Clariant H1 Net Jumps On Strong Sales

Switzerland-based specialty chemical company Clariant AG (CLZNF), on Thursday announced its first half-yearly results that showed profitability improvement generated by strong sales growth.

Net result for the first half of 2022, was CHF 386 million versus CHF 157 million in the previous period. The net was helped by a gain on the Pigments disposal, strong business performance of the continuing operations, and the corresponding margin improvement.

The net result from discontinued operations was a gain of CHF 197 million, attributed to the Pigments divestment proceeds, compared to CHF 52 million in the previous year.

The continuing operations EBITDA increased by 30 percent to CHF 436 million amidst improved profitability on the back of notable sales expansion. EBITDA margin increased to 17.0 percent from 16.5 percent, and was a record for first half-year EBITDA margin.

In the first half year of 2022, sales from continuing operations increased by 29 percent in local currency to CHF 2.563 billion, compared to CHF 2.034 billion in the first half year 2021. Sales growth exceeded 20 percent in local currency in all geographic regions. Care Chemicals sales rose by 45 percent in local currency in the first half year 2022 with double-digit sales growth in all key businesses.

In the second quarter of 2022, sales from continuing operations grew by 29 percent in local currency to CHF 1.301 billion, from CHF 1.032 billion earlier, underpinned by strong pricing and volume expansion. Sales expansion was significant in all geographic regions. The 40 % sales growth in North America was followed closely by Latin America with a 39 % increase. Care Chemicals increased sales by 46 % in local currency.

The continuing operations EBITDA increased by 33 percent to CHF 216 million, from CHF 163 million in the prior-period quarter.

Clariant has confirmed its 2025 target of 4 - 6 percent CAGR, a Group EBITDA margin between 19 - 21 percent, and a free cash flow conversion of around 40 percent.

In the third quarter of 2022, Clariant expects to generate continued strong sales growth in local currency versus the prior year, reflecting expansion in all Business Areas.

For the full year 2022, Clariant expects strong growth in local currency for the group to around CHF 5.0 billion, based on a strong first half year 2022.

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