First-quarter 2018 results
- Sales up 7.3% year on year to €2,172 million (at constant exchange rates and business scope)
- Good 7.9% EBITDA growth at €383 million, despite a high basis of comparison (€355 million in 1Q 2017) and a stronger euro
- 17.6% EBITDA margin at an historically high ratio in a first quarter (16.5% in Q1 2017), confirming the Group's good resilience despite rising raw materials costs
- Strong increase of 33% in adjusted net income to €195 million, representing €2.57 per share
- Net debt of €1,227 million, taking into account the acquisition of XL Brands and reflecting a close-to-balance free cash flow despite the usual seasonality of working capital
The Board of Directors of Arkema met on 2 May 2018 to review the Group's consolidated financial statements for the first quarter of 2018. At the close of the meeting, Chairman and CEO Thierry Le Hénaff stated:
“Arkema has made a very strong start to the year, with a 33% year on year increase in adjusted net income despite a high basis of comparison in first quarter 2017 and the very strong appreciation of the euro.
These excellent results are supported by the success of our innovation drive in advanced materials, the benefits of increased production capacities in specialty molecular sieves in France and PVDF in China last year, the integration of XL Brands in adhesives and the confirmation of the very good performance of our intermediate chemical businesses. It also reflects lower tax rate and cost of debt.
This start to the year gives us full confidence in our ability to achieve the objective we have announced for 2018.”
Outlook for 2018
Demand in the three main geographic regions should remain well oriented and the environment characterized by a stronger euro* and higher raw materials costs than in 2017.
The Group will continue to benefit from its strong innovation drive in advanced materials, the integration of XL Brands within Bostik and a globally robust market environment for its intermediate chemical businesses. It will continue to implement its major manufacturing projects, as presented during its Capital Markets Day, for thiochemicals, specialty polyamides, fluoropolymers and Sartomer.
Lastly, the Group will continue its actions to pass on the rises in raw materials costs in its selling prices and the rollout of its operational excellence initiatives to partly offset inflation on its fixed costs.
On the back of a very good start to the year, Arkema confirms its objective to increase its EBITDA in 2018 compared to the excellent performance already achieved in 2017.
*A 10% increase in the euro/US dollar exchange rate has a negative €50 million impact on EBITDA for the year (translation effect).
|18 May 2018||Annual General Meeting|
|25 May 2018||Shares trade ex-dividend|
|1 August 2018||Publication of 1st half 2018 results|
|6 November 2018||Publication of 3rd quarter 2018 results|