Arkema Posts 2Q 2022 Results

Arkema reported its 2022 second quarter results. Sales were €3.2 billion, up by 32.9% compared with Q2 2021. Arkema reported benefits of new business developments in high value-added sustainable solutions (batteries, sports, electronics, healthcare, etc.), as well as selling price adjustments in the face of very significant raw materials, energy and transportation cost inflation.

EBITDA was up by a strong 47.5% compared with Q2’21 to €705 million, and a record EBITDA margin of 22.1%. There was 41.8% growth in Specialty Materials’ EBITDA to €600 million (€423 million in Q2’21), supported by each of the three segments, Adhesive Solutions, Advanced Materials and Coating Solutions.

Annual guidance was raised significantly despite a more uncertain macroeconomic environment and weaker demand in Europe: Arkema now aims to achieve in 2022, excluding further significant disruption of the global context, annual EBITDA growth of 17% to 22% at constant scope compared with 2021 (vs. “slight growth” previously), representing an EBITDA of around €2,100 million.

“The excellent second-quarter performance was achieved in a demanding operating environment, marked by high raw materials inflation, the particular energy context in Europe and disruptions to logistics flows between regions,” said chairman and CEO Thierry Le Hénaff. “The group also continued to benefit from the superior quality of its portfolio of technologies in high performance materials, the opportunities created by the strength of its innovation for sustainable development, and its balanced geographic presence between the three key regions.

“Moreover, Arkema is continuing to implement its strategy focused on sustainable growth, with the successful integration of Ashland’s adhesives, the announcement of a high-quality bolt-on acquisition in the Coating Solutions segment’s downstream, the upcoming start-ups of our major investments in Aurora, North Carolina, and Singapore, and our new climate plan announced in early July, which is aligned with the Paris Agreement and a 1.5°C SBT trajectory,” Le Hénaff added.