Arkema Reports First Quarter 2022 Results

Arkema reports it delivered an excellent financial performance in the first quarter of 20922, despite high raw materials and energy cost inflation and some disparities in growth between regions and markets. These results were driven by the Group’s acceleration in high performance materials, its ability to incorporate cost increases into its selling prices and its agility in a complex global environment.

Group sales were €2.9 billion, up by 30% year-on-year at constant scope and currency. Volumes were down slightly from last year’s high level, impacted mainly by logistics disruptions and raw materials shortages. Adjustment to selling prices offset very significant raw materials, energy and transportation cost inflation.

EBITDA of €619 million was up by 72.9% compared with Q1’21, and EBITDA margin up sharply to 21.4%.

“Our very good performance in the first quarter reflects the strength of our innovation for sustainable development and Arkema’s very solid positioning to address accelerating demand for cutting-edge solutions in high value-added markets,” Thierry Le Hénaff, chairman and CEO of Arkema, said. “In an operating context that continues to be particularly demanding, our balanced geographic footprint, our technologies, our customer intimacy and the commitment of Arkema’s teams are all valuable assets.

“Despite the uncertainties currently weighing on global growth, this first quarter’s very good results make us confident in our ability to surpass in 2022 last year’s record results and particularly motivate the teams to continue implementing our strategy focused on Specialty Materials,” Le Hénaff added.

Market conditions remain positively oriented at the beginning of the second quarter, but with disparities between regions and end markets and an increased lack of visibility regarding the environment. The health situation in China, the war in Ukraine, high raw materials and energy cost inflation, and logistics disruptions are all factors that could weigh on global demand going forward.

In this demanding context, the Group will endeavor to optimize supply chain management and continue to dynamically adjust its selling prices. Moreover, Arkema will pursue its innovation to develop, in partnership with its customers, its Specialty Materials and high-performance solutions for sustainable development.

In line with its strategy to become a pure Specialty Materials player in 2024, Arkema will continue in 2022 its bolt-on acquisition policy, as well as its review of the Intermediates segment.