EQS-News: Alzchem Group AG: Continued strong growth in Specialty Chemicals business leads to significant EBITDA increase of 41.2% to EUR 51.9 million in the first half of 2024

Alzchem Group AG: Continued strong growth in Specialty Chemicals business leads to significant EBITDA increase of 41.2% to EUR 51.9 million in the first half of 2024 

• Half-year result climbs by 78.4% to EUR 26.7 million
• Free cash flow increases by 64.5% to EUR 51.4 million
• Management Board raises earnings forecasts for the full year 2024

Trostberg, August 1, 2024 – Alzchem Group AG, a vertically integrated specialty chemicals supplier with a leading market position in selected niche markets, continued to benefit from the successful optimization of the product mix towards specialty chemicals in the first half of 2024. This growth segment recorded a 12.5% rise in sales - mainly as a result of volume increases - and was thus able to successfully offset the expected volume- and price-related decline in sales of -11.8% in the Basics & Intermediates segment. In total, Alzchem achieved Group sales of EUR 286.3 million, which represents growth of 3.3 % compared to the previous year’s figure of EUR 277.0 million. Alzchem was thus able to successfully decouple itself overall from the slightly declining sales trend in the chemical-pharmaceutical industry in the first half of 2024.

Driven by the Specialty Chemicals business, all key earnings figures also increased significantly in the first six months of 2024. Group EBITDA grew disproportionately strongly in relation to sales by 41.2% to EUR 51.9 million, which also led to a significant increase in the EBITDA margin from 13.3% to 18.1%. The half-year result grew by 78.4% from EUR 15.0 million to EUR 26.7 million. The increased earning power, together with strict working capital management, is also reflected in the Alzchem Group’s financial position. At EUR 63.8 million, the operating cash flow increased by EUR 24.0 million or 60.3 % compared to the previous year, while the free cash flow climbed by EUR 20.2 million or 64.5 % to EUR 51.4 million. Cash and cash equivalents grew significantly compared to December 31, 2023, from EUR 11.9 million to EUR 46.1 million.

Andreas Niedermaier, CEO of Alzchem Group AG: “We can be very satisfied with the strong development and the significant progress made in the first half of 2024. This primarily relates to our operating business. However, we are also making good progress with the implementation of our climate roadmap. With savings in Scope 1 of -3.4%, we have already achieved the first important milestones towards achieving CO₂ reduction of around 90,000 tons per year by 2030, which corresponds to more than 75% of our current annual CO₂ emissions in Scope 1.”

As already announced in an ad hoc announcement on July 30, 2024, the Management Board has raised its earnings forecasts for the full year 2024 due to the stronger growth in the first half of 2024 and the shift in the product mix towards specialty chemicals. With sales expected to remain the same and a likely linear development of half-year EBITDA in 2024, Group EBITDA is expected to grow to over EUR 100 million instead of EUR 90 million. As a result, the EBITDA margin is projected to increase to 17.5% instead of 15.8%.

The detailed half-year financial report 2024 is available for download on the website www.alzchem.com in the Investors/Publications section.

About Alzchem

 Alzchem is a globally active specialty chemicals company that is one of the market leaders in most of its fields of activity. Alzchem offers answers to various global developments such as climate change, population growth and increasing life expectancy. We deliver solutions through brands and products of the highest quality and through a sustainable vision to help shape global developments.

The company sees interesting growth prospects for itself in the areas of human and animal nutrition and agriculture in particular. As a result of population growth, it is necessary to achieve efficient food production. Pharmaceutical raw materials and creatine products can contribute to a healthy old age as life expectancy increases. Alzchem is facing up to the goal of sustainability arising from climate change in the field of renewable energies and across the entire company. The fields of fine chemicals and metallurgy offer just as great a perspective. 

Alzchem Group AG’s broad product range includes dietary supplements, precursors for PCR tests and pharmaceutical raw materials. These offerings are the company’s response to global trends and developments. Alzchem is ideally positioned in this respect and considers itself well prepared for an environmental future and global developments.

The company employs around 1,690 people at four production sites in Germany and a plant in Sweden, as well as three sales companies in the USA, China and England. Alzchem generated Group sales of EUR 540.6 million and EBITDA of EUR 81.4 million in 2023.