Altana’s sales and profitability increased in the first half of 2024.
The speciality chemicals group Altana increased its sales by around 18% to EUR 1637 million in the first half of 2024. According to the company, this growth was driven by a strong increase in demand in almost all of the company’s sales markets as well as the acquisitions realised in the previous year and at the beginning of the year. Adjusted for acquisition and currency effects, the increase in sales totalled 7%. Profitability also increased significantly. Altana was able to increase earnings before interest, taxes, depreciation and amortisation (EBITDA) by more than 46 % to EUR 287 million in the first half of the year. The EBITDA margin was 17.5 % (prior-year period: 14.1 %). At the same time, the speciality chemicals group increased its already high expenditure on research and development by a further 6% to EUR 105 million and pressed ahead with numerous investment projects to expand its global sites.
“We are once again realising that targeted investment in the future pays off in any economic situation,” says Martin Babilas, CEO of Altana. The investment projects currently underway worldwide include the construction of an innovation, laboratory and seminar complex at the home site 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 US site in Wallingford near New York.
Growth in all divisions
All divisions contributed to growth in the first half of 2024. The largest division, BYK, recorded a 12% increase in sales to EUR 703 million (nominal and operating). The effect pigment specialist Eckart generated sales revenue of EUR 224 million, 24% more than in the same period of the previous year. This reflects 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 EUR 441 million. This corresponds to growth of 36 per cent compared to the same period last year. This was driven by the acquisition of the Von Roll Group. Von Roll specialises in electrical insulation systems. Adjusted for acquisition and currency effects, sales at Elantas increased by 2 per cent in the first half of the year. Actega’s sales totalled EUR 268 million. This corresponds to an increase of 2 % (nominal and operating).
Growth momentum in Asia
Demand picked up in all regions of the world in the first half of 2024. Europe, which continues to be the strongest region in terms of sales, reached 626 million euros. This corresponds to growth of 15%. Adjusted for acquisition and currency effects, the increase was 2%. Business in Germany grew by 17% (operationally 3%). Sales in the Americas region increased by 13% (operationally 2%) to 456 million euros. The individual US market recorded an increase of 13%; in operational terms, sales here fell slightly by 1%. The Asia region recorded the greatest growth. Here, sales increased by 26 % (20 % in operational terms) to EUR 526 million. In China, the Group achieved an increase in sales of 23% (18% in operational terms).
At mid-year 2024 (30 June), Altana employed 8351 people worldwide, 1440 more than on 30 June 2023, mainly due to acquisitions. For 2024 as a whole, the Group continues to expect operating sales growth in the mid-single-digit percentage range and additional growth through acquisitions. Altana continues to forecast improved earnings profitability for 2024.