Arkema has reported group sales of €2.4 billion, up, at constant scope and currency, nearly 30% versus 2020 and approximately 17% versus 2019 in Q3'21.
EBITDA of €474 million, up by a strong 54.4% compared to Q3’20, and EBITDA margin of close to 20%, a record level for a third quarter. Adjusted net income multiplied by 2.4 at €258 million, representing €3.44 per share.
Chairman and CEO Thierry Le Hénaff said, “We can be proud of Arkema’s strong financial performance, achieved in a complex and demanding operating environment. I would like to particularly thank our teams, as these results reflect both their high quality work and their faultless level of commitment.
It is our whole sustainable growth strategy which really stands out. Our Specialty Materials are fully benefiting from their positioning on societal megatrends. We are seeing our developments accelerate structurally across many high-stake markets, such as batteries, 3D printing, eco-friendly paint, sports, home comfort and electronics.
Moreover, we are actively continuing the roll-out of our 2024 strategy and the refocusing of the Group toward Specialty Materials. Thus, by acquiring Ashland’s performance adhesives business, we will strengthen our Adhesive Solutions segment with this first-class activity, which through its technological know-how, will enable Bostik to accelerate its growth. The divestment of our epoxides business to Cargill is also in line with our pro-active management of the portfolio.
These positive developments make us truly confident about our future. In this fast-changing world, our cutting-edge innovation in high-performance materials for sustainable solutions, our current and prospective major industrial projects, and our bolt-on acquisition policy provide us with many growth opportunities.”
Activity in the fourth quarter of 2021 is expected to be in line with the previous few months. Operational performance will continue to be impacted by the unavailability and inflation of certain raw materials, logistical difficulties and rising energy and transportation costs. These factors will continue to guide the Group’s selling price policy. The automotive sector will also remain impacted by the shortage of electronic components, and energy restrictions in China could temporarily reduce demand in the region.
While remaining attentive to the evolution of the macro-economic context, Arkema will continue to greatly benefit from the repositioning of its portfolio towards Specialty Materials and from the very positive momentum driven by major sustainable trends, particularly in the fields of materials lightweighting, clean mobility, natural resource management, and living comfort and home efficiency.
Taking all of these elements into account, the Group is once again significantly raising its annual guidance. Arkema is now aiming for growth of at least 40% in Specialty Materials’ EBITDA in 2021 relative to 2020 at constant scope and currency, versus the 30% announced in the first-half 2021 financial results. Group EBITDA should therefore reach around €1.6 billion for the full year. In addition, the Group confirms its full year EBITDA margin target of 14% for the Adhesive Solutions segment, an increase of one percentage point compared to 2020, thus demonstrating the segment’s resilience in an exceptional context of strong raw materials inflation and shortages.
Finally, the Group will continue to implement its strategy in line with its ambition to become a pure sustainable and high-performance Specialty Materials player by 2024.
