Clariant AG ( (CLZNF) ) has released its Q4 earnings. Here is a breakdown of the information Clariant AG presented to its investors.
Clariant AG is a Swiss-based specialty chemical company that focuses on sustainability and innovation across its three main business units: Care Chemicals, Catalysts, and Adsorbents & Additives. The company is known for its commitment to creating solutions that foster sustainability in various industries.
Clariant AG reported a 5% increase in fourth-quarter 2024 sales in local currency, reaching CHF 1.091 billion, driven by growth in all business units. The company’s EBITDA margin improved significantly to 16.4%, supported by strong performance in Adsorbents & Additives and Catalysts. For the full year 2024, sales decreased by 3% in local currency to CHF 4.152 billion, but the EBITDA margin improved to 15.8%.
Key financial highlights include a 69% increase in fourth-quarter EBITDA to CHF 179 million, with a stable underlying EBITDA margin before exceptional items. The company generated a resilient free cash flow of CHF 211 million for the year, with a free cash flow conversion rate of 32%. Clariant also announced a proposed distribution of CHF 0.42 per share to shareholders.
Looking ahead, Clariant expects modest growth and an improvement in underlying EBITDA margin for 2025, despite challenging market conditions. The company remains committed to its medium-term targets, aiming for 4-6% local currency sales growth and a 19-21% reported EBITDA margin by 2027. Clariant plans to achieve these goals through a combination of growth and self-help measures.
Overall, Clariant AG’s strategic focus on sustainability and innovation, coupled with its proactive margin management, positions the company well for future growth and profitability improvements, even amid macroeconomic uncertainties.