Last checked at 31 Oct 2023 07:00
31 October 2023
Elementis plc
Third Quarter Trading Update
Outlook unchanged, delivering resilient performance in line with expectations.
Elementis plc ("Elementis" or the "Group"), a global specialty chemicals company, today issues its scheduled trading update for the three months ended 30 September 2023 ("the quarter").
Third quarter business performance
The Group delivered a resilient performance as expected, in continued challenging market conditions, with Q3 revenue at a similar level to that seen in the first and second quarters. Against the prior year period, revenue was down 5% (down 7% on a constant currency basis), with lower revenues across both business segments. We remain focused on self-help actions including new business opportunities, price management and cost discipline.
Personal Care sales in the quarter were sequentially stable, but below a strong prior year period. We saw continued strong growth in Asia.
Performance Specialties delivered resilient performance as continued market related volume weakness across both Coatings and Talc was partially offset by pricing and mix benefits.
· Coatings sales were sequentially stable, though below the prior year period, with Asia showing modest improvement compared with the previous two quarters.
· Talc continued to benefit from self-help actions, with higher profit compared to the weak prior year period. We continue to focus on financial turnaround and pursuing new business opportunities.
Outlook
The Group is well positioned to deliver full-year financial performance in line with expectations, despite continuing weakness in underlying macro-economic conditions. Leverage reduction remains on track supported by continued inventory improvement in Q3.
Paul Waterman, CEO of Elementis, said:
"Elementis delivered a resilient third quarter performance, as we continued to focus on product innovation and customer relationships, while maintaining strong cost discipline. Despite the industry and macroeconomic conditions remaining uncertain, we remain well positioned to take advantage of growth opportunities across our market segments.
Following the sale of Chromium earlier this year, Elementis is now a focused specialty chemicals business. We look forward to providing detail about our go forward strategy at the upcoming Capital Markets Day."
Capital Markets Day
Elementis is hosting a Capital Markets Day on 14th November, at WPP, Sea Containers House, London, starting at 2.00 pm GMT.
Webcast will be available for those unable to attend. Registration for physical and virtual attendance is required, and can be accessed via the link Viewing "Elementis Capital Markets Day " (investis-live.com).
Enquiries
Investors: Eva Hatfield, Elementis plc Tel: +44 7553 340380
Press: Martin Robinson/Olivia Peters, Teneo Tel: +44 (0) 20 7353 4200