07.29.21
Arkema announced its second quarter 2021 results.
Arkema recorded earnings growth in the second quarter, notably with EBITDA up 67% compared to 2020 and above the pre-crisis level of 2019. EBITDA was €478 million with a historically high EBITDA margin of 20%. Group sales were €2.4 billion, up 34.6% versus 2020 and up 12.1% versus 2019 at constant scope and currency.
This performance was driven by Specialty Materials, which benefited from strong demand for innovative, sustainable materials and from its unique positioning to support global megatrends. In this context, and in light of the quality of the performance achieved in the first half of the year, Arkema is once again significantly increasing its financial targets for 2021.
Arkema noted significant growth in volumes (+17.1% vs. Q2’20 and +3.0% vs. Q2’19), driven by high demand in most end markets and the strong dynamic of new developments, and 17.5% increase in selling prices on average compared to the prior year, reflecting the Group’s ability to offset the very marked rise in raw materials and energy costs.
Arkema sees sharp acceleration in the benefits of sustainable innovation, particularly in the fast-growing batteries, bio-based materials, 3D printing, electronics and environmentally friendly paints markets.
Net debt was €1.28 billion (including €700 million in hybrid bonds), representing 0.9x last-12-months EBITDA, including €1.1 billion in gross proceeds from the PMMA divestment, €191 million in dividend payments and a €300 million commitment relating to the share buyback program launched at the end of May.
“We expected the results to be significantly above 2020 levels,” said Thierry Le Hénaff, Arkema’s chairman and CEO. “But very sharply outperforming 2019, particularly in Specialty Materials, is a great achievement that positions us perfectly on our trajectory to 2024. This performance fully confirms the validity of our strategy of sustainable growth and transformation towards innovative, high-performance materials.
“We’re more confident than ever in our potential to create value and enthusiastic about growth opportunities notably in such areas as lightweight and bio-based materials, batteries, hydrogen, 3D printing, technical adhesives and more environmentally friendly paints. Raising our guidance for the second time this year is a reflection of this confidence,” Le Hénaff concluded.
Arkema recorded earnings growth in the second quarter, notably with EBITDA up 67% compared to 2020 and above the pre-crisis level of 2019. EBITDA was €478 million with a historically high EBITDA margin of 20%. Group sales were €2.4 billion, up 34.6% versus 2020 and up 12.1% versus 2019 at constant scope and currency.
This performance was driven by Specialty Materials, which benefited from strong demand for innovative, sustainable materials and from its unique positioning to support global megatrends. In this context, and in light of the quality of the performance achieved in the first half of the year, Arkema is once again significantly increasing its financial targets for 2021.
Arkema noted significant growth in volumes (+17.1% vs. Q2’20 and +3.0% vs. Q2’19), driven by high demand in most end markets and the strong dynamic of new developments, and 17.5% increase in selling prices on average compared to the prior year, reflecting the Group’s ability to offset the very marked rise in raw materials and energy costs.
Arkema sees sharp acceleration in the benefits of sustainable innovation, particularly in the fast-growing batteries, bio-based materials, 3D printing, electronics and environmentally friendly paints markets.
Net debt was €1.28 billion (including €700 million in hybrid bonds), representing 0.9x last-12-months EBITDA, including €1.1 billion in gross proceeds from the PMMA divestment, €191 million in dividend payments and a €300 million commitment relating to the share buyback program launched at the end of May.
“We expected the results to be significantly above 2020 levels,” said Thierry Le Hénaff, Arkema’s chairman and CEO. “But very sharply outperforming 2019, particularly in Specialty Materials, is a great achievement that positions us perfectly on our trajectory to 2024. This performance fully confirms the validity of our strategy of sustainable growth and transformation towards innovative, high-performance materials.
“We’re more confident than ever in our potential to create value and enthusiastic about growth opportunities notably in such areas as lightweight and bio-based materials, batteries, hydrogen, 3D printing, technical adhesives and more environmentally friendly paints. Raising our guidance for the second time this year is a reflection of this confidence,” Le Hénaff concluded.
