Swiss speciality chemicals group, Clariant, has exceeded expectations with its strong performance in the first quarter of 2022. The company reported a remarkable increase in sales from continuing operations, with a growth of 30% in local currencies and 26% in Swiss francs, reaching a total of 1.26 billion Swiss francs ($1.26 billion). This surge can be mainly attributed to a 16% contribution from pricing, which played a significant role in driving overall sales growth.

Furthermore, Clariant’s core profit from continuing operations soared by 27% to 220 million francs, surpassing the predictions of analysts. The company also saw an improvement in its margin, which increased to 17.4% compared to 17.3% in the first quarter of the previous year.

As Clariant looks ahead to the second quarter, it anticipates robust year-on-year sales growth in local currencies. However, the company expects a moderation in sales compared to the first quarter, primarily due to seasonal factors and the expected normalization of demand in the Care Chemicals and Natural Resources sectors.

Despite this projected decline in sales, Clariant remains optimistic about its margin levels in the second quarter of 2022. The company aims to maintain a similar margin level as the first quarter, leveraging its operational growth, ongoing pricing actions, and efforts in cost discipline. These measures are intended to counter the effects of inflation in raw materials, logistics, labor, and energy costs.

Clariant reiterates its outlook for strong growth in local currency for the entire year of 2022, specifically in the first half. The company’s ability to adapt to market conditions and its emphasis on effective cost management are expected to drive its positive performance.

In April, Clariant concluded an investigation into allegations of staff manipulation of accounts during 2020 and 2021. The investigation determined that there was no impact on the company’s previously reported sales and cash.

Overall, Clariant’s exceptional first-quarter performance and positive outlook demonstrate its resilience and ability to navigate challenging market conditions successfully. The company’s focus on pricing actions, cost discipline, and growth positions it for continued success in the coming quarters.

Useful links:
1. Clariant Official Website
2. Latest Developments on Clariant