Kemira Oyj's Interim Report January-March 2019

Strong earnings improvement in the first quarter of 2019

Kemira Oyj
Interim Report
April 26, 2019 at 8.30 am (CET+1)

Kemira Oyj's Interim Report January-March 2019: Strong earnings improvement in the first quarter of 2019

This is a summary of the January - March 2019 Interim report. The complete January-March 2019 Interim report with tables is attached to this release and available at www.kemira.com/investors.

Q1 2019

• Revenue increased by 6% to EUR 647.8 million (613.7) as sales price increases continued in all product categories globally. Revenue in local currencies, excluding acquisitions and divestments, increased by 2% due to higher sales prices.
• Operative EBITDA increased by 38% to EUR 95.6 million (69.4) mainly due to higher sales prices, which more than offset continuing increases in variable costs. Operative EBITDA margin increased to 14.8% (11.3%). EBITDA increased by 36% to EUR 92.5 million (68.2). Due to the adoption of IFRS 16 accounting standard, fixed costs do not include operating lease expenses in 2019, corresponding to a positive EBITDA impact of EUR 7.7 million in the first quarter.
• Operative EBIT increased by 48% to EUR 50.1 million (33.9) mainly due to higher sales prices. EBIT increased by 44% to EUR 47.0 million (32.7). The differences between operative and reported figures are explained by items affecting comparability.
• EPS increased by 31% to EUR 0.18 (0.14) mainly due to higher operative EBITDA.

Kemira's President and CEO Jari Rosendal:

"We had a good start to 2019. Organic growth continued, in particular the implementation of sales price increases is bearing fruit. Effective cost management combined with higher sales prices led to operative EBITDA margin of 14.8%. 

In Pulp & Paper, price increases are contributing to higher profitability. Operative EBITDA margin of 13.3% improved compared to the prior year. Market demand is currently fairly good and the longer-term market environment is looking positive as many major pulp and paper companies have announced capacity additions. We look forward to completing our latest investment in China, where we are currently finalizing the new AKD wax manufacturing site. It is the world's largest AKD wax production facility and enables us to take a step forward in becoming the undisputed market leader for the application. AKD wax's main component is based on renewable raw material and is mainly applied in board production to create resistance against liquid absorption.