High-level EBITDA margin and increase in third-quarter sales
despite a macroenvironment remaining challenging, notably in
Europe
Sales of €2.4 billion, up by 2.9%
year-on-year:
- Volumes up by 2.2% in an environment of global weak demand,
particularly in Europe, while supported by certain markets such as
energy, sports, healthcare and packaging
- Broadly stable price effect at a negative 0.2%, reflecting
dynamic management of selling prices in a raw materials environment
that has stabilized overall
EBITDA up by 5.4% to €407 million (€386
million in Q3'23), driven in particular by strong growth in
Adhesive Solutions and Advanced Materials, and better resilience in
the US and Asia
EBITDA margin up, reaching the high level of 17.0%
(16.6% in Q3'23), reflecting the quality of the Group's positioning
and technologies, its balanced geographical footprint, as well as
strict management of its operations
Adjusted net income down slightly to €168 million,
representing €2.25 per share (€2.38 in Q3'23)
Solid recurring cash flow of €190 million and
net debt tightly controlled at €3.1 billion
(including hybrid bonds), down from €3.3 billion at the end of June
and representing 2.0x last twelve-months EBITDA
2024 guidance: As the rebound of the macroeconomic
environment has not materialized yet, the Group is targeting for
2024 an EBITDA at the lower end of its guidance range of €1.53
billion.
Regulatory News:
Arkema (Paris:AKE):
Following Arkema’s Board of Directors’ meeting held on 5
November 2024 to review the Group’s consolidated financial
information for the third quarter of 2024, Chairman and CEO Thierry
Le Hénaff said:
“Arkema's Specialty Materials sales grew by 4% year-on-year
despite a third quarter marked by a challenging environment,
particularly in Europe. After an encouraging July, the end of the
quarter was marked by weaker demand. I would like to congratulate
our teams, whose efforts in this unfavorable environment have
enabled the Group to achieve a strong financial performance. In
particular, our EBITDA margin increased to reach 17%, showing our
resilience and validating our strategy of focusing on Specialty
Materials.
Over the coming months, we will be maintaining our efforts on
strict management of costs, capital expenditure and working
capital. We will also continue to progress on our major growth
projects in order to start 2025 in the best possible position. We
are also looking forward to welcoming Dow’s teams very soon,
following the closing of the acquisition of the flexible packaging
laminating adhesives business, expected by the end of the year, and
which will mark a new chapter in Bostik's growth in
high-performance adhesives.”
KEY FIGURES FOR THIRD-QUARTER 2024
in millions of euros
Q3'24 Q3'23 Change
Sales
2,394
2,326
+2.9% EBITDA
407
386
+5.4% Specialty Materials
377
346
+9.0% Intermediates
51
55
-7.3%
Corporate
-21
-15
EBITDA margin
17.0%
16.6%
Specialty Materials
17.2%
16.4%
Intermediates
26.7%
26.7%
Recurring operating income (REBIT)
246
246
-
REBIT margin
10.3%
10.6%
Adjusted net income
168
177
-5.1%
Adjusted net income per share (in €)
2.25
2.38
-5.5%
Recurring cash flow
190
312
Free cash flow
175
273
Net debt including hybrid bonds
3,111
2,419
€2,930m as of 31/12/2023
THIRD-QUARTER 2024 BUSINESS PERFORMANCE
At €2,394 million, Group sales were up by 2.9%
compared with third-quarter 2023, supported by Specialty Materials,
which benefited in particular from positive organic growth in Asia
and North America, while Europe was down, and from PIAM
integration. In a macroeconomic environment still challenging, with
no recovery in demand and marked by customer destocking at the end
of the quarter, Group volumes were nevertheless up 2.2% on last
year. Specialty Materials volumes increased by 3.8%, supported by
some more buoyant markets such as energy, sports, packaging and
healthcare, while construction is showing no signs of improvement
and the automotive sector is slowing down, notably in Europe.
