REG - Elementis PLC - First quarter trading update

ElementisAnnouncement

30/04/2024 07:00

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RNS Number : 4859M  Elementis PLC  30 April 2024

 

30 April 2024

 

Elementis plc

First quarter trading update

Sales and profit growth with margin improvement; CMD objectives on track.

Elementis plc ("Elementis" or the "Group"), a global specialty chemicals
company, today issues its scheduled trading update for the three months ("the
quarter") ended 31 March 2024.

Elementis will publish its interim results for the six months to 30 June 2024
on 1 August 2024.

 

Business performance

The Group delivered a good first quarter performance, with constant currency
revenue up by 3%, adjusted operating profit up by double digits, and a
material improvement in operating margin, compared to Q1 2023.

Personal Care sales in the quarter were broadly flat on the strong prior year
period. We saw 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 period.

·   Coatings sales increased low double-digit percentage versus the prior
year period, benefiting from volume restocking and improved mix.

·     Talc had a challenging quarter, impacted by the Finnish transport
workers' union strike in early March, closing ports and stopping railway
freight traffic for four weeks. This resulted in higher logistics costs and
reduced sales in the quarter.

Cash generation in the first quarter was in line with expectations, with
further reduction in inventory levels.

 

Outlook

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(1).

Implementation of the growth and efficiency programmes presented at the
November 2023 Capital Markets Day ("CMD") is progressing well. Self help is
critical in this, particularly the $30 million of cost savings commitment, and
we are on-track to deliver $12 million this year and $18 million in 2025. In
addition, we launched five new products and delivered $13 million of sales
from new business in the first quarter, despite a continued challenging demand
environment.

 

Paul Waterman, CEO of Elementis, 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(1)."

Note: 1. Based on company compiled consensus dated 25 April 2024, adjusted
operating profit of $117 million and adjusted operating margin of 15.8% for
the financial year 2024.

 

Enquiries

Investors:         Eva Hatfield, Elementis plc
                Tel: +44 7553 340380

Press:               Martin Robinson/Olivia Peters,
Teneo                 Tel: +44 (0) 20 7353 4200

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