(6) Sales revenue
Sales revenues in the 2024 financial year amounted to € 960.0 million (previous year: € 993.6 million). This figure includes € 1.6 million (previous year: € 1.4 million) in sales proceeds from contractual obligations at the beginning of the reporting period. Revenues comprised € 805.3 million from the sale of goods and € 154.7 million from the provision of services, primarily in the form of transport services.
The majority of revenues from the sale of goods relate to the manufacture and sale of chemical products, which are mainly recognized at a point in time. In total, sales recognized at a specific point in time amounted to € 936.4 million and sales recognized over a specific period of time totaled € 23.6 million. Group sales in the reporting segments are distributed across various geographic markets. For more information, please refer to the segment report under Note (17).
The majority of revenues from the sale of goods relate to the manufacture and sale of chemical products, which are mainly recognized at a point in time. In total, sales recognized at a specific point in time amounted to € 936.4 million and sales recognized over a specific period of time totaled € 23.6 million. Group sales in the reporting segments are distributed across various geographic markets. For more information, please refer to the segment report under Note (17).
(7) Purchased goods and services
The cost of materials increased by € 24.6 million compared to the
previous year to € 674.5 million. This was mainly due to higher costs
for purchased support services, plus freight, transportation and storage
services.
download excel(8) Other internal costs capitalized
The total of other internal costs capitalized essentially derives from manufacturing costs in respect of work or assets capitalized, with any material intercompany profits eliminated. This item increased from € 19.6 million in the previous year to € 23.4 million in fiscal 2024.
(9) Personnel expenses
Personnel expenses rose from € 138.0 million in the previous year to € 150.7 million this time. Fiscal 2024 thus represents another year in which personnel expenses have risen. Wage and salary increases continued to rise disproportionately due to high inflationary pressure. The number of employees also rose slightly.
As of December 31, 2024, the PCC Group employed a total of
3,295 people (previous year: 3,265). On average for 2024, the
PCC Group employed 3,289 people (previous year: 3,297). The majority
of the increase was attributable to the Holding & Projects
segment and the Silicon & Derivatives segment. After silicon metal
production had only been operating at half-capacity in the previous
year due to the difficult market situation, business operations were
ramped up again in fiscal 2024 to two furnaces and thus to 100 %
capacity. This was accompanied by the number of employees again
increasing. The breakdown of employees by Group segment as at
the balance sheet date is as follows:
Geographically, the number of employees as at the balance sheet date was distributed as follows:
(10) Other operating income
Other operating income increased by € 11.1 million from € 34.0 million
in the previous year to € 45.0 million in the year under review.
The rise is mainly due to income from the sale of CO2
certificates and higher compensation payments in connection with
CO2 certificates. These payments are granted by the Polish state as compensation
for price increases in CO2 certificates.
As in the previous year, sundry other operating income comprises various items that are not individually material.
As in the previous year, sundry other operating income comprises various items that are not individually material.
(11) Other operating expenses
Other operating expenses increased by € 3.9 million from € 109.7 million
in the previous year to € 113.6 million in the year under review.
As in the previous year, maintenance and repair expenses constituted
the largest single item at € 24.6 million. These expenses were
mainly attributable to the asset-intensive business activities of the
chemicals sites.
As in the previous year, expenses attributable to non-consolidated affiliated companies represent the second largest single item within other operating expenses and include expenses for quality assurance, and laboratory and administrative services.
The other taxes item includes all tax expenses that are not income taxes. Domestic and foreign income taxes and deferred taxes are reported separately in the tax result and explained in Note (16).
As in the previous year, sundry other operating expenses comprise various items that are not individually material.
Research and development expenses amounted to € 8.8 million in the 2024 reporting period (previous year: € 7.0 million). In addition, expenses for internally developed intangible assets and property, plant and equipment in the amount of € 1.1 million were capitalized (previous year: € 10.2 million).
As in the previous year, expenses attributable to non-consolidated affiliated companies represent the second largest single item within other operating expenses and include expenses for quality assurance, and laboratory and administrative services.
The other taxes item includes all tax expenses that are not income taxes. Domestic and foreign income taxes and deferred taxes are reported separately in the tax result and explained in Note (16).
As in the previous year, sundry other operating expenses comprise various items that are not individually material.
Research and development expenses amounted to € 8.8 million in the 2024 reporting period (previous year: € 7.0 million). In addition, expenses for internally developed intangible assets and property, plant and equipment in the amount of € 1.1 million were capitalized (previous year: € 10.2 million).
