Arkema reported strong earnings growth in the first quarter, driven in particular by a rise in volumes of innovative and sustainable Specialty Materials, which benefited from its unique positioning and cutting-edge innovation related to global megatrends.
Given its confidence in its development dynamic, Arkema is significantly increasing its financial targets for 2021.
Sales of €2.23 billion up 12.7% versus Q1’20 at constant scope and currency;
Significant increase in volumes (+7.7%), in the continuity of the rebound already observed in Q4’20 (+5.2%);
Strong momentum in most of the Group’s end markets, and contribution of new developments driven by sustainable innovation;
EBITDA of €358 million, up sharply by almost 20% (€300 million in Q1’20), and EBITDA margin of 16.1%;
Specialty Materials’ EBITDA of €306 million, up 19.5%, supported by strong increases in the three segments Adhesive Solutions, Advanced Materials and Coating Solutions;
Intermediates’ EBITDA of €75 million, up 10.3% (up 18.5% at constant scope);
Adjusted net income up 59% to €159 million, representing €2.08 per share;
Well-controlled net debt, at €2.0 billion (including €700 million in hybrid bonds), representing 1.6x LTM EBITDA;
Major milestone in Arkema’s evolution with the finalization of the divestment of PMMA to Trinseo on May 3, 2021, supplemented by Bostik’s recent acquisition of Poliplas;
2021 guidance significantly raised, with the Group now targeting around 20% growth in Specialty Materials’ EBITDA relative to 2020 at constant scope and currency, excluding a systemic resumption of the health crisis
“The pace of activity accelerated in the first quarter in the context of better economic indicators. Our growth reflects first and foremost the strength of our innovation over the past few years to position our Specialty Materials in structural growth segments, along with positive momentum in most of our end markets and our balanced geographical footprint.
While remaining attentive to the evolution of the health crisis and the volatility of the environment, in light of our very good first-quarter results and our development opportunities, the Group is strongly raising its annual targets for Specialty Materials, which represent the essential part of our scope following the divestment of PMMA.
“This year marks the start of a new era of growth for Arkema, consistent with the ambitions unveiled at our April 2020 Capital Markets Day.
Supported by our team’s strong commitment to the company’s strategy, we are accelerating our innovation projects and investments in promising high growth markets driven by sustainable megatrends, such as clean mobility, lightweight materials, 3D printing and energy efficiency.”Chairman and CEO Thierry Le Hénaff