Intermediates volumes were down by 12.1%, impacted by existing
quota mechanisms in refrigerant gases. The price effect remained
broadly stable (down 0.2%), with a slight decrease in Specialty
Materials (down 0.7%), in line with the overall raw materials’
evolution, offset by a positive dynamic in refrigerant gases. The
2.3% positive scope effect corresponds essentially to the
acquisition of PIAM in Advanced Materials. The currency effect was
a negative 1.4%, reflecting the depreciation of the US dollar and
Latin American currencies against the euro.
Group EBITDA was up 5.4% year-on-year to €407
million (€386 million in Q3'23). With an increase in each of
its three segments and particularly in Adhesive Solutions and
Advanced Materials, Specialty Materials EBITDA increased
significantly by 9.0%. Intermediates remained at a solid level,
although down on the prior year. EBITDA included the contribution
of major organic growth projects, which will continue to ramp up
over the coming quarters to serve attractive markets such as
sustainable consumer goods, green energy, mobility, sports and
efficient housing. The EBITDA margin was up 40 bps on last
year, at a very good level of 17.0% (16.6% in Q3'23),
reflecting, in this lackluster market environment, the quality of
the Group's positioning and technology portfolio, its balanced
geographical footprint as well as its strict management of
operations.
At €246 million, recurring operating income
(REBIT) was stable compared with third-quarter 2023, including €161
million in recurring depreciation and amortization, up €21 million
year-on-year, mainly reflecting the consolidation of PIAM and the
start-up of new production units for Advanced Materials. REBIT
margin in the third quarter of 2024 thus amounted to 10.3%
(10.6% in Q3’23).
Adjusted net income came to €168 million (€177
million in Q3’23), representing €2.25 per share, including a
tax rate, excluding exceptional items, of 22% of recurring
operating income.
CASH FLOW AND NET DEBT AT 30 SEPTEMBER 2024
Arkema delivered a solid recurring cash flow of €190
million. It was down compared with the prior year (€312 million
in Q3'23), reflecting a less significant change in working capital
and an increase in capital expenditure to €167 million (€137
million in Q3'23) corresponding to the implementation of major
projects. Working capital remained well controlled, representing
16.4% of annualized sales at end-September 2024 (16.3% at
end-September 2023). Over the full year, capital expenditure is
expected to come in at around €770 million, in line with full-year
guidance. After fine-tuning its analysis of potential future
capital expenditure, and taking into account a slower pace of
ramp-up of the electric vehicle market, the Group has adjusted the
envelop of capital expenditure that was announced at the Capital
Markets Day in September 2023, and now plans to spend between €650
million and €700 million a year.
At €175 million, free cash flow included a
non-recurring cash outflow of €15 million related notably to
start-up costs for the Singapore platform and restructuring
expenses.
Net debt (including hybrid bonds) remained tightly
controlled and decreased slightly over the quarter to €3,111
million (€3,270 million at end-June 2024), returning to the
level of 2x last twelve-months EBITDA.
THIRD-QUARTER 2024 PERFORMANCE BY SEGMENT
ADHESIVE SOLUTIONS (29% OF TOTAL GROUP SALES)
in millions of euros
Q3'24 Q3'23 Change
Sales
682
682
-
EBITDA
107
98
+9.2% EBITDA margin
15.7%
14.4%
Recurring operating income (REBIT)
86
77
+11.7% REBIT margin
12.6%
11.3%
Sales in the Adhesive Solutions segment were stable
year-on-year at €682 million. This was supported by a 1.9%
rise in volumes, reflecting notably a good dynamic in the packaging
and labelling markets, while the construction sector remained
challenging. At negative 1%, the price effect was limited and
reflected the lower price of certain raw materials. The positive
scope effect of 0.6% corresponds to the integration of Arc Building
Products, and the currency effect was a negative 1.5%.
At €107 million, EBITDA was up significantly by
9.2% compared with the previous year, and EBITDA margin
reached a record level at 15.7%, up 130 bps on third-quarter
2023. This very good performance confirms the relevance of the
segment's development strategy, which is based on product mix
improvement toward higher value-added solutions, targeted
high-quality acquisitions, active price and cost management as well
as operational excellence initiatives.
