The Group delivered a solid financial performance in 2023 in a demanding macroeconomic environment, with €1.5 billion in EBITDA, in line with its full-year guidance, and excellent cash generation.
- Group sales of €9.5 billion, down 16.1% on 2022 at constant scope and currency:
- Volumes down by 10.0%, reflecting the overall slowdown in demand and destocking, although volumes were slightly higher in the fourth quarter relative to last year
- Positive dynamic in innovation-driven high performance solutions addressing sustainable megatrends
-
Negative price effect of 6.1% reflecting lower prices for certain raw materials and the progressive price normalization of PVDF and upstream acrylics, which had benefited from particularly favorable conditions in 2022
- EBITDA at €1,501 million, down compared with last year’s very high comparison base (€2,110 million), and solid EBITDA margin in this context of low demand at 15.8% (18.3% in 2022). Q4’23EBITDA up by 14% year-on-year to €331 million (€291 million in Q4’22), driven by the good performance of Adhesive Solutions and the resilience of the other segments
- Adjusted net income of €653 million, representing €8.75 per share (€15.75 in 2022)
- Excellent recurring cash flow of €761 million, reflecting the strict management of working capital and tight control of capital expenditure, and net debt of €2,930 million at end-December, representing 1.95x full-year EBITDA
- Proposed dividend of €3.50 per share (€3.40 in 2022), in line with the policy of a gradual increase, and corresponding to a payout ratio of 40%
-
Finalization on
1 December 2023 of the acquisition of 54% ofPI Advanced Materials , marking a key step in the strengthening ofArkema's very high performance polymers portfolio - Continued progress in CSR performance with, in particular, reductions in greenhouse gas emissions of 7% for Scopes 1 and 2 and 9% for Scope 3 compared with 2022. Moreover, the share of women in senior management positions rose to 29% (26% in 2022)
- Outlook for 2024: the Group aims for EBITDA to grow in 2024 and reach between €1.5 billion and €1.7 billion. The start of the year should be in the continuity of the low demand of fourth-quarter 2023. EBITDA growth should be weighted mainly to the second half of the year with the ramp-up of the main growth projects from the second quarter onwards and the progressive improvement of market conditions.
Following Arkema’s Board of Directors’ meeting held on
“Arkema recorded a solid financial performance in 2023 in a particularly demanding macroeconomic context. I would like to thank our teams, who once again demonstrated their agility and unwavering commitment, enabling
As 2024 has started in the continuity of the previous quarter, in a context of ongoing weak demand, we will continue to manage our operations tightly. We will benefit from the growing contribution, from spring onwards, of several major industrial projects in
In addition to managing the short-term, our teams are fully mobilized on our 2028 objectives which we unveiled at the Capital Markets Day last September.”
KEY FIGURES FOR 2023
in millions of euros |
2023 |
2022 |
Change | ||
Sales |
9,514 |
11,550 |
-17.6% |
||
EBITDA |
1,501 |
2,110 |
-28.9% |
||
Specialty Materials |
1,373 |
1,900 |
-27.7% |
||
Intermediates |
213 |
306 |
-30.4% |
||
Corporate |
-85 |
-96 |
|||
EBITDA margin |
15.8% |
18.3% |
|||
Specialty Materials |
15.8% |
18.1% |
|||
Intermediates |
26.7% |
30.0% |
|||
Recurring operating income (REBIT) |
939 |
1,560 |
-39.8% |
||
REBIT margin |
9.9% |
13.5% |
|||
Adjusted net income |
653 |
1,167 |
-44.0% |
||
Adjusted net income per share (in €) |
8.75 |
15.75 |
-44.4% |
||
Recurring cash flow |
761 |
933 |
-18.4% |
||
Free cash flow |
625 |
784 |
-20.3% |
||
Net debt including hybrid bonds |
2,930 |
2,366 |
|||
2023 BUSINESS PERFORMANCE
Group sales came in at €9,514 million in 2023, down 17.6% on the previous year in a more challenging macroeconomic context, marked by lower underlying demand and destocking, first in
The share of Specialty Materials within total sales grew slightly and represented 92% of the Group’s sales in 2023. Moreover, the geographic sales split saw the share of
At €1,501 million (€2,110 million in 2022), EBITDA held up well in view of the economic context, while reflecting the absence of the exceptional contribution in the prior year of around €400 million from PVDF and upstream acrylics. The dynamics were mixed between the various product lines, with Adhesive Solutions and Performance Additives reporting good growth in the second half of the year, driven by the product mix, dynamic management of sales prices and continued operational excellence actions. In this less buoyant context than in the prior year, Arkema’s EBITDA margin came in at a good level at 15.8% (18.3% in 2022), reflecting notably the quality of the product mix in higher value-added solutions and appropriate management of pricing in a more normalized raw materials context.
At €562 million, recurring depreciation and amortization rose marginally year-on-year (€550 million in 2022). Recurring operating income (REBIT) therefore amounted to €939 million (€1,560 million in 2022) and REBIT margin came in at 9.9% (13.5% in 2022).
