Kemira (KEMIRA) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong volume growth and margin improvement year-on-year in both main segments, supported by recovering end-market demand, especially in pulp and paper.

• Customer satisfaction and employee engagement reached record highs, reinforcing confidence in long-term strategy execution.

• Growth strategy advanced through capacity investments and a small acquisition in the micropollutant removal market.

• Revenue and profitability declined year-over-year due to the Oil & Gas divestment, but underlying business showed volume growth and margin improvement, especially in Industry & Water.

• The 2024 outlook was upgraded in June, reflecting continued end-market recovery.

Financial highlights

• Q2 2024 revenue was EUR 733.4 million, down 13% year-over-year due to divestments; adjusted revenue up 3%.

• Group volumes grew 7% year-on-year, with pulp and paper up 10% and I&W mid-single digits.

• Operative EBITDA was EUR 140.5 million in Q2, margin 19.2%, up year-over-year when adjusted for divestments.

• Net finance costs dropped to EUR 6.6 million from EUR 12 million a year ago due to lower debt and interest income.

• Strong cash flow from operations at EUR 109.4 million in Q2 2024.

Outlook and guidance

• Upgraded 2024 outlook: revenue expected between EUR 2,800–3,200 million and operative EBITDA between EUR 540–640 million.

• Assumes continued end-market recovery, stable input costs, and no major operational disruptions.