Development of selected Group indicators
download excel- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
- EBIT (Earnings Before Interest and Taxes) = Operating result = EBITDA – Depreciation and Amortization
- EBT (Earnings Before Taxes) = EBIT – Interest
- Gross cash flow = Net result adjusted for non-cash income and expenses
- ROCE (Return On Capital Employed) = EBIT / (Average equity + Average interest-bearing debt)
- Net debt = Interest-bearing debt – Liquid funds – Other current securities
- Equity ratio = balance sheet equity divided by total assets
- Return on equity = Net result / Average equity
- Change in percentage points
Earnings position
Overall, business performance in 2024 remained subdued from the previous year. The general weakness in growth, geopolitical instability, competitive disadvantages in a global context, high energy costs and an unclear outlook had a negative impact on the past fiscal year. The lack of macroeconomic recovery coupled with low public sector investment and restrained private consumption created a difficult environment for the operating business overall. Segments such as Polyols & Derivatives and other areas of basic chemicals were particularly affected by this, while the Surfactants & Derivatives and Logistics segments managed an appreciable upturn. Although economic development in the USA was significantly better, it was mixed in Europe. Countries such as Poland and Spain had comparable growth rates to the USA. In contrast, Germany had to contend with zero growth. The interest rate policy of the European Central Bank (ECB) reverted to interest rate cuts. Inflation rates were declining, so interest rates were reduced to stimulate investment and consumption. The ECB’s deposit rate was 2.75 % at the end of 2024. The competitive conditions for goods from Asia, particularly China, continued to have a negative impact on production and pre-production in Europe in the past fiscal year. Differing tariff policies, burdensome regulation and cumbersome bureaucracy, as well as misguided subsidy measures in Europe, created a weak investment environment overall.
The global economy initially recovered after the pandemic with an unexpectedly high growth rate. The megatrend of sustainability and the upturn in green technologies drove new investments worldwide, while inflation remained a challenge for many economies. The German economy experienced a slight recession for the second year in a row in 2024, with gross domestic product (GDP) shrinking by 0.3 %. The global economy faced several challenges and opportunities in 2024, with moderate growth of around 3.5 % expected.
Subdued demand and weak consumption in numerous sectors led to declines in production in many industries. The construction industry was particularly affected as a result of higher interest rates and prices. Private consumption of furniture and consumer electronics, for example, was restrained. Domestic demand in China was similarly weak as in the previous year, with the result that, at times, large volumes of chemical products and silicon metal were exported to Europe. This led to further price competition in Europe due to some of said volumes being imported at low prices.
Overall, the PCC Group ended fiscal 2024 with earnings before interest, taxes, depreciation and amortization (EBITDA) of € 88.0 million, down € 24.3 million or 21.7 % on the previous year. Group sales amounted to € 960.0 million in 2024, a decrease of € 33.6 million or 3.4 %. This sales trend was in line with the general economic situation in the European Union and resulted from falling prices and declining capacity utilization in downstream industries. Together with high and rising costs, particularly in the area of personnel and external service providers, as well as higher maintenance and repair expenses due to unplanned plant shutdowns, this led to a decline in earnings at the EBITDA level.
At € – 65.9 million, the Chlorine & Derivatives segment recorded the largest nominal year-on-year decline in sales, while the Surfactants & Derivatives, Silicon & Derivatives and Logistics segments increased their revenues. The Logistics segment achieved the largest increase in sales with a plus of € 26.9 million. The Surfactants & Derivatives segment was the main revenue driver in the Group. There were no significant effects on sales revenue arising from changes in the scope of consolidation in 2024.
The euro is not the functional currency of most PCC Group companies. Consequently, exchange rate effects in the translation of sales and earnings figures have an impact on the consolidated statement of income. Based on exchange rates unchanged from the previous year, sales of the PCC Group would have amounted to € 926.6 million, which would be € 33.4 million or 3.5 % lower than the actual figure. This is due to the exchange rate movements of the currencies of relevance to the PCC Group, particularly the Polish złoty.
