Clariant AG (CLZNF) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Market Challenges

In This Article:

  • Sales: CHF1.013 billion, a 1% increase in local currencies.

  • EBITDA Before Exceptional Items: CHF190 million, a 3% increase, with a margin improvement of 70 basis points to 18.8%.

  • Cost Savings Program: Completed CHF175 million program; new CHF80 million program by 2027, with CHF3 million savings achieved in Q1.

  • Lucas Meyer Cosmetics Sales: CHF25 million with high profitability.

  • Care Chemicals EBITDA: CHF130 million, margin of 21.7%.

  • Catalyst Sales Decline: 13% in local currency and Swiss francs.

  • Absorbents and Additives Sales Increase: 2% in both local currency and Swiss francs.

  • Reported EBITDA: CHF152 million, a 12% decrease, with a margin of 15.0% including CHF38 million restructuring charges.

  • 2025 Guidance: Sales growth at the lower end of 3% to 5% range; EBITDA margin improvement to 17%-18% before exceptional items.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Clariant AG (CLZNF) reported a 1% increase in sales in local currencies, reaching CHF1.013 billion, indicating stable performance.

  • EBITDA before exceptional items increased by 3% to CHF190 million, with a margin improvement of 70 basis points to 18.8%.

  • The company completed a CHF175 million cost savings program, enhancing operating leverage and supporting margin improvement.

  • Lucas Meyer Cosmetics delivered strong operational performance with sales of CHF25 million and high profitability, receiving six innovation awards.

  • Clariant AG (CLZNF) maintains a resilient business model with a well-balanced regional sourcing and production footprint, mitigating direct impacts from tariffs and trade tensions.

Negative Points

  • Organic volumes decreased by 2% overall, with declines in the Catalysts segment offsetting growth in other areas.

  • Catalyst sales declined by 13% in local currency due to weak economic conditions and low utilization rates.

  • Reported EBITDA decreased by 12% to CHF152 million, impacted by CHF38 million in restructuring charges.

  • The company faces increased uncertainty due to tariffs and trade tensions, which could negatively impact global demand and consumer sentiment.

  • Clariant AG (CLZNF) anticipates sales growth at the lower end of the 3% to 5% range, reflecting a cautious outlook amid uncertain market conditions.

Q & A Highlights

Q: Can you provide more details on the profitability of Lucas Meyer Cosmetics and the demand trends in Q1? A: Conrad Keijzer, CEO, stated that Lucas Meyer Cosmetics achieved high single-digit sales growth and maintained strong profitability with EBITDA margins between 45% and high 40s. The quarter followed a usual pattern with a strong finish in March, particularly in Additives, without significant pre-buying effects.