David Savastano, Editor02.26.21
Arkema reported €7.9 billion in sales in 2020, representing a decline of 8% year on year at constant currency, reflecting the impact of the pandemic on global demand. EBITDA in 2020 was €1,182 million, down 18.9%, and EBITDA margin remained at 15%. Specialty Materials was the leader, as its volumes improved 5% compared to 4Q 2019.
Overall, Arkema has a good fourth quarter, with sales growth of 2.1%. EBITDA was stable at €289 million.
Free cash flow for the year was €651 million, similar to 2019, while net debt shrunk to €1,910 million including hybrid bonds (€2,331 million at Dec. 31, 2019), representing 1.6x EBITDA for 2020.
“Last year we faced the challenging context of the pandemic and first and foremost, I would like to thank the responsiveness and mobilization of our employees across the world,” chairman and CEO Thierry Le Hénaff said. “Their unwavering commitment, as well as Arkema’s geographic and technological positioning, enabled the group to deliver a robust financial performance in 2020, be highly efficient in managing operations to quickly adapt to the context, record a strong rebound in sales and earnings in the fourth quarter, and look confidently ahead to 2021.
“Despite the ongoing uncertainty of the health context, 2021 should be a year of good growth for Arkema,” he added. “In addition, we will continue to accelerate our high value-added developments in the three segments, Adhesive Solutions, Coating Solutions and Advanced Materials, as well as the execution of our strongly value-creative strategy to refocus entirely on Specialty Materials.”
Overall, Arkema has a good fourth quarter, with sales growth of 2.1%. EBITDA was stable at €289 million.
Free cash flow for the year was €651 million, similar to 2019, while net debt shrunk to €1,910 million including hybrid bonds (€2,331 million at Dec. 31, 2019), representing 1.6x EBITDA for 2020.
“Last year we faced the challenging context of the pandemic and first and foremost, I would like to thank the responsiveness and mobilization of our employees across the world,” chairman and CEO Thierry Le Hénaff said. “Their unwavering commitment, as well as Arkema’s geographic and technological positioning, enabled the group to deliver a robust financial performance in 2020, be highly efficient in managing operations to quickly adapt to the context, record a strong rebound in sales and earnings in the fourth quarter, and look confidently ahead to 2021.
“Despite the ongoing uncertainty of the health context, 2021 should be a year of good growth for Arkema,” he added. “In addition, we will continue to accelerate our high value-added developments in the three segments, Adhesive Solutions, Coating Solutions and Advanced Materials, as well as the execution of our strongly value-creative strategy to refocus entirely on Specialty Materials.”