The gross profit of the PCC Group declined in 2024, falling to € 292.4 million (previous year: € 307.3 million). The gross yield figure fell to 30.5 % (previous year: 30.9 %). In addition to selling prices, the purchase prices of key raw materials also fell. However, procurement costs for energy and logistics remained almost unchanged compared to the previous year. Personnel expenses increased year on year from € 138.0 million to € 150.7 million, meaning that fiscal 2024 saw another rise in this expense item. Wages and salaries continued to increase disproportionately due to high inflationary pressure. The number of employees in the Group also rose slightly, increasing by 0.9 % from 3,265 to 3,295 as at the reporting date. The increase was attributable to the Holding & Projects, Silicon & Derivatives and Surfactants & Derivatives segments. The two-furnace operation of the silicon metal plant in Iceland and the commissioning of the new ethoxylates plant in Poland were the main reasons for the increases. By contrast, employment declined in the Trading & Services segment, where we reduced overcapacity. From a regional perspective, 14 of the jobs created were in Poland. In the Rest of Europe region 12 jobs were created, while a total of four jobs were created in all other regions.
Other operating income increased from € 34.0 million in the previous year to € 45.0 million in the past fiscal year. The increase is mainly due to income from the sale of CO2 certificates in the amount of € 3.0 million (previous year: –) and higher compensation payments in connection with CO2 certificates in the amount of € 19.4 million (previous year: € 16.1 million). The compensation payments are granted by the Polish state to offset price increases for CO2 certificates.
Within the business activities of the PCC Group, new products, processes and procedures are continuously being researched and developed, while existing customer solutions are constantly refined. Cross-company project teams are also formed for this purpose. The PCC Group recorded research and development (R&D) expenses of € 8.8 million in the year under review, underscoring its high level of commitment in this area (previous year: € 7.0 million). In addition, expenditure on internally developed intangible assets and property, plant and equipment amounting to € 1.1 million was capitalized (previous year: € 10.2 million).
Capital expenditures amounted to € 126.5 million in 2024 and was therefore 11.2 % below the previous year’s level of € 142.5 million. These investments were mainly spread across the Trading & Services, Surfactants & Derivatives and Logistics segments, as well as project developments in the Holding & Projects segment. The PCC Group focused primarily on long-term investments, accompanied by modernization investments. In fiscal 2024, investments were mainly made in the completion of the new ethoxylation plant in Płock and the oxyalkylates plant at the Brzeg Dolny site. These were accompanied by investment measures in infrastructure such as the local electricity grid. PCC also invested in additional locomotives, platforms and container cranes in the Logistics segment. Further funds were made available for the development of state-of-the-art materials for use in lithium-ion batteries. All investments are intended to contribute to future increases in sales and earnings of the PCC Group. At the same time, investments mean an increase in depreciation, amortization and interest expense for the consolidated statement of income, albeit with interest expense being consistently capitalized in the case of investments not yet completed. In the balance sheet as of December 31, 2024, these effects are reflected in the increase in non-current assets and, on the liabilities side, in higher non-current financial liabilities. Depreciation and amortization of intangible assets, property, plant and equipment and right-of-use assets increased year on year to € 86.0 million (previous year: € 78.9 million).
Interest and similar expenses mainly resulted from bond liabilities, liabilities to banks and lease liabilities. These expenses rose by 11.2 % from € 45.2 million to € 50.3 million in the past fiscal year. This increase is mainly due to higher financial liabilities for investments and the general rise in interest rates. Benchmark interest rates in the European Union, Poland and the USA initially peaked in spring 2024 and trended down again in the summer. Both the parent company PCC SE and other Group companies had to implement follow-up financing or refinancing in this adjusted market interest-rate environment. Some non-current financial liabilities are also subject to floating interest rates, with the prevailing level of base interest rates always exerting an almost immediate impact. The PCC Group counters such interest rate increases with hedging transactions. The weighted interest rate of all interest-bearing liabilities increased from 4.7 % in the previous year to 5.1 % in fiscal 2024. Financial liabilities increased by a total of € 55.4 million or 6.1 % year on year. Interest attributable to the creation of a qualifying asset is capitalized during the construction period.
Income and expenses from exchange rate differences are reported in the financial result under foreign currency translation result. In fiscal 2024, the effect on earnings was a plus of € 15.5 million (previous year: € – 13.3 million).
