REG - Elementis PLC - Q3 Trading Update

ElementisAnnouncement

26/10/2022 07:17

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RNS Number : 0982E  Elementis PLC  26 October 2022

26 October 2022.

Elementis plc

Q3 Trading Update

Trading in line with expectations - outlook unchanged

Elementis plc ("Elementis" or the "Group"), a global specialty chemicals
company, today issues a trading update for the three months ended 30 September
2022.

Third quarter business performance

 

The Group delivered a good performance in the third quarter, with double-digit
revenue growth on an underlying basis, driven by further strong performances
in Personal Care and Coatings, where the focus on innovation, new product
development and new business opportunities, underpinned by strong key account
relationships and supply resiliency, continued to deliver sales growth. The
Chromium business also performed well in the quarter whilst the Talc business
continued to be impacted by weakness in European markets.

 

Overall the Group saw strong performances in the Americas, with lower demand
in Europe and continuing market weakness in China. The full year outlook for
the Group remains unchanged.

 

·     Coatings delivered a solid third quarter performance. Pricing
actions continued to offset raw material and energy cost increases and protect
margins. Sales growth was driven by new business wins at key accounts and
market share gains, with new products gaining further traction The business
remains on track to deliver full year performance significantly ahead of last
year.

 

·     Personal Care continued to perform strongly in the third quarter,
with market demand and pricing actions in both Cosmetics and AP Actives
driving strong sales growth and margin expansion versus the prior year period.
Whilst normal seasonality and some moderation of demand is expected in the
fourth quarter, the business is expected to deliver full year performance
substantially ahead of last year.

 

·   Talc performance in the third quarter was impacted by continuing weaker
demand in European end markets, in particular automotive, reduced ceramics
demand in China, and the loss of sales into Russia and neighbouring countries.
 Higher energy and logistics costs, as well as adverse currency movements,
were offset by new business wins and price increases which will continue to be
implemented through the rest of the year.

·    Chromium sales in the third quarter were ahead of the prior year
period, reflecting solid demand and price increases. Global industry
utilization remains high, with improved pricing and lower chrome ore prices
offsetting higher energy and logistics costs. An update on the strategic
review of the Chromium business is expected around the calendar year end, as
previously indicated.

 

Outlook

 

The full year outlook for the Group remains unchanged, with Group leverage
lower.

 

Despite weakening underlying macro-economic conditions creating further
headwinds, particularly in Europe, the Group's continued focus on innovation
and new business opportunities, along with further pricing actions and
operating efficiencies, is expected to deliver full year financial performance
in line with our expectations.

 

 

 

Commenting on the third quarter performance, CEO, Paul Waterman said,

"We delivered a good third quarter performance, with our focus on product
innovation, customer relationships, value pricing and operating efficiency
continuing to create real momentum in our business.  This is enabling us to
weather the macroeconomic headwinds affecting a number of our markets, and
deliver sales growth and margin expansion in line with our expectations.

We expect the market environment to remain challenging, but are confident that
by continuing to execute effectively on our strategy we will make further
progress towards achieving our medium-term goals."

 

Enquiries

Elementis plc

David Boyd, Investor Relations
     Tel: 0207 067 2994

David.boyd.ext@elementis.com (mailto:David.boyd.ext@elementis.com)
                            Mob:+44 7764 905135

 
 

 

Tulchan

Martin Robinson
                 Tel: 020 7353 4200

Olivia Peters

 

 

 

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