Clariant Maintains Resilient Profitability
Specialty chemicals company Clariant reported third-quarter 2024 sales of CHF 991 million, a 1% decrease in local currency and 4% decline in Swiss francs compared to Q3 2023. This slight decline reflects stable pricing and volume growth in Adsorbents & Additives and Care Chemicals, offset by a significant reduction in Catalysts volumes.
Financial Highlights
Clariant's Q3 EBITDA margin, excluding exceptional items, was 15.6%, down slightly from 15.9% in Q3 2023. The reported EBITDA margin was 14.0%, down from 15.4% the previous year due to lower Catalysts volumes and restructuring charges. Sales for the first nine months of 2024 reached CHF 3.061 billion, a 5% decline in local currency. Reported EBITDA margin improved to 15.6% from 15.1% for the same period in 2023.
“Clariant delivered resilient profitability in Q3 2024 despite a challenging market environment,” said CEO Conrad Keijzer. “We achieved growth in our Adsorbents & Additives and Care Chemicals businesses while maintaining pricing discipline. However, Catalysts volumes impacted our full-year sales outlook. We are on track with the integration of Lucas Meyer Cosmetics and the bioethanol business downsizing, with a reduced financial impact than initially anticipated. We confirm our 2024 profitability guidance and reaffirm our medium-term targets.”
Regional and Segment Performance
- Europe, Middle East & Africa: Sales increased 2% in local currency, as European engineering partners in Catalysts supported global customers.
- Americas: Sales decreased 6% organically due to lower Catalysts sales, with growth in Adsorbents & Additives and Care Chemicals partly offsetting the decline.
- Asia-Pacific: Sales were 5% lower organically, with declines in Catalysts partly mitigated by growth in Adsorbents & Additives and Care Chemicals.
Segment Results
- Care Chemicals: Sales rose 1% organically, with slight volume growth. The Lucas Meyer Cosmetics acquisition added 4% growth. The segment achieved an EBITDA margin of 17.2%.
- Catalysts: Sales declined 20% in local currency, with demand impacted by low customer operating rates and a high comparison base. EBITDA margin decreased to 18.2%.
- Adsorbents & Additives: Sales grew 7% in local currency, with higher volumes in Additives driving the increase. EBITDA margin rose to 15.9% from 12.2% in Q3 2023.
Outlook
For 2024, Clariant expects a low single-digit percent decline in local currency sales, with stable profitability around a 16% EBITDA margin. The company anticipates continued improvement in 2025, targeting a 3%-5% sales increase in local currency and an EBITDA margin between 17% and 18%. Clariant remains committed to medium-term targets as end markets recover over the next two to three years.
ESG and Sustainability Initiatives
Clariant’s Scope 1 and 2 greenhouse gas emissions decreased by 9% year-over-year, with Scope 3 emissions falling by 4%, reflecting Clariant’s progress toward its 2030 emissions reduction targets.
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