REG - Elementis PLC - AGM Trading Statement

ElementisAnnouncement

26/04/2023 07:00

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RNS Number : 4316X  Elementis PLC  26 April 2023

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

 

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