(AOF) – Groupe Berkem announces, as part of the review of its 2024 budgets, the postponement of its financial objectives by one year, initially planned for the 2024 financial year: a turnover of at least 65 million euros and an EBITDA margin of around 25%. The plant chemistry specialist cites “a deteriorated economic and geopolitical context since the conflict in Ukraine” causing a general increase in its operating costs due to inflation.
Berkem claims to have suffered a sharp slowdown in its “Construction & Materials” and “Hygiene and Protection” business lines, impacted by a construction market that has been in sharp decline for several months, also linked to inflationary pressures.
The Group, however, remains confident in its future growth: its “Health, Beauty & Nutrition” and “Industry” business divisions are experiencing “excellent commercial dynamics” in 2023, and the numerous investments, particularly in R&D and regulatory affairs in the aim of strengthening its “product” innovations, recruitments and external growth operations carried out this year “should bear fruit quickly”.
The objectives remain unchanged but the Group now aims to achieve them by 2025.
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Nothing is going well for German chemistry
German chemicals, very dependent on Russian gas, are in difficulty. Following sluggish sales in the automotive sector and falling demand in construction, production is down 8.5% in 2022, with overall turnover down 1.6% to 63.1 Billions of Euro’s. Specialty chemistry is doing better. On the other hand, the rate of utilization of production capacities in basic chemicals has slowed significantly to reach less than 80%. The third German industrial sector is tempted by relocation to the United States, where energy costs are much lower. With the Inflation Reduction Act, the United States has established an environment appropriate to current challenges.