(12) Result from investments accounted for using the equity method
Due to loss allocations exceeding the equity value of OOO DME Aerosol, Pervomaysky (Russia), the equity value for this company is reported as zero. The losses are carried forward in a sub-ledger and initially offset against future profits before a positive share of earnings is reported in the consolidated income statement. The negative pro rata annual result of OOO DME Aerosol amounts to € – 0.7 million (previous year: € – 3.3 million). As at the reporting date of December 31, 2024, the cumulative losses therefore amounted to € 8.1 million (previous year: € 7.4 million).
The equity value of IRPC Polyol Company Ltd. Bangkok (Thailand), was adjusted in the reporting year, essentially due to the positive pro rata annual income of the company, and amounted to € 2.6 million as at the reporting date (previous year: € 2.1 million). The other changes relate to currency translation effects.
Effective April 5, 2024, PCC SE and PETRONAS Chemicals Group Berhad (PCG) each sold 2.5 % of their shares in the joint venture PCG PCC Oxyalkylates Sdn. Bhd., Malaysia, to the Malaysian state-owned company Mentri Besar, Terengganu (Incorporated). The equity value of PCG PCC Oxyalkylates Sdn. Bhd., Kuala Lumpur (Malaysia), was adjusted in the year under review by the negative pro rata annual result of the company and amounted to € 2.3 million as of the reporting date (previous year: € 12.0 million).
PCC SE has issued the financing bank of PCG PCC Oxyalkylates Sdn. Bhd. with a guarantee. At the time of preparation of these consolidated financial statements, utilization of this guarantee is not anticipated.
The equity value of IRPC Polyol Company Ltd. Bangkok (Thailand), was adjusted in the reporting year, essentially due to the positive pro rata annual income of the company, and amounted to € 2.6 million as at the reporting date (previous year: € 2.1 million). The other changes relate to currency translation effects.
Effective April 5, 2024, PCC SE and PETRONAS Chemicals Group Berhad (PCG) each sold 2.5 % of their shares in the joint venture PCG PCC Oxyalkylates Sdn. Bhd., Malaysia, to the Malaysian state-owned company Mentri Besar, Terengganu (Incorporated). The equity value of PCG PCC Oxyalkylates Sdn. Bhd., Kuala Lumpur (Malaysia), was adjusted in the year under review by the negative pro rata annual result of the company and amounted to € 2.3 million as of the reporting date (previous year: € 12.0 million).
PCC SE has issued the financing bank of PCG PCC Oxyalkylates Sdn. Bhd. with a guarantee. At the time of preparation of these consolidated financial statements, utilization of this guarantee is not anticipated.
(13) Depreciation and amortization
Depreciation and amortization increased by € 7.2 million from € 78.9 million in the previous year to € 86.0 million in the year under review. Amortization of intangible non-current assets related to industrial property rights and similar rights and also internally generated and developed intangible assets. No impairment losses were recognized on goodwill either in the reporting period or in the previous year. Further information on goodwill can be found in Note (19).
Fiscal 2024 saw impairment losses of € 2.2 million recognized on intangible assets, property, plant and equipment and right-of-use assets (previous year: € 2.6 million). These mainly relate to capitalized project costs in the Holding & Projects segment, as the projects concerned are no longer being pursued.
Fiscal 2024 saw impairment losses of € 2.2 million recognized on intangible assets, property, plant and equipment and right-of-use assets (previous year: € 2.6 million). These mainly relate to capitalized project costs in the Holding & Projects segment, as the projects concerned are no longer being pursued.
(14) Interest result
The result from interest income and interest expenses declined from
€ – 39.6 million in the previous year to € – 45.7 million in the year under
review. As in the previous year, the largest single item was interest
expenses on bearer bonds. Interest expenses from bonds also
recorded the highest absolute increase compared to the previous
year. This is due on the one hand to a higher level of bond liabilities
and on the other to a generally higher interest rate level. Both
the parent company of the PCC Group and several subsidiaries issue
bonds to finance investments and also to refinance maturing liabilities.
Note (32) contains a detailed presentation of the bond liabilities
and their maturities.
Interest attributable to investment projects that constitute a qualifying asset is capitalized during their construction period in accordance with IAS 23. In the past fiscal year, interest expenses of € 2.0 million were capitalized (previous year: € 0.9 million). The financing cost rate amounted to 7.0 % (previous year: 5.8 %). The weighted interest rate of all interest-bearing liabilities amounted to 5.1 % in fiscal 2024 (previous year: 4.7 %).
