We have lowered our 2022e sales by 9% following a weaker short-term outlook for wind power. We find the company's implicit 2022 sales target of
Q1 review. Sales were 4% below our forecast, primarily driven by negative growth in Performance Chemicals due to a decline in demand for wind power. Performance Masterbatch, on the other hand, saw strong growth, reflected by higher volumes as well as price increases. Despite supply chain issues and cost inflation, the gross margin improved QOQ to 40% (36% in Q4 2021).
Outlook for 2022. We expect Q2 sales in Performance Chemicals to remain affected by weak demand for wind power, but forecast a strong recovery within the market in H2. For Performance Masterbatch, we see continued strong growth throughout the year, driven by increased volumes and higher prices. We believe the gross margin should gradually improve on a quarterly basis, with price increases offsetting higher costs.
Long-term case intact. Although Q1 sales were hit by lower demand for wind power as well as shutdowns in
Estimate changes. We have lowered our 2022e sales by 9% following the Q1 results and cut our 2022e EBITDA by 7%, with lower sales somewhat offset by a stronger gross margin for the remainder of the year.
Fair value of
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