Specialty chemicals company LANXESS proved robust in fiscal year 2020 despite the pandemic. The achieved EBITDA pre exceptionals of EUR 862 million, only 15.4 percent lower than the previous year’s figure of EUR 1.019 billion.

On January 26, the Group released preliminary figures for the strong fourth quarter, after many businesses had developed better than expected. The EBITDA margin pre exceptionals reached an encouraging 14.1 percent, against 15.0 percent a year ago.

At EUR 6.104 billion, LANXESS’ Group sales in 2020 decreased by 10.3 percent from the previous year’s figure of EUR 6.802 billion. Net income from continuing operations increased sharply to EUR 908 million after EUR 240 million in the previous year. This was attributable to proceeds from the sale of its stake in chemical park operator Currenta, which LANXESS concluded at the end of April. Net financial liabilities decreased from EUR 1.742 billion at the end of 2019 to EUR 1.012 billion as of December 31, 2020.

“We performed well in the pandemic year of 2020 and pulled off a strong finish in the fourth quarter. Our earnings margin shows that the Group’s stable position is standing the test of the crisis. I would like to thank the entire LANXESS team, who did everything possible in this difficult year to keep the business running,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “With this team and our strong position, we can tackle 2021 with optimism and focus entirely on growth.”

The dividend is also to be increased again for the exceptional year 2020. The Board of Management and Supervisory Board will propose a dividend of EUR 1.00 per share – around 5 percent more than in the previous year – to the Annual Stockholders’ Meeting, which will be held virtually on May 19, 2021. This corresponds to a total payout of around EUR 87 million.

With the sales of the membrane and chrome chemicals businesses and the announced sale of the leather chemicals business, in 2020 LANXESS systematically divested areas that no longer fit into the strategic focus on specialty chemicals. The Group thus laid the foundation for more profitable development. The sale of its stake in the chemical park operator Currenta also provided a solid financial base.

In 2021, all signs are pointing to growth – with a focus on businesses with consumer protection products. Within a few weeks, LANXESS has announced three acquisitions in this area. With the acquisition of the French biocide specialist INTACE already completed, the specialty chemicals company has expanded its range of fungicides for paper and packaging. In the future, LANXESS will significantly expand its offering for the growing animal hygiene market with the portfolio of the disinfectant and hygiene provider Theseo. The transaction is expected to be completed in the second quarter of 2021.

In mid-February 2021, the specialty chemicals company announced the second-largest acquisition in its history. By acquiring the U.S. group Emerald Kalama Chemical, LANXESS can further strengthen its Consumer Protection segment and tap into new fields of application with high margins such as the food industry and animal health. The Group expects the transaction to be completed in the second half of the year following regulatory approvals.

With recovery in the customer industries, LANXESS anticipates EBITDA pre exceptionals of between EUR 900 million and EUR 1 billion for the full year.

“Consumer Protection products are characterized by attractive growth rates and strong margins. We want to grow in this area and have got down to it right from the very start of the year,” said Zachert.