AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR
- Q3 2023 sales decreased by 8 % organically vs. Q3 2022 (13 % including scope) in local currency to CHF 1.031 billion; organic sales vs. Q2 2023 showed 2 % volume improvement in challenging markets
- Catalysts achieved volume growth and positive pricing; Care Chemicals showed stabilization; Additives business faced continuing weaker demand for durable goods
- Q3 2023 reported EBITDA margin decreased to 15.4 % vs. 16.8 % in Q3 2022; underlying improvement of 340 basis points vs. Q2 2023, driven by proactive cost measures and operational improvements
- 9M 2023 sales decreased by 7 % in local currency to CHF 3.315 billion
- 9M 2023 reported EBITDA margin decreased to 15.1 % vs. 16.9 % in 9M 2022
- Full Year 2023 outlook confirmed
“Our performance is improving, despite continued uncertainties and risks related to the geopolitical and economic environment. On a Group basis
Business Summary
Third Quarter | Nine Months | |||||||
in CHF million | 2023 | 2022 | % CHF | % LC | 2023 | 2022 | % CHF | % LC |
Sales | 1 031 | 1 312 | - 21 | - 13 | 3 315 | 3 875 | - 14 | - 7 |
EBITDA | 159 | 220 | - 28 | 501 | 656 | - 24 | ||
- margin | 15.4 % | 16.8 % | 15.1 % | 16.9 % | ||||
EBITDA before exceptional items | 164 | 242 | - 32 | 483 | 690 | - 30 | ||
- margin | 15.9 % | 18.4 % | 14.6 % | 17.8 % |
Third Quarter 2023 Group Discussion
MUTTENZ,
Care Chemicals sales decreased by 18 % in local currency. While Oil Services recorded strong organic volume growth, sales in the other segments were lower against a very strong Q3 2022 comparable base. Catalysts sales increased by 8 % in local currency, driven by the Propylene and Syngas & Fuels segments, continuing the positive project execution observed in recent quarters. Adsorbents & Additives sales decreased by 19 % in local currency against a strong comparable base. In Additives, demand in key end markets remained challenging with continued destocking.
In
Group EBITDA decreased by 28 % to CHF 159 million versus Q3 2022, with an EBITDA margin of 15.4 %. Currency translation negatively impacted EBITDA by 14 % while lower volumes affected production utilization in Care Chemicals and Additives. The net negative operational impact from sunliquid® was CHF 11 million (an improvement of CHF 2 million year-on-year). However, cost savings from performance programs of CHF 14 million addressed remnant costs from divested businesses and contributed positively to offset inflation. Raw material costs also eased by 16 % year-on-year.
On a sequential basis, sales of CHF 1.031 billion in the third quarter of 2023 were 5 % below the second quarter of 2023 due to currency and scope impacts. Volumes slightly improved organically at a Group level, compensating lower pricing. Underlying profitability, as reflected by EBITDA before exceptional items, increased sequentially by 21 % to CHF 164 million, representing a margin increase of 340 basis points to 15.9 %. This significant improvement was a result of the proactive measures to align the cost base to a low volume environment, as well as strong operational performance in Catalysts and a slight organic volume increase in Care Chemicals.
Nine Months 2023 Group Discussion
In the first nine months of 2023, sales decreased by 7 % to CHF 3.315 billion (– 5 % organic) in local currency and by 14 % in Swiss francs. Scope effects (arising from divestments partly offset by an acquisition) were – 2 %. Volumes were down 6 %, however pricing increased by 1 %.
Local currency sales in Care Chemicals decreased by 12 %. Strong organic growth (both in volume and price) in Oil Services did not offset declines in other segments, particularly Crop Solutions. Catalysts sales grew 18 % with particularly strong growth in Propylene and Syngas & Fuels. Adsorbents & Additives sales decreased by 12 % in local currency due to the continued weak demand for durable goods impacting Additives volumes.
