AlzChem Group (ACT) Q4 2024 earnings summary

Executive summary

• Achieved record sales of EUR 554 million in 2024, up 3% year-over-year, with specialty chemicals driving growth and now representing 63% of total sales and nearly 90% of earnings contribution.

• EBITDA reached EUR 105.3 million, a 29% increase year-over-year, surpassing the EUR 100 million milestone; net income hit a record EUR 54.2 million, up 56%.

• Dividend proposal of EUR 1.80 per share, a 50% increase, with a payout ratio expected to remain at the lower end of 30-35% due to ongoing CapEx needs.

• Received a platinum EcoVadis rating for sustainable corporate governance, placing in the top 1% for ESG, and published a comprehensive CSRD-compliant non-financial report.

• Major investment project of approximately EUR 140 million underway for Nitroguanidine expansion, with construction starting in Germany and US site search ongoing.

Financial highlights

• Specialty chemicals segment sales grew 9% to nearly EUR 350 million, with EBITDA up 28% to EUR 94 million and margin rising to 27%.

• Group EBITDA margin improved to 19% from 15.1% last year.

• Earnings per share increased to EUR 5.31 from EUR 3.40.

• Operating cash flow rose 45% to EUR 105 million; net financial position shifted from EUR 46 million net debt to EUR 12.9 million net assets.

• Equity increased to EUR 207 million, equity ratio at 43%; cash and cash equivalents rose to EUR 61.5 million.

Outlook and guidance

• 2025 sales expected to reach EUR 580 million (+5%), EBITDA to EUR 113 million (+7%), driven by further volume growth in specialty chemicals, especially Creapure, Creamino, and Nitroguanidine.

• Custom manufacturing volumes and prices anticipated to recover as destocking effects subside and order intake improves.

• CapEx for 2025 projected at around EUR 100 million, before EU subsidies.

• Free cash flow expected to remain positive in 2025, supported by customer prepayments for nitroguanidine expansion.

• Assumes stable global economy, high electricity prices, and no major geopolitical disruptions.