This is a summary of the January-
First quarter:
Kemira divested its Oil & Gas (O&G)-related portfolio on
Q1 2024 performance, unadjusted for Oil & Gas divestment
- Revenue decreased by 16% to
EUR 763.3 million (906.0).
-
Operative EBITDA decreased by 16% to
EUR 162.5 million (192.6). The operative EBITDA margin was stable at a record-high level of 21.3% (21.3%). The operative EBITDA margin improved in the Industry & Water segment. EBITDA decreased by 16% toEUR 154.1 million (184.1). The differences between operative and reported figures are explained by items affecting comparability, which were mainly related to the divestment of Oil & Gas.
-
Operative EBIT decreased by 17% to
EUR 117.6 million (141.9). EBIT decreased by 18% toEUR 109.2 million (133.4).
-
Cash flow from operating activities was strong at
EUR 97.7 million (96.7).
-
EPS (diluted) decreased by 19% to
EUR 0.49 (0.60) mainly due to the divestment of Oil & Gas.
Q1 2024 performance, Oil & Gas divestment adjusted
The Oil & Gas divestment adjusted revenue decreased by 10% toEUR 718.8 (795.6). Revenue in local currencies, excluding acquisitions and divestments, decreased by 9% mainly as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Sales volumes increased both year-on-year and sequentially. Sales prices were rather stable sequentially.
The Oil & Gas divestment adjusted operative EBITDA decreased by 6% toEUR 159.2 (169.4) mainly as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. The adjusted operative EBITDA margin was strong at 22.2% (21.3%).
The Oil & Gas divestment adjusted operative EBIT decreased by 8% toEUR 114.4 (124.4).
Outlook for 2024 (unchanged)
Revenue
Kemira's revenue is expected to be between
Operative EBITDA
Kemira's operative EBITDA is expected to be between
Assumptions behind outlook (specified)
Kemira's end-market demand (in volumes) is expected to grow slightly in 2024 following expected gradual demand recovery in the pulp and paper market. The water treatment market is expected to remain steady in 2024. Input costs are expected to remain rather stable during the year. The outlook assumes no major disruptions to Kemira's manufacturing operations, supply chain or Kemira's energy-generating assets in
Kemira's President & CEO,
"I had the honor to start as Kemira's President and CEO in mid-February. I have spent my first months in the role meeting our people and customers as well as taking a holistic look at Kemira's strategy. Kemira is in excellent shape, which provides a strong foundation to build on. We have a number of strengths: a solid strategy, a resilient business model, committed employees, high customer satisfaction and a very strong financial position. The recent divestment of Oil & Gas further strengthens our business model and reduces cyclicality. It also clarifies our strategy and confirms our commitment to sustainability. We will continue to focus on profitable growth with water, renewable solutions, and digital services as our priority areas. Going forward, we will increasingly concentrate on faster execution to deliver results. Together with our committed team, we are now reviewing our strategic initiatives and targets to see how we can accelerate their execution and create even more value for our shareholders.