Local currency sales decreased in all geographic regions. The most pronounced decline was in
Group EBITDA decreased by 24 % to CHF 501 million, with a corresponding margin of 15.1 %. Profitability was impacted by lower volumes and currency translation, a CHF 18 million net impact from sunliquid® (including CHF 7 million restructuring charges in the second quarter), the CHF 11 million fair value adjustment of the
ESG Update – Leading in Sustainability
Clariant’s Scope 1 and 2 total greenhouse gas emissions fell to 0.58 million tons in the last twelve months (
Outlook – Full Year 2023
Business Discussion
Business Unit Care Chemicals
Third Quarter | Nine Months | |||||||
in CHF million | 2023 | 2022 | % CHF | % LC | 2023 | 2022 | % CHF | % LC |
Sales | 525 | 725 | - 28 | - 18 | 1 771 | 2 223 | - 20 | - 12 |
EBITDA | 91 | 144 | - 37 | 352 | 435 | - 19 | ||
- margin | 17.3 % | 19.9 % | 19.9 % | 19.6 % | ||||
EBITDA before exceptional items | 92 | 144 | - 36 | 299 | 435 | - 31 | ||
- margin | 17.5 % | 19.9 % | 16.9 % | 19.6 % |
Sales
In the third quarter of 2023, sales in the Business Unit Care Chemicals decreased by 18 % in local currency, 8 % of which was organic, and by 28 % in Swiss francs.
The decrease in pricing during the quarter was mainly due to adjustments in index-based pricing. Sequentially, prices went down 3 % compared to the previous quarter, again primarily driven by index-based pricing, as
Care Chemicals sales in
In the first nine months of 2023, sales in the Business Unit Care Chemicals decreased by 12 % in local currency, 7 % of which was organic, and by 20 % in Swiss francs. Volumes were down by a mid- to high single-digit percentage rate, excluding the divestment impact, while pricing was flat.
EBITDA Margin
In the third quarter, the EBITDA margin decreased to 17.3 % versus 19.9 % in the same period last year as profitability was negatively impacted by lower volumes and currency impacts. Sequentially, the EBITDA before exceptional items of CHF 92 million was significantly above the CHF 77 million realized in the second quarter of 2023, supported by the organic increase in volumes.
In the first nine months, the Care Chemicals EBITDA margin increased to 19.9 % from 19.6 %, positively impacted by the gain from the Quats disposal.
Care Chemicals Insight
With PHASETREAT™ WET,
Business Unit Catalysts
Third Quarter | Nine Months | |||||||
in CHF million | 2023 | 2022 | % CHF | % LC | 2023 | 2022 | % CHF | % LC |
Sales | 260 | 262 | - 1 | 8 | 742 | 679 | 9 | 18 |
EBITDA | 58 | 30 | 93 | 113 | 57 | 98 | ||
- margin | 22.3 % | 11.5 % | 15.2 % | 8.4 % | ||||
EBITDA before exceptional items | 58 | 31 | 87 | 122 | 59 | 107 | ||
- margin | 22.3 % | 11.8 % | 16.4 % | 8.7 % |
Sales
In the third quarter of 2023, sales in the Business Unit Catalysts rose 8 % in local currency and declined 1 % in Swiss francs. Volume growth was supported by continued positive pricing. Sales growth was strongest in Propylene as well as Syngas & Fuels, both up by more than 40 %. Due to the project nature of the businesses, Specialties declined at a low-teens percentage rate, while the decrease in Ethylene was more pronounced.
Catalysts sales grew in the
In the first nine months of 2023, sales in the Business Unit Catalysts increased by 18 % in local currency and by 9 % in Swiss francs. Growth was a result of both positive pricing and mid-teens percentage volume growth, while on a segment basis, the performance was particularly strong in Propylene and Syngas & Fuels.
