Dear Fellow Shareholders:
Quaker Houghton had a very successful year in 2023. Our team performed well amid persistent macroeconomic, geopolitical and end market challenges that tested our resolve. I am proud of our collective accomplishments and excited by the opportunities ahead.
Our Company delivered multiple records: net sales of $1.95 billion, adjusted EBITDA of $320 million, adjusted diluted earnings per share of $7.65 and operating cash flow of $279 million. Our performance resulted from strong execution on our financial and operational objectives, including improvements in our profitability and new business wins, driven by the strength of our differentiated customer intimatcy model.
Quaker Houghton’s financial position is strong, supported by building on our legacy of cash flow generation. We remain committed to our balanced capital allocation strategy and in 2023, we increased shareholder returns, raising our annual dividend for the 14th consecutive year – our 47th increase since going public in 1972.
Targeted investments heightened our competitiveness, advanced our enterprise strategy, and are expected to enhance our long-term growth. We also have several operational improvement initiatives underway to heighten our competitiveness, leverage our global scale and capabilities, and contemporize the enterprise. These exciting areas will further differentiate Quaker Houghton’s value to its customers and improve our organization’s effectiveness and efficiency.
Our passion for sustainability remains central to our Company and is integrated into our business. Advancements in systems and processes more closely align us with leading frameworks, including the Task Force on Climate-Related Financial Disclosures (TCFD). Targeted investments in renewable energy led to meaningful progress toward our Net Zero target. We also accomplished all our 2023 interim milestones ahead of schedule, positioning Quaker Houghton to deliver on its 2030 sustainability goals.
Quaker Houghton’s success is achieved with our people. We strive to empower, inspire and improve the well-being of our colleagues and communities. In 2023, we strengthened our culture of inclusion by creating new colleague resource groups, expanding paid parental leave policies, advancing a global leadership development program, and encouraging even more giving back to our communities – doubling total hours volunteered in 2023 versus 2022. We remain committed to our Live Safe core value, which also helped to further improve our industry-leading Total Recordable Industry Rate (TRIR).
Quaker Houghton is fully committed to delivering on customer expectations and enhancing value for stakeholders.
I am confident we have the right strategy, talent and capabilities to further unlock our growth potential. The commitment and passion of our team of 4,400 colleagues will help us build on our strong foundation in 2024 and beyond.
Best Regards, Andy Tometich Chief Executive Officer and President
