Arkema: The chemical company Arkema plays the pricing power card and publishes robust quarterly results


(BFM Bourse) – Like Solvay the day before, Arkema is raising its gross operating surplus forecasts for 2022 after a robust first quarter. The results of the chemist were notably driven by its ability to integrate cost increases into its selling prices.

French-speaking chemical players are doing well. The day before, Solvay had won over investors, after the announcement of record sales and a 54% jump in net income over the first three months of the year. On Thursday, it was Arkema’s turn to post robust quarterly accounts despite a complex market environment. The specialty chemicals group also posted a jump in sales and profits over the first three months of the year.

The Arkema title benefits from this, one of the strongest in the SBF 120 with a gain of 4.44% to 117.65 euros around 3:20 p.m. Investors hail the ability of the chemist to deliver a high-flying quarterly performance “despite the high inflation of raw materials and energy”. Despite these uncertainties, Arkema is confident and even aims for the year 2022, on a like-for-like basis, an Ebitda “up slightly” for its specialty materials and for the group “compared to the record level of 2021”.

Profit more than doubled in the first quarter

The specialty chemicals group Arkema announced Thursday that it had more than doubled its net profit in the first quarter, to 329 million euros, thanks to rising prices. Turnover also increased very significantly, climbing nearly 30% to 2.88 billion euros, the group said in a statement.

But volumes “are down slightly by 2.2%”, due in particular to logistical disruptions in Europe and the United States, and the shortage of certain raw materials, in particular in the adhesives segment, said Arkema. In addition, the group was faced with a “slowdown” in demand “in China at the end of the quarter due to the confinements linked to Covid-19, as well as in construction in Europe”.

But these negative factors are largely offset by a “price effect of +31.5%”, which reflects, according to the group, its ability “to pass on in the selling prices of its specialty materials the very high inflation of raw materials, energy and transport, as well as the best conditions in the acrylic upstream”.

Redemption policy not questioned

“Strongly up” by 72.9%, to 619 million euros, Ebitda (gross operating surplus) “is driven in particular by the improvement in the product mix linked to the high demand for high-content solutions technology in batteries, consumer goods, electronics or even 3D printing”, explained the group. “Despite the uncertainties currently weighing on global growth, the very good results of this first quarter make us confident that in 2022 we will exceed last year’s record level of results”, declared Thierry Le Hénaff, CEO of the group. .

“Market conditions remain positively oriented at the start of the second quarter, with nevertheless disparities according to regions and end markets and an increased lack of visibility of the environment”, underlined the company. Because “the health situation in China, the war in Ukraine, as well as the high inflation of raw materials and energy, and logistical disruptions are all factors that could weigh on future demand”, estimated the group.

While “remaining attentive to the evolution of the macroeconomic environment”, Arkema is now aiming for 2022 at constant scope, an Ebitda for its specialty materials and for the group slightly up from the record level of 1.5 billion euros. euros reached in 2021.

The chemical company also intends to pursue its policy of targeted acquisitions in the area of ​​specialty materials.

Sabrina Sadgui with AFP

©2022 BFM Bourse

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