Arkema records robust EBITDA for first-quarter 2024, in line
with its full-year guidance, in a broadly unchanged economic
environment
Regulatory News:
Arkema (Paris:AKE):
- Sales of €2.3 billion, down by 7.3% year-on-year:
- Slight volume growth in the 3 Specialty Materials segments
(+2.7%)
- Good momentum in certain markets such as structural bonding,
sports, automotive and energy
- Negative 8.4% price effect in Specialty Materials, mainly
reflecting lower raw material prices and still unfavorable market
conditions in upstream acrylics and PVDF
- EBITDA at €350 million, down slightly
year-on-year (€367 million in Q1'23), supported in particular by
the improving performance of industrial adhesives, high performance
polymers and the downstream of Coating Solutions, but impacted by
lower PVDF and acrylics prices compared with the high comparison
base of Q1'23
- EBITDA margin up slightly to 15.0%, reflecting
the dynamic management of selling prices and the benefit of the
Group's innovation in higher value-added solutions
- Adjusted net income of €138 million, representing
€1.84 per share (€2.17 in Q1’23)
- Recurring cash flow of negative €60 million
(negative €21 million in Q1’23), reflecting the usual first-quarter
seasonality in working capital
- Net debt broadly stable at €3,063 million (€2,930
million at end-December 2023) including hybrid bonds and
representing around 2x last-twelve-months EBITDA
- Full-year 2024 guidance confirmed: the Group confirms
its 2024 target of EBITDA estimated at between €1.5 billion and
€1.7 billion, with growth weighted more toward the second half of
the year, and driven by the ramp-up of major industrial projects
and a gradual improvement in market conditions. Second-quarter
EBITDA should be slightly up compared with the prior year.
- Continuation of the targeted acquisition strategy in
adhesives, with the planned acquisition, for an enterprise
value of US$150 million, of Dow's flexible packaging laminating
adhesives business (sales of US$250 million)
Following Arkema’s Board of Directors’ meeting held on 6 May
2024 to review the Group’s consolidated financial information for
the first quarter of 2024, Chairman and CEO Thierry Le Hénaff
said:
"In a context in continuity with that of Q4 2023, financial
performance was solid and EBITDA close to that of first-quarter
2023. Arkema focused on tightly managing its operations and
continuing to make progress on its main ongoing projects, in order
to reap the initial benefits thereof this spring.
The start of 2024 was also marked by a significant new milestone
for our Adhesive Solutions segment, with the highly value-creative
planned acquisition of Dow's adhesives business for flexible
packaging. With its leading technologies and top-quality
manufacturing facilities, this product line will perfectly
complement our offering in high-tech industrial adhesives, as was
the case with the acquisition of Ashland’s adhesives two years
ago.
Finally, we are continuing our efforts to decarbonize our value
chain with the signature of several new green electricity supply
agreements."
KEY FIGURES FOR FIRST-QUARTER 2024
in millions of euros
Q1'24
Q1'23
Change
Sales
2,341
2,524
-7.3%
EBITDA
350
367
-4.6%
Specialty Materials
342
347
-1.4%
Intermediates
39
49
-20.4%
Corporate
-31
-29
EBITDA margin
15.0%
14.5%
Specialty Materials
15.7%
15.1%
Intermediates
24.7%
22.5%
Recurring operating income (REBIT)
202
234
-13.7%
REBIT margin
8.6%
9.3%
Adjusted net income
138
162
-14.8%
Adjusted net income per share (in €)
1.84
2.17
-15.2%
Recurring cash flow
-60
-21
Free cash flow
-82
-46
Net debt including hybrid bonds
3,063
2,389
€2,930m as of 31/12/2023
FIRST-QUARTER 2024 BUSINESS PERFORMANCE
At €2,341 million, Group sales declined by 7.3%
compared with first-quarter 2023, impacted primarily by a negative
7.2% price effect, which reflects lower raw materials and still
unfavorable market conditions in upstream acrylics and PVDF.