The effective tax rate of the PCC Group in the year under review was – 62.8 % (previous year: – 20.4 %).
Compared to the previous year, earnings before taxes (EBT) decreased by € 8.7 million to € – 29.5 million. The consolidated comprehensive income of the PCC Group decreased from € – 1.7 million in the previous year to € – 37.1 million in the year under review, mainly as a result of the effects already explained above.
Overall, business performance in 2024 remained subdued from the previous year. The general weakness in growth, geopolitical instability, competitive disadvantages in a global context, high energy costs and an unclear outlook had a negative impact on the past fiscal year. The lack of macroeconomic recovery coupled with low public sector investment and restrained private consumption created a difficult environment for the operating business overall. Segments such as Polyols & Derivatives and other areas of basic chemicals were particularly affected by this, while the Surfactants & Derivatives and Logistics segments managed an appreciable upturn. Although economic development in the USA was significantly better, it was mixed in Europe. Countries such as Poland and Spain had comparable growth rates to the USA. In contrast, Germany had to contend with zero growth. The interest rate policy of the European Central Bank (ECB) reverted to interest rate cuts. Inflation rates were declining, so interest rates were reduced to stimulate investment and consumption. The ECB’s deposit rate was 2.75 % at the end of 2024. The competitive conditions for goods from Asia, particularly China, continued to have a negative impact on production and pre-production in Europe in the past fiscal year. Differing tariff policies, burdensome regulation and cumbersome bureaucracy, as well as misguided subsidy measures in Europe, created a weak investment environment overall.
The global economy initially recovered after the pandemic with an unexpectedly high growth rate. The megatrend of sustainability and the upturn in green technologies drove new investments worldwide, while inflation remained a challenge for many economies. The German economy experienced a slight recession for the second year in a row in 2024, with gross domestic product (GDP) shrinking by 0.3 %. The global economy faced several challenges and opportunities in 2024, with moderate growth of around 3.5 % expected.
Subdued demand and weak consumption in numerous sectors led to declines in production in many industries. The construction industry was particularly affected as a result of higher interest rates and prices. Private consumption of furniture and consumer electronics, for example, was restrained. Domestic demand in China was similarly weak as in the previous year, with the result that, at times, large volumes of chemical products and silicon metal were exported to Europe. This led to further price competition in Europe due to some of said volumes being imported at low prices.
Overall, the PCC Group ended fiscal 2024 with earnings before interest, taxes, depreciation and amortization (EBITDA) of € 88.0 million, down € 24.3 million or 21.7 % on the previous year. Group sales amounted to € 960.0 million in 2024, a decrease of € 33.6 million or 3.4 %. This sales trend was in line with the general economic situation in the European Union and resulted from falling prices and declining capacity utilization in downstream industries. Together with high and rising costs, particularly in the area of personnel and external service providers, as well as higher maintenance and repair expenses due to unplanned plant shutdowns, this led to a decline in earnings at the EBITDA level.
At € – 65.9 million, the Chlorine & Derivatives segment recorded the largest nominal year-on-year decline in sales, while the Surfactants & Derivatives, Silicon & Derivatives and Logistics segments increased their revenues. The Logistics segment achieved the largest increase in sales with a plus of € 26.9 million. The Surfactants & Derivatives segment was the main revenue driver in the Group. There were no significant effects on sales revenue arising from changes in the scope of consolidation in 2024.
The euro is not the functional currency of most PCC Group companies. Consequently, exchange rate effects in the translation of sales and earnings figures have an impact on the consolidated statement of income. Based on exchange rates unchanged from the previous year, sales of the PCC Group would have amounted to € 926.6 million, which would be € 33.4 million or 3.5 % lower than the actual figure. This is due to the exchange rate movements of the currencies of relevance to the PCC Group, particularly the Polish złoty.
