In the second quarter of 2024, Duisburg-based holding company PCC SE significantly increased its results and revenue compared to the previous year, despite challenging market conditions (here is the PDF of the quarterly report). The second quarter also performed significantly better than the preceding first quarter at all levels of results. EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 122.4% to €23.6 million compared to the same quarter last year, and group revenue rose by 3.6% to €243.9 million. Compared to the previous quarter, this represents an increase of 54.6% and 0.9% respectively. “The year-on-year business development is mainly due to slightly increased sales volumes. Compared to the previous quarter, the development was primarily characterized by constant to slightly declining average selling prices,” explains Riccardo Koppe, Board Member and Chief Financial Officer of PCC SE.
Gross profit for the second quarter of 2024 amounted to € 88.9 million, an increase of 55.1% on the same quarter of the previous year and 17.7% on the previous quarter. Gross margin rose to 36.5% in the second quarter, from 31.2% in the first quarter. The PCC Group returned to profitability in EBIT terms (earnings before interest and taxes) in the second quarter of 2024, achieving a positive result of € 2.6 million after an operating loss of € -5.3 million in the first quarter. Both EBIT and EBITDA improved from month to month in the second quarter. At the pre-tax level (EBT), the PCC Group had in the prior-year quarter posted a loss in the low double-digit million euro range; by comparison, the loss in the second quarter of 2024 has been reduced by around two thirds to € -6.0 million.
The business performance of the PCC Group in the second quarter of 2024 was significantly impacted by persistently weak economic parameters, particularly in Germany, but also in the European Union as a whole, these being PCC’s main sales markets. Added to this was the persistently aggressive export policy of non-European countries, first and foremost China and – in the case of silicon metal – Brazil, as described in previous quarterly reports. In addition, ongoing geopolitical upheavals such as the Russia-Ukraine war and the conflict in the Middle East continued to have a negative impact on both the European and the global economies.
Group segment performance
The Surfactants & Derivatives segment – where applications in the consumer goods sector grew both above the previous year and above our expectations – and the Intermodal Transport division of the Logistics segment – in which container handling volumes significantly increased – recorded particularly positive business developments. The Polyols & Derivatives segment also continued its positive business performance, with a slight recovery in sales volumes having a particular impact. The Chlorine & Derivatives segment achieved further volume growth in the second quarter, albeit with sales and earnings remaining below the exceptionally good prior-year quarter in a period that was still characterized by very high selling prices. The Silicon & Derivatives segment further reduced its losses in the second quarter. Following the restart of the silicon metal plant’s second furnace in January, production has now stabilized at full capacity. The Trading & Services segment benefited from a further fall in purchase prices and returned to positive operating profit territory in the second quarter. The Holding & Projects segment focused on the commissioning of the second production line of the new oxyalkylates plant in Malaysia, a facility operated together with joint venture partner PETRONAS Chemicals Group Berhad. Expansion in the US market provided a further focus: With the newly established PCC GulfChem Corporation, Wilmington (Delaware), PCC SE is examining the possible development, construction and operation of its own chlor-alkali plant in the USA.
The aforementioned Group financials are unaudited.