Broadly stable at a negative 0.2% in an environment of continued
weak demand, volumes rose by 2.7% in Specialty Materials, up in
each of the three segments, and were down in Intermediates. Certain
markets, such as structural bonding, batteries, automotive, energy
and sports were well oriented, while construction seems to be
stabilizing at a low level. The 1.8% positive scope effect is
linked to the acquisition of PIAM in Advanced Materials and, to a
lesser extent, Polytec PT and Arc Building Products in Adhesive
Solutions. Finally, the currency effect was a negative 1.7%,
reflecting essentially the depreciation of the yuan and the US
dollar against the euro.
Against a still high comparison base in upstream acrylics and
PVDF in first-quarter 2023, Group EBITDA decreased slightly
to €350 million (€367 million in Q1'23), supported by
improving performances in industrial adhesives, high performance
polymers and the downstream of Coating Solutions. The Group's
EBITDA margin rose to 15.0% (14.5% in Q1'23) despite
the decline observed in upstream acrylics, benefiting from the
evolution of the portfolio towards higher value-added solutions and
reflecting the dynamic management of selling prices.
Recurring operating income (REBIT) of €202 million
(€234 million in Q1’23) included €148 million in recurring
depreciation and amortization, up €15 million compared with
first-quarter 2023, mainly reflecting the consolidation of PIAM and
the start-up of new production units. In first-quarter 2024, the
REBIT margin thus amounted to 8.6% (9.3% in Q1’23).
Taking into account a tax rate excluding exceptional items of
22% of recurring operating income, adjusted net income
amounted to €138 million (€162 million in Q1’23), i.e.
€1.84 per share.
CASH FLOW AND NET DEBT AT 31 MARCH 2024
Recurring cash flow of negative €60 million
(negative €21 million in Q1’23) included the usual business
seasonality of the first quarter. At end-March 2024, working
capital remained well controlled and represented 16.1% of
annualized sales (16.3% at end-March 2023). Recurring cash flow
also included increased capital expenditure compared with the prior
year at €99 million (€82 million in Q1'23), incorporating notably
investments linked to the new industrial projects announced at the
Capital Markets Day, namely DMDS in the United States, organic
peroxides in China and the decarbonization of acrylics production
in France.
Free cash flow was a negative €82 million
(negative €46 million in Q1’23), including a non-recurring cash
outflow of €22 million related in particular to start-up costs for
the Singapore platform.
Cash flow from portfolio management operations
represented a net outflow of €21 million, corresponding
mainly to the acquisition of Arc Building Products. Last year it
amounted to a positive €30 million and included the proceeds from
the disposal of Febex.
As a result, net debt (including hybrid bonds) came in at
€3,063 million (€2,930 million at end-2023), and the net
debt to last-twelve-months EBITDA ratio was stable compared with
the end of last year, standing at around 2x.
In addition, on 14 March 2024, Arkema successfully issued €400
million of perpetual hybrid bonds with a 4.8% coupon and a first
call option that can be exercised by the Group after 5 years, thus
anticipating the refinancing of one of its two outstanding hybrid
bond issues amounting to €400 million with a first call date of 17
September 2024. The amount of hybrid bonds included in net debt
therefore amounted to €1.1 billion at end-March 2024.
FIRST-QUARTER 2024 PERFORMANCE BY SEGMENT
ADHESIVE SOLUTIONS (29% OF TOTAL GROUP SALES)
in millions of euros
Q1'24
Q1'23
Change
Sales
680
698
-2.6%
EBITDA
105
93
+12.9% EBITDA margin
15.4%
13.3%
Recurring operating income (REBIT)
82
72
+13.9% REBIT margin
12.1%
10.3%
Sales in the Adhesive Solutions segment amounted to
€680 million, down by 2.6% year-on-year, reflecting a
negative 3.7% price effect in a context of decreasing raw material
prices, and a negative 1.6% currency effect. The segment’s volumes
rose by 1.7%, supported by increased demand in structural adhesives
and packaging in all three key regions around the world, with
construction activity slightly down. The scope effect was a
positive 1.0%, corresponding to the integration of Polytec PT and
Arc Building Products.
At €105 million, EBITDA was up sharply by 12.9%
compared with first-quarter 2023, and EBITDA margin improved
by 210 bps to reach the very good level of 15.4%. This good
performance was driven by dynamic pricing management, operational
excellence actions, the successful integration of acquisitions and
the development of higher value-added solutions.