The financial result represented a net expenseof €70 million (€61 million in 2022), up by €9 million relative to 2022, reflecting mainly the impact of the bond issues carried out in 2023.
Excluding exceptional items, the tax rate amounted to 21% of recurring operating income in 2023.
Adjusted net income thus amounted to €653 million, representing €8.75 per share (€15.75 per share in 2022).
The Board of Directors decided that it would recommend, at the annual general meeting of
CASH FLOW AND NET DEBT AT
Recurring cash flow reached the high level of €761 million (€933 million in 2022). It includes a €170 million cash inflow linked to working capital, which reflects the price effect and strict management of inventories. Excluding
Free cash flow totaled €625 million in the year (€784 million in 2022) and included residual exceptional capital expenditure of €26 million (€123 million in 2022) related to the bio-based polyamides project in
Net cash flow from portfolio management operations primarily reflected the acquisition of a 54% majority stake in
Net debt including hybrid bonds stood at €2,930 million at end-2023, including the payment of a €3.40 dividend per share for 2022 for a total payout of €253 million, the €32 million cost of share buybacks carried out by the Group, and €16 million in interest paid on hybrid bonds. This net debt figure represents 1.95x last-twelve-months EBITDA.
CONTINUOUS PROGRESS IN CSR PERFORMANCE
The Group continued to implement its CSR actions in 2023 to support the sustainable and responsible growth of its activities and by offering its customers solutions that contribute to their sustainable performance.
Moreover, in order to encourage eco-design and develop the circular economy, the Group increased the proportion of its sales covered by a life-cycle assessment to 56% of Group sales in 2023 (41% in 2022), in line with its long-term target of 90%.
The Group also maintained its high safety standards, with an accident rate per million hours worked stable at 0.9, among the leaders of the industry, and the process safety event rate per million hours worked also stable at 2.8.
Lastly, as a certified Top Employer 2024 in ten countries and a holder of the Top Employer Europe certification,
On the strength of the Group’s results and long-term commitments, its CDP climate change score was raised to A-. Its Sustainalytics score was also increased and the Group now ranks among the best in its sector. In addition,
2023 PERFORMANCE BY SEGMENT
ADHESIVE SOLUTIONS (29% OF TOTAL GROUP SALES)
in millions of euros |
2023 |
2022 |
Change | ||
Sales |
2,714 |
2,898 |
-6.3% |
||
EBITDA |
380 |
366 |
+3.8% | ||
EBITDA margin |
14.0% |
12.6% |
|||
Recurring operating income (REBIT) |
293 |
288 |
+1.7% | ||
REBIT margin |
10.8% |
9.9% |
Sales in the Adhesive Solutions segment fell by 6.3% compared with 2022 to €2,714 million. This figure reflects mainly a 7.5% reduction in volumes linked to weak demand, as well as to destocking in the construction sector and certain industrial markets, which nevertheless subsided in the second half of the year. Sales also included a negative 2.8% currency effect. The price effect was slightly positive over the year, amounting to 0.9% and reflected on the one hand, during the first part of the year, the increased sales prices implemented in 2022 in response to cost inflation, and on the other hand, a negative price effect in the second half linked to the normalization of certain raw materials. The 3.1% positive scope effect corresponds to the integration of Polytec PT and Permoseal, as well as to the additional contribution from Ashland’s adhesives business in the first two months of the year.
Recording robust growth of 16% in the second half of the year, EBITDA grew 3.8% in 2023 compared with 2022 and reached €380 million. This higher year-on-year performance despite lower volumes reflects the dynamic management of sales prices in an evolving environment of raw materials, as well as operational excellence and cost control actions. It also incorporates the contribution of acquisitions. EBITDA margin improved significantly by 140 bps to 14.0%, also benefiting from the evolution in the product mix towards higher value-added applications.
ADVANCED MATERIALS (38% OF TOTAL GROUP SALES)
in millions of euros |
2023 |
2022 |
Change | ||
Sales |
3,562 |
4,341 |
-17.9% |
||
EBITDA |
666 |
941 |
-29.2% |
||
EBITDA margin |
18.7% |
21.7% |
|||
Recurring operating income (REBIT) |
366 |
663 |
-44.8% |
||
REBIT margin |
10.3% |
15.3% |
At €3,562 million, sales of the Advanced Materials segment were down 17.9% year-on-year. Reflecting lower demand, volumes declined by 8.0%, also impacted by destocking, mostly in the first half for High Performance Polymers, and throughout the whole year for Performance Additives, mainly in
In this context, EBITDA of €666 million was down 29.2% relative to the prior year’s particularly high comparison base. Driven by significant growth in the second half, EBITDA for Performance Additives was up year-on-year despite lower volumes, supported by growth in high value-added applications in areas linked to sustainable megatrends, in particular new energies. The segment’s EBITDA margin thus came to 18.7%versus 21.7% in 2022.
