Clariant on the Capital Markets
Weak SMIM market performance in 2022
The Swiss Market Mid Cap Performance Index (SMIM or SMI MID) comprises the 30 largest mid-cap stocks on the Swiss equity market that are not included in the blue-chip Swiss Market Index. The SMIM exhibited a largely sideways development during the first two months of 2022 with a decidedly downward trend. Then, on 24 February 2022, the Russian invasion of Ukraine resulted in a significant negative market reaction. Following this downbeat development, the market moved largely sideways again until a substantial global reduction in COVID-19 cases generated a performance rebound in early May. By mid-June the index began losing ground again, in part due to rising commodity prices, which led to higher crude prices and had a cascading effect on food prices and other products and services. The stock market reacted negatively in September when European countries put out sanctions on Russia to condemn the attack on Ukraine, and reduced trade of fuel supplies such as oil and gas. Economic growth in Europe began slowing, and an alarming increase in the number of COVID-19 cases in China in early November resulted in a further negative market development into December 2022.
The SMIM (SMI Mid) closed the 2022 financial year with 2 477 points on 31 December 2022, which corresponds to a decrease of 28 % versus the end of the previous year. Closing at 1 141 points, the STOXX® Europe 600 Chemicals (SX4P) fell by 16.5 % across the same period.
Clariant’s dividend policy remains unchanged. The Group is committed to increasing the absolute dividend in Swiss francs on the back of profitable growth, while maintaining an attractive payout ratio.
Dividend proposal for 2022
The Board of Directors recommends an increased regular distribution of CHF 0.42 per share to the Annual General Meeting 2023 based on the Group’s strong performance in 2022. This distribution is proposed to be made through a share capital reduction by way of a par value reduction.
In the 2022 financial year, Clariant was actively covered by 18 sell-side analysts tracking the financial performance of Clariant on behalf of their respective companies. Their analyses served as the basis for the performance estimates and recommendations published in the 2022 financial year. At the end of 2022, eleven analysts had a neutral recommendation on Clariant, while seven analysts recommended buying the share and no analyst recommended selling. The average target price of the 18 actively covering analysts was CHF 19.30, representing an upside of 31.7 % from the 2022 closing price of CHF 14.65. The target price range was between CHF 16.00 and CHF 24.00 on 31 December 2022. To facilitate an independent and transparent assessment of performance, Clariant provides analysts and investors with market consensus figures. This consensus is based solely on analyst estimates and in no way reflects the opinion of Clariant. An up-to-date analyst consensus is available on the Clariant website. This information reflects analyst forecasts as of 26 January 2023 and will change on a continuing basis.
An overview of the most recent ratings of the Clariant share and bonds can be found on the Clariant website.
Dialogue with the capital market
Clariant’s corporate strategy is aimed at generating long-term value enhancement. That is why continuous and open communication with all capital market participants is important. Clariant primarily used physical meetings as well as virtual formats, such as video or telephone conferences, for the dialogue in 2022. Clariant connects with institutional investors and rating agencies in various one-on-one meetings as well as at roadshows and conferences worldwide. For private investors, the company provides insight at the Annual General Meeting.
Clariant – a sustainable investment
The Clariant shares are attractive for investors focusing on companies with a strong ESG performance. Several leading ESG rating agencies consider Clariant best in class within the chemical industry. Their ratings particularly recognize the company’s innovation power for sustainable products, Clariant’s business ethics, and the comprehensive measures in place to address relevant sustainability issues. Clariant actively participates in several ESG ratings and is listed in numerous sustainability indices. Read more about Ratings and Rankings.