Lanxess increases sales and earnings in 2021
Lanxess closed fiscal year 2021 successfully. Despite immense increases in energy, raw material and freight costs, the specialty chemicals company significantly improved its sales and earnings. Group sales amounted to 7557 billion euros in 2021, up 23.8% on the previous year’s figure of 6104 billion euros. Ebitda pre exceptionals increased by 17.2% to 1010 billion euros compared with 862 million euros a year earlier. Earnings were therefore within the guided range of 1 billion to 1.05 billion euros. The good results across all of the Group’s segments were mainly driven by strong demand from customer industries such as automotive, construction, transport and manufacturing.
Influenced by significantly higher costs and one-time effects, the Ebitda margin pre exceptionals was now 13.4% after 14.1% in the previous year. At 218 million euros, net income from continuing operations was significantly down on the previous year’s figure of 908 million euros, as expected. In 2020, high extraordinary proceeds were generated from the sale of the stake in chemical park operator Currenta.
In the Advanced Intermediates segment, Lanxess successfully passed on the increases in raw material prices. Due also to good demand, sales increased by 19.6% from 1629 billion euros in the previous year to 1949 billion euros. At 333 million euros, Ebitda pre exceptionals was 7.8% higher than the previous year’s figure of 309 million euros. High energy and freight costs particularly burdened earnings and margin. The Ebitda margin pre exceptionals of 17.1% was therefore below the margin of 19% posted in the previous year.
The Specialty Additives segment benefited from the incipient recovery in the aviation industry and the good demand from the construction, oil and gas industries. The significantly increased raw material prices were successfully passed on. Sales amounted to 2295 billion euros, up 16.8% on the previous year’s figure of 1965 billion euros. Ebitda pre exceptionals grew by 16.2% from 278 million to 323 million euros. Increased energy and freight costs also had a negative effect on earnings. The Ebitda margin pre exceptionals remained unchanged year-on-year at 14.1%.
The businesses in the Consumer Protection segment performed very positively throughout the year. The segment benefited highly from the portfolio effect from the acquisition of the company Emerald Kalama Chemical. Together with the benzyl products of Advanced Industrial Intermediates, the new specialty chemicals businesses were integrated into the new Flavors & Fragrances business unit. Sales and earnings were also increased by the acquisition of the biocide companies Intace and Theseo. Due also to higher volumes and selling prices, sales amounted to 1515 billion euros, up 21.9% on the previous year’s figure of 1243 billion euros. Ebitda pre exceptionals grew by only 3.4% from 266 million to 275 million euros, due in particular to high energy and freight costs and unscheduled plant shutdowns. The Ebitda margin pre exceptionals reached 18.2%, against 21.4% a year ago.
Thanks to the recovery of demand in the automotive industry and the passing on of increases in raw material prices, sales in the Engineering Materials segment rose sharply. At 1708 billion euros, sales were up 43.5% on the previous year’s figure of 1190 billion euros. Ebitda pre exceptionals grew by 59.6% from 151 million to 241 million euros, although high energy and freight costs had a negative effect on earnings. The Ebitda margin pre exceptionals amounted to 14.1% after 12.7% in the previous year.