AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR
- Q3 2022: Sales increased by 27 % in local currency to CHF 1.312 billion, supported by both pricing and volume growth, EBITDA margin increased to 16.8 % versus 15.5 %
- 9M 2022: Sales increased by 29 % in local currency to CHF 3.875 billion, EBITDA margin increased to 16.9 % versus 16.2 %
Clariant signs definitive agreement to sell North American Land Oil business- Full Year 2022 Outlook: Strong local currency growth for the Group to around CHF 5.1 billion, with the confirmed aim to improve the year-on-year underlying Group EBITDA margin level. Full year 2022 reported Group EBITDA margin will be impacted by restructuring charges in Q4 2022 related to the implementation of the new operating model
“Our performance in the third quarter was, as anticipated, fueled by sustained pricing amidst a moderate sequential decline in raw material costs, combined with renewed momentum in Catalysis, most specifically within the Petrochemicals segment. As signaled previously, we see demand declining in some segments, most notably in
I would like to thank all my colleagues for their hard work and for the excellent results we achieved in a very challenging environment,” said
“For the full year 2022, we increase our sales guidance to approximately
Key Financial Data (1)
Continuing operations | Third Quarter | Nine Months | |||||||
in CHF million | 2022 | 2021 | % CHF | % LC | 2022 | 2021 | % CHF | % LC | |
Sales | 1 312 | 1 096 | 20 | 27 | 3 875 | 3 130 | 24 | 29 | |
EBITDA | 220 | 170 | 29 | 656 | 506 | 30 | |||
- margin | 16.8 % | 15.5 % | 16.9 % | 16.2 % | |||||
EBITDA before exceptional items | 242 | 183 | 32 | 690 | 529 | 30 | |||
- margin | 18.4 % | 16.7 % | 17.8 % | 16.9 % | |||||
(1) Q3 and Nine Months 2021 restated. The figures were rounded, and hence, minor reporting deviations might occur
Third Quarter 2022 – Continued sales growth and profitability progression
MUTTENZ,
In the third quarter of 2022, local currency sales growth was robust in all geographic regions. European sales grew by 22 %, as prices were increased while volume growth slowed. Sales in
Care Chemicals increased sales by 24 % in local currency in the third quarter of 2022. This positive development was driven by double-digit growth in Consumer Care and Industrial Applications, especially Crop Solutions and Personal Care. Catalysis sales rose by 28 % in local currency, primarily due to volume growth in Petrochemicals and Specialty Catalysts. Natural Resources sales increased by 30 % in local currency with growth attributable to all three Business Units, especially Additives.
Continuing operations EBITDA grew to CHF 220 million while the corresponding 16.8 % margin increased from the 15.5 % reported in the third quarter of the previous year. This improvement was propelled by pricing measures that fully offset the continued high raw material cost increase (approximately 24 % year-on-year) and higher energy and logistics cost. Additionally, operating leverage from higher sales and cost savings (CHF 2 million savings from performance programs during the quarter) also contributed positively to the margin increase. The absolute EBITDA increased by 29 % versus the previous year and significantly exceeded the CHF 151 million (14.5 % margin) pre-pandemic level reported in the third quarter of 2019.
First Nine Months 2022 – Specialty chemical portfolio, pricing, and cost discipline enabled sales and profitability improvements
In the first nine months of 2022, sales from continuing operations were CHF 3.875 billion, compared to CHF 3.130 billion in the first nine months of 2021. This corresponds to an increase of 29 % in local currency, 26 % of which was organic. Both pricing and volume growth had a positive impact on the Group of 18 % and 11 % (8 % of which was organic), respectively, while the currency impact was -5 %.
In all geographic regions, sales growth in the first nine months of 2022 exceeded 24 % in local currency with a particularly strong performance in
Care Chemicals grew sales by 37 % in local currency in the first nine months of 2022 with continued double-digit sales growth in all key businesses. In Catalysis, sales rose by 12 % in local currency, underpinned by Specialty Catalysts and Petrochemicals. All three Business Units, Oil and Mining Services, Functional Minerals, and especially Additives, contributed to the 28 % local currency sales growth reported in Natural Resources.
Continuing operations EBITDA increased by 30 % to CHF 656 million as the Group again improved profitability on the back of notable sales growth. Continued pricing measures and operating leverage offset raw material price increases of approximately 34 %, compared to the first nine months of 2021. Furthermore, the execution of the performance improvement programs resulted in additional cost savings of CHF 10 million in the first nine months of 2022. The EBITDA margin increased to 16.9 % from 16.2 % in the first nine months of 2021 due to the Group’s ongoing cost discipline and the profitability improvement in Care Chemicals and Natural Resources, which more than offset the relative weakness in Catalysis.
ESG Update – Leading in sustainability
Fighting climate change remains high on Clariant’s agenda and also for many of its stakeholders. The Group continues to implement its 2030 roadmap to achieve its science-based climate targets, which aim for a 40 % absolute reduction in Scope 1 and 2 greenhouse gas emissions and a 14 % absolute reduction in Scope 3 greenhouse gas emissions from purchased goods and services by 2030, compared to baseline 2019 levels. These targets are accompanied by intensity-reduction targets for the key environmental parameters in its operations.
In the first nine months of 2022, the Group’s Scope 1 and 2 emissions improved as a result of increased energy efficiency through the sun-drying of clays and an accelerated transition to renewables – specifically the switch from coal to biomass at some sites and a higher share of green electricity purchased. For example,
Clariant’s catalysts and adsorbents deliver significant customer value by driving higher production throughput, lowering energy consumption, and reducing hazardous emissions from industrial processes and combustion engines. In recognition of this accomplishment,
Outlook – Full Year 2022
(4 – 6 % CAGR), a Group EBITDA margin between 19 – 21 %, and a free cash flow conversion of around 40 %.
In the fourth quarter of 2022,
For the full year 2022,
Q3 9M Media Release EN
CORPORATE MEDIA RELATIONS Phone +41 61 469 63 63 jochen.dubiel@clariant.com Phone +41 61 469 63 63 anne.maier@clariant.com Phone +41 61 469 63 63 ellese.caruana@clariant.com | INVESTOR RELATIONS Andreas Schwarzwälder Phone +41 61 469 63 73 andreas.schwarzwaelder@clariant.com Maria Ivek Phone +41 61 469 63 73 maria.ivek@clariant.com Phone +41 61 469 63 73 alexander.kamb@clariant.com |
Follow us on Twitter, Facebook, LinkedIn, Instagram. 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. www.clariant.com |
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