The gross profit of the PCC Group declined in 2024, falling to € 292.4 million (previous year: € 307.3 million). The gross yield figure fell to 30.5 % (previous year: 30.9 %). In addition to selling prices, the purchase prices of key raw materials also fell. However, procurement costs for energy and logistics remained almost unchanged compared to the previous year. Personnel expenses increased year on year from € 138.0 million to € 150.7 million, meaning that fiscal 2024 saw another rise in this expense item. Wages and salaries continued to increase disproportionately due to high inflationary pressure. The number of employees in the Group also rose slightly, increasing by 0.9 % from 3,265 to 3,295 as at the reporting date. The increase was attributable to the Holding & Projects, Silicon & Derivatives and Surfactants & Derivatives segments. The two-furnace operation of the silicon metal plant in Iceland and the commissioning of the new ethoxylates plant in Poland were the main reasons for the increases. By contrast, employment declined in the Trading & Services segment, where we reduced overcapacity. From a regional perspective, 14 of the jobs created were in Poland. In the Rest of Europe region 12 jobs were created, while a total of four jobs were created in all other regions.
Other operating income increased from € 34.0 million in the previous year to € 45.0 million in the past fiscal year. The increase is mainly due to income from the sale of CO2 certificates in the amount of € 3.0 million (previous year: –) and higher compensation payments in connection with CO2 certificates in the amount of € 19.4 million (previous year: € 16.1 million). The compensation payments are granted by the Polish state to offset price increases for CO2 certificates.
Within the business activities of the PCC Group, new products, processes and procedures are continuously being researched and developed, while existing customer solutions are constantly refined. Cross-company project teams are also formed for this purpose. The PCC Group recorded research and development (R&D) expenses of € 8.8 million in the year under review, underscoring its high level of commitment in this area (previous year: € 7.0 million). In addition, expenditure on internally developed intangible assets and property, plant and equipment amounting to € 1.1 million was capitalized (previous year: € 10.2 million).
Capital expenditures amounted to € 126.5 million in 2024 and was therefore 11.2 % below the previous year’s level of € 142.5 million. These investments were mainly spread across the Trading & Services, Surfactants & Derivatives and Logistics segments, as well as project developments in the Holding & Projects segment. The PCC Group focused primarily on long-term investments, accompanied by modernization investments. In fiscal 2024, investments were mainly made in the completion of the new ethoxylation plant in Płock and the oxyalkylates plant at the Brzeg Dolny site. These were accompanied by investment measures in infrastructure such as the local electricity grid. PCC also invested in additional locomotives, platforms and container cranes in the Logistics segment. Further funds were made available for the development of state-of-the-art materials for use in lithium-ion batteries. All investments are intended to contribute to future increases in sales and earnings of the PCC Group. At the same time, investments mean an increase in depreciation, amortization and interest expense for the consolidated statement of income, albeit with interest expense being consistently capitalized in the case of investments not yet completed. In the balance sheet as of December 31, 2024, these effects are reflected in the increase in non-current assets and, on the liabilities side, in higher non-current financial liabilities. Depreciation and amortization of intangible assets, property, plant and equipment and right-of-use assets increased year on year to € 86.0 million (previous year: € 78.9 million).
Interest and similar expenses mainly resulted from bond liabilities, liabilities to banks and lease liabilities. These expenses rose by 11.2 % from € 45.2 million to € 50.3 million in the past fiscal year. This increase is mainly due to higher financial liabilities for investments and the general rise in interest rates. Benchmark interest rates in the European Union, Poland and the USA initially peaked in spring 2024 and trended down again in the summer. Both the parent company PCC SE and other Group companies had to implement follow-up financing or refinancing in this adjusted market interest-rate environment. Some non-current financial liabilities are also subject to floating interest rates, with the prevailing level of base interest rates always exerting an almost immediate impact. The PCC Group counters such interest rate increases with hedging transactions. The weighted interest rate of all interest-bearing liabilities increased from 4.7 % in the previous year to 5.1 % in fiscal 2024. Financial liabilities increased by a total of € 55.4 million or 6.1 % year on year. Interest attributable to the creation of a qualifying asset is capitalized during the construction period.
Income and expenses from exchange rate differences are reported in the financial result under foreign currency translation result. In fiscal 2024, the effect on earnings was a plus of € 15.5 million (previous year: € – 13.3 million).
The effective tax rate of the PCC Group in the year under review was – 62.8 % (previous year: – 20.4 %).
