Clariant delivers 16.4 % EBITDA margin in Q4; proposes CHF 0.42 distribution per share; expects modest growth and underlying profitability improvement in 2025

• Company Name: Clariant

• Business Segments: Clariant is a specialty chemicals company focused on sustainability, with three main business units: Care Chemicals, Catalysts, and Adsorbents & Additives.

• Headquarters: Switzerland

• Employee Count: As of December 31, 2024, Clariant had a total of 10,465 employees.

Financial Performance in Q4 2024

• Sales: CHF 1.091 billion, up 5% year-over-year (3% in local currency) and a sequential increase of 10%.

• EBITDA: CHF 179 million, up 69% year-over-year, with an EBITDA margin of 16.4%.

• EBITDA (excluding exceptional items): CHF 160 million, representing an EBITDA margin of 14.7%.

Full-Year 2024 Financial Performance

• Sales: CHF 4.152 billion, down 3% year-over-year in local currency (5% in Swiss francs).

• EBITDA: CHF 657 million, up 8% year-over-year, with an EBITDA margin of 15.8%.

• EBITDA (excluding exceptional items): CHF 663 million, up 3% year-over-year, with an EBITDA margin of 16.0%.

• Free Cash Flow: CHF 211 million, with a free cash flow conversion rate of 32%.

• Net Debt: CHF 1.489 billion as of December 31, 2024, increased from CHF 755 million in 2023, primarily due to the acquisition of Lucas Meyer Cosmetics.

Business Unit Performance

• Care Chemicals:

  • Q4 Sales: CHF 560 million, up 4% year-over-year (2% in Swiss francs).

  • Full-Year Sales: CHF 2.242 billion, down 1% in local currency.

  • EBITDA Margin: 16.1% in Q4, down from 20.0% year-over-year; 18.0% for the full year, down from 19.9% in 2023.

• Catalysts:

  • Q4 Sales: CHF 271 million, up 7% year-over-year (5% in Swiss francs).

  • Full-Year Sales: CHF 883 million, down 9% in local currency.

  • EBITDA Margin: 25.1% in Q4, up from -3.9% year-over-year; 19.7% for the full year, up from 10.3% in 2023.

• Adsorbents & Additives:

  • Q4 Sales: CHF 260 million, up 4% year-over-year (2% in Swiss francs).

  • Full-Year Sales: CHF 1.027 billion, flat in local currency.

  • EBITDA Margin: 13.1% in Q4, up from 6.3% year-over-year; 15.1% for the full year, up from 11.2% in 2023.

Outlook for 2025

• Sales Growth: Clariant expects 3% to 5% growth in local currency sales for 2025, with the current economic environment suggesting growth toward the lower end of this range.

• EBITDA Margin: The company aims to improve its EBITDA margin before exceptional items to between 17% and 18%.

• Free Cash Flow: Clariant expects to make further progress toward its target of 40% free cash flow conversion.

• Medium-Term Targets: Clariant remains committed to achieving its medium-term targets by 2027, including 4% to 6% local currency sales growth, a reported EBITDA margin of 19% to 21%, and around 40% free cash flow conversion.

Sustainability and ESG Update

• Greenhouse Gas Emissions: Clariant reduced its Scope 1 and 2 emissions by 9% year-over-year to 0.49 million tons, achieving a 35% reduction from the 2019 baseline.

• Safety Performance: The company's DART rate improved by 19% to 0.17, placing it in the top quartile of the chemical industry.

• CDP Scores: Clariant achieved an "A-" rating in Climate, maintaining "B" ratings in Water and Forest.

Source:Clariant