Arkema has registered 21.3% growth in its group sales at €11.5 billion. The growth is led by organic sales growth of 13.6%, reflecting price increases in the face of significant raw materials and energy cost inflation and the improved product mix, as well as the slowdown in demand and significant destocking observed in the fourth quarter. The company registered EBITDA at a historic high of €2,110 million, up by a strong 22.2% year-on-year, and EBITDA margin at 18.3% (18.1% in 2021). Adjusted net income up by 30.2% to €1,167 million, representing €15.75 per share (€11.88 in 2021).

Thierry Le Hénaff, Chairman and CEO, Arkema, said: “Arkema achieved an excellent year in 2022 in many respects, first of all in terms of its financial performance, with EBITDA of over €2 billion, reflecting the efforts of all our employees, whom I would like to thank for their commitment in a demanding environment. We also finalized a high-quality acquisition, with Ashland’s adhesives, and entered the start-up phase at our production site in Singapore for polyamide 11 and its monomer, thus strengthening the Group’s profile, resolutely focused on innovative materials. It is also a great source of pride for the teams to be recognized by rating agencies as one of the leaders in our industry in terms of CSR.

“2023 has begun in an economic context of weak demand, which requires us to be strict in managing our costs and working capital, while preparing for an improvement of the environment during the course of the second quarter. We have full confidence in the long-term prospects offered by our new developments focused on decarbonization and sustainable development, and we will continue to invest in these opportunities. We will leverage our cutting-edge innovation to continue to support our customers in their quest for sustainable performance.”

OUTLOOK FOR 2023

At the beginning of the year, the macroeconomic context is marked by a lack of visibility and ongoing weak demand, in the continuity of fourth-quarter 2022. A progressive improvement is expected from the spring and should gather momentum in the second part of the year. In this demanding context, Arkema will draw on the responsiveness and commitment of its teams to adapt to changes in the macroeconomic environment and will continue to focus on cash generation and cost management.

Moreover, the Group will benefit from the contribution of its key expansion projects mainly in the second half of the year, namely the new bio-based PA11 plant in Singapore, the project with Nutrien in the United States, the PVDF units in China and France, and the expansion of the Sartomer plant in China and the Pebax® plant in France, as well as from the ramp-up of Ashland’s performance adhesives.

In this context, Arkema aims to achieve in 2023 an EBITDA of around €1.5 billion to €1.6 billion and maintain a high EBITDA to cash conversion rate of over 40%.

Moreover, the Group is confirming its 2024 targets and will continue the implementation of its strategic roadmap and priorities, in particular its cutting-edge innovation focused on sustainable development and decarbonization, its targeted investments to increase its capacities and support its customers in high-growth markets linked to sustainable megatrends, its policy of high value-added acquisitions and its strategic review of the Intermediates segment.

Lastly, the Group will continue to act for a more sustainable world, leveraging its cutting-edge innovation in materials, responsible growth of its businesses, and its strong societal commitments.