Arkema reported sales of €2.4 billion, down by 23% compared with the particularly high level of Q2’22. Company's volumes were down significantly, impacted by overall weak demand in most end markets and continued destocking. The automotive, battery and energy markets nevertheless remained well oriented.
Price effect positive in most product lines but negative at the Group level given, as in the first quarter, the normalization of PVDF and upstream acrylics.
Positive momentum in high performance solutions driven by sustainability trends, which are at the heart of the Group’s strategy.
EBITDA of €417 million, down compared with the exceptionally high performance of Q2’22 (€705 million). EBITDA margin reached a very good level at 17.1%, demonstrating the quality of the product portfolio and dynamic price and mix management
Adjusted net income of €207 million, representing €2.77 per share (€5.99 in Q2’22)
Following Arkema’s Board of Directors’ meeting held on 27 July 2023 to approve the Group’s consolidated financial statements for the first half of 2023, Chairman and CEO Thierry Le Hénaff said, “In the second quarter, in an environment marked by a low level of activity in the continuity of the first quarter, Arkema’s performance was solid, reflecting the Group’s excellent positioning in high performance niche markets, as well as tight management of our operations. The teams delivered high-quality work, enabling us to confirm our annual targets in a macroeconomic context with low visibility that is showing little signs of improvement.
In addition, with the proposed acquisition of 54% of PI Advanced Materials announced in late June, Arkema has taken another major step towards its ambition of becoming a world leader in Specialty Materials. This unique opportunity, which will offer the Group significant synergies thanks to strong geographical and technological complementarities, will enable us to accelerate our growth in the highly attractive electronics and battery markets.
Our Capital Markets Day, to be held in Paris on 27 September, will provide an opportunity to discuss Arkema’s innovation strategy and medium-term ambition in greater detail.”
In a macroeconomic environment which is in line with that of the first six months of the year, volumes remain sharply lower than last year with reduced visibility at the start of the second half. The price of certain raw materials and energy continues to decrease.
In this context, the Group will strive to continue tightly managing its operations, in particular by controlling fixed costs and optimizing working capital. It will also continue its innovation drive in high-growth areas linked to sustainability, and ramp up recently started growth capital expenditure projects.
In this environment, in light of its first-half results and based on the projected momentum in the second half, Arkema confirms its full-year guidance and aims to achieve in 2023 EBITDA of around €1.5 billion to €1.6 billion. Furthermore, the Group expects a high EBITDA to cash conversion rate over the year, consistent with its medium-term target of at least 40%.