Elementis backs FY outlook after 'strong' first quarter

(Sharecast News) - Elementis backed its full-year expectations on Wednesday and reported a rise in first-quarter profit and revenue as its 'Elevate Elementis' strategy delivers ahead of plan. In an update for the three months to the end of March, the specialty chemicals company hailed a "strong" performance, with group revenue up 2% on an organic basis. Adjusted operating profit and margins grew "strongly" year-on-year, it said, supported by the continued progress on its self-help initiatives and positive pricing actions.

Revenue in the personal care segment improved "marginally" on an organic basis year-on-year as higher pricing and improved mix offset isolated weaker demand in the Americas. Margins were broadly comparable to the first quarter of last year.

Elementis said the integration of Alchemy is progressing in line with its expectations, and it is encouraged by the strong interest shown by customers in Alchemy's products.

In the coatings business, "good" revenue growth was achieved, driven by higher volumes in Asia that more than offset volume weakness in the Americas.

The energy business continued to perform strongly, benefitting from operational improvements at the company's St Louis plant. Margins were up "materially" year-on-year due to higher cost savings and improved volumes.

Elementis said the conflict in the Middle East did not have a material effect on its performance during the quarter, and its direct exposure is less than 2% of group annual revenue.

"We have responded to higher input costs through pricing actions and expect to fully offset the inflationary impact," it said.

Chief executive Luc van Ravenstein said: "We delivered a strong performance this quarter with higher revenue and profitability, better than management expectations as Elevate Elementis delivers ahead of plan.

"However, we are mindful of the uncertainty arising from the geopolitical and macroeconomic backdrop, and therefore our current outlook for the full year 2026 remains unchanged. Our performance underscores the strength, resilience and differentiated nature of our business model, our local-for-local model, as well as the positive momentum behind our strategy."

At 0810 BST, the shares were up 4.5% at 157.20p.

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