PCC SE: PCC Group closes fiscal 2022 as the best financial year in its corporate history

Duisburg (pta036/21.03.2023/17:22) - The fourth quarter of 2022 saw Duisburg-based investment holding company PCC SE achieve significant double-digit increases versus prior-year in both sales and earnings, clearly exceeding expectations in both metrics. "Overall, 2022 was the best trading year in our corporate history," commented Ulrike Warnecke, Member of the Executive Board of PCC SE.

The PCC Group posted consolidated sales of € 328.0 million in Q4/2022, with PCC's full-year revenues coming in at € 1,322.4 million, an increase of 35.0% on an already very good previous year. The 2022 sales figure was also significantly above PCC's expectations. On the earnings side, too, PCC again far exceeded both the excellent results of the previous year and the targets set for the past financial year. PCC achieved earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) amounting to € 93.6 million in the fourth quarter, with the full-year total coming in at € 290.3 million, up 47.0% on 2021. Earnings before interest/financial result and taxes (operating profit, EBIT) rose by € 75.5 million in the fourth quarter, giving a total of € 217.5 million for the full fiscal year – a jump of 73.5 % year on year.

"High average selling prices, especially for the chlorine by-products caustic soda, hydrochloric acid and other chlorine derivatives – plus those commanded by surfactants – were the primary reason behind this exceptionally positive business development," Warnecke explained. "In some areas, 2022 sales volumes were also significantly above expectations. Although sales prices declined from their – in some cases – historic highs in the course of the fourth quarter, they still largely remained at an elevated level."

Chlorine & Derivatives segment leads Chemicals division to a strong Q4 performance

The Chlorine & Derivatives segment posted record sales and profits in the fourth quarter. Sales amounted to € 121.2 million in the period, accumulating to € 387.7 million for the full year, 85.5% above the prior-year total. This segment, driven by the Chlorine business unit of the largest Group company PCC Rokita SA, was by far the main revenue and earnings generator in the PCC Group. The Surfactants & Derivatives segment, led by PCC Exol SA, also ended the fourth quarter on a decidedly positive note, with demand for feedstocks for the cleaning and personal care industries remaining particularly high. The Polyols & Derivatives segment likewise achieved a positive result in what proved to be a difficult market environment, with the Polyols business unit of PCC Rokita SA holding its own, despite headwinds that included increasing competition from China.

Highlights from the other Group segments

Essentially dominated by PCC Intermodal SA, the Logistics segment generated sales of € 137.9 million in full fiscal 2022, an increase of 17.7% compared to the previous year. This segment thus performed above expectations, despite operating in a difficult market environment. The Trading & Services segment saw developments in sales and earnings slow in the course of the fourth quarter; however, PCC Trade & Services GmbH, the largest company in the segment, was still able to close the fiscal year with results significantly better than expected. The business performance of the Silicon & Derivatives segment weakened due to low demand coinciding with high competitive pressures emanating from China and Brazil. As a consequence, PCC BakkiSilicon hf. shut down one of its two furnaces in Iceland at the end of the fourth quarter.

Redemption of maturing bond

On February 1, 2023, PCC SE repaid on maturity the 3.00% bond carrying the code ISIN DE000A2TSTW0 issued in March 2019. The redemption amount was € 18.4 million.

The business financials indicated for full fiscal 2022 are still subject to final review and certification by the auditor.

The quarterly report is available online at https://www.pcc-financialdata.eu.

Profile of PCC SE

Headquartered in Duisburg, Germany, PCC SE is the parent and investment holding company of the globally active PCC Group with its more than 3,300 employees. Its Group companies have core competencies in the production of chemical feedstocks and specialty chemicals, silicon and silicon derivatives, and in container logistics. An investor committed to the longer term, PCC SE concentrates on continuously increasing the enterprise value of its portfolio companies through sustainable investments and the ongoing creation of new value. The largest chemical producers of the PCC Group are PCC Rokita SA, a major chlorine manufacturer and Eastern Europe's leading producer of polyols, and PCC Exol SA, one of Europe's most advanced surfactant manufacturers. PCC BakkiSilicon hf. operates in Iceland one of the world's most modern and climate-friendly silicon production facilities. PCC was founded in 1993 by Waldemar Preussner, sole shareholder of PCC SE, who today holds the position of Chairman of the Supervisory Board. The PCC Group generated consolidated sales of around € 1.3 billion and earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) of some € 290 million in fiscal 2022, with capital expenditures in the same year amounting to around € 116 million. For further information on PCC, go to: https://www.pcc.eu.

(Ende)