Clariant delivers solid Q4 underlying EBITDA margin; proposes
stable shareholder distribution per share; expects growth and
improving profitability in 2024
AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR
-
Q4 2023: Sales decreased by 10 % organically in
local currency1 to
CHF 1.062 billion against a strong comparable in Q4 2022;
sequential sales increase of 4 % in local currency driven by
volume growth
- Q4 2023:
EBITDA margin of 10.0 % impacted by provisions related to
sunliquid® decision
and restructuring; underlying EBITDA margin before exceptional
items of 14.9 %
-
FY 2023: Sales decreased by 7 % organically in
local currency to CHF 4.377 billion due to lower volumes
despite maintaining stable pricing; EBITDA margin of 13.9 %,
and 14.6 % before exceptional items
-
FY 2023: Resilient free cash flow of
CHF 216 million, resulting in a 36 % free cash flow
conversion rate
-
FY 2023: Distribution of CHF 0.42 per share
proposed to AGM on 9 April 2024
-
Outlook 2024: In a continued challenging macroeconomic
environment, Clariant targets low single-digit local currency
growth and an improvement in reported EBITDA margin to around
15 % (around 16 % excluding
sunliquid® operational
and exceptional impacts)
- Medium-term
targets: Clariant remains firmly committed to its targets, with
2025 EBITDA margin now expected at 17 % – 18 %
showing significant progress toward the
19 % – 21 % target
“In the fourth quarter of 2023, we saw
sequential revenue improvement while end markets stabilized. Robust
performance in the quarter was nevertheless below the strong base
of the prior year, when Catalysts delivered record sales. With the
imminent completion of the acquisition of Lucas Meyer Cosmetics and
our decision to cease operations at the sunliquid®
plant, we have positioned the company for higher growth and
improved profitability, taking another step forward in our
purpose-led growth strategy,” said Conrad Keijzer, Chief Executive
Officer of Clariant. “For the full year 2023, I am particularly
proud of our ability to defend pricing and to deliver on our
performance program commitments, reaching CHF 135 million
total savings out of our target of CHF 170 million. Our
strong cash generation and stable cash conversion have enabled our
Board of Directors to propose an unchanged distribution of
CHF 0.42 per share to shareholders.”
“For 2024, we expect sales growth in local currencies and an
increase in profitability, despite a continued challenging
macroeconomic environment. Growth in Care Chemicals and Adsorbents
& Additives is expected to offset a temporary slowdown in
Catalysts momentum. We will benefit from both strategic growth
investments and our cost-saving measures to improve our
performance. With our specialty portfolio, market-driven
innovation, focus on sustainability, and highly committed people,
we are well positioned to drive growth. We will adopt an agile
response as our end markets recover and growth normalizes over the
next two to three years since we remain committed to and resolute
in our plans to achieve our medium-term targets in that period.
However, taking into account the continued challenging
macroeconomic environment, we now expect 2025 to be a year of
significant progress towards these targets with continued growth
and substantial profitability improvement,” Conrad Keijzer
added.
1 All references to local currency growth, pricing,
volumes, and scope exclude the impact from hyperinflation countries
Argentina and Türkiye. All references to currency include a net
impact from hyperinflation countries Argentina and Türkiye.
Business Summary
|
Fourth Quarter |
Full Year |
in CHF million |
2023 |
2022 |
% CHF |
% LC(1) |
2023 |
2022 |
% CHF |
% LC(1) |
Sales |
1 062 |
1 323 |
- 20 |
- 14 |
4 377 |
5 198 |
- 16 |
- 10 |
EBITDA |
106 |
154 |
- 31 |
|
607 |
810 |
- 25 |
|
- margin |
10.0 % |
11.6 % |
|
|
13.9 % |
15.6 % |
|
|
EBITDA before exceptional items |
158 |
203 |
- 22 |
|
641 |
893 |
- 28 |
|
- margin |
14.9 % |
15.3 % |
|
|
14.6 % |
17.2 % |
|
|
Sales bridge: |
Price -4 %; Volume -6 %; Currency -6 %; Scope
-4 % |
Price 0 %; Volume -7 %; Currency -6 %; Scope
-3 % |
(1) Excluding
hyperinflation accounting countries Argentina and Türkiye
Outlook – Full Year 2024 and Medium-Term
Targets
For the full year 2024, Clariant expects to see
a continued easing of the inflationary environment but no
significant economic recovery, with macroeconomic uncertainties and
risks remaining. Clariant therefore expects low single-digit sales
growth in local currency. Growth in Care Chemicals, including the
impact of the proposed acquisition of Lucas Meyer Cosmetics, and in
Adsorbents & Additives is expected to offset a temporary
slowdown in Catalysts momentum. Reported EBITDA margin is expected
to improve to around 15 %. This includes the impact of the
proposed acquisition of Lucas Meyer Cosmetics and a
sunliquid® restructuring/exceptional impact of up to
CHF 30 million, which was originally expected in Q4 2023.
