Elementis sees FY performance at top end of consensus expectations

Elementis said on Tuesday that its full-year performance was set to be towards the top end of consensus expectations as it hailed good demand.

In its results for the six months to 30 June, the company said revenue rose 6% to $478m, driven mainly by successful pricing actions to address rapid cost inflation, as well as improved mix. Adjusted operating profit was up 21% to $66m, with adjusted operating margin up from 12.0% to 13.7%, as improved price/mix offset continued cost inflation.

Elementis highlighted a record performance in the coatings divisions, "reflective of a higher quality business with further growth potential". In Personal Care, the performance was "strong" as demand recovered.

The company said steady demand along with self-help actions are expected to drive an improved full-year performance and further deleveraging.

"While mindful of macroeconomic headwinds, the group's financial performance is expected to be towards the top end of consensus expectations," it said. The current market forecast for 2022 adjusted operating profit is $107m to $125m with an average of $115m.

Chief executive Paul Waterman said: "We have made a strong start to the year, benefiting from the combination of focused strategy execution and proactive price management.

"The fundamentals of our business remain strong. We have high quality assets with enduring competitive advantages and strong pricing power, and I am confident that the implementation of our Innovation, Growth and Efficiency strategy will position Elementis to deliver our medium-term financial ambitions and generate significant shareholder value."