Elementis Share News (ELM)

(Alliance News) - Elementis PLC on Tuesday said it had delivered a "solid" performance in the first quarter of 2025, although comparable sales fell in a challenging environment.

The London-based specialty chemicals company said constant currency revenue was down around 2% against a "strong prior year comparator" in the three months to March 31, but adjusted operating profit and margins were both ahead of last year.

This is driven by the continued progress of self-help initiatives, including pricing, the firm noted.

In 2024, Elementis reported revenue of USD738 million, adjusted operating profit of USD129 million and an adjusted operating margin of 17.4%.

Elementis said it was a "solid first quarter performance in a weak global demand environment."

Personal Care sales in the quarter were marginally up on a constant currency basis, compared to the prior year period.

Cosmetics sales were broadly flat with soft demand in Asia and a weaker mix but profitability and margins were higher compared to last year on a constant currency basis.

Performance Specialties sales were modestly lower on a constant currency basis compared to last year, principally due to weaker Coatings demand. Profitability and margins were up on a constant currency basis driven by improved Talc performance.

Coatings sales decreased in the mid-single digit percentage versus the prior year, due to the weaker demand environment for architectural and industrial coatings, particularly in Asia and Europe, Middle East & Africa, Elementis said.

Talc sales were marginally ahead of the comparable period last year, it added.

Elementis said the Talc strategic review announced last August continues to progress.

Chief Executive Luc van Ravenstein said it was a "solid performance with growth in profitability and margins in what has been a challenging demand environment."

He thinks Elementis is "well positioned" to manage the potential impacts of the recent US tariffs due to its global multi-site manufacturing footprint.

"However, the future demand impacts are highly uncertain. To help mitigate this, we are making strong progress with our self-help actions, and are on-track to achieve our target of USD12 million savings this year, with additional savings opportunities being identified," he added.

"Whilst we are mindful of the increased economic uncertainty associated with tariffs, our expectations for the full year are unchanged."

Elementis will publish its interim results for the six months to June 30 on July 31.

Shares in Elementis were 0.9% higher at 129.60 pence each in London on Tuesday.

By Jeremy Cutler, Alliance News reporter

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