ADVANCED MATERIALS (38% OF TOTAL GROUP SALES)
in millions of euros
Q1'24
Q1'23
Change
Sales
878
937
-6.3%
EBITDA
162
160
+1.3% EBITDA margin
18.5%
17.1%
Recurring operating income (REBIT)
80
93
-14.0%
REBIT margin
9.1%
9.9%
At €878 million, sales in the Advanced Materials
segment were down by 6.3% compared with first-quarter 2023. Volumes
were up 1.6%, supported mainly by positive momentum in High
Performance Polymers in Asia, notably in the battery, automotive
and sports markets, and overall solid volumes in Performance
Additives. At negative 9.9%, the price effect reflects lower raw
materials and the prior year’s still high comparison base for PVDF
prices. The scope effect linked to the integration of PIAM amounted
to a positive 4.1% and the currency effect was a negative 2.1%.
EBITDA for the segment was stable at €162 million
(€160 million in Q1'23), supported by the integration of PIAM and
the solid performance of the segment's other businesses, which
offset the expected decline in PVDF relative to the higher
first-quarter 2023 level. The EBITDA margin rose to
18.5% (17.1% in Q1’23).
COATING SOLUTIONS (26% OF TOTAL GROUP SALES)
in millions of euros
Q1'24
Q1'23
Change
Sales
615
661
-7.0%
EBITDA
75
94
-20.2%
EBITDA margin
12.2%
14.2%
Recurring operating income (REBIT)
44
63
-30.2%
REBIT margin
7.2%
9.5%
Sales in the Coating Solutions segment were down by 7.0%
compared with first-quarter 2023 to €615 million. They were
impacted by a negative 11.4% price effect, reflecting the evolution
of raw materials and less favorable market conditions in upstream
acrylics. Volumes were up 5.3%, driven by Coating Additives,
notably for industrial markets, and higher volumes in upstream
acrylics in Europe. The currency effect was a negative 0.9%.
Down compared with the high comparison base of Q1'23 in upstream
acrylics, EBITDA came to €75 million (€94 million in
Q1'23), supported by the segment's downstream activities, Sartomer
and rheology additives, whose EBITDA grew thanks to higher volumes.
In this context, the EBITDA margin stood at 12.2%
(14.2% in Q1’23).
INTERMEDIATES (7% OF TOTAL GROUP SALES)
in millions of euros
Q1'24
Q1'23
Change
Sales
158
218
-27.5%
EBITDA
39
49
-20.4%
EBITDA margin
24.7%
22.5%
Recurring operating income (REBIT)
29
36
-19.4%
REBIT margin
18.4%
16.5%
At €158 million, sales in the Intermediates
segment were down 27.5% compared with first-quarter 2023,
reflecting a 30.7% drop in volumes in a lackluster acrylics context
in China, and integrating the mechanical impact of lower
refrigerant gas quotas. The positive 5.5% price effect reflects the
momentum of refrigerant gases, while the currency effect was a
negative 2.3%.
In this environment, Intermediates EBITDA came in at
€39 million versus €49 million in first-quarter 2023 and the
EBITDA margin stood at a very good level at 24.7%
(22.5% in Q1’23).
FIRST-QUARTER 2024 HIGHLIGHTS
On 2 January 2024, Arkema finalized the acquisition of Irish
manufacturer Arc Building Products, specialized in construction
adhesives and sealants and which generates around €15 million in
annual sales.
On 12 January 2024, Arkema announced that it had acquired a
stake in Tiamat, a pioneering start-up in sodium-ion battery
technology, which will enable the Group to accelerate the
development of technical solutions adapted to these lithium-free
batteries.
In addition, on 1 February 2024, Arkema announced it had
successfully started up its Pebax® elastomer capacity expansion at
its Serquigny site in France, representing a 40% increase in global
capacity production and enabling the Group to support its
customers’ strong growth, particularly in the sports and consumer
goods markets.
