JARI ROSENDAL, PRESIDENT AND CEO
PETRI CASTRÉN, CFO
JULY 15, 2022
Record-high revenue and operative EBITDA
JANUARY - JUNE 2022
Summary of Q2 2022
- Record-strongQ2 2022: Record-high revenue and operative EBITDA. Relative profitability impacted by continued strong inflationary pressures.
- Biobased strategy progressing: new Growth Accelerator unit launched in June; contract extension with Danimer Scientific announced in May
- Kemira commits to the Science Based Targets Initiative (SBTi); new ambitious climate target set
- Exit from Russia progressing well
- Outlook upgraded June 8. Operative EBITDA now expected to increase from 2021 (EUR 425.5 million).
J U L Y 1 5 , 2 0 2 2 | Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N | 2 |
Financial highlights of Q2 2022
Record-high revenue in Q2 2022
- Revenue growth driven by higher sales prices in both segments and in all regions. Sales volumes declined.
- Organic revenue growth 24% in Q2 2022; 23% in H1 2022
Record-high operative EBITDA in Q2 2022
- Margin declined due to continued strong inflationary pressures. Price increases ongoing to mitigate impacts from higher inflation.
Cash flow from operations declined due to an increase in net working capital
EUR million | Q2 | Q2 | Δ% | H1 | H1 | Δ% | FY |
(except ratios) | 2022 | 2021 | 2022 | 2021 | 2021 | ||
Revenue | 861.4 | 657.5 | +31% | 1,629.4 | 1,263.6 | +29% | 2,674.4 |
Operative EBITDA | 122.1 | 107.3 | +14% | 242.1 | 211.9 | +14% | 425.5 |
of which margin | 14.2% | 16.3% | - | 14.9% | 16.8% | - | 15.9% |
Operative EBIT | 69.7 | 58.2 | +20% | 138.6 | 114.0 | +22% | 225.4 |
of which margin | 8.1% | 8.9% | - | 8.5% | 9.0% | - | 8.4% |
Net profit | 46.9 | 24.9 +88% | 89.1 | 65.7 | +36% | 115.2 | |
EPS diluted, EUR | 0.29 | 0.15 | +95% | 0.56 | 0.40 | +38% | 0.70 |
Cash flow from | 41.6 | 38.6 | +8% | 30.6 | 52.4 | -42% | 220.2 |
operating activities | |||||||
Earnings per share EUR 0.29 in Q2 2022; EUR 0.56 in H1 2022
J U L Y 1 5 , 2 0 2 2 | Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N | 3 |
Pulp & Paper: Record-high revenue and operative EBITDA
Market environment in Q2 2022
- Continued solid demand across customer segments and geographic regions
Organic growth Q2 2022: +22%; H1 2022 20%
- Organic growth driven by higher sales prices. Work ongoing to shorten pricing checkpoints in customer contracts.
- Sales volumes declined mainly due to exit from Russia and strike at a customer in Finland
Record-high operative EBITDA
- Margin resilient at 15.1% despite unprecedented inflationary environment
J U L Y 1 5 , 2 0 2 2Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N
REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y)
EUR million | 488 | |||||||||
420 | 447 | |||||||||
391 | ||||||||||
378 | 357 | 370 | 370 | 378 | ||||||
352 | ||||||||||
-1% | -4% | -5% | 0% | 2% | 9% | 11% | 11% | 17% | 22% | |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |
2020 | 2021 | 2022 |
OPERATIVE EBITDA AND OPERATIVE EBITDA-%
EUR million | 18.6% | 18.6% | |||||||
15.9% | 18.4% | 17.0% | 15.3% | 16.2% | 16.0% | 15.1% | |||
14.4% | |||||||||
65.6 | 65.5 | 68.9 | |||||||
60.2 | 62.9 | 57.8 | 63.5 | 60.5 | 71.3 | 73.6 | |||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
2020 | 2021 | 2022 |
4
Industry & Water: Record-high revenue
Market environment in Q2 2022
- Water treatment: Good demand in both municipal and industrial water treatment
- Oil & Gas: shale market grew but slower than expected. Solid demand in oil sands tailings and CEOR*.
Organic growth Q2 2022: 26%; H1 2022 28%
- Organic growth driven by higher sales prices. Sales volumes stable.
- Organic growth excluding Oil & Gas +27% in Q2 2022. Oil & Gas revenue growth +36% in Q2 2022, organic growth +24%.
Operative EBITDA margin Q2 2022: 13.0%
- Margin declined due to unprecedented inflationary pressures
- Further profitability improvement needed in Oil & Gas
REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y)
EUR million
322 | 374 | ||||||||
301 | 298 | ||||||||
264 | 279 | ||||||||
244 | |||||||||
226 | 236 | 237 | |||||||
-1% | -22% | -18% | -10% | -7% | 28% | 23% | 23% | 31% | 26% |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
2020 | 2021 | 2022 |
OPERATIVE EBITDA AND OPERATIVE EBITDA-%
EUR million
18.3% | 17.7% | 19.5% | 16.6% | 17.6% | 17.7% | 17.4% | 12.5% | 15.2% | 13.0% |
48.2 | 47.6 | 49.5 | 52.3 | 48.8 | |||||
40.0 | 39.0 | 41.7 | 37.3 | 48.5 | |||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
2020 | 2021 | 2022 |
J U L Y 1 5 , 2 0 2 2 | Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N | *CEOR= chemical enhanced oil recocery | 5 |
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Kemira Oyj published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2022 05:43:07 UTC.