Clariant Q2 2023 sales and FY 2023 outlook weaker, Catalysts improvement on track
07 July 2023 - 3:00PM
Clariant Q2 2023 sales and FY 2023 outlook weaker, Catalysts
improvement on track
AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR
MUTTENZ, July 7,
2023
Clariant, a sustainability-focused specialty
chemical company, today provided a trading update based on a
preliminary assessment of its Q2 2023 results and adjusted its
expectations for FY 2023.
The ongoing macro-economic challenges, the slow
pace of recovery in China, and the prolonged destocking cycle
continues to impact demand in key end markets in the Care Chemicals
and the Additives businesses. The strength of the Swiss Franc is
creating significant translation impacts in Q2 2023 and
FY 2023. However, the improvement of the Catalysts business is
on track (excluding sunliquid®). The strong order book in Catalysts
is being executed and pricing measures are having positive impacts
on the top-line and profitability.
Q2 2023 preliminary sales at
CHF 1 084 million (compared to
CHF 1 301 million in Q2 2022 and
CHF 1 200 million in Q1 2023) resulting from
improved Catalysts sales which partly compensate very weak demand
in Care Chemicals and Additives as well as an approximate
CHF – 30 million net top-line impact from
divestments/acquisition and around 10 % negative FX
translation effects.
Q2 2023 reported EBITDA is expected between
CHF 155 – 165 million (14.4 % –
15.4 % reported EBITDA margin) compared to
CHF 216 million (16.6 %) in Q2 2022, which
included CHF 23 million gain from the Scientific Design
divestment, and CHF 167 million (13.9 %) in Q1 2023.
The Q2 2023 reported EBITDA will include a
CHF 55 million gain from the Quats divestment closed on 1
June 2023 (recognized in Care Chemicals),
~ CHF 20 million restructuring charges, and between
negative CHF 5 – 10 million other exceptional items.
sunliquid® update: In Q2 2023, a slightly
improved operational EBITDA impact of
CHF – 11 million is expected. Clariant has continued
its efforts to address the mechanical, bio-chemical, and
operational challenges involved in the ramp-up of this
first-of-a-kind technology. In addition, Clariant initiated
structural measures to further focus its bio-technology activities
on second generation bioethanol and adjust the cost structure to
lower run-rates which resulted in a restructuring charge of
CHF 8 million in Q2 2023. Clariant is actively
evaluating strategic options for sunliquid® and will provide an
update by end of 2023.
In order to address the short-term demand
challenges, particularly in the Care Chemicals and Additives
businesses, Clariant has initiated further cost reduction measures
in addition to the previously announced activities related to the
implementation of the new operating model. This will result in a
total expected restructuring charge of
~ CHF 30 million for FY 2023 (compared to
CHF 15 – 25 million previously announced).
Based on the preliminary assessment of
Q2 2023 results and given limited indications for a recovery
in the second half, except in the Catalysts business, FY 2023
sales are expected between
CHF 4.55 – 4.65 billion (previously guided:
around CHF 5 billion). This includes a net
divestments/acquisition impact of CHF – 150 million
relating to the Quats, NORAM Land Oil, and Attapulgite transactions
as well as an expected approximately 5 – 10 %
negative FX translation impact.
Given the ongoing Catalysts profitability
improvement and muted recovery in Care Chemicals and Additives, FY
2023 reported EBITDA is expected between
CHF 650 – 700 million (14.3 % – 15.1 %
reported EBITDA margin; previously guided: slight improvement vs.
15.6 % reported in 2022) including a CHF 55 million
gain from the Quats divestment and the
~ CHF 30 million restructuring charges outlined
above.
“The uncertainties and risks related to the
economic environment, including the pace of a recovery in China,
which we had indicated at the start of this year have unfortunately
materialized and are weighing on the industry as a whole. This
development impacts demand in both industrial and consumer end
markets. Although the top-line stabilized during the second quarter
and prices were largely maintained, our preliminary Q2 2023
top-line and estimated profitability is below current market
consensus.
Excluding sunliquid®, for FY 2023, we assume the
Catalysts business will deliver the expected continued improvement,
partly compensating for weaker trading in the other business units.
By accelerating our Group restructuring efforts, we are addressing
short-term demand dynamics while remaining well positioned to
benefit from a market recovery once the near-term challenges are
behind us,” said Conrad Keijzer, Chief Executive Officer
of Clariant.
Clariant will report its Q2/HY 2023 results on
Friday, 28 July 2023.
|
CORPORATE MEDIA RELATIONS Jochen DubielPhone +41 61 469 63
63jochen.dubiel@clariant.com Anne SchäferPhone +41 61 469 63
63anne.schaefer@clariant.com Ellese CaruanaPhone +41 61 469 63
63ellese.caruana@clariant.com Follow us on
Twitter, Facebook, LinkedIn, Instagram. |
INVESTOR RELATIONS Andreas Schwarzwälder Phone +41 61 469
63 73andreas.schwarzwaelder@clariant.com Maria IvekPhone +41
61 469 63 73maria.ivek@clariant.com Thijs BouwensPhone +41 61
469 63 73thijs.bouwens@clariant.com |
|
This media release contains certain statements that are
neither reported financial results nor other historical
information. This document also includes forward-looking
statements. Because these forward-looking statements are subject to
risks and uncertainties, actual future results may differ
materially from those expressed in or implied by the statements.
Many of these risks and uncertainties relate to factors that are
beyond Clariant’s ability to control or estimate precisely, such as
future market conditions, currency fluctuations, the behavior of
other market participants, the actions of governmental regulators
and other risk factors such as: the timing and strength of new
product offerings; pricing strategies of competitors; the Company’s
ability to continue to receive adequate products from its vendors
on acceptable terms, or at all, and to continue to obtain
sufficient financing to meet its liquidity needs; and changes in
the political, social and regulatory framework in which the Company
operates or in economic or technological trends or conditions,
including currency fluctuations, inflation and consumer confidence,
on a global, regional or national basis. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date of this document. Clariant does not
undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of these materials. www.clariant.com Clariant is
a focused specialty chemical company led by the overarching purpose
of ‘Greater chemistry – between people and planet’. By connecting
customer focus, innovation, and people the company creates
solutions to foster sustainability in different industries. On 31
December 2022, Clariant totaled a staff number of 11 148 and
recorded sales of CHF 5.198 billion in the fiscal year
for its continuing businesses. As of January 2023, the Group
conducts its business through the three newly formed Business Units
Care Chemicals, Catalysts, and Adsorbents & Additives. Clariant
is based in Switzerland. |
- CLARIANT MEDIA RELEASE TRADING UPDATE EN_20230707
- CLARIANT MEDIA RELEASE TRADING UPDATE DE_20230707
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