Finally, as part of the roll-out of its climate plan, Arkema
announced on 26 February 2024 that it had signed long-term
renewable energy supply contracts for its Calvert City (Kentucky),
Beaumont (Texas), Chatham (Virginia) and West Chester
(Pennsylvania) sites, as well as for all Bostik sites in the United
States. By the end of 2024, around 40% of the electricity required
for Arkema’s operations in the United States is expected to come
from renewable sources, an important step towards achieving the
Group's decarbonization target of reducing its Scopes 1 and 2
greenhouse gas emissions by 48.5% by 2030 relative to 2019.
SUBSEQUENT EVENTS
On 2 May 2024, Arkema signed an agreement for an enterprise
value of US$150 million to acquire Dow’s flexible packaging
laminating adhesives business, one of the leading producers of
adhesives for the flexible packaging market, with annual sales of
around US$250 million. This proposed acquisition will significantly
expand Arkema's portfolio of solutions for flexible packaging,
enabling the Group to become a key player in this attractive
market.
In addition, on 17 April 2024, Arkema signed an agreement to
acquire a majority stake of nearly 78% in Proionic, a leading
start-up in the production and development of ionic liquids. With
this acquisition, Arkema completes its broad range of solutions and
consolidates its position as a key player in materials regardless
of battery technologies.
OUTLOOK FOR 2024
As of today, the macroeconomic environment remains marked by a
lack of visibility and ongoing geopolitical tensions, with no clear
signs yet of a rebound in demand. In this context, Arkema will
focus primarily on internal momentum, and will benefit notably from
the second quarter onwards from the gradual ramp-up of several
high-stake organic growth projects and of PIAM. Second-quarter
EBITDA is expected to be slightly higher relative to second-quarter
2023 and therefore significantly higher than Q1’24.
Complemented by the start-up of the 1233zd fluorospecialties
unit in the United States from this summer, the Group's major
industrial projects should gradually ramp up and contribute around
€60 to €70 million in EBITDA for the full year. The Group confirms
that production levels at the PA11 plant in Singapore and the
Nutrien HF site are progressing well, and that these units should
be fully operational by the end of the second quarter. Benefiting
also from its cutting-edge innovation and the positive dynamic in
adhesives, Arkema thus reaffirms its full-year guidance and aims to
achieve in 2024 a higher EBITDA, estimated at between €1.5 billion
and €1.7 billion depending on the level of recovery in demand, and
with seasonality more weighted to the second half of the year.
Moreover, the Group will continue to implement its strategic
roadmap unveiled at the Capital Markets Day in September 2023,
paying particular attention to the implementation of its other
major industrial projects, namely the increase in organic peroxide
capacity in China, the construction of the DMDS unit in the United
States, and the decarbonization of acrylics production in France.
It will also continue to strengthen, in partnership with its
customers, its innovation efforts in solutions for a less
carbonized and more sustainable world, and pursue the
implementation of its climate plan.
Further details concerning the Group's first-quarter 2024
results are provided in the "First-quarter 2024 results and
outlook" presentation and the "Factsheet", both available on
Arkema's website at:
www.arkema.com/global/en/investor-relations/
FINANCIAL CALENDAR
15 May 2024: Annual general meeting
1 August 2024: Publication of first-half 2024 results
6 November 2024: Publication of third-quarter 2024 results
DISCLAIMER
The information disclosed in this press release may contain
forward-looking statements with respect to the financial position,
results of operations, business and strategy of Arkema.
In a context of significant geopolitical tensions, where the
outlook for the global economy remains uncertain, the retained
assumptions and forward-looking statements could ultimately prove
inaccurate.
Such statements are based on management's current views and
assumptions that could ultimately prove inaccurate and are subject
to risk factors such as (but not limited to) changes in raw
materials prices, currency fluctuations, the pace at which
cost-reduction projects are implemented, escalating geopolitical
tensions, and changes in general economic and financial conditions.
Arkema does not assume any liability to update such forward-looking
statements whether as a result of any new information or any
unexpected event or otherwise. Further information on factors which
could affect Arkema's financial results is provided in the
documents filed with the French Autorité des marchés
financiers.
Balance sheet, income statement and cash flow statement data, as
well as data relating to the statement of changes in shareholders'
equity and information by segment included in this press release
are extracted from the consolidated financial information at 31
March 2024 as reviewed by Arkema's Board of Directors on 6 May
2024. Quarterly financial information is not audited.
Information by segment is presented in accordance with Arkema's
internal reporting system used by management.
