On May 4, Arkema released its 2023 first quarter financial report. In the context of the continued downturn at the end of last year, the Arkema Group achieved a solid financial performance in the first quarter of 2023, in line with its 2023 annual performance forecast.
In the first quarter of 2023, Arkema’s sales were 2.5 billion euros, a year-on-year decrease of 12.6%. Affected by continued weak demand in the European market, signs of a slowdown in the U.S. construction industry and temporary destocking in the Chinese battery market, sales volumes declined. Benefiting from positioning the product portfolio on high value-added solutions, product prices are generally resilient. Arkema benefits from sustainable innovations in the field of high-performance solutions, such as bio-based recycled materials, 3D printing and more environmentally friendly coatings.
In the first quarter of 2023, Arkema’s earnings before interest, tax, depreciation and amortization (EBITDA) was 367 million euros, with an EBITDA margin of 14.5%, compared with 619 million euros and 14.5% in the first quarter of 2022
21.4% is down from a very high base, benefiting from particularly favorable market conditions for PVDF and upstream acrylics in the first quarter of 2022.
In the first quarter of 2023, Arkema’s adjusted net income was EUR 162 million, equivalent to EUR 2.17 per share (Q1 2022: EUR 5.08 per share).
Arkema’s recurring cash flow was negative EUR 21 million in the first quarter of 2023 (positive EUR 26 million in the first quarter of 2022), reflecting the general seasonality of working capital in the first quarter.
In the first quarter of 2023, Arkema’s net debt was stable at EUR 2,389 million (EUR 2,366 million at end-December 2022), including EUR 700 million in hybrid bonds, equivalent to 1.3 times trailing 12-month EBITDA.
In the first quarter of 2023, Arkema’s 2023 performance forecast is confirmed. In 2023, the Arkema Group’s goal is to achieve an EBITDA of approximately 1.5 billion to 1.6 billion euros, and maintain a relatively high EBITDA to cash conversion ratio of more than 40% .
In view of the progress made by the Group on the decarbonization pathway and its certification by SBTi, Arkema has strengthened its climate commitment to a 1.5°C decarbonization pathway by 2030. Arkema now aims to reduce Scope 1+2 greenhouse gas emissions by 48.5% and Scope 3 emissions by 54% compared to 2019 by 2030.
Thierry Lenave, Chairman and CEO of the Arkema Group
Hénaff), said: “In the overall environment of weak demand, especially in the European region and the construction market, the first quarter performance still met the expected target. Although we observed some relatively positive initial signals in Asia, customers showed strong Foreseeability remains limited. In this still difficult economic environment, the Group, with its position and flexibility, achieved solid results in the first quarter and confirmed its EBITDA and cash flow forecasts for the year. In addition, Arco Ma will continue to strictly control costs and working capital.
At the beginning of 2023, Arkema also has two important milestones in achieving the ambitious goal of sustainable solutions: the Singapore bio-based polymer plant has started the final stage of work before start-up, and the Group’s 1.5°C goal by 2030
The decarbonization pathway is certified by SBTi. Furthermore, several major industrial projects are on track and will soon contribute to the Group’s growth in the specialty materials segment. ”
Looking to 2023
At the beginning of the second quarter, the macroeconomic background still showed a lack of predictability and continued sluggish sales. The outlook for the next few months varies by region, with European markets remaining weak, the US market down but generally better, and Asia improving slightly from low levels. Raw material costs continue to show signs of easing tensions but remain largely high in European and US markets, and energy prices are falling but remain relatively high in Europe.
In this context, the Group will continue to work on two levels: first, to rigorously manage its operations, with particular emphasis on controlling costs, optimizing working capital and the environmental performance of its production sites. Secondly, implement projects to develop sustainable solutions, mainly by sustaining the vitality of growth-driven industrial investment and accelerating targeted innovations in new energy, 3D printing, bio-based recyclable materials, electric vehicles, etc.
This year, the group will particularly benefit from the start-up and ramp-up of its major expansion projects, which will contribute between 50 million and 70 million euros to the group’s EBITDA in 2023, mostly in the second half of the year.
In addition, Arkema once again reiterated its full-year performance forecast. In 2023, it aims to achieve an EBITDA of approximately 1.5 to 1.6 billion euros and maintain a relatively high EBITDA-to-cash conversion ratio of more than 40%.
微信扫一扫打赏
