MRC -- Arkema achieved a solid EBITDA margin and high cash generation in an ongoing context of low volumes reflecting the current economic environment, said the company.
Sales of EUR 2.3 bn in 3Q 2023 were down by 17.2% at constant currency compared with 3Q 2022. Volumes were down by 6.6% year-on-year in an environment of generally slow demand comparable to that of previous quarters. 10.6% negative price effect reflected lower raw materials, as well as price normalization in PVDF and upstream acrylics following the exceptional market conditions in 2022.
EBITDA was at EUR 386 M, down compared with the prior year's high comparison base (EUR 495 M in 3Q 2022), and EBITDA margin holding up well at 16.6% (16.7% in 3Q 2022), reflecting the strength of the group's positioning and the initiatives taken to adapt to the economic climate. Adjusted net income was at EUR 177 M (compared to EUR 260 M in 3Q 2022), representing EUR 2.38/share. High cash generation with recurring cash flow reached EUR 312 M (compared to EUR 434 M in 3Q 2022) and net debt was at EUR 2419 M including hybrid bonds (compared to EUR 2645 M at end-Jun 2023), representing 1.7x last-twelve-months EBITDA.
As indicated last Sep 2023 at the Capital Markets Day, Arkema confirms its EBITDA forecast of around EUR 1.5 bn in 2023, supported in particular by the resilience of several product lines and ongoing cost-saving actions.
We remind, Arkema has begun production of Sartomer® specialty UV/LED curing resins at its expanded facility in Nansha, China, where the Group invested to double the capacity, as announced end-2021, said the company.
This will support the development of more sustainable solutions for fast-growing applications in Asian markets, such as cutting-edge solutions in electronics, driven by 5G technology, and in renewable energies.