In This Article:
-
Full Year Sales: CHF4.152 billion, a low single-digit percentage decline from the prior year.
-
Reported EBITDA Margin: 15.8% or 16.0% before exceptional items.
-
Cash Conversion: 32% despite cash outflows related to sunliquid.
-
Fourth Quarter Sales: CHF1.1 billion, a 5% increase in local currency and 3% in Swiss francs year-on-year.
-
Fourth Quarter EBITDA: CHF179 million, a 69% increase, with a 16.4% EBITDA margin.
-
Care Chemicals Sales Growth: 4% in local currency, driven by Lucas Meyer Cosmetics.
-
Catalysts Sales Growth: 7% in local currency, with a 25.1% EBITDA margin.
-
Adsorbents and Additives Sales Growth: 4% in local currency, with a 13.1% EBITDA margin.
-
Cost Savings Achieved: CHF6 million in Q4, with CHF7 million remaining to reach CHF175 million target by end of 2025.
-
2025 Sales Growth Guidance: Lower end of 3% to 5% range in local currency.
-
2025 EBITDA Margin Guidance: 17% to 18% before exceptional items.
-
Restructuring Charges for 2025: CHF75 million related to new savings program.
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Clariant AG (CLZNF) delivered on its full-year guidance with sales of CHF4.152 billion, despite a challenging environment.
-
The company achieved a reported EBITDA margin of 15.8%, in line with its guidance.
-
Clariant AG (CLZNF) successfully integrated Lucas Meyer Cosmetics, achieving high single-digit growth in a challenging luxury cosmetics market.
-
The company made significant progress towards sustainability targets, reducing Scope 1 and 2 emissions by 9% and Scope 3 emissions by 5% compared to 2023.
-
Clariant AG (CLZNF) achieved 96% of savings from its CHF175 million cost savings program and announced a new savings program targeting CHF80 million by 2027.
Negative Points
-
Clariant AG (CLZNF) faced a low single-digit percentage decline in sales compared to the prior year.
-
The company anticipates limited indications of a strong economic recovery in 2025, with uncertainties such as potential tariffs and trade tensions.
-
Care Chemicals experienced a flat performance due to mild weather impacting seasonal aviation and refinery businesses.
-
The company expects to book around CHF75 million in restructuring charges related to its new savings program in 2025.
-
Clariant AG (CLZNF) reported a decline in EBITDA for Care Chemicals, impacted by lower seasonal sales and integration costs related to Lucas Meyer Cosmetics.
Q & A Highlights
Q: Could you discuss the performance of Care Chemicals in Q4 and expectations for Q1, particularly regarding de-icing fluids and Crop Solutions? A: Conrad Keijzer, CEO: In Q4, Care Chemicals experienced weaker trading conditions, especially in de-icing fluids due to warm weather, impacting both revenue and margins. However, Q1 has started strong, with solid performance in Personal and Home Care and Crop Solutions, as inventory issues have normalized. Industrial applications are also seeing a pickup, particularly in Paints and Coatings.