Key figures |
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Change |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
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2024 |
|
2023 |
|
€ million |
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% |
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Net sales |
|
3,785 |
|
3,659 |
|
126 |
|
3.4% |
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Operating result (EBIT)1 |
|
360 |
|
248 |
|
112 |
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45.3% |
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Margin (% of net sales)1 |
|
9.5% |
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6.8% |
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EBITDA2 |
|
887 |
|
816 |
|
71 |
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8.7% |
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Margin (% of net sales)1 |
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23.4% |
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22.3% |
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EBITDA pre1 |
|
970 |
|
913 |
|
57 |
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6.2% |
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Margin (% of net sales)1 |
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25.6% |
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25.0% |
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Development of net sales and results of operations
The development of net sales in the individual quarters in comparison with 2023 as well as the respective organic growth rates are presented in the following graph:
Electronics
Net sales and organic growth1 by quarter2
€ million/organic growth in %
2 Quarterly breakdown unaudited.
Net sales by business unit |
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€ million |
|
2024 |
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Share |
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Organic growth1 |
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Exchange rate effects1 |
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Acquisitions/ |
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Total change |
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2023 |
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Share |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Semiconductor Solutions |
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2,631 |
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69% |
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7.8% |
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-1.4% |
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-0.3% |
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6.1% |
|
2,479 |
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68% |
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Display Solutions |
|
748 |
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20% |
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-3.4% |
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-1.4% |
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2.0% |
|
-2.8% |
|
770 |
|
21% |
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Surface Solutions |
|
406 |
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11% |
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0.2% |
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-1.3% |
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– |
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-1.1% |
|
411 |
|
11% |
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Electronics |
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3,785 |
|
100% |
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4.6% |
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-1.4% |
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0.2% |
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3.4% |
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3,659 |
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100% |
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- The Semiconductor Solutions business unit, which comprises the Semiconductor Materials and Delivery Systems & Services (DS&S) businesses, demonstrated strong organic sales growth in fiscal 2024. With organic growth in the mid-teen percentage range, Semiconductor Materials was the main driver for the business unit. Increased demand for advanced nodes enabling artificial intelligence (AI) applications also helped propel the business as the overall market cycle recovered from a weak financial year 2023. The development in DS&S tempered the growth of Semiconductor Solutions with lower sales from large projects than in the previous year, when it generated record sales and partly offset declines in the Semiconductor Materials business.
- Net sales of the Display Solutions business unit (named Optronics since January 1, 2025), consisting mainly of the business with liquid crystals, photoresists for display applications, OLED materials and metrology solutions, recorded a moderate organic decline in fiscal 2024. Continued price declines, especially in liquid crystals, were partially offset by additional volume growth in liquid crystals and OLED solutions. The portfolio effect was due to the acquisition of Unity-SC SAS, France, a company specializing in metrology solutions, with the transaction closing in the fourth quarter of 2024.
- The Surface Solutions business was organically stable in fiscal 2024, as softer demand in cosmetics offset moderate gains in industrials and coatings.
Net sales of the Electronics business sector by region developed as follows:
Net sales by region |
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€ million |
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2024 |
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Share |
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Organic growth1 |
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Exchange rate effects1 |
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Acquisitions/ |
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Total change |
|
2023 |
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Share |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Europe |
|
316 |
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8% |
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-1.2% |
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0.0% |
|
0.3% |
|
-0.8% |
|
318 |
|
9% |
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North America |
|
785 |
|
21% |
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-0.3% |
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-0.0% |
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– |
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-0.3% |
|
787 |
|
21% |
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Asia-Pacific (APAC) |
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2,569 |
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68% |
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7.3% |
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-2.0% |
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0.0% |
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5.3% |
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2,440 |
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67% |
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Latin America |
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38 |
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1% |
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1.8% |
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-3.3% |
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– |
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-1.4% |
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39 |
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1% |
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Middle East and Africa (MEA) |
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77 |
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2% |
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-5.3% |
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-0.3% |
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9.2% |
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3.6% |
|
75 |
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2% |
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Electronics |
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3,785 |
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100% |
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4.6% |
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-1.4% |
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0.2% |
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3.4% |
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3,659 |
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100% |
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The following table presents the composition of EBITDA pre for 2024 in comparison with 2023. The IFRS figures have been modified to reflect the elimination of adjustments included in the respective functional costs.
