QUAKER HOUGHTON ANNOUNCES FIRST QUARTER 2023 RESULTS.

CONSHOHOCKEN, Pa: Quaker Houghton ("the Company") (NYSE: KWR), the global leader in industrial process fluids, today announced its first quarter 2023 results.

Three Months Ended

March 31,

($ in thousands, except per share data)

2023

2022

Net sales

$ 500,148

$ 474,171

Net income attributable to Quaker Chemical Corporation

29,534

19,816

Net income attributable to Quaker Chemical Corporation common shareholders - diluted

1.64

1.11

Non-GAAP net income *

33,992

25,470

Non-GAAP Earnings per diluted share *

1.89

1.42

Adjusted EBITDA *

78,791

60,444

* Refer to the Non-GAAP Measures and Reconciliations section below for additional information

First Quarter 2023 Consolidated Results

First quarter of 2023 net sales were a record $500.1 million, an increase of 5% compared to $474.2 million in the first quarter of 2022 primarily due to an increase in selling price and product mix of approximately 19% partially offset by an 11% decrease in sales volumes and a 3% unfavorable impact from foreign currency translation. selli The increase in selling price and product mix was primarily attributable to double-digit increases in selling prices in all segments to offset the significant inflationary pressures on the business. The decline in sales volumes was primarily attributable to a continuation of softer market conditions, especially in Asia/Pacific and EMEA, and the impact of the war in Ukraine.

The Company reported net income in the first quarter of 2023 of $29.5 million, or $1.64 per diluted share, compared to net income of $19.8 million or $1.11 per diluted share in the first quarter of 2022. Excluding non-recurring and non-core items in each period, the Company's first quarter of 2023 non-GAAP net income and earnings per diluted share were $34.0 million and $1.89 respectively compared to $25.5 million and $1.42 respectively in the prior year quarter. The Company generated adjusted EBITDA of $78.8 million in the first quarter of 2023, an increase of 30% compared to $60.4 million in the first quarter of 2022, primarily due to an increase in net sales and a recovery in gross margins compared to the prior year quarter.

Andy Tometich, Chief Executive Officer and President, commented, "The first quarter was a strong start to the year for Quaker Houghton, as we continued to execute on our key financial and operational priorities. We achieved record net sales, continued margin recovery, a double-digit improvement in earnings and generated solid cash flow. Our...