Clariant also expects operational sunliquid® costs of up
to CHF 15 million related to preparation for the closure
or divestment of the Podari plant. EBITDA margin excluding the
operational and exceptional sunliquid® impacts is
expected at around 16 %. Cost savings benefits from
restructuring programs are expected to deliver
CHF 25 million in 2024.
At its Capital Market Day in November 2021,
Clariant set medium-term 2025 targets for the Group of profitable
sales growth (4 % – 6 % CAGR), reported EBITDA
margin between 19 % – 21 %, and free cash flow
conversion of around 40 %. Given the impact of the expected
continuation of the challenging macroeconomic environment, Clariant
now expects 2025 to be a year of continued, albeit significant,
recovery in profitability. In 2025, on the basis of an expected
3 % – 5 % improvement in key end market demand,
Clariant expects to achieve EBITDA margin of
17 % – 18 %, in line with current consensus
forecasts.2 Free cash flow conversion is expected at the
targeted level of around 40 % in 2025. Clariant remains
committed to its medium-term targets as end markets recover and
growth normalizes over the next two to three years. Clariant will
adopt an agile response to the economic environment and remain
resolute in its plans to achieve the medium-term targets. The
company is well positioned to achieve these targets as the
accretive impacts of the Lucas Meyer Cosmetics acquisition and
investments in China are realized. In addition, benefits from cost
savings are expected.
2 Vara Consensus as of 22 January 2024
Fourth Quarter 2023 Group
Discussion
MUTTENZ, 29
FEBRUARY 2024
Clariant, a sustainability-focused specialty
chemical company, today announced fourth quarter 2023 sales of
CHF 1.062 billion, down 10 % organically in local
currency1 and 14 % including scope in local
currency (20 % in Swiss francs) versus Q4 2022. Pricing
decreased by 4 % year-on-year and volumes by 6 %. Changes
in scope had a net negative impact of 4 % due to the
divestments of the North American Land Oil and Quats businesses,
partially offset by the acquisition of the US Attapulgite business.
The net impact from hyperinflation in Argentina and Türkiye was
– 1%. On a sequential basis, sales in Q4 2023 increased by
4 % in local currency compared to Q3 2023. Volumes improved by
5 % organically at the Group level, compensating for slightly lower
pricing.
Care Chemicals sales decreased by 17 % in
local currency (9 % related to scope) versus Q4 2022. Sales in
Mining Solutions and Oil Services grew organically, while the
seasonal aviation business declined, due to less favorable weather
and lower formula-based prices. Catalysts sales declined 10 %
in local currency against the very strong comparable base of last
year, while Specialties sales were stable. Adsorbents &
Additives sales decreased by 11 % in local currency due to
continued challenges in key end markets for Additives.
In the fourth quarter, local currency sales were
down 13 % (2 % related to scope) versus Q4 2022 in
Europe, Middle East, and Africa as Catalysts growth in the Middle
East only partially offset lower sales in both Care Chemicals
(partly attributable to the divestment of the Quats business) and
Adsorbents & Additives. Sales in the Americas decreased by
21 % (10 % related to scope), predominantly due to the
net negative impact of the divestment of the North America Land Oil
business and despite the acquisition of the US Attapulgite
business. Sales in Asia-Pacific were down 9 % (2 %
related to scope), including a 22 % decline in China, as
Catalysts sales in Propylene and Ethylene were below the very
strong comparison base of last year.
Group EBITDA decreased by 31 % to
CHF 106 million, and the corresponding 10.0 % margin
was below the 11.6 % reported in the fourth quarter of 2022.