Reconciliation EBITDA pre1 |
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2024 |
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2023 |
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Change |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
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IFRS |
|
Elimination of adjustments |
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Pre1 |
|
IFRS |
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Elimination of adjustments |
|
Pre1 |
|
Pre1 |
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Net sales |
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3,785 |
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– |
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3,785 |
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3,659 |
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– |
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3,659 |
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3.4% |
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Cost of sales |
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-2,319 |
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16 |
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-2,303 |
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-2,332 |
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37 |
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-2,295 |
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0.3% |
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Gross profit |
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1,466 |
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16 |
|
1,483 |
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1,327 |
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37 |
|
1,364 |
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8.7% |
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Marketing and selling expenses |
|
-568 |
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2 |
|
-566 |
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-591 |
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3 |
|
-588 |
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-3.7% |
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Administration expenses |
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-166 |
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33 |
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-133 |
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-147 |
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29 |
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-118 |
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12.1% |
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Research and development costs |
|
-297 |
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1 |
|
-296 |
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-297 |
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1 |
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-297 |
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-0.2% |
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Impairment losses and reversals of impairment losses on financial assets (net) |
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-2 |
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2 |
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– |
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– |
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– |
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– |
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>100.0% |
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Other operating income and expenses |
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-75 |
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58 |
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-16 |
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-44 |
|
70 |
|
26 |
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>100.0% |
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Operating result (EBIT)1 |
|
360 |
|
|
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|
|
248 |
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Depreciation/amortization/impairment losses/reversals of impairment losses |
|
527 |
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-29 |
|
498 |
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568 |
|
-42 |
|
526 |
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-5.3% |
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EBITDA2 |
|
887 |
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|
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|
816 |
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Restructuring expenses |
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22 |
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-22 |
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– |
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60 |
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-60 |
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– |
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Integration expenses/IT expenses |
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32 |
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-32 |
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– |
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24 |
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-24 |
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– |
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Gains (-)/losses (+) on the divestment of businesses |
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17 |
|
-17 |
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– |
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– |
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– |
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– |
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Acquisition-related adjustments |
|
12 |
|
-12 |
|
– |
|
13 |
|
-13 |
|
– |
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Other adjustments |
|
– |
|
– |
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– |
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– |
|
– |
|
– |
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EBITDA pre1 |
|
970 |
|
– |
|
970 |
|
913 |
|
– |
|
913 |
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6.2% |
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of which: organic growth1 |
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6.9% |
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of which: exchange rate effects |
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-1.0% |
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of which: acquisitions/divestments |
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|
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0.2% |
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- The adjusted gross profit for the Electronics business sector increased strongly in 2024, driven by the aforementioned sales growth. At 39.2%, the adjusted gross margin increased compared with the previous year (2023: 37.3%), benefitting from higher volumes, positive mix effects and hence improved fixed costs coverage.
- Marketing and selling expenses decreased compared with the previous year as the business benefitted from initiatives that addressed costs and efficiency across marketing and selling expenses, including logistics. Administration expenses mainly increased due to higher personnel costs due to regular annual salary increases, as well as rising IT costs and unfavorable foreign exchange effects. Furthermore, the net position of other operating income and expenses declined. This was mainly due to the one-time income effect from the disposal of OLED patents and licenses to the Universal Display Corporation, USA, in fiscal 2023.
- As a result, EBITDA pre increased year-on-year in fiscal 2024. The EBITDA pre margin increased to 25.6% in fiscal 2024 (2023: 25.0%).
The development of EBITDA pre in the individual quarters in comparison with 2023 is presented in the following overview:
Electronics
EBITDA pre1 and change by quarter2
€ million/change in %
2 Quarterly breakdown unaudited.