Clariant (CLN) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached CHF 991 million, down 1% in local currency and 4% year-over-year, with stable pricing and volume growth in Adsorbents & Additives and Care Chemicals offset by lower Catalysts volumes; Lucas Meyer Cosmetics contributed positively.

• EBITDA before exceptional items was CHF 155 million (margin 15.6%), while reported EBITDA was CHF 139 million (margin 14.0%), both down from the prior year due to lower Catalysts volumes and restructuring charges.

• Performance improvement programs delivered CHF 7 million in Q3 savings, with CHF 162 million achieved toward the CHF 175 million 2025 target.

• sunliquidⓇ restructuring largely completed, with a CHF 36 million impairment reversal and reduced operational and exceptional costs.

• Board nominated Ben van Beurden as Chairman, pending AGM approval.

Financial highlights

• Q3 2024 Group EBITDA decreased 13% to CHF 139 million; margin at 14.0% (Q3 2023: 15.4%).

• Q3 EBITDA before exceptional items was CHF 155 million, margin 15.6% (vs. 15.9% prior year).

• 9M 2024 EBITDA was CHF 478 million (margin 15.6%), down from CHF 501 million (15.1%) in 9M 2023.

• Q3 restructuring charges of CHF 9 million expected to yield CHF 6 million annual run-rate savings.

• Raw material and energy costs declined by 10% and 8% respectively in 9M 2024.

Outlook and guidance

• 2024 expected to see a low single-digit percent sales decline in local currency; EBITDA margin guidance confirmed at around 16%.

• Growth in Care Chemicals and Adsorbents & Additives to partially offset lower Catalysts sales.

• Cost savings from performance programs expected to deliver CHF 33 million in 2024.

• Medium-term targets reaffirmed: 3–5% sales growth and 17–18% EBITDA margin for 2025, assuming industrial GDP recovery and interest rate cuts.

• Free cash flow conversion expected around 40% in the medium term.