XML 31 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Reporting and Geographical Area Data
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

Note 3. Segment Reporting and Geographical Area Data

The Performance Chemicals, Fuel Specialties and Oilfield Services segments operate in markets where we actively seek growth opportunities although their ultimate customers are different.

Our Performance Chemicals segment provides innovative technology-based solutions for our customers’ processes or products in personal care, home care, agrochemical, construction, mining and other industrial markets.

Our Fuel Specialties segment develops, manufactures, blends, markets and supplies a range of specialty chemical products used as additives in diesel, jet, marine, fuel oil and other fuels.

Our Oilfield Services segment develops and markets chemical solutions for drilling, completion, production, DRA and oil and gas applications.

In 2023, the Company had a significant customer in the Oilfield Services segment which accounted for $265.2 million and 13.6% (2022 - $222.2 million and 11.3%) of the group's net sales. In 2024, the net sales to this customer did not exceed 10% of the group's net sales.

 

The Chief Operating Decision Maker (“CODM”) is the President and Chief Executive Officer (the Principal Executive Officer) and is a Director of Innospec Inc.. The CODM evaluates the performance of the Company’s segments and makes strategic decisions relating to the Company's allocation of resources, based on the segments' monthly gross profit and operating income.

 

The following table analyzes financial information by the Company’s reportable segments:

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

Net Sales:

 

 

 

 

 

 

 

 

 

Personal Care

 

$

390.0

 

 

$

352.7

 

 

$

393.3

 

Home Care

 

 

106.6

 

 

 

86.8

 

 

 

94.2

 

Other

 

 

157.1

 

 

 

122.1

 

 

 

152.2

 

Performance Chemicals

 

 

653.7

 

 

 

561.6

 

 

 

639.7

 

Refinery and Performance

 

 

517.4

 

 

 

540.6

 

 

 

552.6

 

Other

 

 

183.7

 

 

 

155.3

 

 

 

177.6

 

Fuel Specialties

 

 

701.1

 

 

 

695.9

 

 

 

730.2

 

Oilfield Services

 

 

490.6

 

 

 

691.3

 

 

 

593.8

 

Total net sales

 

$

1,845.4

 

 

$

1,948.8

 

 

$

1,963.7

 

Gross profit:

 

 

 

 

 

 

 

 

 

Performance Chemicals

 

 

148.4

 

 

 

105.6

 

 

 

150.0

 

Fuel Specialties

 

 

239.9

 

 

 

215.1

 

 

 

221.9

 

Oilfield Services

 

 

154.6

 

 

 

270.4

 

 

 

214.8

 

Total gross profit

 

$

542.9

 

 

$

591.1

 

 

$

586.7

 

Operating income/(expense):

 

 

 

 

 

 

 

 

 

Performance Chemicals

 

$

82.9

 

 

$

54.5

 

 

$

95.3

 

Fuel Specialties

 

 

129.6

 

 

 

109.7

 

 

 

121.7

 

Oilfield Services

 

 

38.8

 

 

 

78.6

 

 

 

41.7

 

Corporate costs

 

 

(70.2

)

 

 

(81.2

)

 

 

(71.4

)

Adjustment to fair value of contingent consideration

 

 

(3.4

)

 

 

—

 

 

 

—

 

Profit on disposal

 

 

0.2

 

 

 

—

 

 

 

—

 

Total operating income

 

$

177.9

 

 

$

161.6

 

 

$

187.3

 

Identifiable assets at year-end:

 

 

 

 

 

 

 

 

 

Performance Chemicals

 

$

598.3

 

 

$

580.1

 

 

$

610.4

 

Fuel Specialties

 

 

553.8

 

 

 

529.2

 

 

 

500.6

 

Oilfield Services

 

 

272.5

 

 

 

310.8

 

 

 

297.8

 

Corporate

 

 

310.1

 

 

 

287.3

 

 

 

194.9

 

Total assets

 

$

1,734.7

 

 

$

1,707.4

 

 

$

1,603.7

 

 

The difference between net sales and gross profit is defined as cost of goods sold. For further information see the relevant accounting policy within Note 2 of the Notes to the Financial Statements.