COATING SOLUTIONS (25% OF TOTAL GROUP SALES)
in millions of euros |
2023 |
2022 |
Change | ||
Sales |
2,402 |
3,250 |
-26.1% |
||
EBITDA |
327 |
593 |
-44.9% |
||
EBITDA margin |
13.6% |
18.2% |
|||
Recurring operating income (REBIT) |
201 |
466 |
-56.9% |
||
REBIT margin |
8.4% |
14.3% |
Sales of the Coating Solutions segment fell sharply by 26.1% year-on-year and amounted to €2,402 million, around 30% of which were in acrylic monomers. Volumes in this segment were down 12.4% overall, reflecting subdued demand and destocking in
In this context, EBITDA declined 44.9% on 2022 to €327million. Downstream activities nevertheless held up better than upstream acrylics, driven by the benefits of an improved product mix towards higher value-added solutions and by dynamic price management. In this context of low volumes, EBITDA margin held up relatively well at 13.6% (18.2% in 2022).
INTERMEDIATES (8% OF TOTAL GROUP SALES)
in millions of euros |
2023 |
2022 |
Change | ||
Sales |
797 |
1,020 |
-21.9% |
||
EBITDA |
213 |
306 |
-30.4% |
||
EBITDA margin |
26.7% |
30.0% |
|||
Recurring operating income (REBIT) |
170 |
245 |
-30.6% |
||
REBIT margin |
21.3% |
24.0% |
At €797 million, sales in the Intermediates segment fell by 21.9% year-on-year, impacted by an 18.7% drop in volumes linked notably to low demand for acrylics in
In this context, EBITDA declined by 30.4% to €213 million and EBITDA margin remained at a high level of 26.7% (30.0% in 2022).
KEY FIGURES FOR FOURTH-QUARTER 2023
in millions of euros | Q4'23 | Q4'22 | Change | ||
Sales |
2,222 |
2,507 |
-11.4% |
||
EBITDA |
331 |
291 |
+13.7% | ||
Specialty Materials |
312 |
286 |
+9.1% | ||
Adhesive Solutions |
94 |
75 |
+25.3% | ||
Advanced Materials |
149 |
148 |
+0.7% | ||
Coating Solutions |
69 |
63 |
+9.5% | ||
Intermediates |
40 |
24 |
+66.7% | ||
Corporate |
-21 |
-19 |
|||
EBITDA margin |
14.9% |
11.6% |
|||
Specialty Materials |
15.2% |
12.3% |
|||
Adhesive Solutions |
14.6% |
10.8% |
|||
Advanced Materials |
17.4% |
14.5% |
|||
Coating Solutions |
12.5% |
10.4% |
|||
Intermediates |
24.8% |
13.3% |
|||
Recurring operating income (REBIT) |
174 |
146 |
+19.2% | ||
REBIT margin |
7.8% |
5.8% |
|||
Adjusted net income |
107 |
88 |
+21.6% | ||
Adjusted net income per share (in €) |
1.43 |
1.16 |
+23.3% | ||
Recurring cash flow |
325 |
238 |
+36.6% | ||
Free cash flow |
283 |
199 |
+42.2% |
Group sales declined 11.4% year-on-year to €2,222 million, impacted by a negative 10.5% price effect which reflected mainly a raw materials environment that was less tight. Volumes were up 2.0%, driven mainly by an improvement in Coating Solutions relative to the low comparison base of fourth-quarter 2022, and by the good performance of High Performance Polymers in
At €331 million, EBITDA was 13.7% higher relative to fourth-quarter 2022, driven by the growth of Adhesive Solutions, the resilience of the other Specialty Materials segments and the good performance of refrigerant gases. EBITDA margin improved by 330 bps to 14.9%.
Sales of the Adhesive Solutions segment totaled €642 million, down 7.2% compared with fourth-quarter 2022, impacted notably by a 3.2% negative currency effect. The negative 3.2% price effect reflects essentially the evolution of certain raw materials. Volumes were down slightly by 1.3%, reflecting ongoing soft demand and some residual destocking in
At €94 million, the segment’s EBITDA was up by a sharp 25.3% compared with fourth-quarter 2022, driven by the product mix, dynamic price management and ongoing operational excellence actions. EBITDA margin thus improved significantly to 14.6% (10.8% in Q4’22), reflecting Bostik’s teams’ thorough work.
Sales of the Advanced Materials segment came in at €857 million, down 16.1% compared with fourth-quarter 2022, impacted by a 15.9% negative price effect which takes into account the evolution of raw materials. Volumes rose 2.3%, driven in particular by High Performance Polymers in
At €552 million, sales for the Coating Solutions segment declined by 8.5% year-on-year, strongly impacted by a 17.3% negative price effect reflecting both less favorable market conditions in upstream acrylics and lower raw materials in downstream activities. Volumes were up 11.8%, benefiting from improved activity levels in view of the prior year’s low point. The currency effect was a negative 3.0%. Driven notably by better volumes, EBITDA rose by 9.5% to €69 million, and EBITDA margin improved by 210 bps to 12.5%.
