Air Liquide net profit jumps in first half on price hikes

First-half net profit surged 32%, driven by price hikes, a strong performance by its industrial clients business and cost savings.

Net profit climbed to 1.72 billion euros ($1.9 billion) despite a 1.6% decline in revenue to 13.98 billion euros.

The supplier of gas-related services to industries and hospitals reported cost savings of 206 million euros, 23.6% more than the prior year.

Chief Financial Officer Jérôme Pelletan said the cost savings had come through digitisation, centralised purchasing and “speeding up work on shared service centres”.

“Being able to generate efficiencies at a time when purchase prices are rising is quite an achievement, and we’re particularly pleased about it”, he added.

Shares were up 1.5% to 160.58 euros at 0831 GMT.

Earnings per share came in at 3.30 euros, above a company collated consensus of 3.05 euros.

The company’s gas & services division, accounting for 96% of business, saw its revenue climb 5.3% when exchange rate effects are discounted. Within that division, its business aimed at industrial clients continued to grow, with revenue jumping 12.1%.