ALTANA Strengthens Business Through Acquisitions, Investments in 2023

ALTANA recorded a 9% decline in sales to €2,742 million in the 2023 fiscal year compared to the strong previous year (€3,021 million) because of the very challenging economic environment. The sales drop was primarily due to the decline in demand from various industrial sectors, partly due to significant destocking along the value chain.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €385 million, 15% down on the previous year’s figure (€452 million). In addition to lower sales volumes, this was attributed to the continued high cost of materials and the costs for three acquisitions.

The EBITDA margin was 14.0% (previous year: 15.0%) on account of inflation and acquisitions. Adjusted for the acquisition of the Von Roll Group and other special effects, the EBITDA margin reached the previous year’s level despite the decrease in volume due to targeted stabilization measures.

‘A Valuable Year for ALTANA’

Despite the market’s high level of uncertainty, ALTANA successfully fortified its business in 2023 through acquisitions and investments.

“2023 was a year of challenges, but also one in which we courageously seized opportunities,” said Martin Babilas, CEO of ALTANA AG. “We made strategic acquisitions, further expanded our research and development initiatives, invested significantly in our sites, and advanced our digitalization efforts. In doing so, we have set the course for the future. 2023 stands as a valuable year for ALTANA.”

Second Largest Acquisition in the Company’s History

In September, the group made the second-largest acquisition in its history with the purchase of the Von Roll Group. With this strategic move, ALTANA aims to significantly advance the expansion of e-mobility and renewable energies by means of innovative electrical insulation systems. In August, the Group additionally acquired the business of Imaginant, the leading international specialist for high-frequency ultrasonic measuring devices. At the beginning of 2024, the Silberline Group was acquired to expand the company’s global effect pigments business.

ALTANA increased its expenditure on research and development in 2023 by a further 2% to €197 million. The specialty chemicals group also elevated its investments, particularly in site expansion and continued digitalization efforts, marking a 34% increase compared to the previous year, totaling €138 million euros.

The general economic weakness had a discernible effect in all divisions. In the 2023 fiscal year, the largest division, BYK, experienced a 12% decline in sales, amounting to €1,208 million. Adjusting for positive acquisition effects from the purchase of the Imaginant business and negative exchange-rate impacts, sales were 10% below the previous year’s level. In contrast, the Instruments product area achieved slight growth when adjusted for exchange-rate and acquisition effects.

The effect pigment specialist, ECKART, reported sales of €351 million, reflecting a 12% decline. The acquisition of the Silberline Group is anticipated to positively impact sales in the current year.

ELANTAS, the supplier of electrical insulation materials, recorded a slight 2% decline in sales, totaling €686 million. Adjusted for negative exchange-rate effects and initial positive impacts from the acquisition of the Von Roll Group end of September, sales were 5% down on the previous year’s figure.

ACTEGA, focusing on sustainable solutions for the packaging and graphic arts industries, generated sales of €496 million, representing an 11% decrease compared to the previous year.

In 2023, global regions were universally impacted by a general decline in demand attributed to the weak economy and geopolitical uncertainties. Europe, maintaining its status as the strongest region in terms of sales, achieved sales of €1,037 million, a 4% decrease (7% in operating terms) compared to the previous year. Germany experienced an 8% decline (11% in operational terms).

The Americas witnessed a decrease in sales to €792 million, reflecting an 11% decline (12% in operating terms). In Asia, sales fell by 13% (9% in operating terms), totaling €863 million. While the Chinese market experienced a 14% decline (10% in operating terms), India demonstrated robust growth with an 8% increase in operating terms.

As of the end of 2023, ALTANA employed 7,939 people worldwide, 982 more than on December 31, 2022, due to acquisitions.

ALTANA anticipates moderate growth in the global economy for 2024, consequently foreseeing a positive development in demand. The company projects an operating sales growth in the mid-single-digit percentage range. The acquisitions will further contribute to this growth. Additionally, ALTANA forecasts an improvement in earnings profitability for the year 2024.

ALTANA will once again invest heavily in the future in 2024. Among other things, the specialty chemicals group is planning a new, cross-divisional site in India and the construction of a new laboratory building at its headquarters in Wesel.