2016-07-21 13:30:27 CEST
2016-07-21 13:30:27 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Kemira Oyj - Half Year financial report
Kemira Oyj's Interim Report January-June 2016: Profitability improvement continued
Kemira Oyj
Stock Exchange Release
July 21, 2016 at 2.30 pm (CET+1)
This is a summary of the January - June 2016 Interim report. The complete
January - June 2016 Interim report with tables is attached to this release and
available at www.kemira.com/investors.
Second quarter:
* Revenue decreased 1% to EUR 587.8 million (594.8) due to decline in Oil &
Mining market, sales prices and negative foreign currency development.
Revenue in local currencies, excluding acquisitions and divestments,
decreased also 1% as the Group's volume growth was more than offset by the
decline in sales prices.
* Operative EBITDA increased 6% to EUR 78.9 million (74.7) driven by sales
volume growth and improved gross margin. Operative EBITDA margin improved to
13.4% (12.6%).
* Earnings per share increased 42% to EUR 0.17 (0.12).
January-June:
* Revenue increased 2% to EUR 1,170.5 million (1,147.8) due to acquisitions.
Revenue in local currencies, excluding acquisitions and divestments,
decreased 1% due to weak Oil & Mining market and declining sales prices
while volumes grew.
* Operative EBITDA increased 8% to EUR 151.7 million (141.1) as a result of
improved gross margin and sales volume growth. Operative EBITDA margin
improved to 13.0% (12.3%).
* Earnings per share increased 18% to EUR 0.33 (0.28).
* Outlook (unchanged): Kemira continues to focus on profitable growth. Kemira
expects its revenue and operative EBITDA to increase in 2016 compared to
2015.
Kemira's President and CEO Jari Rosendal:
"The profitability continued to increase in the second quarter and the Group's
operative EBITDA margin was 13.4%. Group's organic growth was negative due to
lower sales prices and the difficult market environment in Oil & Mining.
However, the two largest segments Pulp & Paper and Municipal & Industrial
continued along their growth paths driven by increased sales volumes.
Pulp & Paper showed a strong improvement in profitability with organic growth.
Operative EBITDA margin improved to 13.7% from 11.8%. Revenue in local
currencies, excluding acquisitions and divestments, increased 1% with continued
double-digit growth in APAC and South America. During the second quarter we won
new additional Total Chemistry Management (TCM) contracts which are expected to
contribute to growth in the future.
Oil & Mining continued to face challenging market conditions with operative
EBITDA margin being at around 6%. Short-term, we maintain our cost discipline
while we invest in promising growth areas such as Chemical Enhanced Oil Recovery
(CEOR) and oil sands.
Municipal & Industrial had an exceptionally strong quarter with operative EBITDA
margin above 16%. Revenue growth in local currencies, excluding acquisitions and
divestments was 2% driven by higher sales volumes.
In the first half of 2016, Kemira's revenue increased 2% and operative EBITDA
increased 8%. I am especially satisfied with the profitability improvement
despite the challenging market environment. We are on track with the execution
of our strategic plan."
KEY FIGURES AND RATIOS
Jan-Jun Jan-Jun Jan-Dec
EUR million Apr-Jun 2016 Apr-Jun 2015 2016 2015 2015
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Revenue 587.8 594.8 1,170.5 1,147.8 2,373.1
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Operative EBITDA 78.9 74.7 151.7 141.1 287.3
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Operative 13.4 12.6 13.0 12.3 12.1
EBITDA, %
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EBITDA 69.3 66.1 140.4 131.3 263.8
-------------------------------------------------------------------------------
EBITDA, % 11.8 11.1 12.0 11.4 11.1
-------------------------------------------------------------------------------
Operative EBIT 46.6 44.8 87.5 83.9 163.1
-------------------------------------------------------------------------------
Operative EBIT, 7.9 7.5 7.5 7.3 6.9
%
-------------------------------------------------------------------------------
EBIT 34.9 34.3 74.1 72.1 132.6
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EBIT, % 5.9 5.8 6.3 6.3 5.6
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Finance costs, -0.3 -9.3 -6.3 -16.8 -30.8
net
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Profit before 34.6 25.1 67.9 55.6 102.1
taxes
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Net profit for 26.7 19.3 52.4 45.7 77.2
the period
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Earnings per 0.17 0.12 0.33 0.28 0.47
share, EUR
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Capital 1,709.6 1,534.0 1,709.6 1,534.0 1,659.5
employed*
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Operative ROCE* 9.8 11.0 9.8 11.0 9.8
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ROCE*, % 7.9 10.5 7.9 10.5 8.0
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Cash flow from 54.1
operating 57.0 11.7 83.2 247.6
activities
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Capital 71.3
expenditure 43.3 44.3 74.7 181.7
excl.
acquisition
-------------------------------------------------------------------------------
Capital 43.3 159.3 72.8 186.3 305.1
expenditure
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Cash flow after -131.2
investing 49.8 -147.2 47.5 -53.8
activites
-------------------------------------------------------------------------------
Equity ratio, % 44 46 44 46 46
at period-end
-------------------------------------------------------------------------------
Equity per 7.30 7.51 7.30 7.51 7.76
share, EUR
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Gearing, % at 61 62 61 62 54
period-end
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Personnel at 4,873 4,739 4,873 4,739 4,685
period-end
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*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.
KEMIRA'S FINANCIAL TARGETS 2017 AND OUTLOOK FOR 2016 (UNCHANGED)
Kemira will continue to focus on improving its profitability and cash flow. The
company will also continue to invest in order to secure future growth to serve
selected water-intensive industries.
The company's financial targets for 2017 are:
* Revenue EUR 2.7 billion
* Operative EBITDA-% of revenue 15%
* Gearing level <60%.
The basis for growth is the expanding market for chemicals and Kemira's
expertise that helps customers in water-intensive industries to increase their
water, energy and raw material efficiency. The need to increase operational
efficiency in our customer industries creates opportunities for Kemira to
develop new products and services for both current and new customers. Research
and Development is a critical enabler of growth for Kemira, providing
differentiation capabilities in its relevant markets.
Outlook for 2016
Kemira continues to focus on profitable growth. Kemira expects its revenue and
operative EBITDA to increase in 2016 compared to 2015.
Kemira expects its capital expenditure, excluding acquisitions, to be around EUR
200 million in 2016.
Helsinki, July 21, 2016
Kemira Oyj
Board of Directors
FINANCIAL CALENDAR 2016 AND 2017
Interim report January-September 2016 October 25, 2016
Financial Statements Bulletin 2016 February
8, 2017
Interim report January-March 2017 April 26, 2017
Interim report January-June 2017 July 21, 2017
Interim report January-September 2017 October 25, 2017
Kemira Capital Markets Day will be held on September 15, 2016 in London at
Haberdashers' Hall.
Press and analyst conference and conference call
Kemira will arrange a press conference for analysts, investors and media
starting at 4.00 pm (2.00 pm UK time) at GLO Hotel Kluuvi, Kluuvikatu 4, 2nd
floor, Helsinki. In 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 above mentioned
company website.
You can attend the Q&A session via a conference call. In order to participate in
the call, please dial ten minutes before the conference begins:
FI: +358 9 69379590
SE: +46 8 5876 9446
UK: +44 20 3140 8286
US: +1 1718 354 1152
Conference id: 7067846
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' water, energy and raw material efficiency. Our focus is
on pulp & paper, oil & gas, mining and water treatment. In 2015, Kemira had
annual revenue of EUR 2.4 billion and around 4,700 employees. Kemira shares are
listed on the Nasdaq Helsinki Ltd.
www.kemira.com
[HUG#2029670]
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