Looking at the performance of the first quarter, we started the year strongly with our focused portfolio. Market demand continued to recover gradually and we saw volume growth both year-on-year and sequentially in both segments. Organic revenue growth was negative as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Profitability was very strong and the operative EBITDA margin was stable year-on-year at a record-high level of 21.3% during Q1 2024. We had strong margin performance in both segments driven by successful cost management and higher sales volumes. In absolute terms, our operative EBITDA reached
The pulp and paper market continued to recover gradually during Q1 2024. However, the political strikes in
In Industry & Water, the water treatment market remained steady on both the municipal and industrial side. Kemira's Industry & Water segment continued its excellent performance during the quarter. Revenue was
Our Annual General Meeting held in March approved the Board of Director's dividend proposal of
KEY FIGURES AND RATIOS
EUR million | Jan-Mar | Jan-Mar | Jan-Dec |
2024 | 2023 | 2023 | |
Revenue | 763.3 | 906.0 | 3,383.7 |
Revenue, O&G divestment adjusted | 718.8 | 795.6 | 2,889.0 |
Operative EBITDA | 162.5 | 192.6 | 666.7 |
Operative EBITDA, O&G divestment adjusted | 159.2 | 169.4 | 595.9 |
Operative EBITDA, % | 21.3 | 21.3 | 19.7 |
Operative EBITDA %, O&G divestment adjusted | 22.2 | 21.3 | 20.6 |
EBITDA | 154.1 | 184.1 | 540.0 |
EBITDA, % | 20.2 | 20.3 | 16.0 |
Operative EBIT | 117.6 | 141.9 | 463.0 |
Operative EBIT, O&G divestment adjusted | 114.4 | 124.4 | 415.5 |
Operative EBIT, % | 15.4 | 15.7 | 13.7 |
Operative EBIT %, O&G divestment adjusted | 15.9 | 15.6 | 14.4 |
EBIT | 109.2 | 133.4 | 336.4 |
EBIT, % | 14.3 | 14.7 | 9.9 |
Net profit for the period | 79.0 | 95.4 | 211.3 |
Earnings per share, diluted, EUR | 0.49 | 0.60 | 1.28 |
Capital employed* | 2,092.9 | 2,244.5 | 2,155.5 |
Capital employed*, O&G divestment adjusted | 1,874.2 | 1,904.7 | 1,856.0 |
Operative ROCE*, % | 21.0 | 19.4 | 21.5 |
Operative ROCE, %, O&G divestment adjusted | 21.6 | 20.8 | 22.4 |
ROCE*, % | 14.9 | 18.7 | 15.6 |
Cash flow from operating activities | 97.7 | 96.7 | 546.0 |
Capital expenditure excl. acquisition | 26.2 | 29.1 | 204.9 |
Capital Expenditure excl. Acquisitions, O&G divestment adjusted | 26.2 | 26.6 | 187.7 |
Capital expenditure | 26.2 | 31.0 | 206.8 |
Cash flow after investing activities | 178.9 | 66.5 | 349.3 |
Equity ratio, % at period-end | 47 | 45 | 48 |
Equity per share, EUR | 10.29 | 10.05 | 10.84 |
Gearing, % at period-end | 23 | 45 | 32 |
*12-month rolling average
Unless otherwise stated, all comparisons in this report are made to the corresponding period in 2023.
Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments (=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and gearing, provide useful information about Kemira's comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration.
Kemira's alternative performance measures should not be viewed in isolation from the equivalent IFRS measures, and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial information. All the figures in this report have been individually rounded, and consequently the sum of the individual figures may deviate slightly from the total figure presented.
Financial targets
Kemira aims for above-market revenue growth, with an operative EBITDA margin of 15-18%. The target for gearing is below 75%.
Financial reporting schedule 2024
Half-year financial report January-
Interim report January-
Capital Markets Day 2024
Kemira's Capital Markets Day will be arranged on
Webcast and conference call for analysts, investors and media
Kemira will arrange a webcast for analysts, investors and the media on
You can attend the Q&A session via conference call. You can access the teleconference by registering on the following link: http://palvelu.flik.fi/teleconference/?id=10010851
After registration you will be provided with phone numbers and a conference ID to access the conference. If you wish to ask a question please dial *5 on your telephone keypad to enter the queue.
For more information, please contact:
Kemira Oyj
Mikko Pohjala, Vice President, Investor Relations
Tel. +358 40 838 0709
mikko.pohjala@kemira.com
Kemira is a global leader in sustainable chemical solutions for water-intensive industries. Our customers include industrial and municipal water treatment operators, and pulp & paper industry among others. We provide the best-suited products and services to improve our customers' product quality, process, and resource efficiency. Our focus is on water treatment, renewable solutions, and digital services. In 2023, Kemira had annual revenue of around
https://news.cision.com/kemira-oyj/r/kemira-oyj-s-january-march-2024-interim-report--strong-start-to-the-year-with-a-focused-portfolio,c3968334
https://mb.cision.com/Main/19578/3968334/2762120.pdf
(c) 2024 Cision. All rights reserved., source