• Sales: CHF991 million, a 1% decrease in local currency with a 3% negative currency impact.

• Reported EBITDA: CHF139 million, a 13% decrease year-on-year, with a margin of 14%.

• EBITDA Before Exceptional Items: CHF155 million, a 5% decrease, with a margin of 15.6%.

• Care Chemicals Sales: Increased by 1% organically in local currency, 5% including scope.

• Catalyst Sales: Declined by 20% in local currency and 22% in Swiss francs.

• Adsorbents and Additives Sales: Increased by 7% in local currency.

• Cost Savings: CHF7 million achieved in the third quarter, with a target of CHF175 million by 2025.

• Sunliquid Impairment Reversal: CHF36 million related to right-of-use assets.

• Restructuring Charges: CHF9 million with expected annual run rate savings of CHF6 million.

• Warning! GuruFocus has detected 5 Warning Signs with CLZNF.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Clariant AG (CLZNF) reported stable pricing across all business units despite a deflationary environment, showcasing strong pricing ability.

• The integration and business combination of Lucas Meyer Cosmetics is on track, contributing positively to growth and profitability.

• The company achieved CHF7 million in cost savings in the third quarter, with over 90% of the CHF175 million savings target already realized.

• Clariant AG (CLZNF) identified additional restructuring opportunities, expected to deliver annual run rate savings of CHF6 million.

• The nomination of Ben van Beurden as a candidate for Clariant's Chairman brings extensive experience in the energy and chemical sectors, potentially benefiting the company's strategic direction.

Negative Points

• Clariant AG (CLZNF) experienced a 1% decrease in sales in local currency, with a negative currency impact of 3%.

• Volumes were down 3%, with lower-than-expected catalyst volumes impacting overall performance.

• Reported EBITDA decreased by 13% year-on-year, with a corresponding margin drop to 14%.

• The chemical industry faces uncertainties and risks, with expectations of recovery shifting to 2025.

• The European chemical industry continues to be challenged by weak demand and declining business confidence, impacting Clariant's performance in the region.

Q & A Highlights

Q: How long is your visibility in the refill business for catalysts, and what are your expectations for recovery? A: (Conrad Keijzer, CEO) The refill cycle typically occurs every three to four years. We believe we have bottomed out in the second and third quarters and expect a sequential improvement into the fourth quarter, driven by typical maintenance shutdowns and refills.