AlzChem Group AG: Sales and EBITDA develop in line with the forecast in the first half of 2020
- Sales increase by 4.8% to EUR 197.3 million
- EBITDA grows by 4.6% to EUR 29.1 million
- Extraordinary demand for Bioselect® as an important component of COVID-19 test kits
- Forecast 2020 confirmed: target corridor is reached at the lower end due to U instead of V recovery
Trostberg, August 11, 2020 – AlzChem Group AG, a vertically integrated specialty chemicals supplier with a leading market position in selected niche markets, has developed in line with the forecast in the first half of 2020. At EUR 197.3 million, consolidated sales improved by 4.8% compared to the same period last year. The Specialty Chemicals segment in particular contributed to this, with a very strong growth spurt for the product Bioselect®, as it is a key component of the COVID-19 test kits, among other things. In addition, products from the research and development pipeline were successfully transferred to production status. Accordingly, the sales volume and revenue of the multipurpose plants also increased significantly. Creamino® also posted a pleasing volume trend in the first half of 2020. By contrast, the effects of the COVID-19 pandemic were strong to very strong in the automotive and renewable energy sectors, which particularly affected the DYHARD® business and the AlzChem solutions for airbag production. In the Basics & Intermediates segment, the robust fundamental structure of the AlzChem Group was particularly evident in the first half of 2020. Despite volume declines of around 30% in some cases in the metallurgy and automotive sectors, overall sales growth was achieved. Market development including accompanying investment in the NITRALZ® product range, an expansion of the application areas and countries for Perlka® as well as a stable basic material supply for pharmaceutical end products also contributed to this.
In line with the growth in sales, consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) also increased by 4.6% year-on-year to EUR 29.1 million. This results in an EBITDA margin of 14.8%, which is exactly the same level as in the previous year. The positive earnings development also reflected the positive changes in the raw materials and electricity markets. Depreciation and amortization rose by EUR 2.7 million as planned due to the commissioning of major plants or parts of plants in the second half of 2019. Against this background, consolidated result for the period in the first half of 2020, at EUR 11.2 million, was slightly down on the previous year's figure of EUR 11.9 million despite a significant improvement of EUR 1.0 million in the financial result.
The Management Board confirms the forecast for 2020 as a whole. As a U rather than a V recovery of the economy is becoming apparent, sales and earnings are expected to be at the lower end of the forecast target corridors.
The detailed half-year financial report 2020 is available for download on the website www.alzchem.com under Investor Relations/Publications/Financial Reports.
The AlzChem Group is a vertically integrated manufacturer of chemical products based on the so-called NCN chain. These are products with typical nitrogen-carbon-nitrogen bonding that are used in a wide variety of different industries. The Group has a leading position in select niche markets. The strategic focus of growth and the main focus of its extensive research and development are on the business segment Specialty Chemicals. The company has around 1,620 employees at four sites in Germany and three other sites abroad.
Half-year financial report 2020 - Alzchem Group AG