Elementis plc
Trading Update
FY 21 adjusted operating profit modestly ahead of expectations
Leverage reduction on track
Elementis plc ("Elementis" or the "Group"), a global specialty chemicals company, today issues a trading update for the three months and year ended 31 December 2021.
Business performance
The Group has delivered a good fourth quarter performance, with double-digit year-on-year underlying revenue growth, agile supply chain management and self-help actions. As a result, adjusted operating profit for 2021 is expected to be in the range of $105-107m, modestly ahead of expectations*.
· Coatings performed well in Q4, and ahead of the prior year. As a result of pricing actions and volume growth, the business will deliver improved operating margins versus 2020.
· Personal Care performance in Q4 improved on the prior year. Demand continued to recover in cosmetics, as social and travel restrictions begin to ease, albeit still at levels below 2019.
· Talc performance in Q4 was below prior year as semi-conductor supply shortages continued to reduce automotive related demand.
· Chromium performance improved on the prior year as strong industrial demand was supported by improved pricing trends as global industry capacity utilisation increased.
In the fourth quarter we have continued to successfully deliver our Innovation, Growth and Efficiency strategy. For the full year 2021 we launched over 20 new products, won more than $35m of new business and delivered $10m of in year cost savings.
Balance Sheet
Net debt (excluding lease liabilities) at the end of 2021 is anticipated to be approximately $400m, representing a leverage ratio of 2.6x net debt to EBITDA**, and a significant reduction compared to 3.2x reported at the 31 December 2020.
Full 2021 results will be released on 3 March 2022 at 7am (UK) and will be available via the Elementis Plc website.
Enquiries
Elementis plc
James Curran, Investor Relations Tel: 020 7067 2994
Tulchan
Martin Robinson Tel: 020 7353 4200
Olivia Peters
* Based on company compiled consensus, the Board believes the average market forecast for 2021 adjusted operating profit to be $104m.
**Excluding IFRS 16 impact
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