Mumbai, Maharashtra [India]: LANXESS to start the new Fiscal year 2021 with confidence, with expectatoin of customer industries recovering and therefore anticipated EBITDA pre exceptionals between EUR 900 million and EUR 1 billion for the year.
LANXESS proved robust in fiscal year 2020, during the pandemic and achieved EBITDA pre exeptionals of EUR 862 million. Earnings are therefore at the top end of the guided range betwen EUR 820 million and EUR 880 million. The EBITDA margins pre exceptionals reached an encouraging 14.1%, as against 15%, a year ago.
“We performed well in the pandemic year of 2020 and pulled off a strong finish in the fourth quarter. Our earnings margin shows that the Group’s stable position is standing the test of the crisis. I would like to thank the entire LANXESS team, who did everything possible in this difficult year to keep the business running,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. “With this team and our strong position, we can tackle 2021 with optimism and focus entirely on growth.”
Net income from continuing operations increased sharply to EUR 908 million after EUR 240 million in the previous year after staying steady on sales at EUR 6.104 billion. Net financial liabilities* decreased from EUR 1.742 billion at the end of 2019 to EUR 1.012 billion as of December 31, 2020.
Despite the pandemic, the dividend to be increased again for the year 2020, where the Board proposed a dividend of EUR 1.00 per share which is 5% more than in the previous year.
LANXESS continued to restructure their product portfolio by divesting in areas that no longer fit into the strategic focus on specialty chemicals with sale of the membrane and chrome chemicals business and the announced sale of the leather chemicals business in 2020. Sale of the stake in the chemical park operator Currenta also provided a solid finanical base.
2021 heralds growth with the acquisition of French biocide specialist INTACE, and animal hygiene disinfectant provider Theseo. In mid-February 2021, LANXESS announced the second-largest acquisition in its history, by acquiring the U.S group Emeral Kalama Chemical, which is in the Consumer Protection segment and tap into new fields of applicaiton with high margins such as food industry and animal health. “Consumer Protection products are characterized by attractive growth rates and strong margins. We want to grow in this area and have got down to it right from the very start of the year,” said Zachert.
Despite the coronavirus pandemic, businesses in the Consumer Protection segment, newly created in 2020, performed strongly throughout the year. This was driven by strong agrochemicals business at Saltigo and good demand for disinfectants. The positive portfolio effect from the acquisition of the Brazilian biocide manufacturer IPEL also more than offset adverse exchange rate effects. Sales amounted to EUR 1.110 billion, up 5.7 percent on the previous year’s figure of EUR 1.050 billion. Advanced Intermediates, Specialty Additives and Engineering Materials, did plateau out on sales predominantly due to the coronavirus pandemic, but the EBITDA margins for each of these businesses remains stable.
Divya Agarwal
