Elementis PLC AGM Trading Statement (4316X)
26 Abril 2023 - 1:00AM
UK Regulatory
TIDMELM
RNS Number : 4316X
Elementis PLC
26 April 2023
Elementis plc
AGM Trading Statement
Resilient first quarter trading performance, in line with
expectations
Materially improved Talc performance, continued benefits from
self-help actions
Elementis plc ("Elementis" or the "Group"), a global specialty
chemicals company, today issues a trading update for the three
months ended 31 March 2023.
First Quarter Business Performance
Overall trading for the three months ended 31 March 2023 has
been resilient against continued subdued market demand conditions.
Revenue was flat on an underlying basis against a strong prior year
period, as the benefits from prior year pricing actions and
improved mix broadly offset weaker volumes, primarily in
Coatings.
-- In Performance Specialties, underlying performance was below
the prior year period due to continued challenging demand
conditions across coatings markets against a very strong prior year
comparative. Talc performance materially improved driven by the
benefits of pricing actions and improved mix. Overall, Performance
Specialties pro-forma margins were modestly below the prior year
period.
-- Personal Care underlying performance improved on the prior
year period. Volumes were broadly stable as new product launches
and new business success helped to offset market weakness in Asia.
Margins remained strong due to successful pricing actions and
improved mix.
Cash generation in the first quarter was in line with
expectations, with the completion of the Chromium disposal
providing a one off benefit. The Group's business model remains
highly cash generative.
Outlook
The year has started as expected with the benefits from
self-help and pricing actions offsetting market related volume
softness in Coatings. For the full year, we are confident that
further strategic progress will drive improved financial
performance and a further reduction in leverage, in line with
expectations.
The Group will hold a Capital Markets Day in November which will
outline the next stage of our strategic development. Further
details will be communicated in due course.
Commenting on today's announcement, CEO, Paul Waterman said,
"We have made a solid start to the year and will continue to
maintain our focus on self-help actions and effectively managing
the challenging demand environment. We remain on-track to deliver
over $50m of new business opportunities, 15 new products and
progress towards $10m of additional efficiency savings by year
end."
Enquiries
Elementis
James Curran, Investor Relations 07342 999067
Teneo
Martin Robinson 020 7353 4200
Olivia Peters
Note: Underlying basis means adjusted for constant currency
impact
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END
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April 26, 2023 02:00 ET (06:00 GMT)
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