Arkema's sales reached EUR 2.5 bn in 1Q 2023, down by 12.6% year-on-year, said the company.
Sales were affected by drop in volumes, which was due to continued weak demand in Europe, a slowdown observed in construction in the United States, and temporary destocking in batteries in China; overall resilience in prices, benefiting from the work to position the portfolio on higher value-added solutions; and benefits of its sustainable innovation in high performance solutions such as bio-based and recyclable materials, 3D printing and more eco-friendly coatings. EBITDA reached EUR 367 M and EBITDA margin totalled 14.5%, down compared with the exceptionally high comparison base of 1Q 2022 (compared to EUR 619 M and 21.4%, respectively), which benefited from particularly favourable market conditions in PVDF and upstream acrylics.
Adjusted net income reached EUR 162 M, representing EUR 2.17/share (compared to EUR 5.08/share in 1Q 2022). Recurring cash flow amounted to negative EUR 21 M (compared to positive EUR 26 M in 1Q 2022), reflecting the usual seasonality of working capital in 1Q 2023. Net debt was stable at EUR 2389 M (compared to EUR 2366 M at end-Dec 2022), including EUR 700 M in hybrid bonds, representing 1.3x last-twelve-months EBITDA.
In 2023, the group aims to achieve EBITDA of around EUR 1.5 bn to EUR 1.6 bn and maintain a high EBITDA to cash conversion rate of over 40%. Commitment for the climate on the 1.5 degC trajectory by 2030 strengthened by the group in light of the progress achieved in its carbon trajectory, and validated by Science Based Targets initiative (SBTi).
Arkema now aims to reduce its greenhouse gas emissions by 48.5% for Scopes 1+2 and by 54% for Scope 3 by 2030 versus 2019.
We remind, Arkema announces the doubling of its polyester resins capacity in its Navi Mumbai facility in India, reinforcing the Group’s leadership position in the global powder coatings market and its commitment to developing very low-VOC technologies. Arkema invested in the Navi Mumbai facility in early 2019 to expand geographic coverage of its high performance, more sustainable, low-VOC products, and to support its customers in their development. The site includes a modern manufacturing unit and a dedicated laboratory to provide application development and technical support in the region.
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