REG - Elementis PLC - First quarter trading update

ElementisAnnouncement

Tue 07:00

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RNS Number : 5083G  Elementis PLC  29 April 2025

29 April 2025

 

Elementis plc

First quarter trading update

Profit growth with margin improvement in line with expectations; 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 2025.

Elementis will publish its interim results for the six months to 30 June 2025
on 31 July 2025.

 

Business performance

 

The Group delivered a solid first quarter performance in a weak global demand
environment. While constant currency revenue was down c.2% against a strong
prior year comparator, adjusted operating profit and margins were both ahead
of Q1 last year, driven by the continued progress of our self-help
initiatives, including pricing.

Personal Care sales in the quarter were marginally up on a constant currency
basis, compared to the prior year period. Cosmetics was broadly flat despite
soft demand in Asia and weaker mix. Profitability and margins were higher
compared to Q1 last year on a constant currency basis.

Performance Specialties sales were modestly lower on a constant currency basis
compared to Q1 last year, principally due to weaker Coatings demand.
Profitability and margins were up compared to Q1 last year on a constant
currency basis driven by improved Talc performance.

·      Coatings sales decreased in the mid-single digit percentage
versus the strong prior year period, due to the weaker demand environment for
architectural and industrial coatings, particularly in Asia and EMEA.

·      Talc sales were marginally ahead of the comparable period last
year.

 

Cash generation in the first quarter was in line with expectations.

 

Talc strategic review

 

The Talc strategic review that was announced in August 2024, continues to
progress and we will provide a further update as appropriate.

 

Luc van Ravenstein, CEO of Elementis, said:

"We have delivered a solid performance with growth in profitability and
margins in what has been a challenging demand environment. Looking ahead, we
are well positioned to manage the potential impacts of the recent US tariffs
due to our global multi-site manufacturing footprint. However, the future
demand impacts are highly uncertain. To help mitigate this, we are making
strong progress with our self-help actions, and are on-track to achieve our
target of $12m savings this year, with additional savings opportunities being
identified. Whilst we are mindful of the increased economic uncertainty
associated with tariffs, our expectations for the full year are unchanged.

We continue to make good progress towards our 2026 goals and are building on
our strong foundations to take the business to the next level.  I look
forward to sharing further details at our interim results."

 

Enquiries

Investors:          Zeeshan Maqbool, Elementis plc
        Tel: +44 7553 340380

Press:               Martin Robinson, Giles Kernick, Teneo
            Tel: +44 (0) 20 7353 4200

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