Elementis PLC AGM Trading Statement (4477Y)
13 Mayo 2021 - 1:00AM
UK Regulatory
TIDMELM
RNS Number : 4477Y
Elementis PLC
13 May 2021
Elementis plc
AGM Trading Statement
Strong first quarter performance, ahead of expectations
On track for improved financial performance and deleveraging
Elementis plc ("Elementis" or the "Group"), a global specialty
chemicals company, today issues a trading update for the three
months ended 31 March 2021 and an update on current trading.
First quarter business performance
In the first quarter of 2021 Group performance has been strong
and ahead of expectations. Revenue increased approximately 6% on
the prior year period, which was largely before the impact of
COVID-19, with the successful execution of self help actions
augmented by improved underlying demand, customer restocking and
currency tailwinds.
-- Coatings revenue increased significantly on the prior year
period with strong volumes across all geographies driven by new
business wins, improved industrial coatings demand and customer
restocking. Margins were robust with pricing actions offsetting raw
material cost inflation.
-- Personal Care performance was as expected, slightly below the
prior year period, with customer restocking offset by continued
weak category demand for cosmetics and anti-perspirant deodorants
due to COVID-19 related social and travel restrictions. Margins
were resilient and the start-up of our new plant in India is
expected to commence in the third quarter.
-- Talc performance was broadly in line with the prior year
period with strong industrial talc growth, driven by the continued
rebound in automotive demand and robust coatings sales, offset by
weaker sales to paper end markets.
-- Chromium revenue was in line with the prior year period due
to improved demand and restocking across key industrial end markets
such as automotive and leather tanning. While unit pricing was
sequentially stable, margins were below the prior year period due
to lower pricing outside of North America.
Cash generation in the first quarter was in line with
expectations and the Group's business model remains highly cash
generative.
Outlook
We have made a strong start to the year, with improved year on
year profitability, driven by increased demand across industrial
end markets. This positive momentum has continued into the second
quarter and demand remains healthy. For the full year, we are
confident that further steady demand improvement from H2 2020
levels coupled with our self help actions will drive improved
financial performance, towards the top end of consensus
expectations*, and a reduction in leverage.
Commenting on the performance, CEO, Paul Waterman said,
"We have made a good start to 2021 and are on track to deliver
an improved financial performance and a reduction in leverage. We
will continue to maintain our focus on self-help actions and in
2021 expect to deliver more than $30m of new business
opportunities, over 20 new products and $10m of cost savings".
Enquiries
Elementis plc
James Curran, Investor Relations Tel: 020 7067 2994
Tulchan
Martin Robinson/David Allchurch Tel: 020 7353 4200
* Based on the company compiled consensus, the Board believes
current market forecasts for 2021 adjusted operating profit to be
in the range of $92m to $103m with an average of $97m.
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END
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