Wacker fiscal year 2024: Good result despite weak market environment
Wacker Chemie AG has presented its preliminary figures for fiscal 2024. Despite the persistently weak market environment, the chemical company achieved good results and believes it is well positioned for the future.
Overall, Wacker Chemie's sales and earnings were down on the previous year. This was mainly due to lower prices and significantly lower sales volumes in the polysilicon segment. The chemical divisions, on the other hand, achieved sales at the previous year's level despite the headwind. The Biotechnology Division was able to increase both sales and earnings compared to the previous year. According to preliminary calculations, the company's total turnover in the past financial year amounted to around € 5.72 billion. This is 11% less than in 2023 (€ 6.40 billion). Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 770 million according to preliminary figures (2023: € 824 million). This is a decrease of 7%. In addition to lower prices, particularly for solar silicon, the reasons for this are the continued high energy costs in Germany and, in some cases, lower capacity utilization at production facilities as a result of the lower sales volume.
Wacker's chemical sales at previous year's level despite weak environment
Preliminary earnings before interest and taxes (EBIT) fell by 26% to around €300 million (2023: €405 million) due to the effects described above. Depreciation and amortization amounted to around € 475 million and was therefore significantly higher than the previous year (€ 419 million). The annual result amounted to around € 265 million (2023: € 327 million). "The economic environment was challenging in 2024. Demand remained weak in many customer industries. In the construction and automotive industries in particular, many of our customers cut back on production," said Wacker CEO Christian Hartel when presenting the preliminary business figures. "In this weak environment, our chemical divisions performed very well," Hartel continued.
Wacker well positioned for the future
Wacker is meeting the challenges of the persistently weak market environment with a stronger focus on efficiency and cost discipline. Savings from ongoing efficiency programs have had a positive impact on earnings development in 2024. "We are not letting up here. We are continuously working to further reduce our costs and increase our efficiency," announced Hartel. The CEO remained confident about the company's long-term prospects: "Even though the economic environment is weak, Wacker is well positioned for the future - both financially and strategically. In the medium and long term, we will continue to benefit from global megatrends. Digitalization, renewable energies, electromobility and energy conservation are among the key drivers of our business," says Hartel. "Our strategy is intact. That's why we confirmed our growth and sustainability targets up to 2030 at our Capital Markets Day in September."