AlzChem Group AG Reports Solid First Quarter in 2024

AlzChem Group AG, a leader in specialty chemicals, announced a 31.7% increase in EBITDA for Q1 of 2024, continuing its strong performance from 2023. In this quarter, the company achieved a significant result with a 58.7% increase in period earnings, totaling EUR 12.2 million. Alongside stable sales figures of EUR 150.1 million, the company saw robust growth sectors, particularly in Specialty Chemicals with an 8.4% increase in sales.

The Specialty Chemicals sector, with a sharp rise in its EBITDA by 41.6%, compensated for the declines in the Basics & Intermediates segment. The latter experienced a drop in sales by 14.0% and EBITDA by 35.2%, primarily due to strong competition and general industry downturns. Key divisions such as Human Nutrition and Defense showed strong performances, contributing significantly to the earnings.

Further bolstering its financial health, AlzChem reported a substantial increase in operating cash flow from EUR 10.2 million to EUR 33.5 million. This improvement reflects higher EBITDA and efficient working capital management. Investments increased to EUR 6.9 million, yet free cash flow expanded dramatically to EUR 26.6 million. AlzChem's ability to lower production costs in specialty chemicals has also aided in reducing customer prices, especially in the more electricity-intensive segments.