JARI ROSENDAL, PRESIDENT AND CEO
PETRI CASTRÉN, CFO
OCTOBER 26, 2021
Record quarterly revenue
JANUARY-SEPTEMBER 2021
Summary of Q3 2021
- Strong end-market growth continued
- Organic revenue growth +16%, record-high quarterly revenue in a seasonally strong quarter
- Profitability impacted by strong raw material inflation. Impact from inflationary pressures expected to continue in the coming quarters, particularly in Q4 2021.
- Actions to mitigate price pressure continued
- Ramp-upof investments in South Korea and the U.S. ongoing. New ASA sizing investment announced in China.
- Second dividend installment of EUR 0.29 to be paid on November 4, 2021
- Outlook for 2021 unchanged
O C T O B E R 2 6 , 2 0 2 1 | Q 3 2 0 2 1 R E S U L T P R E S E N T A T I O N | 2 |
Financial highlights of Q3 2021
Strong organic revenue growth of 16%
- Strong demand in both segments, geographically particularly in EMEA and the Americas
- Organic revenue growth excl. Oil & Gas business 11%
Operative EBITDA EUR 115.9 million
- Absolute EBITDA grew following higher sales prices and volumes. Positive impact from emission right compensation (7 MEUR), received fully in Q3.
- Margin declined due to significantly higher raw material prices
Earnings per share increased to EUR 0.25
EUR million | Q3 | Q3 | Δ% | 1-9 | 1-9 | Δ% | FY |
(except ratios) | 2021 | 2020 | 2021 | 2020 | 2020 | ||
Revenue | 692.7 | 596.7 | +16% | 1,956.2 | 1,821.6 | +7% | 2,427.2 |
Operative EBITDA | 115.9 | 113.0 | +3% | 327.8 | 327.2 | 0% | 435.1 |
of which margin | 16.7% | 18.9% | - | 16.8% | 18.0% | - | 17.9% |
Operative EBIT | 64.5 | 62.3 | +3% | 178.4 | 180.7 | -1% | 237.7 |
of which margin | 9.3% | 10.4% | - | 9.1% | 9.9% | - | 9.8% |
Net profit | 39.6 | 39.0 | +1% | 105.3 | 114.2 | -8% | 138.0 |
EPS diluted, EUR | 0.25 | 0.24 | +1% | 0.65 | 0.71 | -9% | 0.86 |
Cash flow from | 86.9 | 117.3 | -26% | 139.4 | 228.3 | -39% | 374.7 |
operating activities | |||||||
O C T O B E R 2 6 , 2 0 2 1 | Q 3 2 0 2 1 R E S U L T P R E S E N T A T I O N | 3 |
Pulp & Paper: Revenue growth across
customer segments
Market environment in Q3 2021
- Strong demand in pulp, board and tissue; continued recovery in printing and writing demand.
Organic growth +11%
- Sales volumes continued to grow; sales prices also increased clearly
- Organic growth driven by strong demand across customer segments. Strong demand in EMEA and the Americas.
REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y)
EUR million
381 | 373 | 383 | 386 | 378 | 370 | 370 | 378 | 391 | ||
357 | 352 | |||||||||
+0% | -3% | -3% | -3% | -1% | -4% | -5% | 0% | 2% | 9% | 11% |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2019 | 2020 | 2021 |
Operative EBITDA margin 16.2% | OPERATIVE EBITDA AND OPERATIVE EBITDA-% | ||||||||||
EUR million | 18.6% 18.6% | ||||||||||
18.4% | 17.0% 15.3% 16.2% | ||||||||||
• Higher raw material prices impacted margin | 13.3% | 14.4% | 16.0% | 13.6% | 15.9% | ||||||
negatively. Positive impact from emission right | 61.3 | 60.2 | 65.6 | 65.5 | 68.9 | 62.9 | 63.5 | ||||
53.7 | 57.8 | ||||||||||
compensation (7 MEUR), which was received fully in | 50.7 | 52.6 | |||||||||
Q3 this year (during Q3 and Q4 in 2020). | |||||||||||
Ramp-up of polymer capacity in South Korea | |||||||||||
ongoing | |||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
2019 | 2020 | 2021 |
O C T O B E R 2 6 , 2 0 2 1 | Q 3 2 0 2 1 R E S U L T P R E S E N T A T I O N | 4 |
Industry & Water: Strong organic growth
Market environment in Q3 2021
- Water treatment: Good demand in both municipal and industrial water treatment
- Oil & Gas: demand improved sequentially and year- on-year.
Organic growth +23%
- Sales volumes and sales prices increased
- Organic growth excluding Oil & Gas +11%. Good demand in water treatment across regions.
Operative EBITDA margin 17.4%
- Higher raw material prices impacted margin negatively
REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y)
EUR million
267 | 290 | 307 | 272 | 264 | 279 | 301 | ||||
226 | 244 | 236 | 237 | |||||||
+5% | +4% | +6% | -1% | -1% | -22% | -18% | -10% | -7% | 28% | 23% |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2019 | 2020 | 2021 |
OPERATIVE EBITDA AND OPERATIVE EBITDA-%
EUR million
16.8% 18.1% 18.5% | 13.8% | 18.3% 17.7% 19.5% 16.6% 17.6% 17.7% 17.4% | ||||||||
45.0 | 52.4 | 56.8 | 48.2 | 40.0 | 47.6 | 39.0 | 41.7 | 49.5 | 52.3 | |
37.5 | ||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2019 | 2020 | 2021 |
O C T O B E R 2 6 , 2 0 2 1 | Q 3 2 0 2 1 R E S U L T P R E S E N T A T I O N | 5 |
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Kemira Oyj published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 05:55:08 UTC.