Last checked at 26 Apr 2023 07:00
Elementis plc
AGM Trading Statement
Resilient first quarter trading performance, in line with expectations
Materially improved Talc performance, continued benefits from self-help actions
Elementis plc ("Elementis" or the "Group"), a global specialty chemicals company, today issues a trading update for the three months ended 31 March 2023.
First Quarter Business Performance
Overall trading for the three months ended 31 March 2023 has been resilient against continued subdued market demand conditions. Revenue was flat on an underlying basis against a strong prior year period, as the benefits from prior year pricing actions and improved mix broadly offset weaker volumes, primarily in Coatings.
· In Performance Specialties, underlying performance was below the prior year period due to continued challenging demand conditions across coatings markets against a very strong prior year comparative. Talc performance materially improved driven by the benefits of pricing actions and improved mix. Overall, Performance Specialties pro-forma margins were modestly below the prior year period.
· Personal Care underlying performance improved on the prior year period. Volumes were broadly stable as new product launches and new business success helped to offset market weakness in Asia. Margins remained strong due to successful pricing actions and improved mix.
Cash generation in the first quarter was in line with expectations, with the completion of the Chromium disposal providing a one off benefit. The Group's business model remains highly cash generative.
Outlook
The year has started as expected with the benefits from self-help and pricing actions offsetting market related volume softness in Coatings. For the full year, we are confident that further strategic progress will drive improved financial performance and a further reduction in leverage, in line with expectations.
The Group will hold a Capital Markets Day in November which will outline the next stage of our strategic development. Further details will be communicated in due course.
Commenting on today's announcement, CEO, Paul Waterman said,
"We have made a solid start to the year and will continue to maintain our focus on self-help actions and effectively managing the challenging demand environment. We remain on-track to deliver over $50m of new business opportunities, 15 new products and progress towards $10m of additional efficiency savings by year end."
Enquiries
Elementis
James Curran, Investor Relations 07342 999067
Teneo
Martin Robinson 020 7353 4200
Olivia Peters
Note: Underlying basis means adjusted for constant currency impact