Trading UpdateSource: RNS
Full-year results in line with 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 2022(1).
The Group delivered a solid performance during the fourth quarter, despite experiencing weaker trading conditions as the macro-economic environment deteriorated through the period. Underlying operating profit for 2022 (including Discontinued Operations) is expected to be in the range $120-123m, in line with market expectations(2) and significantly ahead of the prior year.
· Coatings performed well, with pro-active pricing actions and product mix improvement offsetting weaker demand in European and Asian markets and customer destocking.
· Personal Care continued to perform strongly. In Cosmetics, pricing actions more than offset continuing cost inflation and some weakening of demand in certain regions. AP Actives demand remained robust.
· Talc performance remained materially below the prior year, due to continued volume weakness in its European markets, in particular automotive, and higher energy and logistics costs.
Net debt at the end of 2022 is anticipated to be approximately $367m (excluding lease liabilities), representing a leverage ratio of 2.2x net debt to EBITDA(3), down from 2.6x at the start of the year.
The sale of the Chromium business remains on track to complete during the first quarter of 2023 and to deliver net cash proceeds of approximately $107m, further reducing the Group's leverage ratio.
Preliminary full-year 2022 Results will be released on 7 March 2023.
David Boyd, Investor Relations Tel: +44 7764 905135
Martin Robinson Tel: 020 7353 4200
(1) Including the Chromium business which will be reported in 2022 as "Asset Held for Sale" and "Discontinued Operation".
(2) Based on company compiled consensus, the Board believes the average market forecast for 2022 adjusted operating profit (including Discontinued Operations) to be $121m.
(3) Excluding IFRS 16 impact