11.11.21
Arkema reported its third quarter 2021 results. Supported by accelerating demand for high-performance materials in an environment marked by strong inflation of raw materials and supply chain disruptions that are weighing on organic growth, group EBITDA rose by a significant 54.4% year-on-year, and is well above the pre-COVID level of 2019.
This performance reflects in particular the evolution in the group's profile towards Specialty Materials and its positioning to provide technological solutions that address the major challenges linked to sustainable development.
Group sales of €2.4 billion were up, at constant scope and currency, nearly 30% versus 2020 and approximately 17% versus 2019. Solid growth was seen in volumes (+5.3% versus Q3’20) in an operating context marked by the shortage of an increasing number of raw materials and logistics constraints in Asia and the US.
In a context of strong raw materials and energy inflation, significant increase in selling prices (+23.8% versus Q3’20) reflected the group’s initiatives to adapt to the situation, as well as an improved product mix. EBITDA of €474 million was up by a strong 54.4% compared to Q3’20, and EBITDA margin was close to 20%, a record level for a third quarter.
Net debt of €1.255 billion (including €700 million in hybrid bonds) represented 0.8x last-twelve-months EBITDA, integrating a recurring cash flow of €236 million.
“We can be proud of Arkema’s strong financial performance, achieved in a complex and demanding operating environment,” said chairman and CEO Thierry Le Hénaff. “It is our whole sustainable growth strategy which really stands out. Our Specialty Materials are fully benefiting from their positioning on societal megatrends. We are seeing our developments accelerate structurally across many high-stake markets, such as batteries, 3D printing, eco-friendly paint, sports, home comfort and electronics.
“Moreover, we are actively continuing the roll-out of our 2024 strategy and the refocusing of the Group toward Specialty Materials,” he added. “Thus, by acquiring Ashland’s performance adhesives business, we will strengthen our Adhesive Solutions segment with this first-class activity, which through its technological know-how, will enable Bostik to accelerate its growth. The divestment of our epoxides business to Cargill is also in line with our pro-active management of the portfolio. These positive developments make us truly confident about our future.”
This performance reflects in particular the evolution in the group's profile towards Specialty Materials and its positioning to provide technological solutions that address the major challenges linked to sustainable development.
Group sales of €2.4 billion were up, at constant scope and currency, nearly 30% versus 2020 and approximately 17% versus 2019. Solid growth was seen in volumes (+5.3% versus Q3’20) in an operating context marked by the shortage of an increasing number of raw materials and logistics constraints in Asia and the US.
In a context of strong raw materials and energy inflation, significant increase in selling prices (+23.8% versus Q3’20) reflected the group’s initiatives to adapt to the situation, as well as an improved product mix. EBITDA of €474 million was up by a strong 54.4% compared to Q3’20, and EBITDA margin was close to 20%, a record level for a third quarter.
Net debt of €1.255 billion (including €700 million in hybrid bonds) represented 0.8x last-twelve-months EBITDA, integrating a recurring cash flow of €236 million.
“We can be proud of Arkema’s strong financial performance, achieved in a complex and demanding operating environment,” said chairman and CEO Thierry Le Hénaff. “It is our whole sustainable growth strategy which really stands out. Our Specialty Materials are fully benefiting from their positioning on societal megatrends. We are seeing our developments accelerate structurally across many high-stake markets, such as batteries, 3D printing, eco-friendly paint, sports, home comfort and electronics.
“Moreover, we are actively continuing the roll-out of our 2024 strategy and the refocusing of the Group toward Specialty Materials,” he added. “Thus, by acquiring Ashland’s performance adhesives business, we will strengthen our Adhesive Solutions segment with this first-class activity, which through its technological know-how, will enable Bostik to accelerate its growth. The divestment of our epoxides business to Cargill is also in line with our pro-active management of the portfolio. These positive developments make us truly confident about our future.”