Details of the main alternative performance indicators used by
the Group are provided in the tables appended to this press
release. For the purpose of analyzing its results and defining its
targets, the Group also uses EBITDA margin, which corresponds to
EBITDA expressed as a percentage of sales, EBITDA equaling
recurring operating income (REBIT) plus recurring depreciation and
amortization of tangible and intangible assets, as well as REBIT
margin, which corresponds to recurring operating income (REBIT)
expressed as a percentage of sales.
For the purpose of tracking changes in its results, and
particularly its sales figures, the Group analyzes the following
effects (unaudited analyses):
- scope effect: the impact of changes in the Group's scope
of consolidation, which arise from acquisitions and divestments of
entire businesses or as a result of the first-time consolidation or
deconsolidation of entities. Increases or reductions in capacity
are not included in the scope effect;
- currency effect: the mechanical impact of consolidating
accounts denominated in currencies other than the euro at different
exchange rates from one period to another. The currency effect is
calculated by applying the foreign exchange rates of the prior
period to the figures for the period under review;
- price effect: the impact of changes in average selling
prices is estimated by comparing the weighted average net unit
selling price of a range of related products in the period under
review with their weighted average net unit selling price in the
prior period, multiplied, in both cases, by the volumes sold in the
period under review; and
- volume effect: the impact of changes in volumes is
estimated by comparing the quantities delivered in the period under
review with the quantities delivered in the prior period,
multiplied, in both cases, by the weighted average net unit selling
price in the prior period.
Building on its unique set of expertise in materials science,
Arkema offers a portfolio of first-class technologies to
address ever-growing demand for new and sustainable materials. With
the ambition to become a pure player in Specialty Materials, the
Group is structured into three complementary, resilient and highly
innovative segments dedicated to Specialty Materials - Adhesive
Solutions, Advanced Materials, and Coating Solutions - accounting
for some 92% of Group sales in 2023, and a well-positioned and
competitive Intermediates segment. Arkema offers cutting-edge
technological solutions to meet the challenges of, among other
things, new energies, access to water, recycling, urbanization and
mobility, and fosters a permanent dialogue with all its
stakeholders. The Group reported sales of around €9.5 billion in
2023, and operates in some 55 countries with 21,100 employees
worldwide.
A French société anonyme (limited company) with share capital of
€750,435,140 Registered in Nanterre: RCS 445 074 685 Nanterre
ARKEMA financial
statements
Consolidated financial information - At the
end of March 2024
Consolidated financial statements as end of December 2023 have
been audited.
CONSOLIDATED INCOME STATEMENT
1st quarter 2024
1st quarter 2023
(In millions of euros)
Sales
2,341
2,524
Operating expenses
(1,873)
(2,022)
Research and development expenses
(69)
(70)
Selling and administrative expenses
(235)
(229)
Other income and expenses
(29)
(7)
Operating income
135
196
Equity in income of affiliates
(1)
(3)
Financial result
(18)
(19)
Income taxes
(36)
(41)
Net income
80
133
Attributable to non-controlling interests
1
1
Net income - Group share
79
132
Earnings per share (amount in euros)
0.99
1.70