ADVANCED MATERIALS (37% OF TOTAL GROUP SALES)
in millions of euros
Q3'24 Q3'23 Change
Sales
885
856
+3.4% EBITDA
189
172
+9.9% EBITDA margin
21.4%
20.1%
Recurring operating income (REBIT)
95
100
-5.0%
REBIT margin
10.7%
11.7%
Sales in the Advanced Materials segment were up by 3.4%
compared with third-quarter 2023 to €885 million. The
segment’s volumes rose by 2.0%, supported by the sports, energy and
healthcare markets. However, they were negatively impacted by the
slowdown in the automotive sector, notably in Europe, and the
temporary shutdown of our German organic peroxides facility
following the exceptional flooding of the Danube in early June. The
price effect was a negative 2.3%, mainly reflecting changes in raw
material prices. The segment's sales also benefited from a positive
5.7% scope effect due to the contribution of PIAM, and the currency
was a negative 2.0%.
At €189 million, the segment's EBITDA rose sharply
by 9.9% year-on-year (€172 million in Q3'23). High Performance
Polymers EBITDA was up significantly, benefiting from the
contribution of new projects, the integration of PIAM and good
momentum in high value-added fluorospecialties. Performance
Additives EBITDA was down on the Q3’23 high comparison base and
included the negative impact of the temporary shutdown of the
organic peroxides facility in Germany, estimated at approximately
€8 million over the quarter. The EBITDA margin was
substantially up reaching a very good level at 21.4% (20.1%
in Q3’23).
COATING SOLUTIONS (26% OF TOTAL GROUP SALES)
in millions of euros
Q3'24 Q3'23 Change
Sales
627
572
+9.6% EBITDA
81
76
+6.6% EBITDA margin
12.9%
13.3%
Recurring operating income (REBIT)
49
43
+14.0% REBIT margin
7.8%
7.5%
Sales in the Coating Solutions segment were up by a sharp
9.6% compared with third-quarter 2023 to €627 million.
Compared with last year's baseline, which was marked by destocking,
volumes rose by 8.7% in an environment that remains relatively
challenging, particularly in the upstream, and were supported
mainly by the coatings, notably architectural, hygiene and water
treatment markets. At a positive 2.1%, the price effect mainly
reflected the impact of higher propylene prices in the United
States on acrylic monomer prices, and the currency effect was a
negative 1.2%.
At €81 million, the segment's EBITDA rose
substantially by 6.6% (€76 million in Q3'23), supported by positive
volume trends, strict management of costs and operations and the
ramp-up of Sartomer's organic project in China. In this
environment, the EBITDA margin held up well and stood at
12.9% (13.3% in Q3'23).
INTERMEDIATES (8% OF TOTAL GROUP SALES)
in millions of euros
Q3'24 Q3'23 Change
Sales
191
206
-7.3%
EBITDA
51
55
-7.3%
EBITDA margin
26.7%
26.7%
Recurring operating income (REBIT)
39
42
-7.1%
REBIT margin
20.4%
20.4%
Sales in the Intermediates segment totaled €191
million, down by 7.3% compared with third-quarter 2023. Volumes
were down 12.1%, impacted by the effect of existing quota
mechanisms in refrigerant gases, partly offset by higher acrylics
volumes in China. Prices rose by 4.8%, driven essentially by the
impact of quota mechanisms in refrigerant gases.
In this context, segment EBITDA came in at €51
million (€55 million in Q3’23) and the EBITDA margin
remained at a good level at 26.7% (26.7% in Q3’23).
HIGHLIGHTS
On 29 August 2024, Arkema announced several appointments to its
Executive Committee. Sophie Fouillat has been appointed as
Executive Vice President, Strategy, replacing Bernard Boyer who is
retiring. Tilo Quink has joined the Group to take up the role of
Senior Vice President, Performance Additives. Laurent Tellier, who
previously held this position, has been appointed Senior Vice
President High Performance Polymers and Fluorogases, replacing
Erwoan Pezron. Erwoan Pezron becomes advisor to the Chairman and
Chief Executive Officer, while remaining a member of the Executive
Committee until his retirement at the end of the year.
