Germany’s LANXESS Q2 net profit dips 7% on higher raw material, energy costs

Pearl Bantillo

04-Aug-2022

SINGAPORE (ICIS)–LANXESS’ second-quarter net profit dipped by 7% year on year on lower margins amid rising raw material and energy prices, the German specialty chemicals firm said on Thursday.

€ million Q2 2022 Q2 2021 % change H1 2022 H1 2022 % change
Sales        1,999        1,469          36.1        3,930        2,841 38.3
EBITDA           229           191          19.9           467           357 30.8
EBITDA pre-exceptionals           253           221          14.5           515           414 24.4
Operating profit             97             84          15.5           210           146 43.8
Net profit             93           100          (7.0)           191           164 16.5

Operating profit margin slipped to 4.9% in April-June 2022, from 5.7% in the previous corresponding period.

“In an economic environment driven by sharply rising raw material and energy prices, all segments achieved higher sales than in the previous year in both the second quarter and the first six months,” LANXESS said in a statement.

The German firm said that there was a positive contribution from businesses acquired from Emerald Kalama Chemical in 2021, while its high performance materials business unit is recognised as a discontinued operation, with restated prior-year figures for sales and EBITDA.

In the first half of the year, EBITDA pre-exceptionals rose by 14.5% year on year to €253m.

For the whole of 2022, LANXESS expects EBITDA pre-exceptionals to be between €900m-€1bn from around €800m in the previous year.

*Earnings before interest, tax, depreciation and amortisation

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