Arkema reports strong second quarter

Paris, France – Arkema reported second quarter sales of €3.2 billion, up by 32.9% compared with Q2’21 along with EBITDA up by a strong 47.5% compared with Q2’21 to €705 million, and a record EBITDA margin of 22.1%: Very significant 41.8% growth in Specialty Materials’ EBITDA to €600 million (€423 million in Q2’21), supported by each of the three segments, Adhesive Solutions, Advanced Materials and Coating Solutions.
Intermediates’ EBITDA at €129 million (€81 million in Q2’21), benefiting notably from more favorable market conditions overall and from initiatives taken by the Group.
Adjusted net income up very strongly by 65.9% to €443 million, representing €5.99 per share (€3.50 in Q2’21).
Recurring cash flow of €235 million, reflecting the quality of the Group’s financial performance and including an increase in working capital linked to higher prices and traditional seasonality.
Net debt tightly controlled at €2,789 million, including €700 million in hybrid bonds, representing 1.3x last-twelve-months EBITDA.
New, more ambitious climate plan announced on 7 July, with an increased level of commitment, aligned with a 1.5°C trajectory and now including scope 3 emissions.
Strengthening of the Coating Solutions segment’s downstream with the acquisition of Polimeros Especiales, one of the leaders in solvent-free acrylic resins in Mexico, which will complement the Group’s offering of more environmentally friendly solutions.
Annual guidance raised significantly despite a more uncertain macroeconomic environment and weaker demand in Europe: Arkema now aims to achieve in 2022, excluding further significant disruption of the global context, annual EBITDA growth of 17% to 22% at constant scope compared with 2021 (vs. “slight growth” previously), representing an EBITDA of around €2,100 million.

Following Arkema’s Board of Directors’ meeting held on 28 July 2022 to approve the Group’s consolidated financial statements for the first half of 2022, Chairman and CEO Thierry Le Hénaff said:

“The excellent second-quarter performance was achieved in a demanding operating environment, marked by high raw materials inflation, the particular energy context in Europe and disruptions to logistics flows between regions. I would like to thank all of our teams, who contributed to this outstanding financial performance through their commitment and responsiveness, as well as our customers, for engaging in high quality dialogue that enabled us to support them in this complex environment. The Group also continued to benefit from the superior quality of its portfolio of technologies in high performance materials, the opportunities created by the strength of its innovation for sustainable development, and its balanced geographic presence between the three key regions.

Moreover, Arkema is continuing to implement its strategy focused on sustainable growth, with the successful integration of Ashland’s adhesives, the announcement of a high-quality bolt-on acquisition in the Coating Solutions segment’s downstream, the upcoming start-ups of our major investments in Aurora, North Carolina, and Singapore, and our new climate plan announced in early July, which is aligned with the Paris Agreement and a 1.5°C SBT trajectory.

In a global environment that many observers and experts are qualifying as difficult for the coming months and which incites us to be attentive, the new EBITDA guidance for 2022, which has been significantly raised, is a sign of confidence in the Group’s ability to meet the challenges that could arise in the second half of the year.”