On 5 September 2024, Arkema successfully completed a €500
million senior bond issue with a 10-year maturity and an annual
coupon of 3.50%. This operation will enable the Group to continue
to refinance its upcoming bond maturities and extend the average
maturity of its debt.
On 30 October 2024, Arkema finalized a share capital increase
reserved for employees, for a total of close to 8,700 subscriptions
and a global amount of €61.8 million, thus demonstrating the strong
commitment of Group employees and their confidence in Arkema’s
development opportunities. The newly issued shares are fully
assimilated to the existing shares and will be entitled to the
dividend payment in 2025.
OUTLOOK FOR 2024
With a still lackluster macroeconomic environment expected for
the rest of the year, marked by limited visibility and a continued
weak demand environment, the Group will focus on strictly managing
its operating costs and optimizing its working capital in line with
demand. In parallel, work on the longer term will continue, with
the ongoing ramp-up of the organic projects, the closing of the
acquisition of Dow's flexible packaging laminating adhesives
business, as well as the first steps in the start-up of the
HFO-1233zd fluorospecialties unit in the United States.
In this context, based on the results of the first nine months,
Arkema expects to achieve in 2024 an EBITDA at the lower end of its
guidance range of €1.53 billion.
Finally, the Group will continue to implement its strategic
roadmap, leveraging its cutting-edge innovation, strengthening
partnerships with its customers, and deploying its portfolio of
technologies to support the development of solutions for a less
carbon-intensive and more sustainable world.
Further details concerning the Group's third-quarter 2024
results are provided in the "Third-quarter 2024 results and
outlook" presentation and the "Factsheet", both available on
Arkema's website at:
www.arkema.com/global/en/investor-relations/
FINANCIAL CALENDAR
27 February 2025: Publication of full-year results 7 May 2025:
Publication of first-quarter 2025 results
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 Arkema.
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
material prices, currency fluctuations, the pace at which
cost-reduction projects are implemented, escalating geopolitical
tensions, and changes in general economic and financial conditions.
Arkema does not assume any liability to update such forward-looking
statements whether as a result of any new information or any
unexpected event or otherwise. Further information on factors which
could affect Arkema's financial results is provided in the
documents filed with the French Autorité des marchés
financiers.
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 information at 30
September 2024, as reviewed by Arkema's Board of Directors on 5
November 2024. Quarterly financial information is not audited.
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,
Arkema offers a portfolio of first-class technologies to
address ever-growing demand for new and sustainable materials. With
the ambition to become a pure player in Specialty Materials, the
Group is structured into three complementary, resilient and highly
innovative segments dedicated to Specialty Materials – Adhesive
Solutions, Advanced Materials, and Coating Solutions – accounting
for some 92% of Group sales in 2023, and a well-positioned and
competitive Intermediates segment. Arkema offers cutting-edge
technological solutions to meet the challenges of, among other
things, new energies, access to water, recycling, urbanization and
mobility, and fosters a permanent dialogue with all its
stakeholders. The Group reported sales of around €9.5 billion in
2023, and operates in some 55 countries with 21,100 employees
worldwide.
ARKEMA financial
statements
Consolidated financial information at the
end of September 2024
Consolidated financial statements as end of December 2023 have
been audited.