At €161 million, sales of the Intermediates segment were 11.0% lower than in fourth-quarter 2022, impacted by a 21.0% drop in volumes which reflects lower demand for acrylics in
EBITDA rose sharply to €40 million (€24 million in Q4’22), driven by the good contribution of refrigerant gases. EBITDA margin thus grew to 24.8% from 13.3% in fourth-quarter 2022.
FOURTH-QUARTER 2023 HIGHLIGHTS
On
SUBSEQUENT EVENTS
On
OUTLOOK FOR 2024
In the first quarter, the macroeconomic context remains marked by a lack of visibility and soft demand in the continuity of fourth-quarter 2023. First-quarter EBITDA should thus be comparable to the fourth-quarter 2023 level and below the first-quarter 2023 level, which still benefited from favorable market conditions in PVDF and upstream acrylics, which progressively normalized during 2023.
Irrespective of a progressive rebound in demand,
Based on these factors,
Moreover, the Group will continue to implement its strategic roadmap unveiled at the Capital Markets Day of
Further details concerning the Group’s 2023 results are provided in the “Full-year 2023 results and highlights” presentation and the “Factsheet”, both available on Arkema’s website at: www.arkema.com/global/en/investor-relations/
The consolidated financial statements at
FINANCIAL CALENDAR
DISCLAIMER
The information disclosed in this press release may contain forward-looking statements with respect to the financial position, results of operations, business and strategy of
In a context of significant geopolitical tensions, where the outlook for the global economy remains uncertain, the retained assumptions and forward-looking statements could ultimately prove inaccurate.
Such statements are based on management’s current views and assumptions that could ultimately prove inaccurate and are subject to risk factors such as (but not limited to) changes in raw materials prices, currency fluctuations, the pace at which cost-reduction projects are implemented, escalating geopolitical tensions, and changes in general economic and financial conditions.
Balance sheet, income statement and cash flow statement data, as well as data relating to the statement of changes in shareholders’ equity and information by segment included in this press release are extracted from the consolidated financial statements at
Information by segment is presented in accordance with Arkema’s internal reporting system used by management.
Details of the main alternative performance indicators used by the Group are provided in the tables appended to this press release. For the purpose of analyzing its results and defining its targets, the Group also uses EBITDA margin, which corresponds to EBITDA expressed as a percentage of sales, EBITDA equaling recurring operating income (REBIT) plus recurring depreciation and amortization of tangible and intangible assets, as well as REBIT margin, which corresponds to recurring operating income (REBIT) expressed as a percentage of sales.
For the purpose of tracking changes in its results, and particularly its sales figures, the Group analyzes the following effects (unaudited analyses):
- scope effect: the impact of changes in the Group’s scope of consolidation, which arise from acquisitions and divestments of entire businesses or as a result of the first-time consolidation or deconsolidation of entities. Increases or reductions in capacity are not included in the scope effect;
- currency effect: the mechanical impact of consolidating accounts denominated in currencies other than the euro at different exchange rates from one period to another. The currency effect is calculated by applying the foreign exchange rates of the prior period to the figures for the period under review;
- price effect: the impact of changes in average selling prices is estimated by comparing the weighted average net unit selling price of a range of related products in the period under review with their weighted average net unit selling price in the prior period, multiplied, in both cases, by the volumes sold in the period under review; and
- volume effect: the impact of changes in volumes is estimated by comparing the quantities delivered in the period under review with the quantities delivered in the prior period, multiplied, in both cases, by the weighted average net unit selling price in the prior period.
Building on its unique set of expertise in materials science,
Consolidated financial information - At the end of
Consolidated financial statements as end of
CONSOLIDATED INCOME STATEMENT | ||
