Kemira (KEMIRA) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered 2% organic growth, driven by robust demand in water treatment and strong performance in Industry & Water, while Pulp & Paper recovery slowed.

• Operative EBITDA margin improved to 20.3%, with both segments contributing to margin gains.

• New long-term financial targets set: >4% average annual organic growth, 18–21% operative EBITDA margin, and >16% ROCE.

• SBTi-validated emission reduction targets and carbon neutrality by 2045; sustainability initiatives advanced.

• New operating model and organization to be implemented from January 2025, aiming for greater agility and customer-centricity.

Financial highlights

• Q3 2024 revenue at EUR 727.6 million, down 12% year-over-year; organic revenue growth +2%.

• Operative EBITDA reached EUR 147.4 million, margin 20.3%; net profit EUR 67.2 million, EPS EUR 0.41.

• Cash flow from operations EUR 319.2 million for January–September 2024; capex excluding acquisitions EUR 96.2 million.

• Net debt reduced to EUR 309.8 million; leverage ratio at 0.5.

• Operative ROCE at 21.7%; Industry & Water segment ROCE 34.5%.

Outlook and guidance

• Full-year 2024 revenue expected between EUR 2,800–3,200 million; operative EBITDA EUR 540–640 million.

• Outlook and financial targets remain unchanged; end-market demand in water treatment expected to grow, input costs stable.

• Modest variable cost increases expected, with price increases mainly for 2025 contract negotiations.

• Recovery in the pulp and paper market is uncertain and expected to be pushed into 2025.