Compared to the previous year, earnings before taxes (EBT) decreased by € 8.7 million to € – 29.5 million. The consolidated comprehensive income of the PCC Group decreased from € – 1.7 million in the previous year to € – 37.1 million in the year under review, mainly as a result of the effects already explained above.
Net assets
Total assets grew year on year by € 14.9 million or 0.9 % to € 1,605.0 million as at December 31, 2024. This change is mainly due to an increase in non-current assets as a result of investments and a decrease in current assets, mainly in cash and cash equivalents. Intangible assets rose by € 0.7 million to € 53.0 million. The net carrying amount of property, plant and equipment increased by € 48.3 million or 4.8 % to € 1,044.6 million. Right-of-use assets grew by € 8.1 million or 10.0 % to € 89.1 million. Investments accounted for using the equity method decreased by € 9.2 million to € 4.9 million, essentially reflecting the valuation of the Malaysian joint venture PCG PCC Oxyalkylates Sdn. Bhd. The balance sheet item also includes the pro rata allocation of the results of the Thai joint venture IRPC Polyol Company Ltd. and the Russian joint venture OOO DME Aerosol. If accumulated losses exceed the equity value, this is carried at an updated equity value of zero. As at the reporting date of the past fiscal year, this was still the case for OOO DME Aerosol.
Current assets amounted to € 369.2 million on the balance sheet date, € 16.7 million below the previous year. Inventories rose by € 14.1 million to € 121.8 million. In anticipation of bottlenecks in availability and slightly rising prices for various raw materials, we increased some inventories at the end of the year. Trade accounts receivable rose slightly by € 2.0 million to € 105.3 million. Despite the fall in sales revenue for the year as a whole, we granted slight extensions in payment terms, which led to this increase. Other receivables and other assets grew from € 31.8 million to € 38.4 million. Cash and cash equivalents decreased by € 29.1 million or 22.6 % to € 99.5 million due to the decline in cash flow from operating activities and loss financing. As at December 31, 2024, the cash and cash equivalents balance sheet item included € 3.5 million (previous year: € 4.1 million) in funds that were not freely available. These were almost entirely attributable to funds already earmarked for investment projects.
Total assets grew year on year by € 14.9 million or 0.9 % to € 1,605.0 million as at December 31, 2024. This change is mainly due to an increase in non-current assets as a result of investments and a decrease in current assets, mainly in cash and cash equivalents. Intangible assets rose by € 0.7 million to € 53.0 million. The net carrying amount of property, plant and equipment increased by € 48.3 million or 4.8 % to € 1,044.6 million. Right-of-use assets grew by € 8.1 million or 10.0 % to € 89.1 million. Investments accounted for using the equity method decreased by € 9.2 million to € 4.9 million, essentially reflecting the valuation of the Malaysian joint venture PCG PCC Oxyalkylates Sdn. Bhd. The balance sheet item also includes the pro rata allocation of the results of the Thai joint venture IRPC Polyol Company Ltd. and the Russian joint venture OOO DME Aerosol. If accumulated losses exceed the equity value, this is carried at an updated equity value of zero. As at the reporting date of the past fiscal year, this was still the case for OOO DME Aerosol.
Current assets amounted to € 369.2 million on the balance sheet date, € 16.7 million below the previous year. Inventories rose by € 14.1 million to € 121.8 million. In anticipation of bottlenecks in availability and slightly rising prices for various raw materials, we increased some inventories at the end of the year. Trade accounts receivable rose slightly by € 2.0 million to € 105.3 million. Despite the fall in sales revenue for the year as a whole, we granted slight extensions in payment terms, which led to this increase. Other receivables and other assets grew from € 31.8 million to € 38.4 million. Cash and cash equivalents decreased by € 29.1 million or 22.6 % to € 99.5 million due to the decline in cash flow from operating activities and loss financing. As at December 31, 2024, the cash and cash equivalents balance sheet item included € 3.5 million (previous year: € 4.1 million) in funds that were not freely available. These were almost entirely attributable to funds already earmarked for investment projects.
