Clariant (CLN) Q4 2024 earnings summary

Executive summary

• FY 2024 sales reached CHF 4.152 billion, down 3% in local currency, with Q4 sales at CHF 1.091 billion, up 5% in local currency year-over-year, meeting guidance.

• EBITDA margin for FY 2024 was 15.8% (16.0% before exceptionals), with Q4 margin at 16.4%; net income increased to CHF 280 million.

• Free cash flow for FY 2024 was CHF 211 million, with a 32% conversion rate; CapEx stood at CHF 207 million.

• Proposed stable shareholder distribution of CHF 0.42 per share, representing a 63% payout ratio of underlying EPS.

• Lucas Meyer Cosmetics integration on track, delivering high single-digit growth and contributing to Care Chemicals.

Financial highlights

• Q4 EBITDA up 69% year-over-year to CHF 179 million, with margin up 640 bps to 16.4%.

• FY 2024 EBITDA up 8% to CHF 657 million; margin improved by 190 bps to 15.8%.

• Gross margin increased to 30.3% due to lower energy and raw material costs.

• Operating income rose to CHF 440 million; net income from continuing operations at CHF 280 million.

• CHF 168 million in cost savings achieved (96% of target), with CHF 80 million targeted by 2027.

Outlook and guidance

• 2025 sales growth guided to the lower end of 3%-5% in local currency; EBITDA margin before exceptionals expected at 17%-18%.

• CHF 75 million restructuring charges expected in 2025 for new savings program.

• Reported EBITDA margin for 2025 guided at 15%-15.5%.

• Midterm targets: 4%-6% sales growth, 19%-21% EBITDA margin, ~40% free cash flow conversion by 2027.

• CapEx targeted at CHF 210-225 million; free cash flow conversion expected around 40%.