EMS-Chemie, a prominent Swiss company specializing in polymer and specialty chemicals, has announced a year-over-year rise in net income during the first half of the year, in spite of ongoing challenges posed by a 'depressed' global consumer mood that particularly affects key markets such as Europe and China.
This information, released on Friday, indicates that the net income attributable to shareholders rose to an impressive 249.4 million francs, up from the previous year's 245.4 million francs. Notably, the net operating income and EBITDA also showcased growth during this period, highlighting the company’s resilience even amidst a weak market environment and adverse foreign currency fluctuations. Despite this net income increase, EMS-Chemie reported a decline in net sales, which fell to 1.09 billion francs compared to 1.18 billion francs in the same period last year.
This decrease in sales was influenced by a 'significantly stronger' Swiss franc, which accounted for a 4.7% adverse currency effect. In light of the current market constraints, CEO and Board Vice Chairman Magdalena Martullo emphasized that EMS is committed to its strategy of focusing on broader market development, particularly through innovative specialties.
'In this restrained market environment, EMS consistently focuses on broader market development with its innovative specialties. Planned new business was realized successfully,' Martullo stated. Looking forward, EMS-Chemie anticipates that the challenging economic landscape observed in the first half of the year will persist, projecting subdued demand development that is influenced by geopolitical tensions and high inflation rates.
Consequently, the company expects net sales for the full year 2024 to be slightly lower than the previous year, primarily due to ongoing currency effects. On a hopeful note, net operating income is projected to see a slight uptick. As the company navigates these complex conditions, EMS-Chemie's dedication to innovation and market expansion across all three regions—Asia, America, and Europe—remains a cornerstone of its business strategy, demonstrating its commitment to securing growth despite external pressures..