2017-07-20 13:30:17 CEST
2017-07-20 13:30:17 CEST
REGULATED INFORMATION
Kemira Oyj - Half Year financial report
Kemira Oyj's Half-year Financial Report 2017: Solid revenue growth, profitability below prior-year level
Kemira Oyj
Half-year Financial Report
July 20, 2017 at 2.30 pm (CET+1)
Kemira Oyj's Half-year Financial Report 2017: Solid revenue growth,
profitability below prior-year level
This is a summary of the January - June 2017 Half-year Financial Report. The
complete January - June 2017 Half-year Financial Report with tables is attached
to this release and available at www.kemira.com/investors.
Second quarter:
* Revenue increased 5% and was EUR 617.2 million (587.8) as the good volume
growth both in Industry & Water and Pulp & Paper continued. Revenue in local
currencies, excluding acquisitions and divestments, increased 4%.
* Operative EBITDA decreased 2% to EUR 77.1 million (78.9) mainly due to
higher variable costs, despite sales volume growth and stabilizing sales
prices. Operative EBITDA margin declined to 12.5% (13.4%).
* EPS decreased to EUR 0.12 (0.17) mainly due to a EUR 5 million capital gain
recorded in Q2 2016.
January-June
* Revenue increased 5% to EUR 1,227.3 million (1,170.5) due to volume growth
in North American oil and gas business in Industry & Water segment. Revenue
in local currencies, excluding acquisitions and divestments, increased 3%.
* Operative EBITDA decreased 4% to EUR 146.1 million (151.7) as a result of
higher variable costs and lower sales prices. Operative EBITDA margin
declined to 11.9% (13.0%).
* EPS decreased to EUR 0.24 (0.33) mainly due to lower EBITDA and a EUR 5
million capital gain recorded in 2016.
Outlook for 2017 (unchanged)
Kemira expects its operative EBITDA to increase from the prior year (2016: EUR
302.5 million).
Kemira's President and CEO Jari Rosendal:
"In the second quarter, revenue growth continued. Organic revenue growth was
4%, which is a good achievement. Profitability was below the prior-year level
due to higher variable costs. During the quarter, Oil & Mining and Municipal &
Industrial merged into a new segment Industry & Water. At the same time, Group's
overall structures were streamlined leading to fewer layers of management and
increased span of control. The actions are expected to generate savings of EUR
15-20 million with a full run-rate by the end of 2017.
In Pulp & Paper, sales volumes continued to grow. We lost revenue due to force
majeure at Huntsman (now Venator) in Pori, Finland, but the underlying revenue
generation is developing according to plan. A major contract manufacturing
agreement with AkzoNobel in China ended during Q2, and the two remaining ones in
Europe will end in Q3 and Q4 leading to a step-up in synergies in the second
half of the year. Our chlorate capacity investment in Joutseno has been granted
all required permits and the site is expected to be operational during Q4.
Industry & Water generated organic growth of 9% driven by strong sales volume
development in the North American oil & gas business. However, the profitability
level was unsatisfactory as the first quarter's spike in feedstock prices,
particularly in North America, impacted variable costs negatively. In water
treatment business, volume growth continued.
We continue to execute our strategy. Our new organizational structure is
effective as of June 1 and the operational excellence program BOOST is
progressing with a roll-out of logistics' management in North America. Despite
the Group's lower profitability in the first half, I am confident that due to
improvement actions already ongoing, the second half will be better than last
year's."
KEY FIGURES AND RATIOS
Jan-Jun Jan-Jun Jan-Dec
EUR million Apr-Jun 2017 Apr-Jun 2016 2017 2016 2016
-------------------------------------------------------------------------------
Revenue 617.2 587.8 1,227.3 1,170.5 2,363.3
-------------------------------------------------------------------------------
Operative EBITDA 77.1 78.9 146.1 151.7 302.5
-------------------------------------------------------------------------------
Operative 12.5 13.4 11.9 13.0 12.8
EBITDA, %
-------------------------------------------------------------------------------
EBITDA 67.0 69.3 133.7 140.4 284.2
-------------------------------------------------------------------------------
EBITDA, % 10.9 11.8 10.9 12.0 12.0
-------------------------------------------------------------------------------
Operative EBIT 43.6 46.6 78.6 87.5 170.1
-------------------------------------------------------------------------------
Operative EBIT, 7.1 7.9 6.4 7.5 7.2
%
-------------------------------------------------------------------------------
EBIT 33.5 34.9 66.2 74.1 147.0
-------------------------------------------------------------------------------
EBIT, % 5.4 5.9 5.4 6.3 6.2
-------------------------------------------------------------------------------
Finance costs, -7.7 -0.3 -14.4 -6.3 -19.1
net
-------------------------------------------------------------------------------
Profit before 25.9 34.6 51.9 67.9 128.0
taxes
-------------------------------------------------------------------------------
Net profit for 19.6 26.7 39.4 52.4 97.9
the period
-------------------------------------------------------------------------------
Earnings per 0.12 0.17 0.24 0.33 0.60
share, EUR
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Capital 1,749.7 1,709.6 1,749.7 1,709.6 1,718.2
employed*
-------------------------------------------------------------------------------
Operative ROCE* 9.2 9.8 9.2 9.8 9.9
-------------------------------------------------------------------------------
ROCE*, % 8.0 7.9 8.0 7.9 8.6
-------------------------------------------------------------------------------
Cash flow from 28.6 57.0 40.8 83.2 270.6
operating
activities
-------------------------------------------------------------------------------
Capital 45.2 43.3 82.1 74.7 212.6
expenditure
excl.
