Elementis lifts FY outlook after 'strong' first half

In the six months to the end of June, adjusted operating profit rose 24% to $65m thanks to strong performances in the personal care and coatings businesses. Revenue was 5% higher at $383m, driven by improved volumes and mix.

On a statutory basis, the company made an operating loss of $11m versus a profit of $44m in the same period a year earlier, reflecting $66m impairment of assets in the talc segment.

Elementis said that following the solid performance in the first half, it now expects the full-year performance to be "slightly above" the top end of the current range of market expectations. For 2024, consensus expectations are for adjusted operating profit of between $115m and $120m and adjusted operating margin of 15.8%.

Chief executive Paul Waterman said: "Elementis delivered a strong first half performance, reflecting both continued strategic progress and the benefits of self-help actions. We delivered a much-improved operating margin of 17%, which takes us significantly closer to our 2026 target of 19%+ and demonstrates the progress we are making as a high quality, high value specialty additives business.

"Personal Care delivered a record first half performance, a result of innovative product launches and new business success. Coatings delivered a strong performance, helping to offset the challenges in the Talc business. Today we are announcing the strategic review of Talc to establish whether the full potential of Talc can best be delivered as part of Elementis, or via a divestment."