Shares in Nabaltec, the German chemicals company, experienced a significant drop on Friday as the company adjusted its year-end forecast downwards. The primary reasons cited for this adjustment were weak demand and ongoing destocking by customers. As a result, Nabaltec reported lower revenue and a decline in the EBIT (earnings before interest and taxes) margin.
Financial Figures Preliminary figures for the second quarter highlighted a 12% decrease in revenue, amounting to 49.1 million euros ($53.8 million) compared to the same period last year. Additionally, the earnings before interest and taxes margin decreased from 14.8% to 6.7%.
Revised Outlook for 2023 Nabaltec now anticipates a revenue decline between 4% and 6% for 2023. Previously, the company had projected growth within a range of 3% to 5%. Adjustments were also made to the estimated EBIT margin, which is now expected to be between 6% and 8%. This is a revision from the prior guidance of 8% to 10%.
No Recovery Expected in the Third Quarter Despite initial hopes for a third-quarter recovery, Nabaltec stated that it no longer anticipates improvement during this period. The company’s outlook remains cautious as it grapples with the challenges posed by weak demand and ongoing destocking.