Diluted earnings per share (amount in euros)
0.99
1.69
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1st quarter 2024
1st quarter 2023
(In millions of euros)
Net income
80
133
Hedging adjustments
(15)
(18)
Other items
0
-
Deferred taxes on hedging adjustments and other items
0
2
Change in translation adjustments
57
(90)
Other recyclable comprehensive income
42
(106)
Impact of remeasuring unconsolidated investments
-
-
Actuarial gains and losses
13
(4)
Deferred taxes on actuarial gains and losses
(3)
0
Other non-recyclable comprehensive income
10
(4)
Total income and expenses recognized directly in equity
52
(110)
Total comprehensive income
132
23
Attributable to non-controlling interest
(5)
1
Total comprehensive income - Group share
137
22
INFORMATION BY SEGMENT 1st quarter 2024 (In millions of euros)
Adhesive Solutions
Advanced Materials
Coating Solutions
Intermediates
Corporate
Total
Sales
680
878
615
158
10
2,341
EBITDA
105
162
75
39
(31)
350
Recurring depreciation and amortization of property, plant and
equipment and intangible assets
(23)
(82)
(31)
(10)
(2)
(148)
Recurring operating income (REBIT)
82
80
44
29
(33)
202
Depreciation and amortization related to the revaluation of
property, plant and equipment and intangible assets as part of the
allocation of the purchase price of businesses
(27)
(9)
(2)
-
-
(38)
Other income and expenses
(5)
(23)
0
-
(1)
(29)
Operating income
50
0
48
42
29
(34)
135
Equity in income of affiliates
-
(1)
-
-
-
(1)
Intangible assets and property, plant, and equipment
additions
11
63
7
15
3
99
Of which: recurring capital expenditure
11
63
7
15
3
99
1st quarter 2023
(In millions of euros)
Adhesive Solutions
Advanced Materials
Coating Solutions
Intermediates
Corporate
Total
Sales
698
937
661
218
10
2,524
EBITDA
93
160
94
49
(29)
367
Recurring depreciation and amortization of property, plant and
equipment and intangible assets
(21)
(67)
(31)
(13)
(1)
(133)
Recurring operating income (REBIT)
72
93
63
36
(30)
234
Depreciation and amortization related to the revaluation of
property, plant and equipment and intangible assets as part of the
allocation of the purchase price of businesses
(25)
(5)
(1)
-
-
(31)
Other income and expenses
(7)
10
(1)
0
(9)
(7)
Operating income
40
98
61
36
(39)
196
Equity in income of affiliates
-
(3)
-
-
-
(3)
Intangible assets and property, plant, and equipment
additions
15
52
14
3
5
89
Of which: recurring capital expenditure
15
45
14
3
5
82
CONSOLIDATED CASH FLOW STATEMENT
End of
March 2024
End of
March 2023
(In millions of euros)
Operating
cash flows Net income
80
133
Depreciation, amortization and impairment of assets
189
164
Other provisions and deferred taxes
(14)
(2)
(Gains)/losses on sales of long-term assets
5
(26)
Undistributed affiliate equity earnings
1
3
Change in working capital
(185)
(136)
Other changes
9
7
Cash flow from operating activities
85
143
Investing cash flows Intangible assets and
property, plant, and equipment additions
(99)
(89)
Change in fixed asset payables
(71)
(107)
Acquisitions of operations, net of cash acquired
(19)
0
Increase in long-term loans
(10)
(8)
Total expenditures
(199)
(204)
Proceeds from sale of intangible assets and property, plant,
and equipment
1
3
Change in fixed asset receivables
1
-
Proceeds from sale of operations, net of cash transferred
-
32
Repayment of long-term loans
9
10
Total divestitures
11
45
Cash flow from investing activities
(188)
(159)
Financing cash flows Issuance (repayment) of
shares and paid-in surplus
-
-
Purchase of treasury shares
(4)
(5)
Issuance of hybrid bonds
399
-
Dividends paid to parent company shareholders
-
-
Interest paid to bearers of subordinated perpetual notes
