LANXESS' sales and revenue increase significantly in fiscal 2021

● Sales increased by 23.
8% year-on-year to EUR 7.
557 billion

● EBITDA rose 17.
2% to EUR 1,010 million in the ordinary course of business

● Proposed dividend for FY 2021: EUR 1.
05 per share

● CEO Chang Mutian: "We have delivered on our promise of growth in 2021"

● FY 2022 revenue is also expected to grow significantly (not accounting for unforeseen effects of the war in Ukraine)

LANXESS achieved impressive results in fiscal 2021
.
Despite rising energy, raw material and freight costs, the specialty chemicals company's sales and revenue have grown significantly
.

In 2021, LANXESS sales will reach 7.
557 billion euros, an increase of 23.
8% from the previous year's 6.
104 billion euros
.
EBITDA rose by 17.
2 percent to EUR 1,010 million, up from EUR 862 million in the previous year
.
As a result, revenue is within the guidance range of EUR 1.
0 billion to EUR 1.
05 billion
.
The good performance of all the Group's business segments was mainly attributable to strong demand from customer industries such as automotive, construction, transportation and manufacturing
.
Affected by significantly higher costs and one-off effects, the EBITDA margin in regular business was 13.
4%, down from 14.
1% in the previous year
.

Chang Mutian, Chairman of the Board of Management of the LANXESS Group, said: "We promised to grow in 2021 - and we have delivered on this promise despite all the difficulties
.
We have largely offset the extreme cost increases through the market
.
In addition, we have achieved during the epidemic.
Four acquisitions have resulted in a substantial expansion of our consumer protection business segment
.
All of these demonstrate the current strength and stability of LANXESS
.
”

As expected, net income from continuing operations was EUR 218 million, down significantly from EUR 908 million in the previous year
.
In 2020, Lanxess sold its stake in chemical park operator Currenta, earning significant income
.

Significant growth is expected in 2022 (the impact of the war in Ukraine has not been taken into account)

Although costs have risen further, Chang Mutian remains optimistic about fiscal 2022
.
“We expect energy and raw material prices to continue to rise in the first half of 2022.

Global supply chains also remain fragile
.
Nonetheless, we expect further significant revenue growth this fiscal year
.
” However, the impact of the Ukraine war cannot yet be foreseen
.
LANXESS expects revenue to increase in the first quarter of 2022 and expects EBITDA in the regular business range to be between EUR 280 million and EUR 320 million (previous year: EUR 242 million)
.

Dividends increase again

Dividends will increase again in 2021
.
The Management Board and Supervisory Board will propose a dividend of 1.
05 euros per share at the annual general meeting to be held online on May 25, 2022 – 5% higher than the previous year
.
This equates to a total dividend payment of around 91 million euros
.

Four acquisitions completed during the pandemic

Despite the difficult situation caused by the Covid-19 pandemic, LANXESS made four acquisitions in fiscal 2021, thereby significantly strengthening the strength of the Consumer Protection business segment
.
With the acquisition of the French biocide specialist INTACE, LANXESS has expanded its product range of biocides for paper and packaging
.
With the acquisition of Theseo, a provider of disinfection and hygiene solutions, LANXESS has significantly expanded its product portfolio for the growing animal health market
.
In August 2021, LANXESS completed the acquisition of Emerald Kalama Chemical, a US manufacturer of specialty chemicals, making it one of the leading suppliers of flavor and fragrance products
.
In addition, LANXESS entered into an agreement in August 2021 to acquire the microbial control business of International Flavors & Fragrances (IFF), a leading supplier of antimicrobial active ingredients and formulations for material protection, preservatives and disinfectants one of the merchants
.
The transaction is expected to close in the second quarter of 2022
.

Growth in all business segments

In the High Quality Intermediates business segment, LANXESS successfully offset the increase in raw material prices
.
Due to strong demand, sales rose by 19.
6% to EUR 1.
949 billion from EUR 1.
629 billion in the previous year
.
Earnings before interest, tax, depreciation and amortization in the ordinary course of business amounted to 333 million euros, an increase of 7.
8 percent from the previous year's 309 million euros
.
Higher energy and freight costs in particular weighed on revenue and profit margins
.
As a result, the EBITDA margin in the regular business area was 17.
1%, down from the 19.
0% reported in the previous year
.

The Special Additives business segment benefited from the initial recovery of the aviation industry and strong demand from the construction and oil and gas industries
.
Significant increases in raw material prices were successfully offset
.
Sales reached 2.
295 billion euros, an increase of 16.
8% compared to the previous year's 1.
965 billion euros
.
EBITDA increased from EUR 278 million to EUR 323 million, an increase of 16.
2%
.
Rising energy and freight costs also had a negative impact on revenue
.
The EBITDA margin in the regular business area remained unchanged year-on-year at 14.
1%
.

The Consumer Protection business segment performed well throughout the year
.
This business segment benefited significantly from the combination effect of the acquisition of Emerald Kalama Chemical
.
The new Specialty Chemicals business was integrated into the new Flavors & Fragrances business unit along with the benzyl products of the High Quality Industrial Intermediates business unit
.
The acquisitions of biocide companies INTACE and Theseo also increased sales and revenue in this business segment
.
Sales amounted to EUR 1,515 million, an increase of 21.
9% from EUR 1,243 million in the previous year, due to higher volumes and selling prices
.
Earnings before interest, tax, depreciation and amortisation in the regular business range increased by just 3.
4% from €266 million to €275 million, mainly due to higher energy and freight costs and unplanned plant shutdowns
.
The EBITDA margin in the regular business range reached 18.
2%, down from 21.
4% in the previous year
.

Sales in the Engineering Materials business segment rose sharply as higher raw material prices were offset by a recovery in demand from the automotive industry
.
Sales reached 1.
708 billion euros, an increase of 43.
5% compared to the previous year's 1.
190 billion euros
.
Although higher energy and freight costs had a negative impact on revenue, EBITDA in the regular business area increased by 59.
6% from EUR 151 million to EUR 241 million
.
The profit before interest, tax, depreciation and amortization in the ordinary business area was 14.
1%, up from 12.
7% in the previous year
.