The Group incurred a total CHF 53 million negative impact
from the decision to shut down sunliquid® bioethanol
production in Podari, Romania, and to downsize related activities
of the Business Segment Biofuels & Derivatives in Germany
(Straubing, Planegg, and Munich). Restructuring expenses totaled
CHF 43 million (of which CHF 35 million related
to sunliquid®). Lower volumes also negatively affected
production utilization in certain businesses. However, cost savings
from performance programs of approximately CHF 14 million
addressed remnant costs from divested businesses and contributed
positively to offset inflation. Underlying profitability, as
reflected by EBITDA before exceptional items, decreased
sequentially by 4 % to CHF 158 million, representing
an underlying margin of 14.9 % compared to 15.3 % in the prior
year.
1 All references to local currency growth, pricing,
volumes, and scope exclude the impact from hyperinflation countries
Argentina and Türkiye. All references to currency include a net
impact from hyperinflation countries Argentina and Türkiye.
Full Year 2023 Group
Discussion
In the full year 2023, sales were
CHF 4.377 billion, down 7 % organically in local
currency1 and 10 % including scope in local
currency (16 % in Swiss francs). Pricing was stable for the
year while volumes decreased by 7 %. Changes in scope had a
net negative impact of 3 % with the divestments of the North
America Land Oil and Quats businesses, partially offset by the
acquisition of the US Attapulgite business. Hyperinflation
countries1 had a net – 1 % impact.
Care Chemicals sales decreased by 9 %
organically and 15 % including scope in local currency in the
full year 2023 versus a strong 2022 comparison base, as the
prolonged destocking cycle impacted demand in key end markets,
particularly in the first half of the year. In Catalysts, sales
grew by 9 % in local currency due to strong growth in
Propylene and Syngas & Fuels. Adsorbents & Additives sales
decreased by 13 % in local currency due to weaker end market
demand for Additives, against a strong full year 2022.
In the full year 2023, sales decreased in all
geographic regions. Both Europe, Middle East, and Africa and the
Americas decreased by 12 % in local currency (2 % and
5 % related to scope, respectively). Sales in Asia-Pacific
declined by 6 % (1 % related to scope).
Group EBITDA decreased by 25 % to
CHF 607 million, as profitability was negatively impacted
by lower volumes and CHF 103 million of operational
losses and costs related to the decision to shut down the
sunliquid® bioethanol production in Podari, Romania, and
to downsize related activities of the Business Segment Biofuels
& Derivatives in Germany (Straubing, Planegg, and Munich).
Other negative factors included the CHF 11 million fair
value adjustment of the Heubach Group participation in the first
quarter and restructuring charges of CHF 64 million (of
which CHF 42 million related to sunliquid®).
The disposal of the Quats business in Care Chemicals contributed a
CHF 61 million gain, while pricing effects overall were
flat. Raw material costs decreased by 11 %, and the execution
of performance improvement programs resulted in additional cost
savings of CHF 50 million in the full year 2023. Overall
EBITDA margin decreased to 13.9 % from 15.6 % in
2022.
Group EBIT for the full year 2023 increased to
CHF 282 million from CHF 72 million in the
previous year. This was the result of impairments of
CHF 89 million in 2023, mainly related to the
sunliquid® shutdown, versus CHF 462 million of
impairments in 2022.
In the full year 2023, the total Group net
result was CHF 179 million versus
CHF 116 million in the previous year. The result improved
due to lower impairment charges and taxes, while discontinued
operations showed a negative result of CHF 34 million
related to a loss on disposal.
Net cash generated from operating activities for
the total Group amounted to CHF 421 million versus
CHF 502 million in the full year 2022 as a result of
lower earnings, which were not fully offset by an improvement in
Net Working Capital. Free cash flow of CHF 216 million,
compared to CHF 293 million in 2022, resulted in a free
cash flow conversion rate of 36 % for full year 2023, flat
versus a year ago.
Net debt for the Group of
CHF 755 million was stable against the
CHF 750 million recorded at the end of 2022.
The Board of Directors recommends a
regular distribution of CHF 0.42 per
share to the Annual General Meeting (AGM) on 9
April 2024 based on Clariant’s performance in 2023. This
distribution is proposed to be made through a capital reduction by
way of a par value reduction.
The Board of Directors proposes the reelection
of Günter von Au as Chairman. The Board of Directors thanks Naveena
Shastri for her contribution to Clariant as she decided not to
stand for reelection. All other members stand for reelection, and
the Board of Directors proposes to newly elect Jens Lohmann to the
Clariant Board.
