Chemicals maker Clariant beats first-quarter profit expectations
Adds CEO quote in paragraphs 3-4 and 11, share movement in paragraph 6, medium-term outlook in paragraph 9
April 30 (Reuters) -Swiss speciality chemicals maker Clariant CLN.S reported on Tuesday a higher-than-expected first-quarter core profit, citing steadier volumes and lower raw materials costs.
The group's earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 4% to 173 million Swiss francs ($189.9 million) in the quarter, above the 151 million Swiss francs expected by analysts in a company-provided poll.
"Our significantly improved profitability was driven by our performance programmes and successful market management in a deflationary environment," CEO Conrad Keijzer said on a media call.
The shutdown of the company's Sunliquid bioethanol production plant in Romania and strong margins in its seasonal aviation business also contributed positively, he added.
The group reported first-quarter sales of 1.01 billion Swiss francs, missing analysts' estimates of 1.03 billion francs.
Its shares were up 1.2% in early trading.
Chemical companies have been under pressure for more than a year, forced to reduce inventories on lower demand from industrial clients as energy prices soared.
Clariant, whose products are used in smartphones and electric vehicles, also confirmed its earlier forecast for low single-digit percentage local currency growth in 2024 and an improvement in reported its EBITDA margin to around 15%.
The company said it sees a significant recovery in profitability in 2025, and expects to achieve an EBITDA margin of 17–18% and free cash flow conversion at the targeted level of around 40%.
In April Clariant completed the $810 million acquisition of Canadian ingredients and cosmetics maker Lucas Meyer Cosmetics from International Flavors & Fragrances IFF.N.
"Lucas Meyer has a very high EBITDA margin," Keijzer said. "It is a strong asset, already performing at a high level."
($1 = 0.9111 Swiss francs)
Reporting by Antonis Pothitos and Marta Frackowiak in Gdansk; Editing by Sonia Cheema, Mrigank Dhaniwala and Jan Harvey
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