(Alliance News) - Elementis PLC on Tuesday said it had performed well in the first quarter of 2024 as it saw its sales and profit grow, and said it is on track to deliver full-year profit expectations.
The London-based chemicals company, which manufacturers ingredients for consumer and industrial products for a variety of industries said in the three months to March 31, adjusted operating profit grew by double digits.
It also saw a material improvement in its operating margin.
Constant currency revenue for the quarter was up 3% compared to a year ago.
While Personal Care sales in the quarter were broadly flat year-on-year, Elementis reported "good growth" in Cosmetics, offset by an expected slower start to the year in AP Actives due to order phasing.
Performance Specialties delivered an improved performance in the quarter, with sales and profit above a "weak prior year", it added.
As for Coatings sales, the company saw low double-digit percentage growth.
Looking ahead, Elementis said that the year has started well. "Whilst we have not yet seen a positive step change in the demand environment, we remain confident about our ability to deliver profit growth and margin improvement in line with expectations," Elementis said.
The company expects full-year adjusted operating profit of USD117 million and adjusted operating margin of 15.8%. In 2023 adjusted operating profit was USD103.9 million, and adjusted operating margin was 14.6%.
Chief Executive Officer Paul Waterman said: "Elementis has had a good start to the 2024 financial year, with our focus firmly on the execution of our CMD objectives. I am confident that our clear strategy focused on innovation, growth and efficiency will allow us to achieve a significant improvement in our full-year performance and continued margin expansion, in line with expectations."
Shares in Elementis were up 0.1% at 142.40 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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Elementis (ELM)