Elementis Q1 underlying revenue flat; trading in line

26th Apr 2023 09:29

(Sharecast News) - Specialty chemicals company Elementis hailed a "resilient" first-quarter performance on Wednesday, in line with expectations, with underlying revenues flat.

In an update for the three months to the end of March, Elementis said overall trading has been "resilient against continued subdued market demand conditions".

On an underlying basis, revenue was flat against a strong prior year period, as the benefits from pricing actions and improved mix broadly offset weaker volumes, primarily in the coatings segment, it said.

Elementis said the underlying performance in Performance Specialties was below the prior year amid continued challenging demand conditions across coatings markets against a very strong prior year comparative. However, Talc performance improved "materially", driven by the benefits of pricing actions and improved mix.

In Personal Care, meanwhile, the underlying performance improved versus a year earlier, with volumes broadly stable as new product launches and new business success helped to offset market weakness in Asia.

Chief executive Paul Waterman said: "We have made a solid start to the year and will continue to maintain our focus on self-help actions and effectively managing the challenging demand environment.

"We remain on-track to deliver over $50m of new business opportunities, 15 new products and progress towards $10m of additional efficiency savings by year end."