Executive Board Statement on Business Development and on the Group’s Economic Position
WACKER saw its year-over-year sales and earnings decline in 2024 due to the ongoing weak market environment. This development was driven primarily by much lower polysilicon volumes. The chemical divisions achieved sales at the previous year’s level despite headwinds; overall, the divisions exceeded the previous year’s earnings figure. Sales and earnings in biotechnology were up year over year.
The Silicones division increased its sales and EBITDA. This positive development was driven by an improved product mix, with a significantly higher proportion of specialty products, and better plant utilization rates. Sales and EBITDA in Polymers were down year over year, mainly due to a year-over-year decline in selling prices. The division was able to increase sales volumes in a weak market environment. Biosolutions outperformed the prior-year figures for both sales and EBITDA. The positive trend was bolstered primarily by growth in its biopharmaceutical business. Sales and EBITDA in Polysilicon, on the other hand, declined on the back of lower volumes and prices for solar-grade polysilicon. Ongoing high energy prices in Germany also had a negative impact. The total share of hyperpure polysilicon volumes for the semiconductor industry grew further in 2024. WACKER’s ROCE was down year over year.
Personnel expenses increased slightly as against the prior year. Although WACKER was able to leverage efficiency gains to reduce the cost of goods sold, persistently high costs for raw materials and energy, coupled with low plant-utilization rates in some cases as a result of the decline in sales, had a negative impact on the gross margin. The cost-of-sales ratio remained constant at 83 percent. Depreciation and amortization was higher year over year.
At €4.84 billion, Group equity was up considerably as against the previous year, bringing the equity ratio to 51.4 percent. Net financial debt totaled €-690.6 million as of December 31, 2024. Capital expenditures were down slightly year over year to €666.0 million. Net cash flow was negative at €-326.0 million.
Even though the economic environment remains demanding in 2025, WACKER’s business prospects continue to be positive in the medium to long term.
