REG - Synthomer PLC - Trading Statement - Spring 2025

SynthomerAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250501:nRSA9319Ga&default-theme=true

RNS Number : 9319G  Synthomer PLC  01 May 2025

Synthomer plc

Spring 2025 trading statement

Q1 EBITDA ahead of prior year driven by self-help initiatives

 

Synthomer plc ('Synthomer' or the 'Group') today issues a scheduled update on
trading for the first quarter of 2025, ahead of today's Annual General Meeting
(AGM). Results of voting at the AGM will be announced later today.

 

·    Q1 2025 Continuing Group EBITDA and margin ahead of Q1 2024

·    Constant currency revenue growth and margin progress in AS and HPPM,
partially offset by slower CCS markets, predominantly in energy solutions and
the USA

·    Focused on delivering further cost and cash self-help programmes and
strategic transformation objectives

·    'In region for region' manufacturing strategy provides resilience in
a more protectionist market environment, with limited direct impact of tariffs
anticipated

·    No change to our previously stated expectation of further earnings
progress in 2025, recognising that end-market demand uncertainty increases in
the event of a sustained period of elevated trade tensions

 

Continuing Group EBITDA and EBITDA margin increased in the first quarter of
2025, despite modestly lower volumes relative to the strong first quarter of
the prior year, which benefited from the disruption to supply chains into
Europe via the Red Sea and significant customer restocking. Our Adhesive
Solutions (AS) and Health & Protection and Performance Materials (HPPM)
divisions both delivered increased gross margin and EBITDA, principally
through a further improvement in product and geographical mix and self-help
cost efficiency programmes. In the Coatings & Construction Solutions (CCS)
division, delayed energy orders and moderating end-market activity in the USA
were only partially offset by improved construction activity in Europe. Robust
pricing continued to be achieved across the Group, recognising lower energy
and raw materials costs in the period.

 

We have made further progress in delivering our speciality solutions strategy,
alongside our sustained focus on generating cash flow and reducing leverage.
New speciality investments in the USA and the Middle East came onstream in the
period and are immediately profit and cash accretive. We continue to progress
the formal divestment processes for non-core businesses in Europe.

 

Our strategy of manufacturing close to our customers globally substantially
mitigates our direct exposure to recent tariff announcements, which we are
looking to offset through price. Our Health & Protection customers that
are based in Malaysia are in a strong position to benefit relative to their
China-based competitors as a result of the tariff changes. At the same time,
geopolitical tensions have made end-market demand more unpredictable,
particularly in the USA, which represents around 25% of our revenues.
Notwithstanding this increased uncertainty, at this stage we continue to
expect further earnings progress and positive Free Cash Flow in 2025, driven
primarily by accelerating self-help benefits and delivery of our strategic
plans.

 

Commenting, Synthomer CEO Michael Willome said:

"We delivered earnings growth in Q1 2025 against difficult market trends and a
strong first quarter last year, largely through our relentless focus on our
customers, costs and cash. Our 'in region for region' manufacturing strategy
means we are in a robust position to weather a more protectionist trade
environment. Alongside our ongoing prioritisation of deleveraging, we continue
to rigorously allocate our resources to key growth opportunities across our
global business. Although our end-markets face increasing macroeconomic and
geopolitical uncertainty, our strategic transformation continues to enhance
our ability to convert customer demand for our products into substantially
greater profitability and returns."

 

 

Further information:

 Investors: Faisal Tabbah, Vice President Investor Relations  Tel: +44 (0) 1279 775 306
 Media: Nick Hasell, FTI Consulting                           Tel: +44 (0) 203 727 1340

 

Notes

Synthomer plans to report interim results on 5 August 2025. Legal Entity
Identifier (LEI): 213800EHT3TI1KPQQJ56. Classification as per DTR 6 Annex 1R:
3.1.

 

Synthomer plc is a leading supplier of high-performance, highly specialised
polymers and ingredients that play vital roles in key sectors such as
coatings, construction, adhesives, and health and protection - growing markets
for customers who serve billions of end users worldwide. Headquartered in
London, UK and listed there since 1971, we employ c.4,000 employees across our
five innovation centres of excellence and 31 manufacturing sites across
Europe, North America, Middle East and Asia. With more than 6,000 blue-chip
customers and £2.0bn in continuing revenue in 2024, our business is built
around three divisions, serving customers in attractive end markets where
demand is driven by global megatrends including urbanisation, demographic
change, climate change and sustainability, and shifting economic power. In
Coatings & Construction Solutions, our specialist polymers enhance the
sustainability and performance of a wide range of coatings and construction
products. We serve customers in applications including architectural and
masonry coatings, mortar modification, waterproofing and flooring, fibre
bonding, and energy solutions. In Adhesive Solutions our products help our
customers bond, modify and compatibilise surfaces and components for
applications including tapes and labels, packaging, hygiene, tyres and plastic
modification, improving permeability, strength, elasticity, damping,
dispersion and grip. In Health & Protection and Performance Materials we
are a world-leading supplier of water-based polymers for medical gloves, and a
major European manufacturer of high-performance binders, foams and other
products serving customers in a range of end markets. Our purpose is creating
innovative and sustainable solutions for the benefit of customers and society.
Around 20% of our sales volumes are from new and patent protected products. At
our innovation centres of excellence in the UK, China, Germany, Malaysia and
Ohio, USA we collaborate closely with our customers to develop new products
and enhance existing ones tailored to their needs, with an increasing range of
sustainability benefits. Our 2030 decarbonisation targets have been approved
by the Science Based Targets initiative as being in line with what the latest
climate science says is necessary to meet the goals of the Paris Agreement,
and since 2021 we have held the London Stock Exchange Green Economy Mark,
which recognises green technology businesses making a significant contribution
to a more sustainable, low-carbon economy. Find us at www.synthomer.com
(http://www.synthomer.com) or search for Synthomer on LinkedIn.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFETSRIIVIE