Lanxess: expects significantly lower earnings in 2024

(CercleFinance.com) - Group sales in FY 2023 amounted to E6.
714bn, down 17.0% on the previous year's figure of E8.088bn.

EBITDA before exceptional effects fell by 44.9% to E512m, compared with E930m the previous year. The EBITDA margin before exceptional effects came to 7.6%, compared with 11.5% the previous year.

Net income for 2023 amounted to E443m, up sharply on the previous year's figure of E250m. This is particularly due to the proceeds received by LANXESS from Advent International following the transaction for the creation of Envalior.

Net income from continuing operations, at -E843m, was down sharply on the previous year's figure of E184m. This decline is mainly attributable to the change in operating profit and the impairment of acquisition-related goodwill.

Lanxess expects the environment to remain challenging, at least into the first half of 2024. The Group therefore expects no improvement in the first quarter of 2024 compared with the fourth quarter of 2023, and anticipates EBITDA before exceptional items of up to ?100 million. From the second quarter onwards, Lanxess anticipates a moderate increase in sales volumes.

For FY 2024, Lanxess expects EBITDA before exceptional items to be slightly higher than in 2023. However, earnings will remain well below the average level of previous years, it said.


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