1 All references to local currency growth, pricing,
volumes, and scope exclude the impact from hyperinflation countries
Argentina and Türkiye. All references to currency include a net
impact from hyperinflation countries Argentina and Türkiye.
ESG Update – Leading in sustainability and safety
Clariant’s Scope 1 and 2 total greenhouse gas
emissions fell to 0.54 million tons in 2023, a decline of
13 % from 0.62 million tons in the full year 2022. The
businesses were able to reduce their emissions more than the volume
decline in Care Chemicals and Adsorbent & Additives, while more
than offsetting a volume increase in Catalysts in full year 2023.
Clariant has numerous measures in place to reduce Scope 1 and 2
emissions. In 2023, a site in Bonthapally, India, became the first
production site to reach net zero. This was largely driven by
purchasing 100 % green electricity and switching to
sustainable biomass derived from agricultural waste instead of coal
for its steam generation, while at the same time improving steam
efficiency at the site through improvements and training measures.
Across the Group, coal consumption, as well as corresponding
greenhouse gas emissions in 2023, have fallen by almost 80 %
compared to peak consumption in 2020.
The total indirect greenhouse gas emissions for
purchased goods and services (Scope 3.1) decreased by 12 %,
from 2.58 million tons in the full year 2022 to
2.28 million tons in 2023. These results are to an extent
attributable to the lower sales volumes in 2023, while also
demonstrating continued progress toward reaching the Group’s 2030
emissions reduction targets. Approximately 40 % of the net
reduction in Scope 3.1 emissions in 2023 versus 2022 was achieved
through focus projects advancing the decarbonization of raw
materials. Clariant continues to adopt the use of fossil
alternatives (e.g., bio-based) and secondary raw materials (e.g.,
recycled).
In 2023, Clariant introduced its new operating
model, aiming for better customer orientation, better and faster
decision-making, greater empowerment, more accountability, and
improved transparency. The success of the implementation became
visible in significant improvements in non-financial KPIs, such as
customer satisfaction, employee engagement, and safety.
Clariant customers globally provided their view
on the company’s operational, commercial, and innovation
performance in the Customer Satisfaction Survey for 2023.
Clariant’s overall Customer Net Promoter Score (NPS) improved from
42 to 45, placing the company eight points above the chemical and
gas industry average. Moreover, 44 % of respondents stated
that their general perception of Clariant improved in the last 12
months.
In January 2024, Clariant invited all employees
to participate in an engagement survey. The participation rate
increased to 83 %, compared to 75 % in 2023. Meaningful
progress and continuous improvement have been achieved in the
Employee Net Promoter Score (eNPS), increasing from + 3 in
2023 to + 25 in 2024, moving Clariant from the third to the
second quartile, compared to relevant industry peers.
Clariant aims to achieve a zero-accidents
culture and be a leader in safety in the chemical industry. In
2023, the company made significant progress reducing the DART (Days
Away, Restricted, or Transferred) rate from 0.39 in 2022 to 0.21.
This reduction of over 46 % reflects high awareness, safety
trainings, and accountability, and places Clariant in the top
quartile of the chemical industry.
Business Discussion
Business Unit Care
Chemicals
|
Fourth Quarter |
Full Year |
in CHF million |
2023 |
2022 |
% CHF |
% LC(1) |
2023 |
2022 |
% CHF |
%
LC(1) |
Sales |
549 |
714 |
- 23 |
- 17 |
2 320 |
2 937 |
- 21 |
- 15 |
EBITDA |
110 |
138 |
- 20 |
|
462 |
573 |
- 19 |
|
- margin |
20.0 % |
19.3 % |
|
|
19.9 % |
19.5 % |
|
|
EBITDA before exceptional items |
110 |
143 |
- 23 |
|
409 |
578 |
- 29 |
|
- margin |
20.0 % |
20.0 % |
|
|
17.6 % |
19.7 % |
|
|
(1) Excluding
hyperinflation accounting countries Argentina and Türkiye
Sales
In the fourth quarter of 2023, sales in the
Business Unit Care Chemicals decreased by 8 % organically in
local currency and by 17 % including scope in local currency
(23 % in Swiss francs) versus Q4 2022. On a quarterly
sequential basis, sales increased by 6 % in local currency,
driven by a 6 % increase in volumes and stable pricing.
