Chemtech: Robust profitable growth
Note: Unless otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects and acquisitions, divestitures/deconsolidations).
The Chemtech division saw robust order growth of 8.3% in the first half of 2024 compared with very strong growth in the same period in 2023 (25.3%). This was mainly driven by order activity in biopolymers and carbon capture, supported by large orders in EMEA and Asia-Pacific. Based on a strong backlog at the start of the year, sales for the Chemtech division increased by 7.2% year-on-year in H1 2024 (H1 2023: 24.3%). Chemtech continues its journey of profitable growth, demonstrated by an increase of 150 basis points to 13.2% (H1 2023:11.7%). The division continues to leverage its leading separation technologies, with a focus on performance improvements and emission reductions for its customers.
Optimizing performance and circularity
With its market-leading technologies, the Chemtech division is uniquely positioned to unlock efficiencies, develop new opportunities and drive commercial growth. The division recently launched its new MellapakEvo structured packing product at ACHEMA 2024 to significantly boost the efficiency of distillation columns used in the entire range of process industries. Designed to minimize energy consumption while offering up to 40% greater efficiency or 20% higher capacity, MellapakEVO enables both cost savings and environmental benefits for unparalleled performance in mass transfer technology.
In support of a carbon-neutral future, the Chemtech division recently helped a customer in the Middle East capture and sequester over 1.5 million tons of CO2, the equivalent of taking 300’000 gas-powered cars off the road. More recently, it supplied all the column internals and packing for the entire commercial-scale carbon capture process at a large-scale carbon capture project in Japan. Similarly, the division continues to support customized solutions in chemical separation processes for circular operations such as polymer recycling and bio-based fuel production through its new research center in Singapore.
As the industry leader in polylactic acid (PLA) production technology, a biopolymer made with renewable feedstocks, Chemtech is enabling the world's first fully integrated sugarcane-to-PLA plant for a client in India. The new state-of-the-art bioplastics plant will produce 75’000 tons of compostable, wholly recyclable bioplastic per year using sugarcane, a biobased and biodegradable feedstock, with a savings of 70% compared with commercial plastics.
Key figures Chemtech (January 1 – June 30)
|
millions of CHF |
|
2024 |
|
2023 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
529.4 |
|
504.9 |
|
4.8 |
|
7.9 |
|
8.3 |
|
Order intake gross margin |
|
34.9% |
|
33.1% |
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
674.8 |
|
521.2 |
|
29.5 |
|
|
|
|
|
Sales |
|
394.5 |
|
380.9 |
|
3.6 |
|
6.9 |
|
7.2 |
|
EBIT |
|
47.8 |
|
38.1 |
|
25.4 |
|
|
|
|
|
Operational profit |
|
52.1 |
|
44.7 |
|
16.5 |
|
22.4 |
|
22.7 |
|
Operational profitability |
|
13.2% |
|
11.7% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
2’975 |
|
2’849 |
|
4.4 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition, divestiture/deconsolidation and currency effects.
Solid order intake
Orders increased by 8.3% in the first half of 2024 (H1 2023: 25.3%), with double-digit growth in EMEA and Asia-Pacific driven by large orders in biopolymers and carbon capture. Orders in the Americas were lower due to the high comparable baseline in H1 2023. Asia-Pacific continues to invest in sustainable solutions and in the Americas, a strong drive towards clean fuels and clean energy has created a good pipeline of future projects.
Order intake by market segment
H1 2024
Order intake by region
H1 2024
Increased sales and profitability
Sales in the first half of the year grew by 7.2%, with particularly strong growth in Americas and Asia-Pacific. Operational profitability increased by 150 basis points, supported by continued sales growth and healthy margins.