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Elementis PLC - London-based speciality chemicals - Posts revenue growth for the third quarter ended September 30 of 16% on an underlying basis, driven by higher volumes and pricing actions. Notes "material global supply chain challenges", including raw material availability, logistical bottlenecks and rising inflation. However, says it is successfully managing these impacts via supply resiliency, self-help actions and the implementation of price increases. As a result, the group outlook for 2021 remains unchanged.
The group expects to deliver an improved financial performance and a reduction in leverage, in line with expectations for the full year. The second half of the year is expected to follow a normal level of seasonality, with continued demand recovery mitigating the impact of near-term margin headwinds from accelerating cost inflation and supply chain constraints, Elementis says.
"We have delivered a strong third quarter performance, have good trading momentum and are taking proactive steps to mitigate both rising inflation and global supply chain challenges," comments Chief Executive Paul Waterman.
"The delivery of our strategy, alongside a continued post Covid-19 demand recovery, is expected to drive a material, multi-year performance improvement, underpin the delivery of our medium-term group financial objectives and generate significant shareholder value."
Current stock price: 143.00 pence, up 1.4% on Thursday
Year-to-date change: up 24%
By Will Paige; willpaige@alliancenews.com
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