Clariant Q1 Sales Down 5%; Backs FY Outlook

Swiss specialty chemicals firm Clariant AG (CLZNY.PK) reported first quarter 2023 sales of 1.200 billion Swiss francs, compared to 1.262 billion francs in the first quarter of 2022. This corresponds to an increase of 1% in local currency and 5% lower sales in Swiss francs.

Group EBITDA decreased by 24% to 167 million francs, and the corresponding 13.9% margin was below the 17.4% reported in the first quarter of the previous year.

The company maintained its full year expectations.

Clariant anticipates a soft recessionary environment in the first half of 2023, compared to a very strong first half of 2022, and expects to see an economic recovery in the second half of 2023, while uncertainties and risks related to the economic environment remain.

For the full year 2023, Clariant expects to achieve sales of around 5 billion francs, including a net negative top line impact of around 130 million francs from divestments and the bolt-on acquisition.

Clariant aims to slightly improve its year-on-year reported EBITDA margin due to continued growth in Catalysts, which is expected to offset lower sales in the other Business Units.

Clariant expects an increasing negative annualized sunliquid impact and an easing inflationary environment given the current economic outlook, counterbalanced by savings benefits from the restructuring programs.

In the medium term, Clariant aims to grow above the market to achieve higher profitability through sustainability and innovation.

The company confirms its 2025 ambition to deliver profitable sales growth of 4% – 6% CAGR and, a Group EBITDA margin between 19% – 21%.

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