LANXESS, the German specialty chemicals company, reported a robust start to FY2025 with a 31.7 per cent year-on-year rise in EBITDA pre-exceptionals, reaching EUR 133 million (Rs 11.9 billion), up from EUR 101 million (Rs 9 billion) in Q1 FY24. The strong earnings growth came despite a sluggish global economy and was attributed to improved capacity utilisation and cost efficiencies driven by the “FORWARD!” action plan.Q1 FY25 sales remained steady at EUR 1.601 billion (Rs 143.1 billion), only marginally down from EUR 1.607 billion (Rs 143.6 billion) in the same quarter last year. While sales volumes increased across most businesses, lower sales prices partially offset the gains.Net income stood at negative EUR 57 million (Rs 5.1 billion), a notable improvement from the previous year’s EUR 98 million (Rs 8.8 billion) loss. The company reaffirmed its full-year EBITDA pre-exceptionals guidance of EUR 600–650 million (Rs 53.6–58 billion).Outlook and Strategic DevelopmentsLANXESS expects sequential EBITDA growth in Q2 FY25 but anticipates a decline compared to Q2 FY24, mainly due to the divestment of its Urethane Systems business, which was completed on 1 April 2025. The sale to Japan’s UBE Corporation marks LANXESS’ exit from the polymer business, cementing its transformation into a pure-play specialty chemicals company. Proceeds will be used to redeem a EUR 500 million (Rs 44.7 billion) bond maturing in May 2025 and to reduce debt.Segment Performance1. Consumer Protection:Q1 sales rose slightly to EUR 513 million (Rs 45.9 billion), while EBITDA pre-exceptionals jumped 49 per cent to EUR 73 million (Rs 6.5 billion), supported by higher volumes and cost savings. The EBITDA margin improved to 14.2 per cent from 9.6 per cent.2. Specialty Additives:Revenue fell 3.7 per cent to EUR 545 million (Rs 48.9 billion), but EBITDA rose 8.3 per cent to EUR 52 million (Rs 4.6 billion), boosted by the action plan and a favourable product mix. Margin improved to 9.5 per cent.3. Advanced Intermediates:Revenue increased 2.4 per cent to EUR 476 million (Rs 42.5 billion), with EBITDA up 8.1 per cent to EUR 40 million (Rs 3.6 billion). Margin climbed to 8.4 per cent from 8.0 per cent.Chairman Matthias Zachert highlighted that despite geopolitical and economic uncertainty, LANXESS' repositioning is yielding strong results. The company remains focused on operational resilience and specialty chemicals growth amid evolving market conditions.