EQS-News: Alzchem Group AG achieves record EBITDA of EUR 105.3 million (+29.4%) in fiscal year 2024

Alzchem Group AG achieves record EBITDA of EUR 105.3 million (+29.4%) in fiscal year 2024

• Free cash flow climbs significantly by 42.3% to EUR 74.2 million
• Dividend to be increased by 50% from EUR 1.20 to EUR 1.80
• Further sales and EBITDA growth forecast for 2025

Trostberg, February 28, 2025 – Alzchem Group AG, a globally active specialty chemicals company, reports on a successful fiscal year 2024 in which all forecasts were met or exceeded. In what continues to be a challenging, but overall much more stable environment, the company once again outperformed the rest of the chemical industry. Alzchem recorded a 2.5% increase in Group sales from EUR 540.6 million to EUR 554.2 million. Once again, the consistent focus on specialty chemical products played a key role in this. As a result, Alzchem achieved a significant increase in sales of 8.8% in the Specialty Chemicals growth segment, which successfully overcompensated for the expected volume- and price-related sales development of -9.5% in the Basics & Intermediates segment.

The successful ongoing transformation of Alzchem towards higher-margin specialty chemicals is impressively reflected in the earnings development in fiscal year 2024. Group EBITDA rose disproportionately strongly to sales by 29.4% to EUR 105.3 million (2023: EUR 81.4 million), increasing the EBITDA margin from 15.1% to 19.0%. The specialty chemicals business contributed to this with a rise in EBITDA of EUR 20.8 million (+28.4%). It is encouraging to note that the positive earnings development of the Group was also supported by the Basics & Intermediates segment, which, despite the expected decline in sales and thanks to the slightly lower cost level, achieved an increase in EBITDA of EUR 1.3 million or 13.6%. The consolidated annual result rose by 55.9% year-on-year, from EUR 34.8 million to EUR 54.2 million, resulting in a significant jump in the Group equity ratio to 42.9% as of December 31, 2024 (December 31, 2023: 38.5%).

On the basis of the strong earnings development in fiscal year 2024, the Management Board and Supervisory Board will propose to the Annual General Meeting on May 8, 2025, that a dividend of EUR 1.80 (previous year: EUR 1.20) per share be distributed from the balance sheet profit.

Thanks to a further significant increase in profitability and continued strict working capital management, Alzchem was also able to improve its financial position in fiscal year 2024. Cash flow from operating activities increased significantly by EUR 32.5 million or 44.7% year-on-year to EUR 105.1 million. Although the cash outflow from investing activities grew from EUR 20.5 million to EUR 31.0 million, the free cash flow rose significantly in total by EUR 22.0 million or 42.3 % to EUR 74.2 million. Cash and cash equivalents increased noticeably from EUR 11.9 million as of the prior-year reporting date to EUR 61.5 million.

Andreas Niedermaier, CEO of Alzchem Group AG: “The successful fiscal year 2024 is impressive proof of our strong profitability and the high robustness of our business model. Our broadly diversified positioning across many target markets and our ‘Verbund production’, together with our highly qualified and extremely motivated team, form the strong foundation for Alzchem's sustainable success. However, our potential is far from fully realized – quite the opposite. For example, our methane and CO₂ inhibitor Eminex^® and our versatile creatine products Creapure^®, Creavitalis^® and LIVADUR^® still offer many attractive growth opportunities that we will consistently exploit. Nitroguanidine will remain another important growth area, as demand from the defense sector continues to be high.”

Andreas Lösler, CFO of Alzchem Group AG: “In view of the successful fiscal year 2024 and the continued growth potential, we are looking ahead with great confidence. In 2025, we will continue to shift our product mix towards higher-margin specialty chemicals, but we will also further optimize our basic chemicals business in order to seamlessly continue our stable, profitable growth. At the same time, we will continue with our extensive investments in Germany as planned and push ahead with our search for a site in the United States. For fiscal year 2025, we plan to increase sales to around EUR 580 million and to grow EBITDA to around EUR 113 million.”

The Annual Report 2024 is available for download on the website www.alzchem.com in the Investors/Publications section.

About Alzchem

Alzchem is a globally active specialty chemicals company that is one of the market leaders in most of its fields of activity. Alzchem offers answers to various global developments such as climate change, population growth and increasing life expectancy. We deliver solutions through brands and products of the highest quality and through a sustainable vision to help shape global developments.

The company sees interesting growth prospects for itself in the areas of human and animal nutrition and agriculture in particular. As a result of population growth, it is necessary to achieve efficient food production. Pharmaceutical raw materials and creatine products can contribute to a healthy old age as life expectancy increases. Alzchem is facing up to the goal of sustainability arising from climate change in the field of renewable energies and across the entire company. The fields of fine chemicals and metallurgy offer just as great a perspective.

Alzchem Group AG’s broad product range includes dietary supplements, precursors for PCR tests and pharmaceutical raw materials. These offerings are the company’s response to global trends and developments. Alzchem is ideally positioned in this respect and considers itself well prepared for an environmental future and global developments.

The company employs around 1,730 people at four production sites in Germany and a plant in Sweden, as well as three sales companies in the USA, China and England. Alzchem generated Group sales of EUR 554.2 million and EBITDA of EUR 105.3 million in 2024.