Romania's chemical group Chimcomplex (BVB: CRC) reported nearly RON 1.5 billion (EUR 300 million) turnover (+7% y/y) and remained in the black with a net profit of RON 3.5 million (-77% y/y) – quite a performance that put it in the select club of 18% European chemistry companies that avoided losses in the difficult year 2024. 

"2024 was a stress test for the entire chemical industry. We remain focused on 2025, with many strategic projects in development. In 2024, we allocated RON 94.3 million for investments," said the company's new CEO, Steve Hunt.

"We are not satisfied, but we know exactly why we are here and where we want to go," said the company in its press release.

The company summoned its shareholders (the company is controlled by Stefan Vuza) to sell non-core assets worth EUR 20 million and borrow EUR 60 million. The company will also undergo an investment (five projects) and restructuring project that would "impact" 260 employees. The company stressed that the cost optimizations had not touched the employees' revenues so far under the "Precautionary Measures and Accelerated Development Plan" for 2024.

The company has a market capitalization of RON 3 billion (EUR 600 million) after the price of its shares plunged by 46% y/y. The company has not distributed dividends in 2024. 

The company highlighted that European industries face historic challenges: declining demand, stalled investments, reduced capacities, and EU gas prices four to five times higher than those of its competitors. Between 2023 and 2024, production capacities totalling over 11 million tons of chemical products have been shut down, impacting 21 EU countries.

Under these circumstances, Chimcomplex's operating result surged by 52% y/y to RON 52 million (over EUR 10 million). However, the high financial cost and adverse taxation elements eroded its outstanding growth, turning it into an equally significant plunge.

The financial cost (negative financial result) expanded to nearly RON 38 million from under RON 26 million in 2023. 

The company's long-term debt rose to RON 760 million (over EUR 150 million) at the end of 2024, up from RON 575 million a year earlier. Total debt exceeded RON 1 billion (EUR 200 million), not much up from a year earlier, though. The financing cost reached RON 42 million (over EUR 8 million), up from RON 38 million in 2023.  This explains two-thirds of the drop in the company's gross profit.

Chimcomplex is the main manufacturer and supplier of vital chemicals in Eastern Europe, specializing in polyols, chloro alkali, amines and oxo-alcohols. It is a strategic company for the Romanian economy, the largest chemical plant, with two industrial platforms in Onești and Râmnicu Vâlcea.  

iulian@romania-insider.com

(Photo source: Facebook/Chimcomplex)