LANXESS achieves earnings according to forecast in the first quarter of 2023

LANXESS reports sales at Euro 1.899 billion in Q123

Mumbai (Maharashtra) [India], May 29: The specialty chemicals company LANXESS has achieved its forecast earnings for the first quarter of 2023: EBITDA pre-exceptionals came to EUR 189 million, within the range of EUR 180 million to EUR 220 million forecast in March. Compared with the previous year’s figure of 262 million euros,  earnings thus declined by 27.9 percent. Sales remained almost stable. They amounted to EUR 1.899 billion, down only 1.7 percent from the previous year’s figure of EUR 1.931 million.

Earnings were squeezed in particular by weak demand in some customer industries, especially in construction, and continued destocking by many customers. This was particularly noticeable in the Advanced Intermediates and Specialty Additives segments. The Consumer Protection segment proved robust in comparison, with sales and earnings increasing despite slightly lower sales volumes. The Microbial Control business acquired from the U.S. company IFF in mid-2022 made a particularly positive contribution. LANXESS again successfully passed on the increased raw material and energy costs and benefited from positive currency effects in all segments.

Free cash flow improved significantly by EUR 264 million year-on-year and amounted to EUR 112 million. This was supported by stable working capital despite a seasonal increase pattern. Net income from continuing operations reached EUR 10 million in the first quarter after EUR 66 million in the previous year. The EBITDA margin pre-exceptionals came to 10.0 percent, against 13.6 percent a year ago.