4 th quarter 2023 | 4 th quarter 2022 | |
(In millions of euros) | ||
Sales |
2,222 |
2,507 |
Operating expenses |
(1,797) |
(2,129) |
Research and development expenses |
(71) |
(71) |
Selling and administrative expenses |
(213) |
(219) |
Other income and expenses |
(59) |
(70) |
Operating income |
82 |
18 |
Equity in income of affiliates |
(2) |
(2) |
Financial result |
(26) |
(30) |
Income taxes |
(31) |
23 |
Net income |
23 |
9 |
Attributable to non-controlling interests |
3 |
(2) |
Net income - Group share |
20 |
11 |
Earnings per share (amount in euros) |
0.27 |
0.13 |
Diluted earnings per share (amount in euros) |
0.27 |
0.13 |
End of |
End of |
|
(In millions of euros) | ||
Sales |
9,514 |
11,550 |
Operating expenses |
(7,554) |
(8,970) |
Research and development expenses |
(275) |
(270) |
Selling and administrative expenses |
(874) |
(868) |
Other income and expenses |
(130) |
(155) |
Operating income |
681 |
1,287 |
Equity in income of affiliates |
(9) |
(6) |
Financial result |
(70) |
(61) |
Income taxes |
(177) |
(254) |
Net income |
425 |
966 |
Attributable to non-controlling interests |
7 |
1 |
Net income - Group share |
418 |
965 |
Earnings per share (amount in euros) |
5.39 |
12.81 |
Diluted earnings per share (amount in euros) |
5.36 |
12.75 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||
4 th quarter 2023 | 4 th quarter 2022 | |
(In millions of euros) | ||
Net income |
23 |
9 |
Hedging adjustments |
6 |
7 |
Other items |
0 |
1 |
Deferred taxes on hedging adjustments and other items |
1 |
1 |
Change in translation adjustments |
(155) |
(459) |
Other recyclable comprehensive income |
(148) |
(450) |
Impact of remeasuring unconsolidated investments |
— |
— |
Actuarial gains and losses |
(41) |
(79) |
Deferred taxes on actuarial gains and losses |
8 |
15 |
Other non-recyclable comprehensive income |
(33) |
(64) |
Total income and expenses recognized directly in equity |
(181) |
(514) |
Total comprehensive income |
(158) |
(505) |
Attributable to non-controlling interest |
(2) |
(5) |
Total comprehensive income - Group share |
(156) |
(500) |
End of |
End of |
|
(In millions of euros) | ||
Net income |
425 |
966 |
Hedging adjustments |
(45) |
26 |
Other items |
0 |
1 |
Deferred taxes on actuarial gains and losses |
3 |
(2) |
Change in translation adjustments |
(189) |
108 |
Other recyclable comprehensive income |
(231) |
133 |
Impact of remeasuring unconsolidated investments |
— |
(1) |
Actuarial gains and losses |
(22) |
88 |
Deferred taxes on actuarial gains and losses |
4 |
(14) |
Other non-recyclable comprehensive income |
(18) |
73 |
Total income and expenses recognized directly in equity |
(249) |
206 |
Total comprehensive income |
176 |
1,172 |
Attributable to non-controlling interest |
0 |
— |
Total comprehensive income - Group share |
176 |
1,172 |
INFORMATION BY SEGMENT | |||||||||||||
4 th quarter 2023 | |||||||||||||
(In millions of euros) | Adhesive Solutions | Advanced Materials | Coating Solutions | Intermediates | Corporate | Total | |||||||
Sales |
642 |
857 |
552 |
161 |
10 |
2,222 |
|||||||
EBITDA |
94 |
149 |
69 |
40 |
(21) |
331 |
|||||||
Recurring depreciation and amortization of property, plant and equipment and intangible assets |
(25) |
(93) |
(32) |
(5) |
(2) |
(157) |
|||||||
Recurring operating income (REBIT) |
69 |
56 |
37 |
35 |
(23) |
174 |
|||||||
Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses |
(25) |
(6) |
(2) |
— |
— |
(33) |
|||||||
Other income and expenses |
(10) |
(44) |
(2) |
1 |
(4) |
(59) |
|||||||
Operating income |
34 |
6 |
33 |
36 |
(27) |
82 |
|||||||
Equity in income of affiliates |
— |
(3) |
— |
1 |
— |
(2) |
|||||||
Intangible assets and property, plant, and equipment additions |
34 |
159 |
53 |
13 |
9 |
268 |
|||||||
Of which: recurring capital expenditure |
34 |
150 |
53 |
13 |
9 |
259 |
|||||||
4 th quarter 2022 | |||||||||||||
(In millions of euros) | Adhesive Solutions | Advanced Materials | Coating Solutions | Intermediates | Corporate | Total | |||||||
Sales |
692 |
1,022 |
603 |
181 |
9 |
2,507 |
|||||||
EBITDA |
75 |
148 |
63 |
24 |
(19) |
291 |
|||||||
Recurring depreciation and amortization of property, plant and equipment and intangible assets |
(21) |
(74) |
(32) |
(16) |
(2) |
(145) |
|||||||
Recurring operating income (REBIT) |
54 |
74 |
31 |
8 |
(21) |
146 |
|||||||
Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses |
(53) |
(4) |
(1) |
— |
— |
(58) |
|||||||
Other income and expenses |
(18) |
(48) |
(1) |
0 |
(3) |
(70) |
|||||||
