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Lanxess, 2024 profits to grow significantly!

New Chemical Materials 2025-03-21 09:21:50

On March 20, Lanxess released its financial results for the 2024 fiscal year, with sales of 6.366 billion euros, a year-on-year decrease of 5%. Sales volumes increased, mainly due to a decline in raw material and energy costs leading to lower selling prices.

EBITDA before special items increased by 19.9% year-on-year to 614 million euros, in line with the preliminary figures published on January 20, 2025. The EBITDA margin before special items rose from 7.6% in the previous year to 9.6%.

Lanxess expects that the economic and geopolitical environment for the 2025 fiscal year will remain challenging. Despite the fact that global demand has not yet fully recovered, it is still confident of achieving further growth by 2025, with an expected EBITDA pre-portfolio adjustment profit growth of about 10%, ranging between 600 million to 650 million euros, which is also due to the continued impact of the "FORWARD!" action plan.

Lanxess launched the "FORWARD!" action plan in the summer of 2023 to offset the impact of economic downturn. Through structural measures, Lanxess plans to permanently reduce annual costs by about 150 million euros by 2025. Savings of 110 million euros have already been achieved in 2024, exceeding the original plan by 20 million euros.

complete the transformation into a specialty chemicals company

In October 2024, LANXESS signed an agreement with Ube Industries, Ltd. of Japan to sell its polyurethane systems business to Ube Industries, Ltd. The business unit has five production sites globally and approximately 400 employees. The sale is expected to be completed in April 2025. With the agreement to sell the polyurethane systems business unit, LANXESS is divesting its last polymer business and completing the group's transformation into a specialty chemicals company. LANXESS will use the proceeds from the sale to further reduce debt.

performance of various business segments

Consumer protection business area, sales of 2.081 billion euros, down 11.1% year-on-year. Profit before EBITDA was 286 million euros, a decrease of 7.7% year-on-year. The decline in earnings was mainly due to the continued weak demand from agricultural chemicals customers in the Saltigo business unit.

Special Additives division, sales of 2.09 billion euros, down 5.0% year-on-year, mainly due to a decrease in sales prices as a result of lower raw material and energy prices. EBITDA pre-profit of 227 million euros, up 8.6% year-on-year, this positive development is attributed to higher capacity utilization and lower costs brought about by the "FORWARD" action plan.

Advanced intermediate business, with sales reaching 1.804 billion euros, a year-on-year increase of 1.6%, mainly due to a slight recovery in demand. EBITDA was 210 million euros, a year-on-year increase of 73.6%, mainly thanks to higher capacity utilization and cost savings achieved through the "FORWARD!" action plan.

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Lanxess, 2024 profits to grow significantly!

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