AlzChem Group AG: Sales and earnings in the first half-year 2019 in line with full-year forecast
- Development at Creamino remains pleasing – start of additional production capacities initiated in August 2019 with first functional tests
- Investment phase at NITRALZ® completed within schedule and budget – commissioning – commissioning in progress
Trostberg, August 14, 2019 – AlzChem Group AG, a vertically integrated specialty chemicals supplier with a leading market position in selected niche markets, continued to develop in line with its full-year forecast in terms of both sales and earnings in the first half-year 2019. In the first six months, the company generated consolidated sales of EUR 188.2 million (first half-year 2018: EUR 195.2 million). In the Basics & Intermediates segment, the basic chemical products in particular performed well, confirming the strategic expansion of the NITRALZ® plant, which was completed within schedule and budget. However, the sales increase in the Basics & Intermediates segment could not fully offset the expected sales decline in the Specialty Chemicals segment. In contrast, expectations for Creamino were fully met. The own distribution and the entry into new regions and countries through newly obtained approvals continue according to plan. The new Creamino plant, which triples production capacity, is already being commissioned with first functional tests.
On the earnings side, AlzChem generated consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 27.9 million in the first half-year 2019, compared with EUR 31.0 million in the same period of the previous year. This was due to high raw material costs, which are expected to fall again in the further course of the year, and the postponement of some orders to the second half-year. The EBITDA margin amounted to 14.8% compared with 15.9% in the same period of the previous year. The consolidated net income for the period amounted to EUR 11.9 million (first half-year 2018: EUR 16.1 million).
For the full year 2019, AlzChem Group AG continues to expect consolidated sales between EUR 389.9 million and EUR 398.9 million (2018: EUR 375.2 million) and adjusted EBITDA between EUR 46.5 million and EUR 51.9 million (2018: EUR 49.4 million). The main drivers should be the continued growth of the Creamino business, the processing of seasonally postponed orders and the expected easing on the raw material markets.
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 1,560 employees at four sites in Germany and three other sites abroad.
Half-year financial report 2019