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 to sales.

• EBITDA before exceptional items was CHF 155 million (margin 15.6%), while reported EBITDA was CHF 139 million (margin 14.0%), both impacted by lower Catalysts volumes and restructuring charges.

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

• CHF 36 million non-cash impairment reversal related to sunliquid/biofuels right-of-use assets; restructuring charges of CHF 9 million in Q3 are expected to yield CHF 6 million annual run-rate savings.

• Board nominated Ben van Beurden as Chairman, to be elected at the April 2025 AGM.

Financial highlights

• Q3 2024 Group sales: CHF 991 million (-4% year-over-year); 9M 2024 sales: CHF 3,061 million (-5% in local currency, -8% reported).

• Q3 2024 EBITDA: CHF 139 million (margin 14.0%), down from CHF 159 million (15.4%) in Q3 2023; EBITDA before exceptionals: CHF 155 million (margin 15.6%).

• 9M 2024 EBITDA: CHF 478 million (margin 15.6%), up from 15.1% in 9M 2023.

• Q3 2024 Care Chemicals sales up 2% (5% in local currency), EBITDA margin stable at 17.2%.

• Q3 2024 Catalysts sales down 22% (20% in local currency), EBITDA margin at 18.2%; Adsorbents & Additives sales up 2% (7% in local currency), EBITDA margin at 15.9%.

Outlook and guidance

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

• Medium-term targets reaffirmed: 3–5% annual sales growth, 17–18% EBITDA margin, and 40% free cash flow conversion by 2025, assuming end market recovery.

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