This is a summary of the January-
Third quarter: Strong profitability and cash flow
· Revenue decreased by 13% to
· Operative EBITDA remained strong and was
· Operative EBIT decreased by 12% to
· Cash flow from operating activities remained strong at
· EPS, diluted, decreased by 10% to
January-September: Strong profitability development despite lower sales volumes
· Revenue decreased by 9% to
· Operative EBITDA increased by 2% to
· Operative EBIT was
· Cash flow from operating activities remained strong at
· EPS, diluted, increased by 6% to
Kemira's President and CEO
"Kemira had strong profitability in the third quarter. The operating environment remained largely unchanged during the quarter, with the COVID-19 pandemic burdening the global economy. Kemira's operations remained uninterrupted, although with strict safety measures in place. Despite the challenging environment, our profitability remained strong during the quarter. Revenue declined by 13% as sales volumes were impacted by the economic slowdown. Revenue excluding currency impact and the Oil & Gas business declined by 5%, demonstrating the resilience of the majority of our businesses. Thanks to good management of variable and fixed costs and the contribution from recent investments, our operative EBITDA remained strong and was
In Pulp & Paper, market demand patterns were similar to Q2 2020. Demand was rather solid in all customer segments apart from printing and writing, which continued to be negatively impacted by the economic slowdown. Pulp & Paper's operative EBITDA margin improved to an exceptionally high level of 18.6% in Q3 2020 (16.0%). The ramp-up of the new AKD wax facility in
In Industry & Water, water treatment demand remained quite resilient, particularly in municipal water treatment. In
Following the strong development in Q3 2020, we have updated our outlook, which we communicated on
I am pleased that despite the challenging environment this year, Kemira's performance has been good. Our employees have worked hard to ensure our and our customers' business continuity, which I am proud of. I would like to warmly thank all our stakeholders for their trust during this exceptional year."
KEY FIGURES AND RATIOS
EUR million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
2020 2019 2020 2019 2019
Revenue 596.7 689.8 1,821.6 2,001.1 2,658.8
Operative EBITDA 113.0 118.1 327.2 319.9 410.0
Operative EBITDA, 18.9 17.1 18.0 16.0 15.4
%
EBITDA 109.8 118.1 322.0 312.7 382.3
EBITDA, % 18.4 17.1 17.7 15.6 14.4
Operative EBIT 62.3 71.1 180.7 181.6 224.0
Operative EBIT, % 10.4 10.3 9.9 9.1 8.4
EBIT 59.1 69.2 175.6 172.5 194.4
EBIT, % 9.9 10.0 9.6 8.6 7.3
Net profit for the 39.0 43.3 114.2 107.9 116.5
period
Earnings per 0.24 0.27 0.71 0.67 0.72
share, diluted,
EUR
Capital employed* 1,977.2 1,961.8 1,977.2 1,961.8 1,998.2
Operative ROCE*, % 11.3 11.5 11.3 11.5 11.2
ROCE*, % 10.0 10.9 10.0 10.9 9.7
Cash flow from 117.3 121.3 228.3 243.7 386.2
operating
activities
Capital 49.4 51.5 129.6 119.7 201.1
expenditure excl.
acquisition
Capital 49.4 51.8 132.2 121.6 204.1
expenditure
Cash flow after 68.6 73.1 96.8 129.9 189.8
investing
activities
Equity ratio, % at 44 43 44 43 43
period-end
Equity per share, 7.94 7.94 7.94 7.94 7.98
EUR
Gearing, % at 64 71 64 71 66
period-end
*12-month rolling average
Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as organic growth (revenue growth in local currencies, excluding acquisitions and divestments), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and gearing, provide useful information about Kemira's comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration.
Kemira's alternative performance measures should not be viewed in isolation from the equivalent IFRS measures, and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial information. All the figures in this interim report have been individually rounded, and consequently the sum of the individual figures may deviate slightly from the sum figure presented.
OUTLOOK
Outlook for July-
Kemira expects its operative EBITDA in H2 2020 to be lower than in H1 2020 (H1 2020:
Assumptions behind Kemira's outlook for July-
Overall demand in Kemira's end markets in H2 2020 is expected to be at approximately the same level as in Q2 2020. Demand in Pulp & Paper is expected to remain approximately at the Q2 2020 level, with printing and writing demand to remain weak. In Industry & Water, demand is also expected to remain at approximately the Q2 2020 level. The shale market has started to recover modestly from the Q2 2020 market lows. Kemira's outlook for H2 2020 assumes no significant disruptions in Kemira's manufacturing operations or supply chain.
Previous outlook (published on
Kemira expects its operative EBITDA in H2 2020 to be lower than in H1 2020 (H1 2020:
FINANCIAL TARGETS
Kemira aims for above-market revenue growth with an operative EBITDA margin of 15-17%. The target for gearing is below 75%.
Kemira Oyj
Board of Directors
FINANCIAL REPORTING SCHEDULE 2021
Financial Statements Bulletin 2020
Interim Report January-March 2021
Half-year Financial Report January-June 2021 July 16, 2021
Interim Report January-September 2021 October 26, 2021
The Annual Report 2020 will be published in the week starting on
The Annual General Meeting is scheduled for
WEBCAST AND CONFERENCE CALL FOR PRESS AND ANALYSTS
Kemira will arrange a webcast for analysts, investors, and media on
You can attend the Q&A session via a conference call. In order to participate in the conference, please call in ten minutes before the conference begins:
FI +358 (0)9 81710 310
SE +46 (0)8 56642 651
US +1 631 913 1422
Conference ID: 42010853#
For more information, please contact:
Tel. +358 40 838 0709
Kemira is a global chemicals company serving customers in water intensive industries. We provide best suited products and expertise to improve our customers' product quality, process and resource efficiency. Our focus is on pulp & paper, oil & gas and water treatment. In 2019, Kemira had annual revenue of around
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