Financial position
The equity of the PCC Group decreased by € 46.3 million, from € 389.4 million in the previous year to € 343.1 million in the year under review. This development is mainly attributable to the negative consolidated net result and the decline in the minority interests item. Hybrid capital is an equity instrument of the subsidiary PCC BakkiSilicon hf. In accordance with IAS 32, this is classified as equity, as there is neither a contractual obligation to repay the nominal amount nor to pay interest. Instead, repayment is linked to conditions that depend on the decision of the company’s management to make distributions to shareholders. As soon as resolutions on distributions to them are passed, the hybrid capital will also be serviced on a pro rata basis.
The revenue reserves / other reserves item fell by € 42.2 million to € 205.9 million, mainly due to the consolidated net result. Minority interests decreased by € 15.0 million to € 58.5 million, mainly due to the losses attributable to those non-controlling shareholders. Other equity items increased by € 10.9 million to € – 5.0 million, primarily as a result of differences from currency translation recognized directly in equity. By contrast, the remeasurement of defined benefit pension obligations as at the reporting date did not result in any significant absolute change compared to the previous year. The measurement of the non-consolidated PCC Organic Oils Ghana LTD at fair value resulted in a change in value of € 0.2 million, which is also reported under other equity items. The equity ratio fell from 24.5 % in the previous year to 21.4 % in the reporting year due to the aforementioned effects.
Long-term investments are financed with long-term debt. Non-current provisions and liabilities increased by 10.7 % to € 887.0 million as at December 31, 2024 (previous year: € 801.5 million). This was mainly due to the increase in non-current financial liabilities, which rose by € 77.0 million or 10.8 % compared to the previous year. Deferred tax liabilities rose to € 18.5 million (previous year: € 16.6 million). Other liabilities increased by € 7.9 million or 12.3 % to € 72.1 million.
Pertaining to bond liabilities, the holding company PCC SE fully redeemed seven bonds with a total volume of € 126.0 million on maturity in the course of 2024 (previous year: € 83.7 million). The issuance volume placed by the end of the year amounted to € 157.4 million (previous year: € 85.6 million) and was achieved through six new issuances. These funds were used in the past fiscal year both for the partial refinancing of maturing liabilities and for the financing of investments. In addition to PCC SE, whose bonds are denominated in euros, other Group companies also issued bonds. The bonds issued in Polish złoty by PCC Rokita SA and PCC Exol SA had a value of € 45.2 million as of the closing date of fiscal 2024 (previous year: € 44.6 million). Unutilized secured credit lines within the PCC Group amounted to € 144.9 million as of the reporting date (previous year: € 61.6 million).
Current provisions and liabilities decreased by € 24.3 million or 6.1 % to € 375.0 million. Tax liabilities decreased by € 1.0 million to € 4.5 million. Trade accounts payable increased by € 21.9 million or 25.1 % to € 109.1 million. Financial liabilities due within the next twelve months decreased by € 21.6 million to € 168.4 million. Other liabilities decreased by € 16.9 million to € 55.5 million.
Provisions for pensions and similar obligations, and other provisions, decreased by € 8.0 million to € 44.1 million.
The net debt of the PCC Group increased in the year under review by € 84.5 million or 10.9 % to € 860.1 million. This was due not only to borrowings for capital expenditures but also to the decline in cash and cash equivalents. Due to the fall in earnings before interest, taxes, depreciation and amortization (EBITDA), the ratio of net debt to EBITDA deteriorated from 6.9 to 9.8. Our goal of guiding this leverage ratio to below 5.0 was therefore not achieved.
The equity of the PCC Group decreased by € 46.3 million, from € 389.4 million in the previous year to € 343.1 million in the year under review. This development is mainly attributable to the negative consolidated net result and the decline in the minority interests item. Hybrid capital is an equity instrument of the subsidiary PCC BakkiSilicon hf. In accordance with IAS 32, this is classified as equity, as there is neither a contractual obligation to repay the nominal amount nor to pay interest. Instead, repayment is linked to conditions that depend on the decision of the company’s management to make distributions to shareholders. As soon as resolutions on distributions to them are passed, the hybrid capital will also be serviced on a pro rata basis.