Organic growth in Mining Solutions and Oil Services did not offset
the year-on-year impact of feedstock costs on formula-based
pricing. This was more pronounced in the aviation business, which
was also affected by less favorable weather conditions. In Crop
Solutions, the weak demand environment and destocking across the
entire supply chain continued.
Pricing decreased by 7 % compared to Q4
2022, mainly due to adjustments in index-based pricing as Clariant
continued to focus on defending value-based pricing. Volumes for
the quarter were down 1 % year-on-year, excluding the impact
of the divestments of the North American Land Oil and Quats
businesses.
Care Chemicals sales in Europe, Middle East, and
Africa decreased at a low-teen percentage rate organically, mainly
driven by formula-based price adjustments. In the Americas, sales
were down at a mid-single-digit percentage rate organically due to
lower pricing (mainly formula-based in Aviation). Sales in
Asia-Pacific overall, including in China, declined by a low
single-digit percentage rate organically, mainly attributable to
formula-based pricing, while volumes were slightly positive.
For the full year 2023, sales in Care Chemicals
decreased by 9 % organically in local currency and by
15 % including scope in local currency (21 % in Swiss
francs). Volumes were down 7 %, excluding the divestment
impact, while pricing was down by 2 %. Oil Services grew
organically, while the prolonged destocking cycle and lower demand
negatively impacted sales in the other segments.
EBITDA Margin
In the fourth quarter, the EBITDA margin
increased to 20.0 % versus 19.3 % in the same period last
year due to beneficial raw material developments, the positive
impact from performance programs, and a positive rebate-related
one-off. On a quarterly sequential basis, Care Chemicals recorded
EBITDA before exceptional items of CHF 110 million versus
CHF 92 million recorded in Q3 2023.
For the full year 2023, the Care Chemicals
EBITDA margin increased to 19.9 % from 19.5 %, positively
impacted by the gain from the Quats disposal, offsetting lower
volumes and prices.
Care Chemicals Insight
By unveiling three new VitiPure®
excipients, Clariant continues to add to its portfolio of
high-performing pharmaceutical ingredient solutions to support the
evolution of safe and effective medicines. VitiPure® O
80 Superior, VitiPure® CO 35 Superior, and
VitiPure® Meglumine LEX allow for a multitude of active
pharmaceutical ingredient (API) formulations and administration
routes, even for sensitive types, such as mRNA vaccines and
biologic medications, establishing Clariant as a one-stop shop
solutions provider to the pharmaceutical industry. The new
excipients address the market’s growing demand for high-purity
ingredients by solving inherent stability and bioavailability
challenges of APIs so that these can travel to where they are
needed inside the body and be delivered effectively.
Business Unit Catalysts
|
Fourth Quarter |
Full Year |
in CHF million |
2023 |
2022 |
% CHF |
% LC(1) |
2023 |
2022 |
% CHF |
% LC(1) |
Sales |
258 |
310 |
- 17 |
- 10 |
1 000 |
989 |
1 |
9 |
EBITDA |
- 10 |
36 |
- 128 |
|
103 |
93 |
11 |
|
- margin |
- 3.9 % |
11.6 % |
|
|
10.3 % |
9.4 % |
|
|
EBITDA before exceptional items |
41 |
39 |
5 |
|
163 |
98 |
66 |
|
- margin |
15.9 % |
12.6 % |
|
|
16.3 % |
9.9 % |
|
|
(1) Excluding
hyperinflation accounting countries Argentina and Türkiye
Sales
In the fourth quarter of 2023, sales in the
Business Unit Catalysts declined by 10 % in local currency
(17 % in Swiss francs) against a very strong comparison base
and, as expected, were more evenly distributed over both quarters
in the second half of the year. On a quarterly sequential basis,
sales were flat in local currency. Volumes declined by 13 %
versus Q4 2022 due to the project nature of the business, while
pricing increased by 3 %. Sales in Specialties grew by a low
single-digit percentage rate, while the remaining segments all
declined by a mid-teen percentage rate.
Catalysts sales grew at a mid-single-digit
percentage rate in Europe, Middle East, and Africa as a result of
positive project trends in the Middle East. In Asia-Pacific, the
largest geographic market, sales declined at a high single-digit
percentage rate, including a more pronounced decline in China, due
to a normalization of growth projects in comparison to last year.
Sales in the Americas declined by a low-thirties percentage rate,
driven by project schedules in the Business Segments Propylene and
Specialties.
