Kemira (KEMIRA) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with volume growth in both main segments and robust margin management, marking the second-best year in company history.

• Revenue for 2024 decreased by 13% to EUR 2,948.1 million due to the Oil & Gas divestment, but adjusted revenue rose 1% to EUR 2,903.5 million, with strong volume growth in Industry & Water and stable sales prices overall.

• Strategic progress included several smaller investments, a bolt-on acquisition in the UK, and a new leadership team starting January 2025.

• Sustainability advanced with SBTi-validated emission reduction targets and continued solid dividend growth.

• Customer satisfaction reached an all-time high Net Promoter Score of 59, reflecting strong service and reliability.

Financial highlights

• Adjusted operative EBITDA margin remained strong at 20.0% for 2024; operative EBITDA was EUR 585.4 million, with all-time high EPS of EUR 1.61, up 25% year-over-year.

• Net profit increased 24% to EUR 262.7 million; cash flow from operations was EUR 484.6 million, with cash flow after investing activities at EUR 411.8 million.

• Net debt/EBITDA at 0.5, with net debt below EUR 300 million and gearing at 16%.

• CapEx for 2024 at EUR 167.3 million, expected to rise above EUR 200 million in 2025 due to planned investments.

• Dividend proposal of EUR 0.74 per share, totaling EUR 114 million, to be paid in two installments.

Outlook and guidance

• 2025 revenue expected between EUR 2,800–3,200 million; operative EBITDA guidance set at EUR 540–640 million.

• Modest volume growth expected in water markets across all regions; recovery in Fiber Essentials, Packaging & Hygiene Solutions, and pulp markets anticipated mainly in H2 2025.

• Pricing environment stabilized, with modest increases expected and no significant price erosion anticipated; input costs expected to be stable or slightly higher.

• Long-term financial targets updated: organic growth >4% annually, operative EBITDA margin 18–21%, operative ROCE >16%.

• Dividend proposal of EUR 0.74 per share, up EUR 0.06 from the previous year.