LANXESS Boosts 2024 Earnings

Financial Performance

In 2024, LANXESS achieved a 19.9% increase in EBITDA pre exceptionals, reaching EUR 614 million. Despite this, sales fell by 5.2% to EUR 6.366 billion, primarily due to reduced raw material and energy costs. The EBITDA margin improved to 9.6% from 7.6% the previous year.

Cost Reduction and Cash Flow

The "FORWARD!" action plan led to significant cost savings, with EUR 110 million realized in 2024, surpassing initial targets. Strong cash flow generation reduced net financial debt by 4.7% to EUR 2.381 billion, with free cash flow at EUR 188 million.

Divestment and Transformation

LANXESS signed an agreement to sell its Urethane Systems business to UBE Corporation, expected to close in April 2025. This divestment marks the completion of LANXESS's transformation into a specialty chemicals company, with proceeds aimed at further debt reduction.

Segment Performance

The Consumer Protection segment saw an 11.1% sales decline to EUR 2.081 billion, with EBITDA pre exceptionals down 7.7% to EUR 286 million. Specialty Additives sales dropped 5.0% to EUR 2.209 billion, but EBITDA pre exceptionals rose 8.6% to EUR 227 million. Advanced Intermediates experienced a 1.6% sales increase to EUR 1.804 billion, with EBITDA pre exceptionals surging 73.6% to EUR 210 million, driven by higher capacity utilization and cost savings.