Clariant delivers resilient sales performance in challenging environment
Muttenz, Germany – Clariant announced first quarter 2023 sales of CHF 1.200 billion, compared to CHF 1.262 billion in the first quarter of 2022. This corresponds to an increase of 1 % in local currency and 5 % lower sales in Swiss francs. The positive pricing impact was 7 %, and the consolidation of the US Attapulgite business (scope) added 1 %, while volumes decreased by 7 %. The currency impact on the quarter was – 6 %. Sales growth was strong in the Business Unit Catalysts, which to some extent compensated for the slight sales decreases in the Care Chemicals and Adsorbents & Additives Business Units.
In the first quarter of 2023, local currency sales were flat in the Europe, Middle East & Africa region as Catalysts sales increased, Care Chemicals slightly weakened at a low single-digit percentage rate, and Adsorbents & Additives weakened at a mid-single-digit percentage rate. Sales in the Americas grew by 7 % primarily due to pricing impacts in Care Chemicals and Adsorbents & Additives as well as the acquisition of the US Attapulgite business assets. Sales in the US were 3 % higher, and sales in Brazil grew by 5 %. Sales in Asia-Pacific were down by 4 % due to 16 % lower sales in China attributable to a slow recovery versus a high comparison base. This development was partly compensated for by higher sales in India and Southeast Asia.
Care Chemicals sales decreased by 2 % in local currency in the first quarter of 2023. This development was driven by a volume decline with lower sales in both Consumer Care and Industrial Applications versus a tough comparison base. Catalysts sales rose by 18 % in local currency with growth in all business segments. Adsorbents & Additives sales decreased by 5 % in local currency due to weaker demand for Additives in particular, against a very strong first quarter in 2022.
Group EBITDA decreased by 24 % to CHF 167 million, and the corresponding 13.9 % margin was below the 17.4 % reported in the first quarter of the previous year. Pricing measures supported the profitability development. However, these measures did not fully offset the negative impact from lower volumes impacting production utilization in certain businesses and a CHF 13 million negative impact from sunliquid®. In addition, the fair value adjustment of the Heubach Group participation resulted in a negative CHF 11 million one-off charge in Corporate in the first quarter of 2023. Excluding the CHF 13 million negative sunliquid® impact and the CHF 11 million one-off Heubach Group fair value adjustment, the EBITDA margin was 15.9 % in the first quarter of 2023. Cost savings of approximately CHF 8 million from performance programs contributed positively to the margin by absorbing higher selling, general, and administrative expenses, i.e., related to trade fairs and a pickup in traveling activities.