International. Specialty chemical group Altana reported that it significantly accelerated its growth in fiscal 2017 and expects further positive development for the current year.
Sales increased to 2,247 million euros, 8 percent more than in the previous year. This was mainly due to a sharp increase in sales volumes, but also to acquisitions in the US and China. Adjusted for acquisition and exchange rate effects, sales increased by 7 percent and thus exceeded the company's medium-term target of 5 percent.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4 percent to €470 million. The EBITDA margin in 2017 was lower than the previous year's figure (20.9 percent compared to 21.8 percent in 2016), mainly due to the steady increase in commodity prices.
"Fiscal Year 2017 was a new milestone in our growth track record. Thanks to the proximity of our customers and innovative strength, as well as the acquisition of companies with innovative products and technologies, we were able to improve our sales and profits once again," says Martin Babilas, the CEO of Altana. "At the same time, we pave the way for future success."
For 2018, the company specializing in chemicals expects further momentum in the global economy and therefore further sales growth. Altana anticipates that its sales will increase by 2 to 5 percent in operational terms. Acquisitions made in the last fiscal year should provide additional sales momentum.
In the context of rising commodity prices, the EBITDA margin should decline slightly towards the strategic range of 18 to 20 percent. In general, sales and profit development can be influenced by hard-to-predict exchange rate changes.
