EMS Group: Half-year results 2022 (January – June 2022)

The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG and globally active in the business areas High Performance Polymers and Specialty Chemicals, achieved net sales amounting to CHF 1,284 million (1,166) and a net operating income (EBIT) of CHF 324 million (322) in the first half-year of 2022.

While the first quarter of 2022 was characterized by a positive consumer mood and generally high demand, the global economy worsened significantly in the second quarter. Particularly in Europe, the Ukraine conflict caused great uncertainty among consumers and companies. Massively increased energy costs caused raw material prices to rise abruptly and triggered additional surges in inflation. In China, rigorous lockdown measures forced customers to production shutdowns. Overheated demand in the USA was slowed by rising interest rates. As expected, the continuing shortage of semiconductors prevented any recovery by the global automotive industry.

EMS had already prepared for unstable economic developments at the beginning of the year. Innovative new business was realized successfully and new energy and cost-saving products were introduced into the market. Meanwhile, continual expansion of production capacity, together with local inventory stocks, safeguards delivery reliability. EMS was able to show overproportional growth compared to its markets. Rising inflation, in particular with regard to raw materials and energy costs, made corresponding sales price increases for customers inevitable.

Consolidated net sales rose compared to the previous year by 10.1% to close at CHF 1,284 million (1,166). Net operating income (EBIT) reached CHF 324 million (322) which is 0.8% above previous year. The operational cash flow (EBITDA) amounted to CHF 354 million (350) which is 1.2% above previous year. The EBIT margin reached 25.2% (27.6%), the EBITDA margin 27.6% (30.0%). Due to sales price increases, made necessary by higher raw material costs, net sales developed more strongly than the net operating income.

At the ordinary Annual General Meeting of the EMS-CHEMIE HOLDING AG on August 13, 2022, the current members of the board, Bernhard Merki (as Chairman of the Board and Member of the Remuneration Committee), Magdalena Martullo (as Member of the Board), Dr. Joachim Streu (as Member of the Board and Member of the Remuneration Committee) and Christoph Mäder (as Member of the Board and Member of the Remuneration Committee) will be proposed for re-election. BDO AG, Schiffbaustrasse 2, 8031 Zurich, will be proposed for election as Statutory Auditor. At the Annual General Meeting, the Board of Directors will propose a dividend payment of total CHF 21.00 (17.00) per share.

Despite the currently adverse environment, EMS continues to expect net sales and net operating income (EBIT) for 2022 to be slightly above previous year.