For the full year 2023, sales in Catalysts
increased by 9 % in local currency (1 % in Swiss francs).
This increase was balanced between positive pricing (4 %) and
volume growth (5 %), while at a segment level, Propylene and
Syngas & Fuels were particularly strong.
EBITDA Margin
In the fourth quarter, the EBITDA margin
decreased to – 3.9 % from 11.6 % in Q4 2022,
mainly due to a CHF 53 million negative impact from
shutdown costs relating to the decision to stop
sunliquid® bioethanol production and to downsize related
activities of the business segment. This negative impact was below
the previously guided range due to phasing of the closing
activities. The negative operational impact from
sunliquid® improved to CHF – 9 million,
from CHF – 20 million in the prior year, following
the decision to cease operations. On an underlying basis before
exceptional items, the fourth quarter EBITDA margin of 15.9 %
showed clear improvement over the 12.6 % of the prior year due
to positive pricing and deflation in raw material costs.
Sequentially, the EBITDA before exceptional items of CHF 41 million
was below the CHF 58 million realized in the third quarter of 2023,
due to business mix effects. Excluding operational and exceptional
effects related to sunliquid®, the Catalysts underlying
EBITDA margin in Q4 2023 was 20.5%, compared to 18.1 % in
2022.
For the full year 2023, Catalysts EBITDA margin
increased to 10.3 % from 9.4 %, despite the significant
negative sunliquid® impact, as a result of positive
pricing, higher volumes, and positive business mix effects. This
strong turnaround of the Catalysts business is reflected in a
640-basis-point improvement in the EBITDA margin before exceptional
items to 16.3 %. Excluding operational and exceptional effects
related to sunliquid®, the Catalysts underlying EBITDA
margin in full year 2023 was 20.8 %, compared to 13.8 %
in full year 2022.
Catalysts Insight
Clarity™ is Clariant’s service portal for
catalyst customers and allows customers 24/7 access to their
real-time catalyst performance data as well as access to advanced
visualization, analysis, and monitoring tools. This cloud-based
tool supports all Clariant catalyst applications, allowing
end-to-end encrypted data sharing, with key performance indicators
visualized in customizable dashboards. The platform also
accelerates customer support through seamless collaboration with
Clariant experts that results in a more efficient catalyst
operation. Its advantages are confirmed by the high customer
adoption rate of more than 80 plants, and Clarity™ is now serving
over 380 active users in 28 countries around the world. An
AI-supported version of the tool has been launched in January 2024,
further stepping up Clariant’s digital offering and establishing
even stronger connections with customers.
Business Unit Adsorbents &
Additives
|
Fourth Quarter |
Full Year |
in CHF million |
2023 |
2022 |
% CHF |
% LC(1) |
2023 |
2022 |
% CHF |
% LC(1) |
Sales |
255 |
299 |
- 15 |
- 11 |
1 057 |
1 272 |
- 17 |
- 13 |
EBITDA |
16 |
35 |
- 54 |
|
118 |
276 |
- 57 |
|
- margin |
6.3 % |
11.7 % |
|
|
11.2 % |
21.7 % |
|
|
EBITDA before exceptional items |
21 |
39 |
- 46 |
|
131 |
281 |
- 53 |
|
- margin |
8.2 % |
13.0 % |
|
|
12.4 % |
22.1 % |
|
|
(1) Excluding
hyperinflation accounting countries Argentina and Türkiye
Sales
In the fourth quarter of 2023, sales in the
Business Unit Adsorbents & Additives decreased by 12 %
organically in local currency and by 11 % including scope in
local currency (15 % in Swiss francs). The acquisition of the
US-based Attapulgite business assets contributed 1 % to sales
growth in local currency. Weak demand in key Additives end markets
led to significantly lower volumes, which, together with slightly
lower prices, resulted in a low-twenties percentage rate sales
decline. In Adsorbents, sales grew at a low single-digit percentage
rate due to positive pricing and scope changes compensating for
lower volumes. On a quarterly sequential basis, sales increased by
5 % in local currency, with volumes recording an increase of
6 %, offsetting slightly lower pricing and inflationary
effects.
