REG - Elementis PLC - First quarter trading update

ElementisAnnouncement

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RNS Number : 2914C  Elementis PLC  29 April 2026

29 April 2026

 

 

Elementis plc

First quarter trading update

Group revenue growth with continued profit and margin expansion.

Full year expectations unchanged

 

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 2026.

Elementis will publish its interim results for the six months to 30 June 2026
on 30 July 2026.

 

Business performance

 

The Group delivered a strong first quarter performance. On an organic(1)
basis, Group revenue increased by c.2% and adjusted operating profit and
margins grew strongly year-on-year, supported by the continued progress on our
self-help initiatives and positive pricing actions.

Personal Care revenue on an organic(1) basis improved marginally year-on-year
due to higher pricing and improved mix offsetting isolated weaker demand in
the Americas. Margins were broadly comparable to Q1 last year.

The integration of Alchemy is progressing in line with our expectations, and
we are encouraged by the strong interest shown by customers in Alchemy's
products.

Coatings achieved good revenue growth on an organic(1) basis year-on-year,
driven by higher volumes in Asia that more than offset volume weakness in the
Americas, while the Energy business continued to perform strongly, benefiting
from operational improvements at our St. Louis plant (US). Margins were up
materially year-on-year due to higher cost savings and improved volumes.

The Middle East conflict did not have a material effect on our Q1 performance,
and our direct exposure is less than 2% of Group annual revenue. We have
responded to higher input costs through pricing actions and expect to fully
offset the inflationary impact.

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

 

Pharma manufacturing business disposal

 

Further to the announcement on 5 March 2026, the Group continues to make good
progress with the sale of its pharma manufacturing business to Associated
British Foods with completion expected in Q2 2026 following the receipt of
regulatory approvals. Following closing, we expect to return the net cash
proceeds to shareholders.

 

Luc van Ravenstein, CEO of Elementis, said:

 

"We delivered a strong performance this quarter with higher revenue and
profitability, better than management expectations as Elevate Elementis
delivers ahead of plan. However, we are mindful of the uncertainty arising
from the geopolitical and macroeconomic backdrop, and therefore our current
outlook(2) for the full year 2026 remains unchanged. Our performance
underscores the strength, resilience and differentiated nature of our business
model, our local-for-local model, as well as the positive momentum behind our
strategy."

 

Enquiries

 

 Investors:  Zeeshan Maqbool, Elementis plc         Tel: +44 (0) 7553 340 380
 Press:      Martin Robinson, Giles Kernick, Teneo  Tel: +44 (0) 207 353 4200

 

 

Notes

1.   Organic basis means on a continuing constant currency basis and
excludes the contribution from acquisitions and disposals including the agreed
sale of the pharma manufacturing business which is expected to close in Q2
2026.

2.   Excluding the pharma manufacturing business.

 

About Elementis

Elementis is a global specialty chemicals company listed on the London Stock
Exchange. The Group employs c.1,000 across 19 global locations. As recognised
innovation leaders with deep expertise in rheology (the science of flow), and
formulation solutions, we develop distinctive solutions and products to
improve performance, achieve smoother production, and enhance sustainability
credentials for customers across a range of industries. The Group also owns
and operates one of the largest known commercial high-quality hectorite mines
in the world. Hectorite is a special, high-purity clay mineral rich in
magnesium and lithium, known for its ability to control viscosity, stabilise
formulations, and deliver smooth, consistent textures that make it ideal for
clean-label, high-performance formulations.

Elementis is composed of two focused, high-margin businesses: Personal Care
and Coatings. The Personal Care business manufactures natural and synthetic
rheology modifiers to deliver premium product performance for personal care
applications in skin care and cosmetics, as well as active ingredients for
antiperspirants. Within Coatings, Elementis develops and manufactures
rheology modifiers and premium performance additives for decorative and
industrial paints and coatings. The Coatings business also includes our Energy
and Adhesives, Sealants and Construction additives businesses.

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