Altana accelerates growth
The specialty chemicals group Altana significantly accelerated its growth in the 2017 fiscal year and expects further positive development for the current year.
Sales rose to €2,247 million, 8 percent higher than in the previous year. This was primarily due to a strong increase in sales volumes, but also to acquisitions in the U.S. and China. Adjusted for acquisition and exchange-rate effects, sales climbed by 7 percent and thus exceeded the company’s medium-term target of 5 percent.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) were up by 4 percent to €470 million. The EBITDA margin in 2017 was below the previous year’s figure (20.9 percent compared to 21.8 percent in 2016), mainly on account of continuously rising raw materials prices.
“The 2017 fiscal year was a further milestone in our growth history. Thanks to our customer proximity and innovative strength, as well as the acquisition of companies with innovative products and technologies, we were able to improve our sales and earnings once again,” says Martin Babilas, the CEO of Altana. “At the same time, we paved the way for future success.”
Further profitable growth expected
For 2018, the specialty chemicals company expects further momentum in the global economy and thus further sales growth. ALTANA anticipates its sales to increase by 2 to 5 percent in operating terms. The acquisitions made in the past fiscal year should provide additional sales impetus.
Against the background of rising raw materials prices, the EBITDA margin should decrease slightly toward the strategic range of 18 percent to 20 percent. Overall, sales and earnings development can be influenced by hard-to-predict exchange-rate changes.
