Arkema announced its full year 2021 results. The financial performance in 2021 reflects accelerating demand for innovative and sustainable materials, as well as the group’s reactivity in a demanding and volatile context.
Arkema group sales of €9.5 billion are up by 25.9% compared with 2020 at constant scope and currency. Growth in volumes of 7.3% are driven by robust demand for sustainable solutions with high technological content, particularly in batteries, 3D printing, consumer goods and more environmentally friendly paints
Increase in selling prices of 18.6% over the year reflect the group’s initiatives to offset strong raw materials and energy inflation, an improved product mix, as well as a the tightness of upstream acrylics
EBITDA at historic high of €1,727 million is up by 46.1% compared with 2020, and EBITDA margin was 18.1% in an environment marked by operational disruptions and high raw materials and energy costs.
Recurring cash flow was stable at €756 million (€762 million in 2020) and net debt down sharply to €1,177 million, including €700 million in hybrid bonds (net debt of €1,910 million at end-2020), representing 0.7x 2021 EBITDA
Major steps are being taken to refocus on Specialty Materials, which represent close to 90% of 2021 pro forma sales, with the finalization of the PMMA divestment and the proposed acquisition of Ashland’s performance adhesives business.
“I would particularly like to thank Arkema’s employees, who thanks to their commitment and initiatives, enabled the Group to reach an excellent financial performance in 2021 in a demanding operating context, and successfully complete a number of important organic growth and portfolio management projects,” chairman and CEO Thierry Le Hénaff said. “Arkema’s growth was driven by increasingly strong demand for high performance solutions that address challenges arising from sustainable megatrends.
“2022 will mark another important step forward in our ambition to become a pure Specialty Materials player,” added Le Hénaff. “The acquisition of Ashland’s adhesives business is expected to close shortly, and will be followed by the start-up of our two major projects, namely, the bio-based polyamide 11 plant in Singapore and the production of hydrofluoric acid in the United States. Moreover, we have never identified so many innovation opportunities in areas with high technological content. Thanks to our geographic positioning, the intimacy developed with our customers and our unique expertise centered around materials science, I believe Arkema is very well positioned to seize these opportunities.”
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