The revenue reserves / other reserves item fell by € 42.2 million to € 205.9 million, mainly due to the consolidated net result. Minority interests decreased by € 15.0 million to € 58.5 million, mainly due to the losses attributable to those non-controlling shareholders. Other equity items increased by € 10.9 million to € – 5.0 million, primarily as a result of differences from currency translation recognized directly in equity. By contrast, the remeasurement of defined benefit pension obligations as at the reporting date did not result in any significant absolute change compared to the previous year. The measurement of the non-consolidated PCC Organic Oils Ghana LTD at fair value resulted in a change in value of € 0.2 million, which is also reported under other equity items. The equity ratio fell from 24.5 % in the previous year to 21.4 % in the reporting year due to the aforementioned effects.
Long-term investments are financed with long-term debt. Non-current provisions and liabilities increased by 10.7 % to € 887.0 million as at December 31, 2024 (previous year: € 801.5 million). This was mainly due to the increase in non-current financial liabilities, which rose by € 77.0 million or 10.8 % compared to the previous year. Deferred tax liabilities rose to € 18.5 million (previous year: € 16.6 million). Other liabilities increased by € 7.9 million or 12.3 % to € 72.1 million.
Pertaining to bond liabilities, the holding company PCC SE fully redeemed seven bonds with a total volume of € 126.0 million on maturity in the course of 2024 (previous year: € 83.7 million). The issuance volume placed by the end of the year amounted to € 157.4 million (previous year: € 85.6 million) and was achieved through six new issuances. These funds were used in the past fiscal year both for the partial refinancing of maturing liabilities and for the financing of investments. In addition to PCC SE, whose bonds are denominated in euros, other Group companies also issued bonds. The bonds issued in Polish złoty by PCC Rokita SA and PCC Exol SA had a value of € 45.2 million as of the closing date of fiscal 2024 (previous year: € 44.6 million). Unutilized secured credit lines within the PCC Group amounted to € 144.9 million as of the reporting date (previous year: € 61.6 million).
Current provisions and liabilities decreased by € 24.3 million or 6.1 % to € 375.0 million. Tax liabilities decreased by € 1.0 million to € 4.5 million. Trade accounts payable increased by € 21.9 million or 25.1 % to € 109.1 million. Financial liabilities due within the next twelve months decreased by € 21.6 million to € 168.4 million. Other liabilities decreased by € 16.9 million to € 55.5 million.
Provisions for pensions and similar obligations, and other provisions, decreased by € 8.0 million to € 44.1 million.
The net debt of the PCC Group increased in the year under review by € 84.5 million or 10.9 % to € 860.1 million. This was due not only to borrowings for capital expenditures but also to the decline in cash and cash equivalents. Due to the fall in earnings before interest, taxes, depreciation and amortization (EBITDA), the ratio of net debt to EBITDA deteriorated from 6.9 to 9.8. Our goal of guiding this leverage ratio to below 5.0 was therefore not achieved.
Overall, in a geopolitically tense and macroeconomically challenging
environment, the company’s management considers the development
of its net assets, financial position and results of operations
in fiscal 2024 to be unsatisfactory. The business performance of the
PCC Group was extremely successful in some segments, such as
Logistics. As well as increasing sales and earnings, the Intermodal
Transport business unit also assumed market leadership in Poland.
Although we were able to reduce the high production costs in the
Silicon Metal business unit, this was not sufficient in the year under
review to enable us to compete with Chinese dumping imports.
Across all segments, EBITDA was additionally burdened by high
fixed costs, for example for personnel or external service providers,
as well as maintenance and repair expenses from unplanned
plant shutdowns. For the reasons described above, we were unable
to meet our expectation of increasing revenue by 5 – 10 % in fiscal
2024. We were also unable to achieve our expectation of an increase
in EBITDA of around 25 % to 30 %. Both shortfalls are due primarily
to lower sales volumes than budgeted. In addition, further price declines,
particularly in the Chlorine & Derivatives segment, as well as
unforeseeable technical difficulties and the associated unplanned
plant shutdowns plus additional maintenance and repair expenses,
had a negative impact on earnings. Adjusted for the significant
losses in the Silicon & Derivatives segment, positive results would
nevertheless have been achievable at all earnings levels. Ultimately,
however, a loss in the double-digit million euro range was posted.
