The globally active specialty chemicals group ALTANA increased its sales by around 18% to 1,637 million euros in the first half of 2024. This growth was driven by a surge in demand across nearly all the company's sales markets, as well as the acquisitions made in the previous year and at the beginning of this year. Adjusted for acquisition and exchange-rate effects, sales rose by 7%. Profitability also saw a significant increase, with earnings before interest, taxes, depreciation, and amortization (EBITDA) growing by more than 46% to 287 million euros in the first half of the year. The EBITDA margin was 17.5%, compared to 14.1% in the prior-year period. Concurrently, the specialty chemicals group increased its already substantial expenditure on research and development by an additional 6% to 105 million euros and pressed ahead with numerous investment projects to expand its global sites.
"Once again, we see that it pays off to invest in the future in any economic situation," says Martin Babilas, CEO of ALTANA AG. "We have achieved double-digit growth under our own steam and through acquisitions. This success is thanks to our employees around the world. Together, we will continue to drive our strategy of sustainable, profitable growth forward.”
Current investment projects worldwide include the construction of a state-of-the-art innovation, laboratory, and seminar complex at the company's home base in Wesel; the construction of a new production building in Deventer in the Netherlands; the establishment of a new cross-divisional site in India; and the expansion of capacity in Zhuhai, China, and at the U.S. site in Wallingford, near New York.
Growth in All Divisions – Under Own Steam and Through Acquisitions
All divisions contributed to growth in the first half of 2024. The largest division, BYK, recorded a 12% increase in sales to 703 million euros (nominal and operating). The effect pigment specialist ECKART generated sales of 224 million euros, a 24% increase compared to the same period last year, reflecting the acquisition of the Silberline Group in January 2024. ECKART acquired this company to strengthen and expand its global business. Adjusted for acquisition and exchange-rate effects, sales were 7% higher than in the previous year.
The highest increase in sales was recorded by ELANTAS, the supplier of electrical insulation materials. The division achieved sales of 441 million euros, representing a growth of 36% compared to the same period last year. This was driven by the acquisition of the Von Roll Group, a leading specialist in electrical insulation systems. Von Roll’s technologies and products are used in applications such as wind turbines, electric cars, and industrial plants. By combining the expertise of both companies, ALTANA intends to advance its solutions for the expansion of electromobility and renewable energies. Adjusted for acquisition and currency effects, ELANTAS' sales increased by 2% in the first half of the year. ACTEGA's sales reached 268 million euros, corresponding to an increase of 2% (nominal and operating).
Strongest Growth Momentum in Asia; Sales in All Regions Benefit from Acquisitions
Demand picked up in all regions of the world in the first half of 2024. Europe, which continues to be the region with the highest sales, reached 626 million euros, corresponding to growth of 15%. Adjusted for acquisition and exchange-rate effects, the increase was 2%. Business in Germany grew by 17% (operationally 3%). Sales in the Americas rose by 13% (operationally 2%) to 456 million euros. The U.S. market recorded an increase of 13%; in operational terms, sales here fell slightly by 1%. Asia recorded the strongest growth, with sales up by 26% (20% operationally) to 526 million euros. In China, the ALTANA Group achieved a sales increase of 23% (18% in operating terms).
As of June 30, 2024, ALTANA employed 8,351 people worldwide, 1,440 more than on June 30, 2023, primarily due to acquisitions.
Forecast for the Year Remains Unchanged
For the full year 2024, ALTANA continues to expect operating sales growth in the mid-single-digit percentage range, along with additional growth through acquisitions. The company also maintains its forecast for improved earnings profitability in 2024.
