)	—)
COVID-19 activities, net	(42,400)	(23,600)	—)	—)	—)
Gain on sale of business	—)	—)	—)	—)	46,100)
Venezuela related gain	—)	—)	—)	—)	11,500)
Other	(18,400)	(34,700)	(11,900)	(28,500)	1,400)
Special gains and (charges)	(102,600)	(179,600)	(211,600)	(126,700)	3,700)
Operating income	1,598,600)	1,395,700)	2,013,800)	1,947,000)	2,019,800)
Other income (expense)	33,900)	55,900)	76,300)	79,900)	—)
Interest expense	(230,600)	(304,800)	(215,300)	(237,200)	(274,600)
Interest income	12,300)	14,600)	24,100)	14,900)	19,600)
Interest expense, net	(218,300)	(290,200)	(191,200)	(222,300)	(255,000)
Income before income taxes	1,414,200)	1,161,400)	1,898,900)	1,804,600)	1,764,800)
Provision for income taxes	(270,200)	(176,600)	(322,700)	(364,300)	(242,400)
Net income from continuing operations	1,144,000)	984,800)	—)	—)	—)
Net loss from discontinued operations, net of tax	—)	(2,172,500)	—)	—)	—)
Net income (loss) including noncontrolling interest	1,144,000)	(1,187,700)	1,576,200)	1,440,300)	1,522,400)
Net income attributable to noncontrolling interest	(14,100)	(17,400)	(17,300)	(11,200)	(14,000)
Net income (loss) attributable to Ecolab	1,129,900)	(1,205,100)	1,558,900)	1,429,100)	1,508,400)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial performance from 2017 to 2021 is characterized by a period of steady growth followed by a significant contraction in 2020 and a partial recovery in 2021. While operating income remained relatively resilient, net income experienced extreme volatility due to non-recurring items and discontinued operations.

Revenue Trends: Net sales exhibited an upward trajectory from 2017 to 2019, peaking at 14.91 billion US$. A sharp decline occurred in 2020, with sales falling to 11.79 billion US$, representing a decrease of approximately 20.9% from the previous year. By 2021, revenue recovered to 12.73 billion US$, though it remained below pre-2020 levels. The composition of sales shows that product and equipment sales are the primary revenue driver, though service and lease sales provided a consistent, albeit smaller, revenue stream throughout the period.
Gross Profit and Margin Analysis: Gross profit peaked in 2017 at 6.43 billion US$ and trended downward over the five-year period, ending at 5.12 billion US$ in 2021. The gross profit margin experienced a notable compression between 2017 and 2018, shifting from approximately 46.5% to 41.2%, and remained relatively stagnant around the 40-41% range through 2021. This suggests an increase in the cost of sales relative to revenue growth during the early part of the analyzed period.
Operating Expenses and Special Charges: Selling, general and administrative expenses were reduced in alignment with the revenue drop in 2020, falling from 3.96 billion US$ in 2019 to 3.31 billion US$ in 2020. Special gains and charges have been a consistent drag on operating results from 2018 onwards, with significant charges recorded in 2019 (-211.6 million US$) and 2020 (-179.6 million US$). These charges include restructuring activities and COVID-19 related costs, the latter of which became a visible expense in 2020 and 2021.
Operating Income and Bottom-Line Performance: Operating income remained stable between 2017 and 2019, hovering around 2 billion US$, before dropping to 1.40 billion US$ in 2020. A recovery to 1.60 billion US$ was observed in 2021. However, net income attributable to the company showed a dramatic divergence in 2020, reporting a loss of 1.21 billion US$. This was primarily driven by a net loss from discontinued operations of 2.17 billion US$, which overshadowed the positive results from continuing operations. Profitability returned in 2021, with net income attributable to the company recovering to 1.13 billion US$.
Interest and Tax Obligations: Net interest expense showed a general downward trend from 2017 to 2019, spiking in 2020 to 290.2 million US$ before normalizing to 218.3 million US$ in 2021. The provision for income taxes fluctuated in correlation with pre-tax income, reaching its lowest point in 2020 at 176.6 million US$ due to the lower income before taxes.

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