The specialty chemicals group Clariant achieved higher sales in the first quarter of 2022, with a higher than expected operating margin.
The Muttenz group intends to continue to improve its margins this year and confirms its objectives until 2025.
In the first half of 2022, the chemical company achieved a turnover of 1.26 billion francs, up 26% in francs or even 30% in local currencies, according to a press release published on Wednesday.
Ebitda operating profit jumped 27% to 220 million, for a margin of 17.4%. Adjusted for exceptional events, EBITDA even increased by 34% to 238 million, for a margin of 18.9%.
These figures are higher than the expectations of analysts polled by AWP, who expected a turnover of 1.22 billion and an adjusted Ebitda of 218 million for a margin of 17.9%.
Price increase
In order to compensate for the increase in production costs, prices have been raised by 16%, says Clariant. On the volume side, the increase reached 14%.
In detail, it is the care products division whose sales have increased the most, at a rate of 40% for a turnover of 566 million. Sales of the natural resources division increased by 26% to 511 million while those of the catalysis division fell by 4% to 185 million.
Sales growth reached 27% in local currencies in Europe. It was 31% in the Asia-Pacific region, thanks in particular to a 34% increase in China. In North America, sales even increased by 37%.
For 2022, Clariant expects solid growth in local currencies, supported by a particularly dynamic first half. But factors of uncertainty such as the war in Ukraine, the suspension of business with Russia and the resurgence of Covid-19 in China will continue to weigh on demand. Rising production costs are a challenge in the second half, as are supply issues.
Clariant intends to improve the Ebitda margin year over year by raising prices and through continued cost discipline, despite an increasingly difficult economic environment.
Finally, Clariant also confirms its 2025 objectives of a compound annual growth rate (CGAR) of between 4 and 6%, an Ebitda margin of 19-21% and a free cash flow conversion of around 40%.
/ATS
