Alzchem Group AG increases sales by 25.3% in the first half of 2022

DGAP-News: Alzchem Group AG / Tag(s): Half-year report

Alzchem Group AG increases sales by 25.3% in the first half of 2022

26.07.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

  • Sales growth to €269.8 million mainly due to price effects
  • EBITDA of 34.9 million euros almost at the level of the previous year
  • Result for the period slightly above EUR 17.4 million
  • Equity ratio up from 23.7% to 30.9%
  • Sales increase forecast for fiscal 2022 confirmed

Trostberg, July 26, 2022 – Alzchem Group AG, a vertically integrated specialty chemicals supplier with a leading position in selected niche markets, was able to increase consolidated sales from EUR 215.3 million to EUR 269.8 million in the first half of 2022 in a highly volatile environment. This 25.3% growth shows that the company was able to largely pass on the significant cost increases to the market through price increases, while sales volumes remained almost stable.

In the Specialty Chemicals segment, Alzchem was able to build on the satisfactory development of the previous year in the first six months of 2022, moderately increasing sales volumes and sales revenues significantly in almost all areas of activity. Utilization of the entire plant fleet remains at a very high level. In addition, work is progressing at full speed on the expansion of Creapure® the ability to respond to the sustained growth trend in the Food Supplements business; construction activities are expected to be completed in the fall of 2022. In the Basics & Intermediates segment, Alzchem continued to reliably supply existing customers and win new customers, especially in the metalworking (steel) sectors and pharmacy (dicyandiamide). On the other hand, sales of the pharmaceutical, agrochemical and basic chemical activities (NITRALZ®) and agricultural fertilizers (Perlka®) were down from the previous year. This is due in particular to the tense situation on the energy markets, which has a considerable impact on the competitiveness of all European producers.

The successful pass-through of substantial cost increases to a large extent via corresponding price increases is also reflected in the profit development of the Alzchem Group in the first half of 2022. Despite the extreme development of raw material prices and energy, as well as the significant increase in logistics costs, the company was able to maintain earnings before interest, taxes, depreciation and amortization (EBITDA) at 34.9 million euros, almost at the previous year’s level of 35, €7 million, which equates to an EBITDA margin of 12.9% (first half of 2021: 16.6%). The result for the period slightly increased year-on-year from €17.1 million to €17.4 million and, above all, combined with the significant decrease in interest-related pension obligations , led to an increase in the Group’s equity ratio from 23.7% as of December 31, 2021 to 30.9% as of June 30, 2022.

Andreas Niedermaier, CEO of Alzchem Group AG: “The environment did not make it easy for us in the first half of 2022. It was and is all the more reassuring that we can rely on our strengths at all times. Thanks to our future-oriented storage and the best possible independence from external suppliers at the intermediate stages of our value chain through our integrated “Verbund production”, we have been able to maintain our high delivery reliability. Demand in our markets such as automotive, agriculture and animal nutrition remains intact. The fact that we are able to quickly pass price increases on to the market underlines our strong customer orientation.

For the 2022 financial year, the Executive Board confirms the upward guidance in April of a consolidated turnover in “strong to particularly strong growth” at 520 million euros. The other forecasts published in the 2021 consolidated financial statements also remain valid.

The detailed half-year financial report 2022 is available for download on the website under Investor Relations/Publications.

About Alzchem

Alzchem is a globally active specialty chemicals company that is primarily one of the market leaders in its fields of activity. Alzchem benefits in particular from three very different global developments: climate change, population growth and longer life expectancy. In order to achieve the resulting social goals, Alzchem products can offer attractive solutions with a wide range of different applications.

The company foresees interesting growth prospects, particularly in the fields of human and animal food and agriculture. Due to population growth, it is necessary to achieve efficient food production. Pharmaceutical raw materials and our creatine products can contribute to healthy aging as life expectancy increases. Alzchem is addressing the sustainability goal arising from climate change in the area of ​​renewable energy and throughout the company. The fields of fine chemicals and metallurgy offer an equally good prospect.

The wide product range of Alzchem Group AG includes food supplements, precursors for corona tests and pharmaceutical raw materials. These products are our company’s response to global trends and developments. Alzchem is ideally positioned in this respect and sees itself as well equipped for an environmentally oriented future and global developments.

The company employs approximately 1,630 people at four production sites in Germany and a plant in Sweden, as well as two sales companies in the United States and China. In 2021, Alzchem generated consolidated revenue of approximately €422.3 million and EBITDA of approximately €62.0 million.

26.07.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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