Clariant: Turnover down 5% in 2020 and Q1 threatened by the pandemic

  •   12/02/2021 - 09h06
  •   DEHOUI Lionel

The Swiss chemical company Clariant, a spin-off of the Sandoz Group, is the undisputed leader in the production of chemicals and pigments. These are used in the paper, leather and textile industries. Clariant is headquartered in Muttenz and has its business center in Pratteln. Clariant is registered in the transparency register of interest representatives with the European Commission. This Thursday, the group unveils some figures on its activity in 2020. Indeed, it has hinted that its turnover (turnover) has fallen by 5% for the year 2020. He took the opportunity to discuss the evolution of its demand in several divisions that have been exposed to the impacts of Covid-19.

Clariant: Turnover down 5% in 2020 and Q1 threatened by the pandemic

Clariant's net income, revenue and operating margin

First of all, it should be remembered that in 2019, the Swiss Clariant Group made a net profit of 38 million Swiss francs. For the year 2020, the Swiss company reported a net profit of 799 million Swiss francs.

It should be noted, however, that this is a group that has benefited from divestments of divisions. As a result, it has no longer been confronted with any European investigations into anti-competitive practices.

The combined action of the group's three divisions enabled it to achieve a decline in turnover. This amounted to 3.86 billion Swiss francs compared to 4.4 billion in the previous year. In addition, the Group also gave details of its operating margin. At this level, it should be noted that the operating margin on sales of non-differentiated activities is declining. It stands at 16% compared to 16.8% a year earlier.


The impact of the pandemic

It is clear that in the current pandemic context, unfavourable currency volatility and oversupply have had a significant impact on the various outcomes. These various activities could still be affected by the pandemic during the first quarter of 2021, at least.

At the end of 2020, the Clariant Group changed its Managing Director Hariolf Kottmann at the request of Saudi Basic, its main shareholder. Thus ended the director's 12-year tenure at Clariant.

Due to its current difficult situation, Clariant plans to divest itself of its Pigments division. It plans to do so by the end of this year. In addition, he currently has several hundred jobs to cut.

These two measures are part of his program to resize the company and reduce costs. Finally, the Swiss company has finally made a proposal that is certainly of interest to its shareholders and investors.


Clariant's proposed dividend and adjusted EPS

If there is one thing that has always attracted the attention of investors, shareholders and directors of partner companies, it is the dividend proposal. In the current case of the Swiss company, the proposed dividend per share is non-recurring. It is CHF 0.70.

Adjusted EPS is CHF 0.65 for the financial year 2020. This is slightly higher than the consensus, although it is down 25% compared to 2019 (CHF 0.87).