Clariant Reports Significantly Stronger Sales Growth and EBITDA Increase in Q1 2022

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Clariant International Ltd

AD HOC ANNOUNCEMENT PURSUANT TO ART. 53LR

  • First quarter 2022 sbeers from continuous operations increased by 30% in local currency and 26 % in Swiss Francid to CHF 1.262 billion price contributed 16% at the strong Highline growth

  • VSEBITDA from continuing operations has been at the top 27 % at CHF 220 million

  • EBITDA margin increased to 17.4 % of 1seven.3 % in the first quarter of 2021

  • First quarter pperformance underlyingnotare the ability to achieve medium term objectives

  • Outlook 2022: Strong local currency growth for the Group with the aim of improving
    Year-to-Year Group EBITDA margin level in a difficult geopolisItechnical environment

“I am proud to report that Clariant has started 2022 well despite a turbulent environment. In the first quarter, we managed to generate convincing revenue growth and significantly increase absolute EBITDA. The Group’s strong value has once again enabled us to successfully manage the continued inflation of variable costs arising from raw materials, energy and logistics services,” said Conrad Keijzer, CEO of Clariant. he short-term macroeconomic uncertainty remains high, we are on track to achieve our medium-term objectives.”

Key financial data

Continuing operations

first quarter

in millions of francs

2022

2021

%CHF

% CL

Sales

1,262

1,002

26

30

EBITDA

220

1731

27

– margin

17.4%

17.3%

EBITDA before exceptional items

238

1seven81

34

– margin

18.9%

1seven.8%

1 retirement

First Quarter 2022 Very strong sales growth

MUTTENZ, JUNE 15, 2022

Clariant, a focused, sustainable and innovative specialty chemicals company, today announced sales from continuing operations of CHF 1.262 billion for the first quarter of 2022, compared to CHF 1.002 billion in the first quarter of 2021. to a particularly strong 30% increase in local sales. currency and 26% in Swiss francs. The positive price impact of 16% partly responded to continued cost inflation and also slightly exceeded volume growth of 14%. Care Chemicals and Natural Resources grew sales at an accelerated pace, which more than offset the expected slightly weaker development of Catalysis.

All geographies contributed significantly to the sales expansion in the first quarter of 2022, reflecting both continued strong demand and supply chain shortages. In Europe, strong growth of 27% in local currency was supported by strong expansion in Care Chemicals as well as Natural Resources. Sales in Asia-Pacific increased by 31%, supported by expansion in all business areas and clearly driven by sales up 34% in China. The Americas saw compelling growth, with North American sales up 37%, followed closely by Latin America at 31%. In the Middle East and Africa, sales increased by 26%.

In the first quarter of 2022, Care Chemicals increased sales by 44% in local currency. This progress was supported by double-digit growth in the Consumer Care and Industrial Applications sectors, in particular Personal Care, Crop Solutions, Aviation and Coatings. The consolidation of the majority stake acquired in Clariant IGL Specialty Chemicals (CISC) and the acquisition of the remaining shares in Beraca further supported this positive development with an additional 4% volume growth in local currency for the Group. Catalysis sales were down a slight 1% in local currency, despite significantly higher Specialty Catalysts sales, which could not fully offset weakness in parts of petrochemicals and syngas. Natural Resources sales increased 31% in local currency with growth attributable to all three Business Units, particularly Additives.

EBITDA from continuing operations increased to CHF 220 million with a corresponding margin of 17.4%, slightly exceeding the 17.3% recorded in the first quarter of the previous year. The increase was supported by operating leverage resulting from higher sales, cost savings (CHF 4 million savings from efficiency programs) and pricing measures, which more than offset the increases raw material prices, supply chain constraints and rising energy and logistics costs. Absolute EBITDA increased by 27%.

Discontinued operations

Clariant’s Pigments business was divested to a consortium including Heubach Group and SK Capital Partners on January 3, 2022, resulting in a pre-tax provisional disposal gain of CHF 168 million and EBITDA of CHF 160 million for the discontinued activities. The Group’s total EBITDA (continuing operations and discontinued operations) amounted to 380 million francs in the first quarter of 2022.

Outlook – Full Year 2022

Clariant aims to grow above the market to achieve higher profitability through sustainability and innovation. The Group completed the last stage of the significant transformation of its portfolio in January 2022. Clariant is now a true specialty chemicals company and confirms its ambition for 2025 to generate profitable growth (4 – 6% CAGR), a margin of Group EBITDA between 19 and 21%, and free cash flow conversion of around 40%.

In the second quarter of 2022, Clariant expects to generate continued strong local currency sales growth over the prior year, supported by expansion across all business areas despite a normalizing growth environment. Sequential sales are expected to decline moderately due to seasonal effects (aviation, refinery) and normalization of demand in care chemicals and natural resources. Clariant expects to improve its year-on-year restated margin levels in the second quarter of 2022. Sequentially, the Group expects to be broadly in line with its first quarter of 2022 margin level, notably through operating leverage growth, continued pricing actions, and cost discipline to counter continued inflation in raw material, logistics, labor and energy costs.

For the full year 2022, Clariant expects strong growth in local currency for the Group, driven by a particularly strong first half of 2022. The current high level of uncertainty resulting from geopolitical conflicts, the suspension of business with Russia and the resurgence of COVID -19 in China are expected to continue to impact global economic growth and consumer demand in the second half of the year. of the year. Clariant expects the highly inflationary environment with respect to raw material, energy and logistics costs as well as supply chain challenges to persist in the second half of 2022. Clariant aims to improve its Group EBITDA margin levels year-on-year thanks to solid price-driven revenue growth and continued cost discipline, despite an increasingly challenging economic environment.

Q1 2022 Press release EN

CORPORATE MEDIA RELATIONS

Jochen Dubiel
Telephone +41 61 469 63 63
[email protected]

Anne Mayer
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[email protected]

Ellese Caruana
Telephone +41 61 469 63 63
[email protected]

INVESTOR RELATIONS

Andreas Schwarzwalder
Telephone +41 61 469 63 73
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Mary Ivek
Telephone +41 61 469 63 73
[email protected]

Alexander Kamb
Telephone +41 61 469 63 73
[email protected]

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This press 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 or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant’s ability to control or accurately estimate, such as future market conditions, currency fluctuations, the behavior of other market participants, actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; competitors’ pricing strategies; the Company’s ability to continue to receive adequate revenue from its suppliers on acceptable terms, if at all, and to continue to obtain sufficient funding 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, globally, regionally or nationally . Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these documents.

www.clariant.com

Clariant is a focused, sustainable and innovative specialty chemicals company based in Muttenz near Basel/Switzerland. As of December 31, 2021, Clariant had 11,537 employees and generated revenue of CHF 4,372 during the year for its continuing operations. The company reports on its activities in three business areas: service chemicals, catalysis and natural resources. Clariant’s corporate strategy is guided by the overarching goal of “greater chemistry – between people and planet” and reflects the importance of connecting customer focus, innovation, sustainability and people. .

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