CONSOLIDATED INCOME STATEMENT 3rd quarter 2024 3rd quarter 2023 (In millions of euros)
Sales
2,394
2,326
Operating expenses
(1,917)
(1,835)
Research and development expenses
(47)
(68)
Selling and administrative expenses
(222)
(209)
Other income and expenses
(24)
(32)
Operating income
184
182
Equity in income of affiliates
(2)
(2)
Financial result
(20)
(9)
Income taxes
(42)
(54)
Net income
120
117
Attributable to non-controlling interests
2
3
Net income - Group share
118
114
Earnings per share (amount in euros)
1.43
1.39
Diluted earnings per share (amount in euros)
1.42
1.37
End of September 2024
End of September 2023 (In
millions of euros)
Sales
7,271
7,292
Operating expenses
(5,755)
(5,757)
Research and development expenses
(184)
(204)
Selling and administrative expenses
(695)
(661)
Other income and expenses
(101)
(71)
Operating income
536
599
Equity in income of affiliates
(4)
(7)
Financial result
(53)
(44)
Income taxes
(130)
(146)
Net income
349
402
Attributable to non-controlling interests
7
4
Net income - Group share
342
398
Earnings per share (amount in euros)
4.36
5.12
Diluted earnings per share (amount in euros)
4.34
5.09
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
3rd quarter 2024
3rd
quarter 2023 (In millions of
euros)
Net income
120
117
Hedging adjustments
13
(13)
Other items
—
0
Deferred taxes on hedging adjustments and other items
(1)
0
Change in translation adjustments
(155)
109
Other recyclable comprehensive income
(143)
96
Impact of remeasuring unconsolidated investments
0
0
Actuarial gains and losses
(14)
26
Deferred taxes on actuarial gains and losses
3
(5)
Other non-recyclable comprehensive income
(11)
21
Total income and expenses recognized directly in equity
(154)
117
Total comprehensive income
(34)
234
Attributable to non-controlling interest
2
3
Total comprehensive income - Group share
(36)
231
End of September
2024 End of September
2023 (In millions of euros)
Net income
349
402
Hedging adjustments
10
(51)
Other items
0
0
Deferred taxes on hedging adjustments and other items
(1)
2
Change in translation adjustments
(84)
(34)
Other recyclable comprehensive income
(75)
(83)
Impact of remeasuring unconsolidated investments
(1)
0
Actuarial gains and losses
4
19
Deferred taxes on actuarial gains and losses
(1)
(4)
Other non-recyclable comprehensive income
2
15
Total income and expenses recognized directly in equity
(73)
(68)
Total comprehensive income
276
334
Attributable to non-controlling interest
(4)
2
Total comprehensive income - Group share
280
332
INFORMATION BY SEGMENT
3rd
quarter 2024 (In millions of
euros)
Adhesive Solutions Advanced Materials
Coating Solutions Intermediates Corporate
Total Sales
682
885
627
191
9
2,394
EBITDA
107
189
81
51
(21)
407
Recurring depreciation and amortization of property, plant and
equipment and intangible assets
(21)
(94)
(32)
(12)
(2)
(161)
Recurring operating income (REBIT)
86
95
49
39
(23)
246
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
(28)
(8)
(2)
-
-
(38)
Other income and expenses
(9)
(13)
0
0
(2)
(24)
Operating income
49
0
74
47
39
(25)
184
Equity in income of affiliates
-
(2)
-
-
-
(2)
Intangible assets and property, plant, and equipment
additions
21
100
28
3
15
167
Of which: recurring capital expenditure
21
100
28
3
15
167
3rd quarter 2023
(In millions of euros)
Adhesive Solutions Advanced
Materials Coating Solutions Intermediates
Corporate Total Sales
682
856
572
206
10
2,326
EBITDA
98
172
76
55
(15)
386
Recurring depreciation and amortization of property, plant and
equipment and intangible assets
(21)
(72)
(33)
(13)
(1)
(140)
Recurring operating income (REBIT)
77
100
43
42
(16)
246
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
(26)
(5)
(1)
0
-
-
(32)
Other income and expenses