EBITDA Margin
In the third quarter, the EBITDA margin increased to 22.3 % from 11.5 % year-on-year due to continued positive pricing, improved operating leverage due to higher volumes, and a positive business mix. When excluding the CHF – 11 million impact of sunliquid®, the EBITDA margin was 26.5 % in the third quarter, compared to 16.4 % on a like-for-like basis in the previous year. Sequentially, the EBITDA before exceptional items of CHF 58 million was above the CHF 51 million realized in the second quarter of 2023.
On sunliquid®, its impact of CHF – 11 million on EBITDA in the third quarter was a CHF 2 million improvement from the prior year. The
In the first nine months, Catalysts EBITDA margin increased to 15.2 % from 8.4 %, driven by positive pricing, higher volumes, and positive business mix effects.
Catalysts Insight
Clariant’s MegaMax® catalyst was chosen by European Energy for the world’s largest e-methanol plant, with an annual capacity of 32 000 tons. Located in Kasso,
Business Unit Adsorbents & Additives
Third Quarter | Nine Months | |||||||
in CHF million | 2023 | 2022 | % CHF | % LC | 2023 | 2022 | % CHF | % LC |
Sales | 246 | 325 | - 24 | - 19 | 802 | 973 | - 18 | - 12 |
EBITDA | 30 | 79 | - 62 | 102 | 241 | - 58 | ||
- margin | 12.2 % | 24.3 % | 12.7 % | 24.8 % | ||||
EBITDA before exceptional items | 30 | 79 | - 62 | 110 | 242 | - 55 | ||
- margin | 12.2 % | 24.3 % | 13.7 % | 24.9 % |
Sales
In the third quarter of 2023, sales in the Business Unit Adsorbents & Additives decreased by 19 % in local currency and by 24 % in Swiss francs. The acquisition of the US-based Attapulgite business assets contributed 2 % to sales growth in local currency. Weak demand in key Additives end markets continued to impact volumes and pricing in the Additives business, which declined in the low-thirties percentage range and mid-single-digit percentage range, respectively. In Adsorbents, sales grew due to scope effects and positive pricing.
Sales declined in all geographic regions. This includes a high twenties percentage rate drop in
In the first nine months of 2023, sales in the Business Unit Adsorbents & Additives decreased by 12 % in local currency, with a 14 % organic decrease, and by 18 % in Swiss francs. While volumes were negative due to the weakness in Additives, pricing remained positive.
EBITDA Margin
In the third quarter, the EBITDA margin decreased to 12.2 % from a high 24.3 % in the same period of the previous year. Profitability levels were impacted by substantially lower volumes in Additives in particular, which resulted in lower operating leverage and fixed cost absorption, while the relatively strong Adsorbents performance led to a less favorable business mix. Sequentially, the EBITDA before exceptional items of CHF 30 million was above the CHF 25 million realized in the second quarter of 2023.
In the first nine months, Adsorbents & Additives EBITDA margin decreased to 12.7 % from 24.8 % due to similar factors that influenced the last quarter.
Adsorbents & Additives Insight
Clariant’s Ceridust® 8330 is a unique additive. Made from a renewable resource, it is a real breakthrough for all kinds of printing inks. It combines its bio-based origin with superior rub resistance properties, easy dispersion in both water and solvent-based ink systems, and a dosage reduction potential that enables more efficient ink usage. This makes it the kind of high-performance solution that the printing industry is looking for as it switches away from traditional Polytetrafluorethylene (PTFE)-based additives. Sustainability challenges and the regulatory landscape are driving the demand for environmentally friendly alternatives and with products like Ceridust® 8330,
CORPORATE MEDIA RELATIONS Phone +41 61 469 63 63 jochen.dubiel@clariant.com Anne Schäfer Phone +41 61 469 63 63 anne.schaefer@clariant.com 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 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. www.clariant.com |
Attachments
- 20231030_CLARIANT ANALYST PRESENTATION_LUCAS MEYER COSMETICS_Q3_9M 2023
- 20231030_CLARIANT MEDIA RELEASE Q3_9M 2023 EN
- 20231030_CLARIANT MEDIA RELEASE Q3_9M 2023 DE
© OMX, source