30 April 2024
Elementis
plc
First
quarter trading update
Sales and
profit growth with margin improvement; CMD objectives on
track.
Elementis plc ("Elementis" or the
"Group"), a global specialty chemicals company, today issues its
scheduled trading update for the three months ("the quarter") ended
31 March 2024.
Elementis will publish its interim
results for the six months to 30 June 2024 on 1 August
2024.
Business performance
The Group delivered a good first
quarter performance, with constant currency revenue up by 3%,
adjusted operating profit up by double digits, and a material
improvement in operating margin, compared to Q1 2023.
Personal Care sales in the quarter were broadly flat on the strong prior
year period. We saw good growth in Cosmetics, offset by an expected
slower start to the year in AP Actives due to order
phasing.
Performance Specialties
delivered an improved performance in the quarter,
with sales and profit above a weak prior year period.
· Coatings sales increased low
double-digit percentage versus the prior year period, benefiting
from volume restocking and improved mix.
· Talc had a challenging quarter,
impacted by the Finnish transport workers' union strike in early
March, closing ports and stopping railway freight traffic for four
weeks. This resulted in higher logistics costs and reduced sales in
the quarter.
Cash generation in the first quarter
was in line with expectations, with further reduction in inventory
levels.
Outlook
The year has started well. Whilst we
have not yet seen a positive step change in the demand environment,
we remain confident about our ability to deliver profit growth and
margin improvement in line with
expectations1.
Implementation of the growth and
efficiency programmes presented at the November 2023 Capital
Markets Day ("CMD") is progressing well. Self help is critical in
this, particularly the $30 million of cost savings commitment, and
we are on-track to deliver $12 million this year and $18 million in
2025. In addition, we launched five new products and delivered $13
million of sales from new business in the first quarter, despite a
continued challenging demand environment.
Paul Waterman, CEO of Elementis,
said:
"Elementis has had a good start to the 2024 financial year,
with our focus firmly on the execution of our CMD objectives. I am
confident that our clear strategy focused on innovation, growth and
efficiency will allow us to achieve a significant improvement in
our full-year performance and continued margin expansion, in line
with expectations1."
Note: 1. Based on company compiled
consensus dated 25 April 2024, adjusted operating profit of $117
million and adjusted operating margin of 15.8% for the financial
year 2024.
Enquiries
Investors: Eva Hatfield, Elementis plc
Tel: +44 7553
340380
Press:
Martin Robinson/Olivia Peters,
Teneo
Tel: +44 (0) 20 7353 4200