Operating income |
(17) |
22 |
29 |
8 |
(24) |
18 |
|||||||
Equity in income of affiliates |
— |
(2) |
— |
— |
— |
(2) |
|||||||
Intangible assets and property, plant, and equipment additions |
37 |
202 |
59 |
11 |
9 |
318 |
|||||||
Of which: recurring capital expenditure |
37 |
166 |
59 |
11 |
9 |
282 |
|||||||
INFORMATION BY SEGMENT | |||||||||||||
End of |
|||||||||||||
(In millions of euros) | Adhesive Solutions | Advanced Materials | Coating Solutions | Intermediates | Corporate | Total | |||||||
Sales |
2,714 |
3,562 |
2,402 |
797 |
39 |
9,514 |
|||||||
EBITDA |
380 |
666 |
327 |
213 |
(85) |
1,501 |
|||||||
Recurring depreciation and amortization of property, plant and equipment and intangible assets |
(87) |
(300) |
(126) |
(43) |
(6) |
(562) |
|||||||
Recurring operating income (REBIT) |
293 |
366 |
201 |
170 |
(91) |
939 |
|||||||
Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses |
(102) |
(19) |
(7) |
— |
— |
(128) |
|||||||
Other income and expenses |
(32) |
(81) |
(3) |
— |
(14) |
(130) |
|||||||
Operating income |
159 |
266 |
191 |
170 |
(105) |
681 |
|||||||
Equity in income of affiliates |
— |
(10) |
— |
1 |
— |
(9) |
|||||||
Intangible assets and property, plant, and equipment additions |
82 |
389 |
115 |
28 |
20 |
634 |
|||||||
Of which: recurring capital expenditure |
82 |
363 |
115 |
28 |
20 |
608 |
|||||||
End of |
|||||||||||||
(In millions of euros) | Adhesive Solutions | Advanced Materials | Coating Solutions | Intermediates | Corporate | Total | |||||||
Sales |
2,898 |
4,341 |
3,250 |
1,020 |
41 |
11,550 |
|||||||
EBITDA |
366 |
941 |
593 |
306 |
(96) |
2,110 |
|||||||
Recurring depreciation and amortization of property, plant and equipment and intangible assets |
(78) |
(278) |
(127) |
(61) |
(6) |
(550) |
|||||||
Recurring operating income (REBIT) |
288 |
663 |
466 |
245 |
(102) |
1,560 |
|||||||
Depreciation and amortization related to the revaluation of property, plant and equipment and intangible assets as part of the allocation of the purchase price of businesses |
(95) |
(18) |
(5) |
— |
— |
(118) |
|||||||
Other income and expenses |
(63) |
(79) |
— |
23 |
(36) |
(155) |
|||||||
Operating income |
130 |
566 |
461 |
268 |
(138) |
1,287 |
|||||||
Equity in income of affiliates |
— |
(6) |
— |
— |
— |
(6) |
|||||||
Intangible assets and property, plant, and equipment additions |
85 |
456 |
127 |
20 |
19 |
707 |
|||||||
Of which: recurring capital expenditure |
85 |
333 |
127 |
20 |
19 |
584 |
CONSOLIDATED CASH FLOW STATEMENT | ||
End of |
End of |
|
(In millions of euros) | ||
Operating cash flows | ||
Net income |
425 |
966 |
Depreciation, amortization and impairment of assets |
718 |
707 |
Other provisions and deferred taxes |
(30) |
(45) |
(Gains)/losses on sales of long-term assets |
(34) |
(38) |
Undistributed affiliate equity earnings |
10 |
6 |
Change in working capital |
158 |
(137) |
Other changes |
25 |
37 |
Cash flow from operating activities |
1,272 |
1,496 |
Investing cash flows | ||
Intangible assets and property, plant, and equipment additions |
(634) |
(707) |
Change in fixed asset payables |
(44) |
(23) |
Acquisitions of operations, net of cash acquired |
(714) |
(1,616) |
Increase in long-term loans |
(71) |
(93) |
Total expenditures |
(1,463) |
(2,439) |
Proceeds from sale of intangible assets and property, plant and equipment |
14 |
18 |
Change in fixed asset receivables |
(1) |
— |
Proceeds from sale of operations, net of cash transferred |
32 |
19 |
Repayment of long-term loans |
63 |
61 |
Total divestitures |
108 |
98 |
Cash flow from investing activities |
(1,355) |
(2,341) |
Financing cash flows | ||
Issuance (repayment) of shares and paid-in surplus |
— |
48 |
Purchase of treasury shares |
(32) |
(22) |
Dividends paid to parent company shareholders |
(253) |
(222) |
Interest paid to bearers of subordinated perpetual notes |
(16) |
(16) |
Dividends paid to non-controlling interests and buyout of minority interests |
(3) |
(4) |
Increase in long-term debt |
1,096 |
6 |
Decrease in long-term debt |
(85) |
(233) |
Increase / (Decrease) in short-term debt |
(191) |
611 |
Cash flow from financing activities |
516 |
168 |
Net increase/(decrease) in cash and cash equivalents |
433 |
(677) |
Effect of exchange rates and changes in scope |
20 |
(16) |
Cash and cash equivalents at beginning of period |
1,592 |
2,285 |
Cash and cash equivalents at end of the period |
2,045 |
1,592 |
CONSOLIDATED BALANCE SHEET | ||
|
|
|
(In millions of euros) | ||
ASSETS | ||
|
3,040 |
2,655 |
Other intangible assets, net |
