18th Jan 2022 08:55
(Alliance News) - Elementis PLC on Tuesday said it expects full-year operating profit to come in "modestly" ahead of expectations, after a strong final quarter.
The London-based speciality chemicals company said it expects adjusted operating profit for 2021 to be within a range of USD105 million to USD107 million, ahead of market consensus of USD104 million.
Elementis saw "double-digit" revenue growth year-on-year in the final quarter of 2021.
Net debt was roughly USD400 million at the end of the year. This represents a net debt to earnings before interest, tax, depreciation, and amortisation ratio of 2.6 times, which is a significant reduction from 3.2 times in 2020, the company noted.
Elementis launched over 20 new products during the year, won USD35 million in new business, and reduced costs by USD10 million.
Coatings outperformed the previous year in the final quarter, and had improved operating margins, owing to pricing strategies and growth in volume. Personal Care also improved, due to the recovery of demand for cosmetics, as social and travel restrictions eased. However, demand still lags behind the pre-pandemic levels of 2019. Chromium performance also improved as there was increased industrial demand, improved pricing trends, and an increase in the industry capacity for its use globally.
However, a reduction in automotive-related demand for talc, due to semiconductor supply shortages, meant the division underperformed compared to the previous year.
It also attributed success in the fourth quarter to agile supply chain management, and "self-help" actions.
Elementis' share price rose by 3.2% to 139.00 pence each in London on Tuesday morning.
Full 2021 results will be released on March 3.
By Elizabeth Winter; [email protected]
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