AlzChem Group (ACT) H1 2024 earnings summary

Executive summary

• Group sales rose 3.3% year-over-year to €286.3M in H1 2024, driven by strong Specialty Chemicals growth offsetting declines in Basics & Intermediates.

• EBITDA increased 41% to €51.9M, with margin improving to 18.1% from 13.3% year-over-year, reflecting a favorable product mix.

• Net income surged 78% to €26.7M; free cash flow up 65% to €51.4M, reflecting strong operational performance and strict working capital management.

• Specialty Chemicals sales grew 12%, while Basics & Intermediates declined 12%; strong demand in Human Nutrition, Animal Nutrition, and Defense.

• 2024 EBITDA guidance raised to over €100M, with sales forecast unchanged but a shift toward higher-margin products.

Financial highlights

• H1 2024 sales: €286.3M (+3.3%); EBITDA: €51.9M (+41%); EBIT: €38.9M (+61%).

• Net income: €26.7M (+78%); EPS: €2.61 (vs. €1.46); equity ratio improved to 39.4%.

• Free cash flow: €51.4M (+65%); cash and cash equivalents rose by €34M since year-end.

• Q2 2024 sales: €136.2M (+7.6%); EBITDA: €27.0M (+51%); net income: €14.4M (+99%).

• Operating cash flow: €63.8M (+60%); capex: €12.4M (+45%).

Outlook and guidance

• 2024 sales expected at €570M, unchanged; EBITDA guidance raised to over €100M (from ~€90M).

• EBITDA margin forecast increased to over 17.5%; product mix shifting further toward Specialty Chemicals.

• Inventory intensity and equity ratio expected to remain stable; energy and raw material prices assumed stable.

• Specialty Chemicals to remain main EBITDA growth driver; Basics & Intermediates to stagnate.

• All other performance measures and previous year-end statements remain valid.