De.mem: Core Chemicals effect unfolds

The acquisition had an immediate positive impact on De.mem's business. In the current fiscal year, Core Chemicals' activities are expected to reach their full potential.

Since November 1, 2025, Core Chemicals has already been contributing to revenue, cash inflows, and margins. The 2026 calendar year will be the first full year in which Core Chemicals' results are fully reflected, meaning the new subsidiary will contribute its full annual revenue and profit. "Additional potential is expected through synergies and the geographic expansion of the product portfolio," CEO Andreas Kröll recently explained to investors in a business update.

According to Kröll, a key lever is cross-selling. Core Chemicals' products complement the De.mem portfolio and will now also be offered to De.mem's existing 15 gold mining customers. Conversely, De.mem's diversified product portfolio will be offered to Core Chemicals' existing gold mining customers.

Through its existing operations in Perth, De.mem already supplies several gold mining customers in Western Australia with specialty process chemicals such as descaling agents, as well as water and wastewater treatment services. The goal is to maximize gold recovery and optimize water regeneration from refinery waste through the use of these chemicals.

Flashback: In October 2025, De.mem announced the acquisition of Core Chemicals, a Perth-based specialty chemicals company. The purchase price was approximately AUD 3 million. The acquisition was completed relatively quickly, on November 1, 2025. Since then, Core Chemicals has contributed to revenue, cash flow, and margins. Prior to the acquisition, Core Chemicals generated approximately AUD 4 million in revenue and AUD 620,000 in EBITDA.

The acquisition was strategically attractive for De.mem for several reasons. The company was able to increase its presence in the high-growth gold mining sector, create the aforementioned cross-selling opportunities between the customer bases of both companies, and secure a clear perspective for geographic expansion of its products.

Business Expansion Planned
CEO Andreas Kröll recently explained the importance of the geographic expansion potential to his investors. The acquisition offers a good opportunity to extend Core Chemicals' offerings to the eastern states of Australia and the Pacific region, as Core Chemicals currently operates exclusively in Western Australia. De.mem already supplies gold mining customers in Tasmania, Queensland, and Papua New Guinea – markets where Core Chemicals was previously not represented.

There are approximately 175 active gold mines in Australia, more than 140 of which are currently not served by either company, explains CEO Andreas Kröll, highlighting the potential of the mining sector.

Overall, De.mem sees itself on track for the current fiscal year 2026. With the full-year contribution from Core Chemicals and the continued growth in the domestic water market, De.mem believes that the company is well positioned to further increase profit growth and achieve new records in 2026, Kröll concluded.