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

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.