acquisition
-------------------------------------------------------------------------------
Capital 45.2 43.3 82.1 72.8 210.6
expenditure
-------------------------------------------------------------------------------
Cash flow after -16.5 49.8 -41.1 47.5 97.8
investing
activites
-------------------------------------------------------------------------------
Equity ratio, % 43 44 43 44 45
at period-end
-------------------------------------------------------------------------------
Equity per 7.18 7.30 7.18 7.30 7.68
share, EUR
-------------------------------------------------------------------------------
Gearing, % at 69 61 69 61 54
period-end
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Personnel at 4,849 4,873 4,849 4,873 4,818
period-end
-------------------------------------------------------------------------------
*12-month rolling average (ROCE, % based on the EBIT)
Kemira provides certain financial performance measures (alternative performance
measures) on non-GAAP basis. Kemira believes that alternative performance
measures, like operative EBITDA and operative EBIT, followed by Kemira
management, provide useful and more comparable information of its operative
business performance.
Kemira's alternative performance measures should not be viewed in isolation to
the equivalent IFRS measures and alternative performance measures should be read
in conjunction with the most directly comparable IFRS measures. Definitions of
the alternative performance measures can be found in the Definitions of the key
figures in this report, as well as at www.kemira.com >Investors > Financial
information.
All the figures in this interim report have been individually rounded and
consequently the sum of individual figures can deviate from the presented sum
figure
OUTLOOK FOR 2017 (UNCHANGED)
Kemira expects its operative EBITDA to increase from the prior year (2016: EUR
302.5 million).
MID- AND LONG-TERM FINANCIAL TARGETS (UNCHANGED)
Kemira aims at above-the-market revenue growth with operative EBITDA margin of
14-16%. The gearing target is below 60%.
Helsinki, July 20, 2017
Kemira Oyj
Board of Directors
All forward-looking statements in this review are based on the management's
current expectations and beliefs about future events, and actual results may
differ materially from the expectations and beliefs such statements contain.
FINANCIAL CALENDAR 2017 AND 2018
Interim Report January-September 2017 October 25, 2017
Financial Statements Bulletin 2017 February
8, 2018
Interim Report January-March 2018 April 27, 2018
Half-year Financial Report January-June 2018 July 20, 2018
Interim Report January-September 2018 October 24, 2018
Capital Markets Day will be held in London on September 21, 2017.
Press and analyst conference call
Kemira will arrange a press conference for the analysts, investors, and media on
July 20, 2017 starting at 4.00 p.m. (2 p.m. UK time) at GLO Hotel Kluuvi,
Kluuvikatu 4, 2nd Floor, Helsinki. During the conference, Kemira's President and
CEO Jari Rosendal and CFO Petri Castrén will present the results. The press
conference will be held in English and will be webcasted at
www.kemira.com/investors. The presentation material and the webcast recording
will be available on the abovementioned company website.
You can attend the Q&A session via a conference call. In order to participate in
the conference, please call ten minutes before the conference begins:
FI +358 9 7479 0361
SE +46 8 5033 6574
UK +44 330 336 9105
US +1 719 325 2202
Conference ID: 8255317
For more information, please contact:
Kemira Oyj
Olli Turunen, Vice President, Investor Relations
Tel. +358 10 862 1255
Kemira is a global chemicals company serving customers in water-intensive
industries. We provide expertise, application know-how and chemicals that
improve our customers' product quality, process and resource efficiency. Our
focus is on pulp & paper, oil & gas and water treatment. In 2016, Kemira had
annual revenue of around EUR 2.4 billion and 4,800 employees. Kemira shares are
listed on the Nasdaq Helsinki Ltd.
www.kemira.com
[]
© 2024 Nasdaq, Inc. All Rights Reserved |