2017-10-25 07:30:47 CEST
2017-10-25 07:30:47 CEST
REGULATED INFORMATION
Kemira Oyj - Interim report (Q1 and Q3)
Kemira Oyj's Interim Report January-September 2017: Revenue growth continued
Kemira Oyj
Interim Report
October 25, 2017 at 8.30 am (CET+1)
Kemira Oyj's Interim Report January-September 2017: Revenue growth continued
This is a summary of the January - September 2017 Interim report. The complete
January - September 2017 Interim report with tables is attached to this release
and available at www.kemira.com/investors.
Third quarter:
* Revenue increased 4% and was EUR 622.2 million (596.3) as volume growth
continued in both segments, especially in North American oil & gas business.
Revenue in local currencies, excluding acquisitions and divestments,
increased 7%.
* Operative EBITDA increased 5% to EUR 84.5 million (80.8) mainly due to
volume growth. Sales prices increased slightly compared to prior year.
Operative EBITDA margin was 13.6% (13.6%). EBITDA decreased 10% due to a EUR
12.7 million settlement for a damage claim (Dortmund, Germany) relating to
the alleged old infringement of competition law in the hydrogen peroxide
business during 1994-2000.
* EPS decreased to EUR 0.12 (0.16) due to the settlement for the damage claim.
January-September:
* Revenue increased 5% to EUR 1,849.4 million (1,766.8) due to volume growth
mainly in North American oil & gas business. Revenue in local currencies,
excluding acquisitions and divestments, increased 4%.
* Operative EBITDA decreased 1% to EUR 230.6 million (232.5) with operative
EBITDA margin of 12.5% (13.2%). EBITDA decreased 7% mainly due to the
settlement for the damage claim.
* EPS decreased to EUR 0.36 (0.49) mainly due to the settlement for the damage
claim.
Kemira's President and CEO Jari Rosendal:
"Revenue growth continued in the third quarter. Organic growth was 7%, which is
a good achievement. The Group's operative EBITDA improved thanks to respective
EBITDA improvement of more than 20% in Industry & Water.
In Pulp & Paper, volume growth continued. Contract manufacturing agreements
related to AkzoNobel paper chemical's acquisition are coming to an end and we
are close to the targeted synergy run-rate of EUR 20 million. Our investment of
EUR 50 million in bleaching chemical capacity in Finland started production
ahead of the schedule and is now ramping up. We expect full capacity utilization
during H1 2018.
In Industry & Water, the organic growth accelerated to 15% driven by strong
sales volume development in the North American oil & gas business. In addition
to the volume growth, somewhat higher sales prices are starting to offset the
increases of raw material price. Lower fixed costs also contributed to the
double-digit improvement in profitability. The uptake in oil & gas market and
our operational efficiency measures are bearing fruit.
Hurricanes Harvey and Irma impacted North American chemical industry but we are
relieved to report that our employees are safe and our assets were not damaged.
Hurricanes caused some disruptions to supply of raw materials, which had limited
financial impact on Kemira during the third quarter.
The execution of our strategy continues as planned. Our new organizational
structure is in place and the operational excellence program BOOST is advancing
both in Europe and North America. We are excited about the prospects of the
announced joint venture in China, which will secure supply of a key raw
material, strengthen further our position in Pulp & Paper and accelerate
profitable growth in APAC."
KEY FIGURES AND RATIOS
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
EUR million 2017 2016 2017 2016 2016
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Revenue 622.2 596.3 1,849.4 1,766.8 2,363.3
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Operative EBITDA 84.5 80.8 230.6 232.5 302.5
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Operative EBITDA, % 13.6 13.6 12.5 13.2 12.8
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EBITDA 70.2 78.3 203.9 218.7 284.2
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EBITDA, % 11.3 13.1 11.0 12.4 12.0
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Operative EBIT 47.7 46.5 126.3 134.0 170.1
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Operative EBIT, % 7.7 7.8 6.8 7.6 7.2
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EBIT 33.4 43.7 99.6 117.8 147.0
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EBIT, % 5.4 7.3 5.4 6.7 6.2
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Finance costs, net -7.4 -6.9 -21.8 -13.2 -19.1
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Profit before taxes 26.1 36.8 78.0 104.7 128.0
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Net profit for the period 20.0 27.3 59.5 79.7 97.9
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Earnings per share, EUR 0.12 0.16 0.36 0.49 0.60
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Capital employed* 1,759.9 1,711.5 1,759.9 1,711.5 1,718.2
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Operative ROCE* 9.2 9.8 9.2 9.8 9.9
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ROCE*, % 7.3 7.9 7.3 7.9 8.6
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Cash flow from operating activities 92.9 85.0 133.7 168.2 270.6
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Capital expenditure excl. acquisition 43.8 48.5 125.9 123.2 212.6
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Capital expenditure 43.8 48.5 125.9 121.3 210.6
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Cash flow after investing activites 50.4 36.9 9.2 84.4 97.8
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Equity ratio, % at period-end 43 45 43 45 45
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Equity per share, EUR 7.26 7.48 7.26 7.48 7.68
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Gearing, % at period-end 63 58 63 58 54
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Personnel at period-end 4,749 4,843 4,749 4,843 4,818
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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.
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, October 24, 2017
Kemira Oyj
Board of Directors
PRESS AND ANALYST CONFERENCE AND CONFERENCE CALL
Kemira will arrange a press conference for the analysts, investors, and media on
Wednesday, October 25, 2017, starting at 10.30 am (8.30 am 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 above-mentioned 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 0404
SE +46 8 5065 3942
UK +44 330 336 9411
US +1 719 457 2086
Conference ID: 9222963
For more information, please contact:
Kemira Oyj
Olli Turunen, 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
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