Result in 2024 improved substantially
Editor: Alexander Böhm
LANXESS significantly increased its operating result in fiscal 2024 despite the difficult global economic situation: EBITDA pre exceptionals rose by 20 percent to EUR 614 million, compared to EUR 512 million in the previous year.
Higher capacity utilization and significantly lower costs in particular as a result of the "FORWARD!" action plan contributed to the increase in earnings.
Even though almost all business units saw an increase in sales volumes, Group sales of EUR 6.366 billion were 5% below the previous year's figure of EUR 6.714 billion. This was mainly due to lower sales prices as a result of lower raw material and energy costs. The EBITDA margin pre exceptionals rose from 7.6% in the previous year to 9.6%.
"We have defied the economic and geopolitical headwinds and significantly increased our earnings from our own resources. This shows that our structural measures are working. They will continue to pay off in the current year. We therefore remain confident of achieving further growth by 2025, even if a broad-based recovery in global demand is not in sight."
Forecast: operating result to grow further
LANXESS expects the economic and geopolitical environment to remain challenging in the current fiscal year 2025. Nevertheless, the Group anticipates a portfolio-adjusted increase in EBITDA pre exceptionals of around 10 percent for the year as a whole, partly due to the ongoing effects of the "FORWARD!" action plan. This corresponds to a reported EBITDA pre exceptionals of between EUR 600 and 650 million.
"Portfolio-adjusted" refers to the sale of the Urethane Systems business, which is expected to take place in April 2025. In 2024, the Urethane Systems business unit generated EBITDA pre exceptionals of around EUR 50 million.
For the first quarter of 2025, LANXESS expects EBITDA pre exceptionals to be 25 to 35 percent higher than in the same quarter of the previous year.
Strong cash flow, net debt
Net debt decreased by 5 percent to EUR 2.381 billion in 2024 from EUR 2.498 billion at the end of the previous year. This was primarily due to a strong operating cash flow generation. Free cash flow amounted to EUR 188 million in 2024.
Cost savings implemented more quickly
LANXESS is counteracting the effects of the economic downturn with the "FORWARD!" action plan introduced in summer 2023. LANXESS plans to permanently reduce its costs by around EUR 150 million per year through structural measures. Savings of EUR 110 million have already been realized in 2024, EUR 20 million more than originally planned.
Stable dividend
LANXESS plans to pay a stable dividend for fiscal year 2024 compared to the previous year. The dividend takes into account the company's efforts to further reduce its debt. The Board of Management and Supervisory Board will therefore propose to the Annual Stockholders' Meeting on May 22, 2025 that a dividend of EUR 0.10 per share be paid for fiscal year 2024. The proposal would correspond to a total dividend payout of around EUR 9 million.
Transformation into a specialty chemicals company completed
At the beginning of October 2024, LANXESS signed an agreement to sell its Urethane Systems business to the Japanese UBE Corporation. The business unit has a global footprint with five production sites and employs around 400 staff. The sale is expected to be completed in April 2025. With the agreed sale of the Urethane Systems business unit, LANXESS is parting with its last polymer business and completing the transformation of the Group towards specialty chemicals. LANXESS will use the proceeds from the sale to further reduce its debt.
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