Stepan Half-Year Report 2023

Highlights

• Reported net income was $12.7 million, or $0.55 per diluted share, versus a record $52.1 million, or $2.26 per diluted share, in the prior year. Adjusted net income* was $12.1 million, or $0.53 per diluted share, versus $53.0 million, or $2.30 per diluted share, in the prior year.
• Polymer operating income was $16.3 million versus $33.9 million in the prior year. This decrease was primarily due to a 29% decline in global sales volume, including a 28% decline in Rigid Polyols.
• Specialty Product operating income was $3.8 million versus $9.9 million in the prior year. This decrease was primarily attributable to lower unit margins and sales volume within the medium chain triglycerides (MCT) product line. The lower unit margins were primarily due to high-cost inventory carryover.
• The effect of foreign currency translation had a negligible impact on net income and earnings per diluted share, versus the prior year.
• EBITDA** was $46.7 million during the second quarter of 2023 versus $95.5 million in the prior year and $48.3 million in the first quarter of 2023. Adjusted EBITDA** was $45.8 million versus $96.7 million in the prior year and $48.7 million in the first quarter of 2023. The decline in both reported and adjusted EBITDA** was primarily due to a 19% reduction in sales volume versus the prior year.