Innospec Inc. (NASDAQ:IOSP) Q2 2022 Earnings Conference Call August 3, 2022 10:00 AM ET

Company Participants

David Jones - General Counsel & Chief Compliance Officer

Patrick Williams - President & Chief Executive Officer

Ian Cleminson - Executive Vice President & Chief Financial Officer

Conference Call Participants

Mike Harrison - Seaport Research Partners

Stefanos Crist - CJS Securities

David Jones

[Call starts abruptly]

This is David Jones. I'm Innospec's General Counsel and Chief Compliance Officer. Late yesterday, we reported our financial results for the quarter ended June 30, 2022. The earnings release and this presentation are posted on the company's website.

During this call we will make forward-looking statements, which are predictions, projections and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from anticipated results implied by forward-looking statements. The risks and uncertainties are detailed in Innospec's 10-K, 10-Qs and other filings with the SEC. Please see the SEC site or Innospec's site for these and other documents. In our discussion today we've also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in our earnings release. The non-GAAP financial measures should not be considered as a substitute for or superior to those prepared in accordance with GAAP. They're included additional items to aid investors understanding of the company's performance in addition to the impact of these items and events have on financial results.

With me today from Innospec are Patrick Williams, President and Chief Executive Officer and Ian Cleminson, Executive Vice President and Chief Financial Officer. And with that, I'll turn it over to you, Patrick.

Patrick Williams

Thank you, David and welcome everyone to Innospec's Second Quarter 2022 Conference Call. This was another very good quarter for Innospec. Volume, price and mix improvements drove double-digit increases in sales and operating income in all businesses. Our manufacturing and supply chain teams have remained extremely resourceful through these ongoing global imbalances and we continue to build on our reputation as a consistent and reliable partner to our customers.

Performance Chemicals sales grew in all end markets. Operating income was up 61% over last year and EBITDA margin surpassed 20%. Personal Care demand drove most of the margin, and operating income improvement over the prior year and more than offset weaker demand in smaller segments like European Homecare. To support Personal Care growth we are adding capacity under our current two year $70 billion organic investment program. In addition, this quarter, we opened our new 20,000 square foot Global Technology Center, which supports R&D and technical services across all our Performance Chemicals business segments.