Group sales amounted to EUR 8.088 billion in 2022, up 33 percent on the previous year’s figure of EUR 6.101 billion. Operating result (EBITDA pre exceptionals) increased by 14 percent to EUR 930 million compared with EUR 815 million a year earlier. Earnings were therefore within the recently forecast range. 

Pricing power and acquisitions as key levers to success

LANXESS passed on the significantly increased costs for raw materials and energy to the market in full via a successful increase of selling prices. The growth was especially driven by the Specialty Additives and Consumer Protection segments. The latter benefited in particular from the contributions from IFF’s Microbial Control business acquired at the beginning of July 2022 and from the U.S. company Emerald Kalama Chemical acquired at the beginning of August 2021 turning LANXESS into one of the world’s leading suppliers of microbial control and biocidal products. Lower sales volumes, especially in the final quarter of 2022, had a negative impact on earnings. 

Outlook: Operating result for 2023 expected on prior-year level 

"Thanks to our products’ leading market positions, we passed on the extreme cost increases in full. In addition, we sharpened our focus on specialty chemicals and reinforced our presence in North America. This provides additional stability and growth,” says Matthias Zachert, CEO of LANXESS. “However, 2023 will not be easier. The reduced demand that we already felt in the final quarter of 2022 is currently continuing in the new year. But I am convinced that we will make it through this economic slump thanks to our stable positioning.”

For 2023, LANXESS expects an operating result (EBITDA pre exceptionals) to be at the level of the previous year. At the same time, the Group anticipates a recessionary business environment in the first half of the year. The persistently high energy prices from the fourth quarter of the previous year will also make an impact at the start of 2023. The repercussions of the war in Ukraine and changes in raw material and energy costs remain sources of uncertainty. For the first quarter of 2023, LANXESS expects EBITDA pre exceptionals of between EUR 180 million and EUR 220 million. 

In the past year, LANXESS continued to sharpen its focus on specialty chemicals, thus becoming even more stable and less dependent on cyclical fluctuations. The Group completed the acquisition of the Microbial Control business from the U.S. company IFF in July 2022. In May last year, LANXESS also announced the spin-off of the High Performance Materials business unit. This is to be transferred to a joint venture for high-performance engineering polymers. LANXESS is planning to found this joint venture with private equity investor Advent International. Now that all antitrust approvals have been obtained, the founding of the joint venture is expected to be completed at the beginning of April. 

 

Dividend to remain stable

The dividend is expected to remain stable in 2022. The Board of Management and Supervisory Board will propose a dividend of EUR 1.05 per share to the Annual Stockholders’ Meeting, which will be held virtually on May 24, 2023. Despite a challenging environment, it is therefore unchanged year-on-year. The Group thus continues to follow its policy of at least keeping the dividend stable.