Arkema, a French multinational chemical company, has announced its 2022 full-year financial results, reporting impressive growth in sales and EBITDA, despite a challenging macroeconomic environment.
The company also provided its outlook for 2023, which includes the continuation of its strategic priorities and the implementation of its cutting-edge innovation focused on sustainable development and decarbonization.
Sales Growth and Financial Performance
Arkema reported group sales of €11.5 billion in 2022, up by 21.3% compared with 2021. The company achieved organic sales growth of 13.6%, which reflected price increases in response to significant raw materials and energy cost inflation, the improved product mix, and the slowdown in demand and significant destocking observed in the fourth quarter. This growth was driven by the Specialty Materials segment, which reported EBITDA of €1,900 million, up from €1,512 million in 2021. Intermediates’ EBITDA remained stable at €306 million.
Arkema’s EBITDA reached a historic high of €2,110 million, up by a strong 22.2% year-on-year, and the EBITDA margin stood at 18.3% (18.1% in 2021). This increase in profitability was driven by the Specialty Materials segment, which achieved higher EBITDA margins compared to the Intermediates segment. The company’s Q4’22 EBITDA of €291 million was in line with the company’s guidance and included strong destocking at year-end.
Arkema’s adjusted net income increased by 30.2% to €1,167 million, representing €15.75 per share (€11.88 in 2021). The company also reported very high recurring cash flow at €933 million, reflecting strict management of working capital.
Dividend and Corporate Social Responsibility (CSR)
Arkema proposed a dividend of €3.40 per share for 2022, in line with the company’s policy of progressively increasing the dividend. The company’s continued focus on CSR performance resulted in a 16% decrease in Scopes 1 and 2 greenhouse gas emissions at constant perimeter and an increase in the share of women in senior management positions to 26% in 2022 (24% in 2021).
Outlook for 2023
Arkema’s outlook for 2023 is marked by a lack of visibility and ongoing weak demand at the beginning of the year, in the continuity of the fourth quarter of 2022. However, the company expects a progressive improvement from the spring, gathering momentum in the second part of the year. In this demanding context, Arkema will draw on the responsiveness and commitment of its teams to adapt to changes in the macroeconomic environment and will continue to focus on cash generation and cost management.
Expansion Projects
Arkema’s key expansion projects, mainly in the second half of the year, include the new bio-based PA11 plant in Singapore, the project with Nutrien in the United States, the PVDF units in China and France, and the expansion of the Sartomer® plant in China and the Pebax® plant in France. The company also expects the ramp-up of Ashland’s performance adhesives to contribute to its growth.
EBITDA Targets
Arkema aims to achieve an EBITDA of around €1.5 billion to €1.6 billion in 2023 and maintain a high EBITDA to cash conversion rate of over 40%. The company is also confirming its 2024 targets and will continue the implementation of its strategic roadmap and priorities, which includes cutting-edge innovation focused on sustainable development and decarbonization, targeted investments to increase capacities and support customers in high-growth markets linked to sustainable megatrends, its policy of high value-added acquisitions and its strategic review of the Intermediates segment.
Lastly, the Group will continue to act for a more sustainable world, leveraging its cutting-edge innovation in materials, responsible growth of its businesses, and strong societal commitments.