Clariant, a sustainability-focused specialty chemical company, today announced fourth quarter 2024 sales of CHF 1.091 billion, up 3 % organically in local currency and 5 % including scope in local currency (3 % in Swiss francs) versus Q4 2023. Pricing increased by 2 % year-on-year and volumes by 1 %. The acquisition of Lucas Meyer Cosmetics (scope) continued to deliver growth in line with expectations.

On a sequential basis, sales in Q4 2024 increased by 10 % (both in local currency and CHF), driven by volume growth in all business units and most pronounced in Catalysts. Pricing was stable across all businesses.

Group EBITDA increased by 69 % to CHF 179 million, and the corresponding 16.4 % margin increased by 640 basis points compared to the 10.0 % reported in the fourth quarter of 2023, when the Group incurred restructuring expenses of CHF 43 million (of which CHF 35 million related to sunliquid). Profitability grew in Catalysts as volume growth drove operating leverage.

“In the fourth quarter of 2024, we saw growth in all our businesses. Our improved EBITDA margin was driven by volume growth and proactive margin management while the Care Chemicals performance fell slightly short of our expectations due to lower seasonal aviation and refinery business,” said Conrad Keijzer, Chief Executive Officer of Clariant.

In the full year 2024, sales were CHF 4.152 billion, down 3 % in local currency and 5 % in Swiss francs. Pricing declined 2 % for the year, while volumes decreased by 1 %. Scope was flat for the year, as the contribution from Lucas Meyer Cosmetics was offset by the divestments of the North American Land Oil and Quats businesses.

Group EBITDA increased by 8 % to CHF 657 million, with a corresponding 190-basis-point EBITDA margin improvement to 15.8 % from 13.9 % in 2023. Profitability was positively impacted by margin management in a deflationary environment, as raw material and energy costs decreased by 7 % and 5 %, respectively.

For the full year 2025, Clariant anticipates a moderation in general inflation but no significant economic recovery due to persistent macroeconomic challenges, uncertainties, and risks, which include potential trade tensions and tariffs.

Clariant therefore expects 3 % to 5 % growth in local currency sales in 2025, with the current economic environment implying a growth rate toward the bottom end of this range. Care Chemicals and Adsorbents & Additives are expected to grow, while sales in Catalysts are expected to be at levels similar to those of 2024.

Clariant continues to expect to further improve its profitability in 2025 by delivering an EBITDA margin before exceptional items of between 17 % and 18 %. The company expects its reported EBITDA margin for 2025 to be between 15.0 % and 15.5 %. Clariant also expects to make further progress toward the targeted 40 % free cash flow conversion during 2025.