Clariant AG, a leading specialty chemicals enterprise, announced a 13% decline in its Group EBITDA for the third quarter, reaching 139 million Swiss francs, compared to 159 million francs in the previous year. The EBITDA margin fell to 14%, down from the 15.4% margin observed in the third quarter of 2023.
When adjusting for exceptional items, underlying EBITDA saw a 5% decrease, totaling 155 million francs against last year's 164 million francs. The underlying EBITDA margin experienced a slight decrease to 15.6%, from 15.9% the previous year.
Quarterly sales experienced a 4% reduction, amounting to 991 million francs compared to 1.03 billion francs a year prior, with sales in local currency dropping by 1%. The volume decreased by 3%, though pricing remained consistent across all business sectors. The acquisition of Lucas Meyer Cosmetics notably contributed a 2% positive impact on Group sales, as it maintained strong growth momentum.
Looking forward to fiscal year 2024, Clariant anticipates the reported EBITDA margin to remain around 16%. The company now projects a slight single-digit percentage decline in local currency sales, revising its previous forecast of flat to low single-digit percentage sales growth.
Growth is anticipated in the Care Chemicals sector, bolstered by the Lucas Meyer Cosmetics acquisition, and within Adsorbents & Additives; however, these gains are expected to only partially counterbalance the decrease in Catalysts sales.
For the entirety of 2024, Clariant foresees a gradual reduction in inflationary pressures but does not anticipate significant economic recovery due to ongoing macroeconomic challenges and uncertainties. The company continues to uphold its medium-term objectives.
Looking further ahead to 2025, Clariant remains optimistic about improving profitability. Based on an estimated 3% to 5% increase in local currency sales, the company aims to achieve an EBITDA margin between 17% and 18%.