(10)
(21)
0
0
(1)
0
(32)
Operating income
41
74
42
0
41
(16)
182
Equity in income of affiliates
-
(2)
-
0
-
-
(2)
Intangible assets and property, plant, and equipment
additions
15
93
23
0
7
4
142
Of which: recurring capital expenditure
15
88
23
0
7
4
137
INFORMATION BY SEGMENT
End of September 2024 (In
millions of euros)
Adhesive Solutions Advanced
Materials Coating Solutions Intermediates
Corporate Total Sales
2,068
2,681
1,890
603
29
7,271
EBITDA
321
541
247
174
(75)
1,208
Recurring depreciation and amortization of property, plant and
equipment and intangible assets
(65)
(263)
(93)
(32)
(5)
(458)
Recurring operating income (REBIT)
256
278
154
142
(80)
750
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
(81)
(27)
(5)
-
-
(113)
Other income and expenses
(25)
(64)
0
(1)
(11)
(101)
Operating income
150
187
149
141
(91)
536
Equity in income of affiliates
-
(4)
-
-
-
(4)
Intangible assets and property, plant, and equipment
additions*
48
276
71
14
27
436
Of which: recurring capital expenditure*
48
276
71
14
27
0
436
*includes a correction related to Q1’24 data resulting from
a transfer of figures between Coating Solutions and Intermediates
End of September 2023
(In millions of euros)
Adhesive Solutions Advanced
Materials Coating Solutions Intermediates
Corporate Total Sales
2,072
2,705
1,850
636
29
7,292
EBITDA
286
517
258
173
(64)
1,170
Recurring depreciation and amortization of property, plant and
equipment and intangible assets
(62)
(207)
(94)
(38)
(4)
(405)
Recurring operating income (REBIT)
224
310
164
135
(68)
765
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
(77)
(13)
(5)
—
—
(95)
Other income and expenses
(22)
(37)
(1)
(1)
(10)
(71)
Operating income
125
260
158
134
(78)
599
Equity in income of affiliates
—
(7)
—
—
—
(7)
Intangible assets and property, plant, and equipment
additions
48
230
62
15
11
366
Of which: recurring capital expenditure
48
213
62
15
11
349
CONSOLIDATED CASH FLOW STATEMENT
End of September 2024
End of September 2023
(In millions of euros)
Operating cash flows
Net income
349
402
Depreciation, amortization and impairment of assets
582
512
Other provisions and deferred taxes
16
(70)
(Gains)/losses on sales of long-term assets
3
(29)
Undistributed affiliate equity earnings
4
7
Change in working capital
(262)
(27)
Other changes
22
15
Cash flow from operating activities
714
810
Investing cash flows Intangible assets and
property, plant, and equipment additions
(436)
(366)
Change in fixed asset payables
(75)
(131)
Acquisitions of operations, net of cash acquired
(29)
(66)
Increase in long-term loans
(63)
(45)
Total expenditures
(603)
(608)
Proceeds from sale of intangible assets and property, plant,
and equipment
5
8
Proceeds from sale of operations, net of cash transferred
—
32
Repayment of long-term loans
52
56
Total divestitures
57
96
Cash flow from investing activities
(546)
(512)
Financing cash flows Issuance (repayment) of
shares and paid-in surplus
—
0
Purchase of treasury shares
(24)
(32)
Issuance of hybrid bonds
399
—
Redemption of hybrid bonds
(400)
—
Dividends paid to parent company shareholders
(261)
(253)
Interest paid to bearers of subordinated perpetual notes
(16)
(16)
Dividends paid to non-controlling interests and buyout of minority
interests
(2)
(3)
Increase in long-term debt
494
397
Decrease in long-term debt
(764)
(63)
Increase / (Decrease) in short-term debt
327
(31)
Cash flow from financing activities
(247)
(1)
Net increase/(decrease) in cash and cash equivalents
(79)
297
Effect of exchange rates and changes in scope
29
11
Cash and cash equivalents at beginning of period
2,045
1,592
Cash and cash equivalents at end or the period
1,995
1,900
CONSOLIDATED BALANCE SHEET
30 September 2024
31 December 2023 (In
