Alzchem Group AG / DE000A2YNT30

  Group EBITDA grows by 10% to EUR 27.4 million with 4% lower revenue Specialty chemicals are growth drivers Forecast for further sales and EBITDA growth in 2025 confirmed Trostberg, April 30, 2025 – Alzchem Group AG, a globally active specialty chemicals company, continues to grow its earnings despite the challenging environment. Thanks to continued growth in specialty chemicals and the resulting higher-margin sales mix, the company achieved a significant increase in all earnings figures in the first three months of 2025. Accordingly, Group EBITDA rose by 10% to EUR 27.4 million despite a 4% decline in sales, which was in line with expectations. This resulted in an improved EBITDA margin of 18.9% (previous year: 16.6%). The encouraging volume-driven sales growth of 2% in the Specialty Chemicals segment largely offset the volume and price-related decline in sales of 14% in the Basics & Intermediates segment. At EUR 144.7 million, Alzchem managed to keep Group sales in the first three months of 2025 close to the strong prior-year level of EUR 150.1 million despite the challenging environment in some areas. In addition to the positive development in the creatine market, i.e. in Human and Animal Nutrition, the specialty chemicals business was also noticeably driven by increasing demand for products from the custom manufacturing segment. This upturn after a two-year slump is particularly encouraging and indicates a more positive trend for the industry. As expected, however, the basic chemicals business declined, with the stable development of the agricultural sector with the Perlka® fertilizer unable to compensate for the drop in demand from the steel industry. It remains to be seen whether the new German government’s planned “Infrastructure” economic stimulus package will provide additional impetus here. At least, the US customs policy has not had a negative impact on Alzchem so far – on the contrary: The high tariffs imposed specifically on Chinese products could even open up additional opportunities for Alzchem. The consolidated result for the period recorded a significant increase. In the first three months of 2025, it rose by 20% year-on-year to EUR 14.6 million (previous year: EUR 12.2 million). Operating cash flow showed a special development. Customer payments received for the first time in the first quarter of 2025 in connection with the expansion of the production capacity for nitroguanidine, which has now started, increased operating cash flow to EUR 49.5 million (previous year: EUR 33.5 million). Despite a simultaneous increase in capital expenditure from EUR 6.9 million to EUR 13.1 million, free cash flow grew to EUR 36.4 million in the first quarter of 2025. Cash and cash equivalents amounted to EUR 91.4 million as of March 31, 2025 (December 31, 2024: EUR 61.5 million). In the segments, specialty chemicals products performed particularly well. The steady growth trend continued, with a 2% increase compared to the same period last year, and sales of EUR 94.5 million were achieved in the first three months of 2025. The rise is mainly attributable to higher volumes. Not only did the Creapure® and Creavitalis® products from the Human Nutrition division contribute to this, where demand for creatine “Made in Germany” continues to develop positively. Thanks to the trend reversal in custom manufacturing (multi-purpose plants), higher sales were also generated here, with a corresponding contribution to earnings. In the Basics & Intermediates segment, however, a decline had to be accepted as expected. At EUR 42.6 million, sales in the first three months of 2025 were down 14% compared with the prior-year level of EUR 49.3 million but are within the forecast. This is attributable to both price and volume effects resulting in particular from the weak economic situation in the European and German steel industry. Andreas Niedermaier, CEO of Alzchem Group AG: “We are proud of how well our transformation to higher-margin specialty chemicals is progressing. The recent start of construction on schedule to increase nitroguanidine capacity is the next important step in this process. We are also delighted to have received the Bavarian Environment and Climate Pact award – further proof of Alzchem’s extraordinary achievements in environmental protection.” Taking into account the assumptions made in the Annual Report 2024, the Management Board confirms its forecasts for the fiscal year 2025. Accordingly, Group sales are expected to grow by approximately 5% compared with the previous year. As in the past, this increase is to be achieved organically, driven in particular by volume effects. EBITDA is anticipated to grow by approximately 7% compared with the previous year, not including the effects of the investment project to expand nitroguanidine capacity. As the EBITDA margin in the Specialty Chemicals segment is significantly higher than in the Basics & Intermediates segment, the company believes that an increase from 19.0% to approximately 19.5% is possible at Group level thanks to the continuing improvement in the product mix. The detailed quarterly statement 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 1,690 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.