2,416 |
2,178 |
Property, plant and equipment, net |
3,730 |
3,429 |
Equity affiliates: investments and loans |
13 |
24 |
Other investments |
52 |
52 |
Deferred tax assets |
157 |
166 |
Other non-current assets |
251 |
245 |
TOTAL NON-CURRENT ASSETS |
9,659 |
8,749 |
Inventories |
1,208 |
1,399 |
Accounts receivable |
1,261 |
1,360 |
Other receivables and prepaid expenses |
170 |
202 |
Income tax receivables |
142 |
130 |
Other current financial assets |
32 |
57 |
Cash and cash equivalents |
2,045 |
1,592 |
Assets held for sale |
— |
22 |
TOTAL CURRENT ASSETS |
4,848 |
4,762 |
TOTAL ASSETS |
14,517 |
13,511 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Share capital |
750 |
750 |
Paid-in surplus and retained earnings |
6,304 |
6,218 |
|
(21) |
(20) |
Translation adjustments |
170 |
352 |
SHAREHOLDERS' EQUITY - GROUP SHARE |
7,203 |
7,300 |
Non-controlling interests |
252 |
39 |
TOTAL SHAREHOLDERS' EQUITY |
7,455 |
7,339 |
Deferred tax liabilities |
436 |
362 |
Provisions for pensions and other employee benefits |
397 |
382 |
Other provisions and non-current liabilities |
416 |
458 |
Non-current debt |
3,734 |
2,560 |
TOTAL NON-CURRENT LIABILITIES |
4,983 |
3,762 |
Accounts payable |
1,036 |
1,149 |
Other creditors and accrued liabilities |
392 |
437 |
Income tax payables |
83 |
109 |
Other current financial liabilities |
27 |
13 |
Current debt |
541 |
698 |
Liabilities related to assets held for sale |
— |
4 |
TOTAL CURRENT LIABILITIES |
2,079 |
2,410 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
14,517 |
13,511 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||
Shares issued |
|
Shareholders' equity - Group share | Non-controlling interests * | Shareholders' equity | |||||||
(In millions of euros) | Number | Amount | Paid-in surplus | Hybrid bonds | Retained earnings | Translation adjustments | Number | Amount | |||
At 1st |
75,043,514 |
750 |
1,067 |
700 |
4,451 |
352 |
(231,087) |
(20) |
7,300 |
39 |
7,339 |
Cash dividend |
— |
— |
— |
— |
(269) |
— |
— |
— |
(269) |
(3) |
(272) |
Issuance of share capital |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Capital decrease by cancellation of treasury shares |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Purchase of treasury shares |
— |
— |
— |
— |
— |
— |
(357,726) |
(32) |
(32) |
— |
(32) |
Grants of treasury shares to employees |
— |
— |
— |
— |
(31) |
— |
359,912 |
31 |
0 |
— |
0 |
Share-based payments |
— |
— |
— |
— |
25 |
— |
— |
— |
25 |
— |
25 |
Issuance of hybrid bonds |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Redemption of hybrid bonds |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
Other |
— |
— |
— |
— |
3 |
— |
— |
— |
3 |
216 |
219 |
Transactions with shareholders |
— |
— |
— |
— |
(272) |
— |
2,186 |
(1) |
(273) |
213 |
(60) |
Net income |
— |
— |
— |
— |
418 |
— |
— |
— |
418 |
7 |
425 |
Total income and expense recognized directly through equity |
— |
— |
— |
— |
(60) |
(182) |
— |
— |
(242) |
(7) |
(249) |
Comprehensive income |
— |
— |
— |
— |
358 |
(182) |
— |
— |
176 |
0 |
176 |
At |
75,043,514 |
750 |
1,067 |
700 |
4,537 |
170 |
(228,901) |
(21) |
7,203 |
252 |
7,455 |
* The "Other" line corresponds to the share of the |
|||||||||||
ALTERNATIVE PERFORMANCE INDICATORS | ||||
To monitor and analyse the financial performance of the Group and its activities, the Group management uses alternative performance indicators. These are financial indicators that are not defined by the IFRS. This note presents a reconciliation of these indicators and the aggregates from the consolidated financial statements under IFRS. | ||||
RECURRING OPERATING INCOME (REBIT) AND EBITDA | ||||
(In millions of euros) |
End of |
End of |
4 th quarter 2023 | 4 th quarter 2022 |
OPERATING INCOME |
681 |
1,287 |
82 |
18 |
- Depreciation and amortization related to the revaluation of tangible and intangible assets as part of the allocation of the purchase price of businesses |
(128) |
(118) |
(33) |
(58) |
- Other income and expenses |
(130) |
(155) |
(59) |
(70) |
RECURRING OPERATING INCOME (REBIT) |
939 |
1,560 |
174 |
146 |
- Recurring depreciation and amortization of tangible and intangible assets |
(562) |
(550) |
(157) |
(145) |
EBITDA |
1,501 |
2,110 |
331 |
291 |
Details of depreciation and amortization of tangible and intangible assets: | ||||
(In millions of euros) |
End of |
End of |
4 th quarter 2023 | 4 th quarter 2022 |
Depreciation and amortization of tangible and intangible assets |
(718) |
(707) |
(206) |
(215) |
