- €2,198 million sales, significantly up by +12.6% over last year
- Record high for a quarter with €398 million EBITDA (+17% compared to 2Q 2016 already high baseline)
- EBITDA margin, up at 18.1% (17.5 % in 2Q 2016), confirming the Group’s ability to adapt to a rising raw material cost environment
- Adjusted net income significantly up by +28% to €172 million, i.e. €2.28 per share
- Excellent cash generation with free cash flow multiplied by 2 to +€158 million
- €1,471 million net debt slightly down on 31 March 2017 while including the payment of a €155 million dividend at end May 2017
The Board of Directors of Arkema met on 1st August 2017 to close the Group’s consolidated accounts for 1st half 2017. At the close of the meeting, Chairman and CEO Thierry Le Hénaff stated:
“In line with its excellent start to the year, Arkema confirms its development momentum with a 13% growth in sales in second quarter and new record EBITDA for a quarter, close to €400 million.
This performance reflects the Group’s favorable positioning with a majority of resilient specialty activities and a good momentum in more cyclical activities. It highlights the Group’s strategy focused on innovation in Advanced Materials, growth in Adhesives with the integration of Den Braven, and developments in Asia. It also illustrates Arkema’s ability to operate in a higher cost environment for raw materials. Finally, the excellent cash generation enabled the Group to maintain its net debt at the same level as at the end of last year, despite the dividend payment.
The Group will carry on implementing its many projects, in particular the major ones announced at the recent Capital Markets Day, all of which represent catalysts for its future growth.
Finally, while remaining attentive to a global economic environment that continues to be volatile, the performance of the first half of the year enables us to upgrade the EBITDA target we had set ourselves for 2017.”
2017 outlook
In the second half of the year, the global macro-economic environment should remain volatile with contrasted dynamics by end-market and by region, higher raw material costs than last year, and the euro strengthening versus the US dollar.
In this context, Arkema will continue to benefit from growth in adhesives and the integration of Den Braven, innovation in Advanced Materials and downstream acrylics, as well as better prices in fluorogases. The Group will continue to ensure that the higher cost of certain raw materials is reflected in its selling prices. Finally, it will continue implementing its operational excellence initiatives to offset part of fixed cost inflation.
The performance of the first half of the year leads the Group to upgrade its initial EBITDA objective for 2017. The Group now anticipates to exceed €1.3 billion EBITDA and achieve between €1,310 million and €1,350 million EBITDA for the full year.
Financial calendar
| 9 November 2017 | 3rd quarter 2017 results |