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LANXESS ACTION PLAN FIGHTS SALES DECLINE

August 4, 2023

LANXESS action plan fights sales decline. The company launches “FORWARD!” action plan to cut costs and improve efficiency amidst an 11.1% decline in Q2 sales to €1.778 billion.

CEO Matthias Zachert aims to offset a 57.7% drop in EBITDA by saving €150 million annually from 2025, aided by contributions from the Microbial Control business acquired from IFF.

LANXESS reduced its net debt by 25% to €2.9 billion. The forecast for the year projects an EBITDA between €600-650 million, while Zachert advocates for an industry-specific electricity tariff and other competitive conditions.

The forward plan includes a hiring freeze and cost-discipline measures, with long-term plans for structural changes to increase efficiency.

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