Stepan Company (NYSE: SCL) has reported its fourth quarter and full year 2023 results, revealing a reported net loss of $1.2 million for the quarter, $-0.05 per diluted share, compared to a reported net income of $10.8 million, or $0.47 per diluted share, in the prior year. Adjusted net income was $7.5 million, or $0.33 per diluted share, compared to $13.5 million, or $0.59 per diluted share, in the prior year. Total company sales volume increased by 3% versus the prior year.
Scott Behrens, President and CEO of Stepan Company, commented on the challenging year, stating, "the company had a challenging 2023 due to a slow down in demand across most end use markets and significant customer and channel inventory destocking. While we believe the negative impacts of destocking are mostly behind us, we continue to experience significant destocking within our agricultural business and expect this to continue through the first half of 2024."
Behrens also noted, "specific to the fourth quarter, overall volume increased 3% versus the prior year driven by double digit growth in rigid polyols volumes at improved margins. Surfactants experienced strong volume growth in personal care, industrial cleaning and to our distribution partners."
Financially, the company's reported net income for the full year 2023 was $40.2 million, or $1.75 per diluted share, compared to a record $147.2 million, or $6.38 per diluted share, in the prior year. Adjusted net income for the full year was $50.7 million, or $2.21 per diluted share, versus a record $153.5 million, or $6.65 per diluted share, in the prior year. Total company sales volume declined by 11% versus the prior year, primarily due to significant customer and channel inventory destocking across most of the company's markets.
The company's shares have moved -3.8% today, and are now trading at a price of $89.61.
The company's full 8-K submission is available here.
