Clariant AG (CLZNY.PK,CRN.L,CLZNF.PK) reported that its net income for fiscal year 2017 increased 15 percent to 302 million Swiss francs from 263 million francs in the previous year.
The increase year-on-year was supported by the improvement in absolute EBITDA before exceptional items as well as lower finance costs that could offset the one-off costs and higher tax expenses.
EBITDA before exceptional items increased 10 percent in Swiss francs to 974 million francs from 887 million francs in the previous year. The profitability improvement was attributable to the positive developments in all Business Areas.
Sales for the year grew to 6.38 billion francs from 5.85 billion francs last year. This corresponds to 9 percent growth in local currency, driven by double-digit gains in Catalysis and Natural Resources. Organic growth was 6 percent, driven by higher volume contributions by all Business Areas.
The company's board of directors has proposed a dividend of 0.50 francs per share to the Annual General Meeting. This sum reflects an increase of 11 percent compared to the previous year. The distribution is proposed to be made from the capital contribution reserve which is exempt from Swiss withholding tax.
Looking ahead to 2018, Clariant said it is confident to be able to achieve growth in local currency, as well as progression in operating cash flow, absolute EBITDA and EBITDA margin before exceptional items.
Clariant also confirmed its mid-term target of reaching a position in the top tier of the specialty chemicals industry. This corresponds to an EBITDA margin before exceptional items in the range of 16 percent to 19 percent, and a return on invested capital or ROIC above the peer group average.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com