{"id":24706,"date":"2021-03-01T08:14:15","date_gmt":"2021-03-01T07:14:15","guid":{"rendered":"https:\/\/php8.plastv.de\/?p=24706"},"modified":"2021-02-26T15:17:16","modified_gmt":"2021-02-26T14:17:16","slug":"full-year-2020-results","status":"publish","type":"post","link":"https:\/\/plas.tv\/?p=24706","title":{"rendered":"Full-year 2020 results"},"content":{"rendered":"
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In a context strongly marked by the pandemic, the Group\u2019s EBITDA margin remained robust at 15.0%, supported by the resilience of its Specialty Materials [1]<\/sup> and by the rebound in volumes in the fourth quarter (+5% vs Q4\u201919).
\nArkema is well positioned to take advantage of the recovery in 2021 and beyond, thanks to the benefits of its strong balance sheet and its focus on sustainable and high performance Specialty Materials.<\/p>\n<\/div>\n<\/section>\n

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Rebound in volumes in the fourth quarter<\/strong> and solid performance during the year<\/h2>\n<\/div>\n<\/section>\n
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  • Rebound in the Group\u2019s performance in the fourth quarter<\/strong>\n
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    • Sales growth of 2.1%<\/strong> at constant scope and currency, driven by a significant improvement in volumes (+5.2% vs Q4\u201919)<\/li>\n
    • Continued positive momentum in construction, decorative paints and batteries, and recovery seen in several industrial markets<\/li>\n
    • EBITDA <\/strong>broadly stable at \u20ac289 million<\/strong> (\u20ac295 million in Q4\u201919), supported by the strong increase of Adhesive Solutions (+15%<\/strong>) and Coating Solutions (+19%<\/strong>)<\/li>\n<\/ul>\n<\/li>\n
    • \u20ac7.9 billion <\/strong>in sales <\/strong>in 2020, representing a limited decline of 8% year on year at constant currency, reflecting the impact of the pandemic on global demand<\/li>\n
    • EBITDA <\/strong>in 2020 of \u20ac1,182 million<\/strong> (-18.9%) and EBITDA margin<\/strong> of 15.0%<\/strong>. Good resilience of Specialty Materials (12% decrease in EBITDA and a 100 bp contraction in EBITDA margin to 15.8%\u00a0[2]<\/sup>)<\/li>\n
    • Adjusted net income<\/strong> of \u20ac391 million<\/strong> in 2020, representing \u20ac5.11 per share<\/li>\n
    • High free cash flow<\/strong> for the year at \u20ac651 million<\/strong>, comparable to the level achieved in 2019, reflecting excellent management of working capital (11.8% of sales at 31\u00a0December 2020) and strict control of capital expenditure<\/li>\n
    • Net debt<\/strong> down strongly at \u20ac1,910 million<\/strong> including hybrid bonds (\u20ac2,331 million at 31 December 2019), representing 1.6x EBITDA for 2020<\/li>\n<\/ul>\n

      [1]\u00a0Specialty Materials include the three following segments: Adhesive Solutions, Advanced Materials and Coating Solutions
      \n[2]\u00a0Before allocation of corporate cost<\/sup><\/p>\n<\/div>\n<\/div>\n<\/section>\n

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      Confidence in the outlook for 2021<\/strong> and in the execution of the 2024 roadmap<\/h2>\n<\/div>\n<\/section>\n
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      • Significant progress<\/strong> made in 2020 on the strategy to refocus on Specialty Materials<\/li>\n
      • Reinforced ambition<\/strong> in terms of CSR <\/strong>and creation of the Innovation and Sustainable Growth committee, a new committee of the Board of Directors<\/li>\n
      • Dynamic cash allocation in line with the guidelines of the April 2020 Capital Markets Day<\/strong>\n
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        • Proposed dividend <\/strong>back at pre-Covid level at \u20ac2.50 per share<\/strong>\u00a0[3]<\/sup><\/li>\n
        • Share buyback program totaling \u20ac300 million<\/strong> to be launched after the closing of the planned divestment of PMMA\u00a0[4]<\/sup><\/li>\n<\/ul>\n<\/li>\n
        • EBITDA growth in 2021 to be concentrated in Specialty Materials (82% of Group sales in 2020). In an environment that is still volatile, excluding a significant resumption of the pandemic, Arkema aims, at constant currency<\/em>\u00a0[5]<\/sup>\u00a0for Specialty Materials EBITDA to grow by around 10%<\/strong> in 2021 relative to 2020, and for EBITDA of Intermediates to be stable<\/strong> at constant currency<\/em> [5]<\/sup>\u00a0and scope<\/em> (closing of PMMA expected mid-2021).<\/li>\n<\/ul>\n

          [3]\u00a0Dividend proposed at the general meeting of 20 May 2021
          \n[4]\u00a0This project is still subject to the approval of the relevant antitrust authorities and to an information and consultation process involving Arkema\u2019s employee representative bodies
          \n[5]\u00a0With the assumption of a \u20ac\/$ rate of 1.2 for 2021, the impact on 2020 EBITDA is estimated at a negative \u20ac30 million for Specialty Materials and a negative \u20ac10 million for Intermediate<\/sup><\/p>\n<\/div>\n<\/div>\n<\/section>\n

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          Arkema\u2019s Board of Directors met on 24 February 2021 to approve the Group\u2019s consolidated financial statements for 2020. Commenting on the year\u2019s results, Chairman and CEO Thierry Le H\u00e9naff said:<\/strong><\/p>\n

          \u201cLast year we faced the challenging context of the pandemic and first and foremost, I would like to thank the responsiveness and mobilization of our employees across the world. Their unwavering commitment, as well as Arkema\u2019s geographic and technological positioning, enabled the Group to deliver a robust financial performance in 2020, be highly efficient in managing operations to quickly adapt to the context, record a strong rebound in sales and earnings in the fourth quarter, and look confidently ahead to 2021.<\/em><\/p>\n

          2020 was ultimately a year of major qualitative progress for Arkema. Progress in refocusing the Group\u2019s profile toward Specialty Materials with the divestment of Functional Polyolefins to SK and the proposed divestment of PMMA to Trinseo. Progress in our innovation programs, in particular with the acceleration in our high-performance adhesives, cutting-edge solutions for mobility and natural resources management. Progress in CSR with the admission to the DJSI World index, the strengthening of our environmental and diversity targets, and the continued assessment of our solutions portfolio based on sustainability criteria.<\/em><\/p>\n

          Despite the ongoing uncertainty of the health context, 2021 should be a year of good growth for Arkema. In addition, we will continue to accelerate our high value-added developments in the 3 segments, Adhesive Solutions, Coating Solutions and Advanced Materials, as well as the execution of our strongly value-creative strategy to refocus entirely on Specialty Materials.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n