Of which: Recurring depreciation and amortization of tangible and intangible assets |
(562) |
(550) |
(157) |
(145) |
Of which: Depreciation and amortization related to the revaluation of assets as part of the allocation of the purchase price of businesses |
(128) |
(118) |
(33) |
(58) |
Of which: Impairment included in other income and expenses |
(28) |
(39) |
(16) |
(12) |
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE | ||||
(In millions of euros) |
End of |
End of |
4 th quarter 2023 | 4 th quarter 2022 |
NET INCOME - GROUP SHARE |
418 |
965 |
20 |
11 |
- Depreciation and amortization related to the revaluation of tangible and intangible assets as part of the allocation of the purchase price of businesses |
(128) |
(118) |
(33) |
(58) |
- Other income and expenses |
(130) |
(155) |
(59) |
(70) |
- Other income and expenses - Non-controlling interests |
— |
— |
— |
— |
- Taxes on depreciation and amortization related to the revaluation of assets as part of the allocation of the purchase price of businesses |
30 |
25 |
7 |
13 |
- Taxes on other income and expenses |
14 |
27 |
0 |
22 |
- One-time tax effects |
(21) |
19 |
(2) |
16 |
ADJUSTED NET INCOME |
653 |
1,167 |
107 |
88 |
Weighted average number of ordinary shares |
74,647,205 |
74,095,040 |
||
Weighted average number of potential ordinary shares |
75,043,514 |
74,420,933 |
||
ADJUSTED EARNINGS PER SHARE (in euros) |
8.75 |
15.75 |
1.43 |
1.16 |
DILUTED ADJUSTED EARNINGS PER SHARE (in euros) |
8.70 |
15.68 |
1.42 |
1.16 |
RECURRING CAPITAL EXPENDITURE | ||||
(In millions of euros) |
End of |
End of |
4 th quarter 2023 | 4 th quarter 2022 |
INTANGIBLE ASSETS AND PROPERTY, PLANT, AND EQUIPMENT ADDITIONS |
634 |
707 |
268 |
318 |
- Exceptional capital expenditure |
26 |
123 |
9 |
36 |
- Investments relating to portfolio management operations |
— |
— |
— |
— |
- Capital expenditure with no impact on net debt |
— |
— |
0 |
— |
RECURRING CAPITAL EXPENDITURE |
608 |
584 |
259 |
282 |
CASH FLOWS AND EBITDA TO CASH CONVERSION RATE | ||||
(In millions of euros) |
End of |
End of |
4 th quarter 2023 | 4 th quarter 2022 |
Cash flow from operating activities |
1,272 |
1,496 |
462 |
457 |
+ Cash flow from investing activities |
(1,355) |
(2,341) |
(843) |
(259) |
|
(83) |
(845) |
(381) |
198 |
- Net cash flow from portfolio management operations |
(708) |
(1,629) |
(664) |
(1) |
FREE CASH FLOW |
625 |
784 |
283 |
199 |
Exceptional capital expenditure |
(26) |
(123) |
(9) |
(36) |
- Non-recurring cash flow |
(110) |
(26) |
(33) |
(3) |
RECURRING CASH FLOW |
761 |
933 |
325 |
238 |
The net cash flow from portfolio management operations corresponds to the impact of acquisition and divestment operations. | ||||
Non-recurring cash flow corresponds to cash flow from other income and expenses. | ||||
(In millions of euros) |
End of |
End of |
||
RECURRING CASH FLOW |
761 |
933 |
||
EBITDA |
1,501 |
2,110 |
||
EBITDA TO CASH CONVERSION RATE |
50.7% |
44.2% |
||
NET DEBT | ||
(In millions of euros) |
End of |
End of |
Non-current debt |
3,734 |
2,560 |
+ Current debt |
541 |
698 |
- Cash and cash equivalents |
2,045 |
1,592 |
NET DEBT |
2,230 |
1,666 |
+ Hybrid bonds |
700 |
700 |
NET DEBT AND HYBRID BONDS |
2,930 |
2,366 |
WORKING CAPITAL | ||
(In millions of euros) |
End of |
End of |
Inventories |
1,208 |
1,399 |
+ Accounts receivable |
1,261 |
1,360 |
+ Other receivables including income taxes |
312 |
332 |
+ Other current financial assets |
32 |
57 |
- Accounts payable |
1,036 |
1,149 |
- Other liabilities including income taxes |
475 |
546 |
- Other current financial liabilities |
27 |
13 |
WORKING CAPITAL |
1,275 |
1,440 |
CAPITAL EMPLOYED | ||
(In millions of euros) |
End of |
End of |
|
3,040 |
2,655 |
+ Intangible assets (excluding goodwill), and property, plant and equipment, net |
6,146 |
5,607 |
+ Investments in equity affiliates |
13 |
24 |
+ Other investments and other non-current assets |
303 |
297 |
+ Working capital |
1,275 |
1,440 |
CAPITAL EMPLOYED |
10,777 |
10,023 |
Adjustment * |
(1,038) |
13 |
ADJUSTED CAPITAL EMPLOYED |
9,739 |
10,036 |
* In 2022, elements of capital employed classified as assets held for sale ( In 2023, capital employed relating to PIAM, consolidated at the end of the year and with no material contribution to income for the year. |
||
RETURN ON CAPITAL EMPLOYED (ROCE) | ||
(In millions of euros) |
End of |
End of |
Recurring operating income (REBIT) |
939 |
1,560 |
Adjusted capital employed |
9,739 |
10,036 |
ROCE |
9.6 % |
15.5 % |
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