millions of euros)
ASSETS Goodwill
3,011
3,040
Intangible assets, net
2,331
2,416
Property, plant and equipment, net
3,735
3,730
Equity affiliates: investments and loans
11
13
Other investments
56
52
Deferred tax assets
111
157
Other non-current assets
258
251
TOTAL NON-CURRENT ASSETS
9,513
9,659
Inventories
1,392
1,208
Accounts receivable
1,412
1,261
Other receivables and prepaid expenses
195
170
Income tax receivables
106
142
Other current financial assets
24
32
Cash and cash equivalents
1,995
2,045
Assets held for sale
19
—
TOTAL CURRENT ASSETS
5,143
4,858
TOTAL ASSETS
14,656
14,517
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital
750
750
Paid-in surplus and retained earnings
6,402
6,304
Treasury shares
(44)
(21)
Translation adjustments
97
170
SHAREHOLDERS' EQUITY - GROUP SHARE
7,205
7,203
Non-controlling interests
247
252
TOTAL SHAREHOLDERS' EQUITY
7,452
7,455
Deferred tax liabilities
407
436
Provisions for pensions and other employee benefits
391
397
Other provisions and non-current liabilities
429
416
Non-current debt
3,540
3,734
TOTAL NON-CURRENT LIABILITIES
4,767
4,983
Accounts payable
993
1,036
Other creditors and accrued liabilities
472
392
Income tax payables
71
83
Other current financial liabilities
23
27
Current debt
866
541
Liabilities related to assets held for sale
12
—
TOTAL CURRENT LIABILITIES
2,437
2,079
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
14,656
14,517
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’
EQUITY Shares issued Treasury
shares 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 1
January 2024
75,043,514
750
1,067
700
4,537
170
(228,901)
(21)
7,203
252
7,455
Cash dividend
-
-
-
-
(277)
-
-
-
(277)
(2)
(279)
Issuance of share capital
-
-
-
-
-
-
-
-
-
-
-
Capital decrease by cancellation of treasury shares
-
-
-
-
-
-
-
-
-
-
-
Purchase of treasury shares
-
-
-
-
-
-
(271,070)
(24)
(24)
-
(24)
Cancellation of purchased treasury shares
-
-
-
-
-
-
-
-
-
-
-
Grants of treasury shares to employees
-
-
-
-
(1)
-
12,601
1
0
-
0
Sale of treasury shares
-
-
-
-
-
-
-
-
-
-
-
Share-based payments
-
-
-
-
21
-
-
-
21
-
21
Issuance of hybrid bonds
-
-
-
400
(1)
-
-
-
399
-
399
Redemption of hybrid bonds
-
-
-
(400)
-
-
-
-
(400)
-
(400)
Other
-
-
-
-
3
-
-
-
3
1
4
Transactions with shareholders
-
-
-
0
(255)
-
(258,469)
(23)
(278)
(1)
(279)
Net income
-
-
-
-
342
-
-
-
342
7
349
Total income and expense recognized directly through equity
-
-
-
-
11
(73)
-
-
(62)
(11)
(73)
Comprehensive income
-
-
-
-
353
(73)
-
-
280
(4)
276
At 30 September 2024
75,043,514
750
1,067
700
4,635
97
(487,370)
(44)
7,205
247
7,452
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
September 2024 End of September
2023 3rd quarter 2024
3rd
quarter 2023 OPERATING
INCOME
536
599
184
182
- Depreciation and amortization related to the revaluation of
tangible and intangible assets as part of the allocation of the
purchase price of businesses
(113)
(95)
(38)
(32)
- Other income and expenses
(101)
(71)
(24)
(32)
RECURRING OPERATING INCOME (REBIT)
750
765
246
246
- Recurring depreciation and amortization of tangible and
intangible assets
(458)
(405)
(161)
(140)
EBITDA
1,208
1,170
407
386
Details of depreciation and
amortization of tangible and intangible assets:
(In millions of euros)
End of September
2024 End of September
2023 3rd quarter 2024
3rd
quarter 2023
Depreciation and amortization of tangible and intangible
assets
(582)
(512)
(200)
(178)
Of which: Recurring depreciation and amortization of tangible and
intangible assets
(458)
(405)
(161)
(140)
Of which: Depreciation and amortization related to the revaluation
of assets as part of the allocation of the purchase price of
businesses
(113)
(95)
(38)
(32)
