In the fourth quarter of 2024, the Duisburg-based PCC Group achieved revenue growth and profits at all earnings levels compared to the same quarter of the previous year. Quarterly revenue increased by 5.4% to €237.8 million, earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 27.2% to €42.0 million, and operating profit (EBIT, earnings before interest and taxes) increased by 56.6% to €18.1 million. At the pre-tax level (EBT), PCC achieved a quarterly profit of €27.7 million. “The fourth quarter of 2024 thus performed significantly better at all earnings levels than the third quarter, a positive development that continued in almost all segments in the new fiscal year 2025”, explains Riccardo Koppe, Board Member and Chief Financial Officer of PCC SE.
While individual group segments, particularly Surfactants Derivatives and Logistics, showed pleasing performance, overall expectations for the past fiscal year were not met. Group revenue decreased by 3.3% to €960.4 million and EBITDA by 21.3% to €88.3 million. Operationally, the PCC Group was able to halt the negative trend of the previous quarter with a strong fourth quarter, resulting in a slight operating profit of €1.8 million for the full year. At the pre-tax level, the Group closed the fiscal year with a loss of -€29.1 million.
The business development of the PCC Group in fiscal year 2024 was significantly influenced by the persistently weak economy in Germany, as well as in the entire European Union, which are our main sales markets. This was compounded by the continued aggressive export policy of non-European countries, particularly China and, in relation to silicon metal, Brazil. Additionally, ongoing geopolitical uncertainties such as the Russia-Ukraine war and the Middle East conflict, as well as political uncertainty due to the breakdown of the traffic light coalition in Germany and policy changes in the USA, had a negative impact on the economy.
Group segment performance
The Surfactants Derivatives segment developed very positively. The segment’s revenue was 18.1% higher in the fourth quarter and 8.3% higher for the full year compared to the previous year. The Logistics segment also achieved exceptionally positive results. The segment’s dominant business area, intermodal transport with five own terminals in Poland and Germany, once again increased container handling in the fourth quarter, resulting in a 35.3% increase in the segment’s EBITDA for the full year. In intermodal transport, we also managed to take over market leadership in our home market in 2024: With 19.6% of freight turnover, PCC became the largest intermodal logistics provider in Poland in 2024.
The Polyols Derivatives segment recorded slight revenue declines in the fourth quarter but improved its earnings. Quarterly revenue decreased by 4.4% year-on-year, and for the full year, it reduced by 4.8%. The Chlorine Derivatives segment showed upward trends in revenue and earnings in the fourth quarter of 2024 and achieved a positive operating result cumulatively in fiscal year 2024 despite declining prices.
The Silicon Derivatives segment continued to operate at a loss in the fourth quarter of 2024, but significantly reduced its loss for the full year. Nevertheless, due to the loss situation mainly attributed to price competition, we have now initiated a comprehensive package of measures in cooperation with an external restructuring consultant to enable a turnaround. The development of production for high-purity silicon qualities was also continued in 2024 to create a differentiation from the competition.
The Trading Services segment increased its revenue in the fourth quarter compared to the previous quarter and made a positive contribution at all earnings levels. In the Holding Projects segment, the focus in the fourth quarter was on expanding our core chemical business in the USA. We are examining the establishment of our own chlor-alkali plant and in December 2024, we concluded a long-term off-take agreement for chlorine deliveries with the US chemical group Chemours. The off-take agreement forms the commercial core of the potential investment in the construction of the plant at Chemours’ site in DeLisle, Mississippi, and reduces potential market or sales risks.
Repayment of maturing bonds
In the fourth quarter of 2024, PCC SE redeemed two bonds at maturity: on October 1, the 4.00% bond ISIN DE000A2TSEM3 issued in July 2019 (redemption volume €30.0 million) and on December 1, the 4.00% bond ISIN DE000A254TZ0 issued in April 2020 (redemption volume €34.5 million). On February 1, 2025, PCC SE redeemed the 4.00% bond ISIN DE000A2YN1K5 issued in October 2019 at maturity. The redemption volume amounted to €29.1 million.
The stated Group key figures are unaudited. This quarterly report is available online at https://www.pccfinanzinformationen.eu. The publication of the 2024 Annual Report is scheduled for May 15, 2025.
