other Asian economies, too, sales were up on the previous
year. In India, however, there was slightly lower demand for
ELANTAS’ products. The business development in Europe
was very positive. Sales rose in many markets. In the divi-
sion’s important sales markets in the Americas, however,
sales decreased in 2017, especially in the U.S. and Brazil.
But ELANTAS expanded its sales volume in Mexico.
Sales Performance of ACTEGA
With sales of € 342.6 million, the ACTEGA division did not
reach the previous year’s level (€ 352.2 million). But the
decrease in nominal sales of 3 %, or € 9.6 million, is due exclusively
to the sale of the ACTEGA Colorchemie group
completed in April 2016 and negative effects from exchange-
rate changes. Adjusted for these non-operating effects,
sales in 2017 were slightly lower than the previous year’s
level. An increased sales volume was set against negative
effects from a changed product mix and lower price levels.
The stagnation of operating sales was due to a re-
strained development of demand in nearly all of the impor-
tant sales segments.
In 2017, the regional sales structure of the ACTEGA
division did not change significantly, but the development
in the core regions was non-uniform. Operating sales increased
in the division’s largest region, Europe. In Europe,
positive sales impetus came, among others, from Ger-
many, Italy, Spain, and many Eastern European countries. In
the Americas, the operating sales volume lagged behind
the previous year. In ACTEGA’s two largest single markets in
the region, the U.S. and Brazil, lower demand led to sales
decreases. In Asia, however, the division slightly increased its
sales in 2017. But sales declines in the division’s largest
sales market in the region, China, offset the sales increase in
other countries.
Earnings Situation
The operating sales development was accompanied by a
positive earnings development. Earnings before interest, taxes,
depreciation and amortization (EBITDA) rose by 4 %, or
€ 17.0 million, to € 470.0 million (previous year: € 453.0 mil-
lion). Adjusted for acquisition and exchange-rate effects,
operating earnings increased by 1 %. ALTANA achieved an
EBITDA margin of 20.9 % in the 2017 fiscal year (previous
year: 21.8 %).
The slight decline of the EBITDA margin compared to the
previous year was in line with our expectations. At the
beginning of 2017, we had forecast an EBITDA margin that
after the good year 2016 would be oriented more closely
to our strategic target range of 18 % to 20 %.
The most important cost factor for ALTANA, raw-mate-
rials and packaging costs, developed negatively relative
to sales. The materials usage ratio, the ratio of raw-materials
and packaging costs to sales, increased in the course of
2017 to 41.5 % (previous year: 39.7 %). This trend burdened
all four divisions.
Other cost factors important for ALTANA’s earnings
largely developed in proportion to sales. Personnel expenses
rose by 6 %. The ratio of total personnel expenses to sales
fell to 21.3 % (previous year: 21.8 %).
In 2017, the structure of functional costs did not change
significantly vis-à-vis 2016. The ratio of production costs
to sales dipped slightly below the previous year’s level. Al-
though maintenance costs increased disproportionately
due to high capacity utilization, other kinds of costs important
for the development of the total product costs increased
only moderately, most notably depreciation and amortization
and personnel expenses.
In 2017, selling and distribution expenses increased
compared to the previous year, but the relative ratio to sales
declined. Due to an orientation of sales activities to direct
56 Business Development