Of which: Impairment included in other income and expenses
(11)
12
(1)
(6)
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER
SHARE (In millions of euros)
End of September 2024 End of September 2023 3rd quarter 2024 3rd quarter 2023 NET INCOME - GROUP
SHARE
342
398
118
114
- Depreciation and amortization related to the revaluation of
tangible and intangible assets as part of the allocation of the
purchase price of businesses
(113)
(95)
(38)
(32)
- Other income and expenses
(101)
(71)
(24)
(32)
- 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
25
23
9
10
- Taxes on other income and expenses
17
14
5
6
- One-time tax effects
(6)
(19)
(2)
(15)
ADJUSTED NET INCOME
520
546
168
177
Weighted average number of ordinary shares
74,699,795
74,636,305
Weighted average number of potential ordinary shares
75,114,108
75,043,514
ADJUSTED EARNINGS PER SHARE (in euros)
6.96
7.32
2.25
2.38
DILUTED ADJUSTED EARNINGS PER SHARE (in euros)
6.92
7.28
2.23
2.36
RECURRING CAPITAL
EXPENDITURE
(In millions of euros)
End of
September 2024 End of September
2023 3rd quarter 2024
3rd
quarter 2023 INTANGIBLE
ASSETS AND PROPERTY, PLANT, AND EQUIPMENT ADDITIONS
436
366
167
142
- Exceptional capital expenditure
—
17
—
5
- Investments relating to portfolio management operations
—
—
—
—
- Capital expenditure with no impact on net debt
—
—
—
—
RECURRING CAPITAL EXPENDITURE
436
349
167
137
CASH FLOWS (In millions of euros)
End of September 2024
End of September 2023
3rd
quarter 2024 3rd quarter 2023 Cash flow from operating
activities
714
810
334
393
+ Cash flow from investing activities
(546)
(512)
(160)
(125)
NET CASH FLOW
168
298
174
268
- Net cash flow from portfolio management operations
(42)
(44)
(1)
(5)
FREE CASH FLOW
210
342
175
273
Exceptional capital expenditure
—
(17)
—
(5)
- Non-recurring cash flow
(52)
(77)
(15)
(34)
RECURRING CASH FLOW
262
436
190
312
- Recurring capital expenditure
(436)
(349)
(167)
(137)
OPERATING CASH FLOW
698
785
357
449
Operating cash flow corresponds to recurring cash flow before
recurring capital expenditure Net cash flow from portfolio
management operations corresponds to the impact of acquisition and
disposal operations. Non-recurring cash flow corresponds to cash
flow from other income and expenses.
NET DEBT
(In millions of euros)
End of
September 2024 End of December
2023 Non-current debt
3,540
3,734
+ Current debt
866
541
- Cash and cash equivalents
1,995
2,045
NET DEBT
2,411
2,230
+ Hybrid bonds
700
700
NET DEBT AND HYBRID BONDS
3,111
2,930
WORKING CAPITAL (In millions of euros)
End of September 2024
End of December 2023
Inventories
1,392
1,208
+ Accounts receivable
1,412
1,261
+ Other receivables including income taxes
301
312
+ Other current financial assets
24
32
- Accounts payable
993
1,036
- Other liabilities including income taxes
543
475
- Other current financial liabilities
23
27
WORKING CAPITAL
1,570
1,275
CAPITAL EMPLOYED (In millions of euros)
End of September 2024
End of December 2023
Goodwill, net
3,011
3,040
+ Intangible assets (excluding goodwill), and property, plant and
equipment, net
6,066
6,146
+ Investments in equity affiliates
11
13
+ Other investments and other non-current assets
314
303
+ Working capital
1,570
1,275
CAPITAL EMPLOYED
10,972
10,777
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105902148/en/
Investor relations Béatrice Zilm +33 (0)1 49 00 75 58
beatrice.zilm@arkema.com James Poutier +33 (0)1 49 00 73 12
james.poutier@arkema.com Alexis Noël +33 (0)1 49 00 74 37
alexis.noel@arkema.com Colombe Boiteux +33 (0)1 49 00 72 07
colombe.boiteux@arkema.com
Media Gilles Galinier +33 (0)1 49 00 70 07
gilles.galinier@arkema.com Anne Plaisance +33 (0)6 81 87 48 77
anne.plaisance@arkema.com
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