(5)
(5)
Dividends paid to non-controlling interests and buyout of minority
interests
-
-
Increase in long-term debt
2
395
Decrease in long-term debt
(730)
(20)
Increase / (Decrease) in short-term debt
706
(40)
Cash flow from financing activities
368
325
Net increase/(decrease) in cash and cash equivalents
265
309
Effect of exchange rates and changes in scope
6
16
Cash and cash equivalents at beginning of period
2,045
1,592
Cash and cash equivalents at end or the period
2,316
1,917
CONSOLIDATED BALANCE SHEET
31 March
2024
31
December 2023
(In millions of euros)
ASSETS Goodwill
3,043
3,040
Intangible assets, net
2,423
2,416
Property, plant and equipment, net
3,746
3,730
Equity affiliates: investments and loans
11
13
Other investments
54
52
Deferred tax assets
154
157
Other non-current assets
254
251
TOTAL NON-CURRENT ASSETS
9,685
9,659
Inventories
1,326
1,208
Accounts receivable
1,465
1,261
Other receivables and prepaid expenses
172
170
Income tax receivables
143
142
Other current financial assets
10
32
Cash and cash equivalents
2,316
2,045
Assets held for sale
-
-
TOTAL CURRENT ASSETS
5,432
4,858
TOTAL ASSETS
15,117
14,517
LIABILITIES AND SHAREHOLDERS' EQUITY
Share capital
750
750
Paid-in surplus and retained earnings
6,781
6,304
Treasury shares
(25)
(21)
Translation adjustments
233
170
SHAREHOLDERS' EQUITY - GROUP SHARE
7,739
7,203
Non-controlling interests
247
252
TOTAL SHAREHOLDERS' EQUITY
7,986
7,455
Deferred tax liabilities
450
436
Provisions for pensions and other employee benefits
383
397
Other provisions and non-current liabilities
411
416
Non-current debt
3,032
3,734
TOTAL NON-CURRENT LIABILITIES
4,276
4,983
Accounts payable
1,068
1,036
Other creditors and accrued liabilities
409
392
Income tax payables
92
83
Other current financial liabilities
39
27
Current debt
1,247
541
Liabilities related to assets held for sale
-
-
TOTAL CURRENT LIABILITIES
2,855
2,079
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
15,117
14,517
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Shares issued Treasury
shares Shareholders' equity - Group share
Non-controlling interests Shareholders' equity (In
millions of euros)
Number Amount Paid-in
surplus Hybrid bonds Retained earnings
Translation adjustments Number Amount At
January 1, 2024
75,043,514
750
1,067
700
4,537
170
(228,901)
(21)
7,203
252
7,455
Cash dividend
—
—
—
—
(5)
—
—
—
(5)
—
(5)
Issuance of share capital
—
—
—
—
—
—
—
—
—
—
—
Capital decrease by cancellation of treasury shares
—
—
—
—
—
—
—
—
—
—
—
Purchase of treasury shares
—
—
—
—
—
—
(50,000)
(4)
(4)
—
(4)
Cancellation of purchased treasury shares
—
—
—
—
—
—
—
—
—
—
—
Grants of treasury shares to employees
—
—
—
—
—
—
—
—
—
—
—
Sale of treasury shares
—
—
—
—
—
—
—
—
—
—
—
Share-based payments
—
—
—
—
8
—
—
—
8
—
8
Issuance of hybrid bonds
—
—
—
400
(1)
—
—
—
399
—
399
Redemption of hybrid bonds
—
—
—
—
—
—
—
—
—
—
—
Other
—
—
—
—
1
—
—
—
1
0
1
Transactions with shareholders
—
—
—
400
3
—
(50,000)
(4)
399
—
399
Net income
—
—
—
—
79
—
—
—
79
1
80
Total income and expense recognized directly through equity
—
—
—
—
(5)
63
—
—
58
(6)
52
Comprehensive income
—
—
—
—
74
63
—
—
137
(5)
132
At March 31, 2024
75,043,514
750
1,067
1,100
4,614
233
(278,901)
(25)
7,739
247
7,986
ALTERNATIVE PERFORMANCE INDICATORS To monitor and
analyse the financial performance of the Group and its activities,
the Group management uses alternative performance indicators. These
are financial indicators that are not defined by the IFRS. This
note presents a reconciliation of these indicators and the
aggregates from the consolidated financial statements under IFRS.