Interest attributable to investment projects that constitute a qualifying asset is capitalized during their construction period in accordance with IAS 23. In the past fiscal year, interest expenses of € 2.0 million were capitalized (previous year: € 0.9 million). The financing cost rate amounted to 7.0 % (previous year: 5.8 %). The weighted interest rate of all interest-bearing liabilities amounted to 5.1 % in fiscal 2024 (previous year: 4.7 %).
(15) Foreign currency translation result
Income and expenses from currency translation are reported under
financial result. While income from currency translation increased
from € 64.4 million in the previous year to € 81.5 million in the reporting
year, expenses from currency translation decreased from
€ 77.8 million in the previous year to € 66.0 million in fiscal 2024. On
balance, this resulted in a positive result of € 15.5 million. In the previous
year, there was a negative result of € – 13.3 million. The main
factors influencing the result from foreign currency translation are
the exchange rate movements of the currencies of relevance to the
PCC Group, primarily the Polish złoty and the US dollar.
(16) Taxes on income / Tax expense
The income taxes paid or owed in the individual countries and the
deferred taxes recognized in profit or loss are reported as taxes on
income. Taxes on income comprise trade and corporation tax, the
solidarity surcharge payable in Germany, and the corresponding foreign
income taxes. Other taxes include property taxes, wealth taxes
and other comparable types of taxes. They are allocated to other
operating expenses.
Taxes on income are mainly attributable to the segments Silicon & Derivatives in the amount of € 9.6 million, Holding & Projects in the amount of € 2.8 million, Trading & Services in the amount of € 2.8 million and Surfactants & Derivatives in the amount of € 2.1 million. From a regional perspective, € 9.2 million was attributable to Other Europe, € 7.1 million to Poland and € 2.1 million to Germany.
Taxes on income are mainly attributable to the segments Silicon & Derivatives in the amount of € 9.6 million, Holding & Projects in the amount of € 2.8 million, Trading & Services in the amount of € 2.8 million and Surfactants & Derivatives in the amount of € 2.1 million. From a regional perspective, € 9.2 million was attributable to Other Europe, € 7.1 million to Poland and € 2.1 million to Germany.
The relationship between the actual and expected tax expense or
income based on the consolidated income result is shown in the
table overleaf. As in the previous year, the expected tax expense or
income is based on a simplified income tax rate of 30 %. The effective
tax rate of the PCC Group in the year under review was – 62.8 %
(previous year: – 20.4 %).
The BEPS Pillar Two regulations were transposed into German law
at the end of 2023 [MinStG] and came into force on January 1, 2024.
The PCC Group falls within the scope of these regulations. The
PCC Group conducted an analysis as of the reporting date to determine
the extent to which the Group is affected by, and the jurisdictions
in which it is exposed to, potential impacts in connection
with a Pillar Two top-up tax. The first step was to check whether the
transitional CbCR Safe Harbor regulations are relevant. This analysis
showed that one jurisdiction does not fall under the Transitional
CbCR Safe Harbor regulations. The Transitional CbCR Safe Harbor
test is not relevant for the Russian Federation. However, a simplified
Pillar Two calculation did not result in any top-up tax owing as at
December 31, 2024.
Tax loss carryforwards exist in individual Group companies. The adjacent table shows the time bands in which tax loss carryforwards for which deferred taxes have been recognized can be used.
The loss carryforwards for which deferred taxes were recognized decreased by € 30.9 million compared to the previous year, mainly due to losses from silicon metal production in Iceland that were no longer deductible. In addition to a temporary electricity shortage, quality problems with raw materials and interruptions to furnace operations, cheap, tariff-free imports from China and Brazil in particular led to a market price level below production costs and thus to the loss situation in the Silicon Metal business unit. Loss carryforwards for which no deferred taxes were recognized amounted to € 317.4 million (previous year: € 179.8 million) and mainly arose in the Group holding company.
Tax loss carryforwards exist in individual Group companies. The adjacent table shows the time bands in which tax loss carryforwards for which deferred taxes have been recognized can be used.
The loss carryforwards for which deferred taxes were recognized decreased by € 30.9 million compared to the previous year, mainly due to losses from silicon metal production in Iceland that were no longer deductible. In addition to a temporary electricity shortage, quality problems with raw materials and interruptions to furnace operations, cheap, tariff-free imports from China and Brazil in particular led to a market price level below production costs and thus to the loss situation in the Silicon Metal business unit. Loss carryforwards for which no deferred taxes were recognized amounted to € 317.4 million (previous year: € 179.8 million) and mainly arose in the Group holding company.