Sales declined in all geographic regions. This
included a high single-digit percentage rate drop in Asia-Pacific
as volumes declined in both Additives and Adsorbents. China grew by
a low single-digit percentage rate, supported by slightly positive
momentum in December in Additives. In Europe, Middle East, and
Africa, the largest region, as well as the Americas, sales
decreased by a low-teen percentage rate, as growth in Adsorbents
did not offset lower sales in Additives.
For the full year 2023, sales in Adsorbents
& Additives decreased by 15 % organically in local
currency and by 13 % including scope in local currency
(17 % in Swiss francs). While volumes were down 17 % due
to the weakness in Additives segments, pricing increased by
2 %. Changes in scope contributed a further 2 %.
EBITDA Margin
In the fourth quarter, the EBITDA margin
decreased to 6.3 % from 11.7 % in Q4 2022. Profitability
levels were impacted by substantially lower volumes and reduction
of inventory in Additives in particular, which resulted in lower
operating leverage and fixed-cost absorption. Additional
restructuring costs to further adapt to the low-volume environment
also weighed on profitability. The relatively strong Adsorbents
performance also led to a less favorable business mix. On a
quarterly sequential basis, EBITDA before exceptional items of
CHF 21 million was below the CHF 30 million
realized in Q3 2023.
For the full year 2023, Adsorbents &
Additives EBITDA margin decreased to 11.2 % from 21.7 %
in 2022 due to similar factors that influenced Q4 2023.
Adsorbents & Additives
Insight
In October 2023, Clariant marked another
milestone in its China Strategy with the official opening of its
state-of-the-art production facility for halogen-free flame
retardants in Daya Bay, Huizhou. With this plant, Clariant can
provide local customers with access to its innovative and
sustainable Exolit® OP flame retardants from a local
source – fulfilling key customer needs. The company also offers
enhanced local technical expertise to support innovative
engineering plastics applications in the E-mobility and electrical
and electronic segments for China and across the Asia-Pacific
region, as well as significantly reduced delivery lead times.
Key Financial Group Figures
|
Fourth Quarter |
Full Year |
in CHF million |
2023 |
2022 |
% CHF |
% LC(1) |
2023 |
2022 |
% CHF |
% LC(1) |
Sales |
1 062 |
1 323 |
- 20 |
- 14 |
4 377 |
5 198 |
- 16 |
- 10 |
EBITDA |
106 |
154 |
- 31 |
|
607 |
810 |
- 25 |
|
- margin |
10.0 % |
11.6 % |
|
|
13.9 % |
15.6 % |
|
|
EBITDA before exceptional items |
158 |
203 |
- 22 |
|
641 |
893 |
- 28 |
|
- margin |
14.9 % |
15.3 % |
|
|
14.6 % |
17.2 % |
|
|
EBIT |
|
|
|
|
282 |
72 |
|
|
Return on invested capital (ROIC) |
|
|
|
|
6.6 %(2) |
1.5 %(3) |
|
|
Net result from continuing operations |
|
|
|
|
213 |
- 101 |
|
|
Net result total(4) |
|
|
|
|
179 |
116 |
|
|
Net operating cash flow(4) |
|
|
|
|
421 |
502 |
|
|
Number of employees(4) |
|
|
|
|
10 481 |
11 148 |
|
|
(1) Excluding
hyperinflation accounting countries Argentina and Türkiye
(2) 9.5 %,
excluding impairment charges and restructuring/exceptional items
related to sunliquid® decision of
CHF 133 million
(3) 10.6 %, excluding impairment
charges of CHF 453 million for North American Land Oil divestment
and the Podari plant
(4) Total Group, including discontinued
operations
FY 2023 Financial Figures EN
Q4 2023 Media Release EN
CORPORATE MEDIA RELATIONS
Jochen Dubiel
Phone +41 61 469 63 63
jochen.dubiel@clariant.com
Ellese Caruana
Phone +41 61 469 63 63
ellese.caruana@clariant.com
Follow us on X, Facebook, LinkedIn, Instagram. |
INVESTOR RELATIONS
Andreas Schwarzwälder
Phone +41 61 469 63 73
andreas.schwarzwaelder@clariant.com
Thijs Bouwens
Phone +41 61 469 63 73
thijs.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 2023, Clariant totaled a staff number of
10 481 and recorded sales of CHF 4.377 billion in the fiscal
year for its continuing businesses. Since January 2023, the Group
conducts its business through the three Business Units Care
Chemicals, Catalysts, and Adsorbents & Additives. Clariant is
based in Switzerland. |
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