 

The difference between segmental gross profit and operating income/(expense) is split between selling, general and administrative expenses and research and development expenses. For further information see the relevant accounting policies within Note 2 of the Notes to the Financial Statements.

 

The following table analyzes cost of goods sold by the Company’s reportable segments:

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

Performance Chemicals

 

$

505.3

 

 

$

456.0

 

 

$

489.7

 

Fuel Specialties

 

 

461.2

 

 

 

480.8

 

 

 

508.3

 

Oilfield Services

 

 

336.0

 

 

 

420.9

 

 

 

379.0

 

Total cost of goods sold

 

$

1,302.5

 

 

$

1,357.7

 

 

$

1,377.0

 

 

The following table analyzes selling, general and administrative expenses and research and development expenses by the Company’s reportable segments:

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

Performance Chemicals

 

$

65.5

 

 

$

51.1

 

 

$

54.7

 

Fuel Specialties

 

 

110.3

 

 

 

105.4

 

 

 

100.2

 

Oilfield Services

 

 

115.8

 

 

 

191.8

 

 

 

173.1

 

Corporate

 

 

70.2

 

 

 

81.2

 

 

 

71.4

 

Total selling, general and administrative expenses and research and development expenses

 

$

361.8

 

 

$

429.5

 

 

$

399.4

 

 

The Company includes within the corporate costs line item the costs of:

•
managing the group as a company with securities listed on the NASDAQ and registered with the SEC;
•
the CEO’s office, group finance, group human resources, group legal and compliance counsel, and investor relations;
•
running the corporate offices in the U.S. and Europe;
•
the corporate development function since they do not relate to the current trading activities of our other reporting segments; and
•
the corporate share of the information technology, product technology, safety, health, environment, accounting and human resources departments.

The following tables analyze sales and other financial information by location:

 

(in millions)

 

2024

 

 

2023

 

 

2022

 

Net sales by source:

 

 

 

 

 

 

 

 

 

United States

 

$

1,039.7

 

 

$

1,227.2

 

 

$

1,204.4

 

United Kingdom

 

 

823.4

 

 

 

857.7

 

 

 

932.5

 

Rest of World

 

 

288.9

 

 

 

199.4

 

 

 

225.1

 

Sales between areas

 

 

(306.6

)

 

 

(335.5

)

 

 

(398.3

)

 

 

$

1,845.4

 

 

$

1,948.8

 

 

$

1,963.7

 

Income before income taxes:

 

 

 

 

 

 

 

 

 

United States

 

$

90.2

 

 

$

95.2

 

 

$

106.3

 

United Kingdom

 

 

(24.6

)

 

 

59.1

 

 

 

43.2

 

Rest of World

 

 

(24.4

)

 

 

20.1

 

 

 

35.1

 

 

 

$

41.2

 

 

$

174.4

 

 

$

184.6

 

Long-lived assets at year-end:

 

 

 

 

 

 

 

 

 

United States

 

$

156.2

 

 

$

156.3

 

 

$

146.9

 

United Kingdom

 

 

88.0

 

 

 

73.7

 

 

 

50.6

 

Rest of World

 

 

133.6

 

 

 

137.6

 

 

 

112.7

 

 

 

$

377.8

 

 

$

367.6

 

 

$

310.2

 

Identifiable assets at year-end:

 

 

 

 

 

 

 

 

 

United States

 

$

593.6

 

 

$

613.7

 

 

$

558.4

 

United Kingdom

 

 

488.2

 

 

 

434.9

 

 

 

462.3

 

Rest of World

 

 

270.4

 

 

 

259.5

 

 

 

224.2

 

Goodwill

 

 

382.5

 

 

 

399.3

 

 

 

358.8

 

 

 

$

1,734.7

 

 

$

1,707.4

 

 

$

1,603.7

 

 

Sales by geographical area are reported by source, being where the transactions originated. Intercompany sales are priced using an appropriate pricing methodology and are eliminated in the consolidated financial statements.

Identifiable assets are those directly associated with the operations of the geographical area.

Goodwill has not been allocated by geographical location on the grounds that it would be impracticable to do so.