RECURRING OPERATING INCOME (REBIT) AND EBITDA
(In millions of euros)
End of
March 2024
End of
March 2023
OPERATING INCOME
135
196
- Depreciation and amortization related to the revaluation of
tangible and intangible assets as part of the allocation of the
purchase price of businesses
(38)
(31)
- Other income and expenses
(29)
(7)
RECURRING OPERATING INCOME (REBIT)
202
234
- Recurring depreciation and amortization of tangible and
intangible assets
(148)
(133)
EBITDA
350
367
Details of depreciation and
amortization of tangible and intangible assets:
(In millions of euros)
End of
March 2024
End of
March 2023
Depreciation and amortization of tangible and intangible
assets
(189)
(164)
Of which: Recurring depreciation and amortization of tangible and
intangible assets
(148)
(133)
Of which: Depreciation and amortization related to the revaluation
of assets as part of the allocation of the purchase price of
businesses
(38)
(31)
Of which: Impairment included in other income and expenses
(3)
0
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER
SHARE (In millions of euros)
End of
March 2024
End of
March 2023
NET INCOME - GROUP SHARE
79
132
- Depreciation and amortization related to the revaluation of
tangible and intangible assets as part of the allocation of the
purchase price of businesses
(38)
(31)
- Other income and expenses
(29)
(7)
- Other income and expenses - Non-controlling interests
-
-
- Taxes on depreciation and amortization related to the revaluation
of assets as part of the allocation of the purchase price of
businesses
9
6
- Taxes on other income and expenses
1
4
- One-time tax effects
(2)
(2)
ADJUSTED NET INCOME
138
162
- Weighted average number of ordinary shares
74,800,943
74,790,424
- Weighted average number of potential ordinary shares
75,043,514
75,043,514
ADJUSTED EARNINGS PER SHARE (in euros)
1.84
2.17
DILUTED ADJUSTED EARNINGS PER SHARE (in euros)
1.84
2.16
RECURRING CAPITAL EXPENDITURE (In
millions of euros)
End of
March 2024
End of
March 2023
INTANGIBLE ASSETS AND PROPERTY, PLANT, AND EQUIPMENT
ADDITIONS
99
89
- Exceptional capital expenditure
-
7
- Investments relating to portfolio management operations
-
-
- Capital expenditure with no impact on net debt
-
-
RECURRING CAPITAL EXPENDITURE
99
82
CASH FLOWS (In millions of euros)
End of
March 2024
End of
March 2023
Cash flow from operating activities
85
143
+ Cash flow from investing activities
(188)
(159)
NET CASH FLOW
(103)
(16)
- Net cash flow from portfolio management operations
(21)
30
FREE CASH FLOW
(82)
(46)
- Exceptional capital expenditure
-
(7)
- Non-recurring cash flow
(22)
(18)
RECURRING CASH FLOW
(60)
(21)
- Recurring capital expenditure
(99)
(82)
OPERATING CASH FLOW
39
61
Operating Cash Flow corresponds to the recurring cash flow
before recurring capital expenditure The net cash flow from
portfolio management operations corresponds to the impact of
acquisition and divestment operations. Non-recurring cash flow
corresponds to cash flow from other income and expenses.
NET
DEBT (In millions of euros)
End of
March 2024
End of
December 2023
Non-current debt
3,032
3,734
+ Current debt
1,247
541
- Cash and cash equivalents
2,316
2,045
NET DEBT
1,963
2,230
+ Hybrid bonds
1,100
700
NET DEBT AND HYBRID BONDS
3,063
2,930
WORKING CAPITAL (In millions of euros)
End of
March 2024
End of
December 2023
Inventories
1,326
1,208
+ Accounts receivable
1,465
1,261
+ Other receivables including income taxes
315
312
+ Other current financial assets
10
32
- Accounts payable
1,068
1,036
- Other liabilities including income taxes
501
475
- Other current financial liabilities
39
27
WORKING CAPITAL
1,508
1,275
CAPITAL EMPLOYED (In millions of euros)
End of
March 2024
End of
December 2023
Goodwill, net
3,043
3,040
+ Intangible assets (excluding goodwill), and property, plant and
equipment, net
6,169
6,146
+ Investments in equity affiliates
11
13
+ Other investments and other non-current assets
308
303
+ Working capital
1,508
1,275
CAPITAL EMPLOYED
11,039
10,777
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506233680/en/
Investor relations contacts Béatrice Zilm +33 (0)1 49 00
75 58 beatrice.zilm@arkema.com Peter Farren +33 (0)1 49 00 73 12
peter.farren@arkema.com Mathieu Briatta +33 (0)1 49 00 72 07
mathieu.briatta@arkema.com Alexis Noël +33 (0)1 49 00 74 37
alexis.noel@arkema.com
Media contacts Gilles Galinier +33 (0)1 49 00 70 07
gilles.galinier@arkema.com Anne Plaisance +33 (0)6 81 87 48 77
anne.plaisance@arkema.com
Alikem (TSX:AKE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Alikem (TSX:AKE)
Historical Stock Chart
From Jul 2023 to Jul 2024