Half Year 2024 Arkema SA Earnings Call Transcript
Key Points
- Arkema SA (ARKAF) achieved a 5% volume growth compared to last year, reflecting the end of most destocking and good performance in Asia.
- The company reported an 8% progression in EBITDA, with a robust EBITDA margin reaching nearly 18%.
- All segments recorded EBITDA growth in the quarter, with Asia leading the way with a 15% increase.
- The polyamide 11 plant in Singapore is now fully operational, with significant technical progress achieved.
- Arkema SA (ARKAF) maintained its annual guidance, projecting higher EBITDA year-on-year, ranging from EUR1.53 to EUR1.63 billion.
- The macroeconomic environment remains challenging, with no real global recovery in demand.
- The raw materials environment remains fairly stable, with some tightness linked to specific issues such as the Red Sea situation and Hurricane Barry.
- The company experienced an exceptional flooding at one of its plants in Germany, leading to a three-month shutdown and an estimated EUR15 million impact on Q3 EBITDA.
- The price effect stood at a negative 2.4%, reflecting lower raw material prices.
- The depreciation of the Chinese yuan and the Argentinian peso relative to the euro had a negative impact of 0.8% on sales.
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Good morning, everybody, and welcome to Arkema Q2 2024 Results Conference Call. Joining me today are Marie-José does show our CFO, and as usual, the Investor Relations team to support this conference call, we have posted a set of slides which are available on our website.
As always, I will cover the highlights of the quarter before letting Marie-José go through the financials and at the end of the presentation will be available to answer your questions in Q2 2024 some macro environment did not see any real global recovery on the demand side remaining broadly unchanged versus the past six to nine months.
This is also confirmed by the raw materials environment, which remains sequentially fairly stable with the exception of those who were material, which saw some tightness linked to the Red Sea situation or some temporary issue at suppliers like in Texas recently after Hurricane Barry, Arkema was nevertheless able to achieve a 5% volume growth compared with last year, which was a good growth, reflecting the end of
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