Monday, 27 April 2015 09:14

Kemira Oyj's Interim Report January-March 2015: Performance continued to improve

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Logo slogan belowThis is a summary of the January - March 2015 Interim report. The complete January - March 2015 Interim report with tables is attached to this release and available at

  • Revenue increased 4% to EUR 553.0 million (529.9) supported by favorable currency exchange rates. Revenues in local currencies, excluding acquisitions and divestments remained flat.
  • Operative EBITDA increased 15% to EUR 66.4 million (57.5) with a margin of 12.0% (10.9%).
  • Earnings per share decreased to EUR 0.16 (0.28). Comparable period included a capital gain of EUR 37 million related to the divestment of formic acid business.
  • Kemira maintains its outlook for 2015.

Kemira's President and CEO Jari Rosendal: 

"Kemira's year started according to plan. The revenue in the first quarter increased by 8%, excluding the impact of the divested formic acid business in Q1 2014. Operative EBITDA margin improved from 10.9% to 12.0% in Q1 2015. The strengthened U.S. dollar was the main reason for revenue growth. Nearly 40% of Kemira's revenue is either directly U.S. dollar-based or linked to the U.S dollar, like the Chinese renminbi.

Growth in the Paper segment was solid in the first quarter, supported by favorable currency exchange rates and stable organic growth. Organic growth was driven by increased sales of new innovative solutions to our packaging board and paper customers, thus improving their operational efficiency as well as their end-product quality. In addition, pulp chemical deliveries to Montes del Plata pulp mill in Uruguay continued in line with the ramp up of the new mill.

In the Oil & Mining segment, demand for our products for US shale operations has slowed down in Q1 due to significant reduction in the drilling and fracking activity in the region. Uncertainty around the US shale operations is expected to continue at least for the next couple of quarters. Strong U.S. dollar alleviates the situation to some extent but reaching topline growth in the Oil & Mining segment will be challenging in 2015. In the longer term, we remain optimistic about the growth in the business.

I am pleased with the continued good progress in the Municipal & Industrial segment. The segment's revenue has stabilized after the restructuring period, and profitability has improved substantially, over 30% in the first quarter of 2015.

The closure of AkzoNobel's paper chemical business acquisition is now expected to take place in Q2 2015, due to the pending approval from the competition authority in Ukraine. Our readiness to start the integration is very good.

I consider Kemira to be well positioned to focus on growth with clear strategic objectives, customer-driven innovation, responsible business practices, and engaged and skilled professionals."


EUR million  Jan-Mar 2015 Jan-Mar 2014 2014
Revenue 553.0 529.9 2,136.7
Operative EBITDA 66.4 57.5 252.9
Operative EBITDA, % 12.0 10.9 11.8
EBITDA 65.2 77.7 252.9
EBITDA, % 11.8 14.7 11.8
Operative EBIT 39.1 36.3 158.3
Operative EBIT, % 7.1 6.9 7.4
EBIT 37.8 54.3 152.6
EBIT, % 6.8 10.2 7.1
Share of profit or loss of associates 0.2 0.0 0.2
Financing income and expense -7.5 -5.3 -30.7
Profit before tax 30.5 49.0 122.1
Net profit 26.4 43.1 95.8
Earnings per share, EUR 0.16 0.28 0.59
Operative earnings per share 0.13 0.15 0.63
Capital employed* 1,466.2 1,460.0 1.427.7
Operative ROCE* 11.0 10.8 11.1
ROCE* 9.3 4.0 10.7
Capital expenditure 27.0 25.6 145.1
Cash flow after investing activities 16.0 130.3 75.2
Equity ratio, % at period-end 48 50 51
Gearing, % at period-end 49 30 42
Personnel at period-end 4,285 4,267 4,248

*12-month rolling average (ROCE, % based on the reported EBIT)

Definitions of key figures are available at > Investors > Financial information. Comparative 2014 figures are provided in parentheses for some financial results, where appropriate. Operative EBITDA, operative  EBIT, operative earnings per share and operative ROCE do not include non-recurring items.


Kemira will continue to focus on improving its profitability and operative cash flow. The company will also continue to invest in order to secure future growth to serve selected water intensive industries.

The company's financial targets for 2017 are:

  • revenue EUR 2.7 billion
  • Operative EBITDA-% of revenue 15%
  • gearing level <60%.

Kemira expects its capital expenditure-to-sales ratio, excluding acquisitions to increase in the next few years from the 2014 level of 6.3%. In addition, Kemira expects its medium-term operative tax rate to be in the range of 22%-25%. This rate excludes non-recurring items.

The basis for growth is the expanding market for chemicals and Kemira's expertise that helps customers in water intensive industries to increase their water, energy and raw material efficiency. The need to increase operational efficiency in our customer industries creates opportunities for Kemira to develop new products and services for both current and new customers. Research and Development is a critical enabler of organic growth for Kemira, providing differentiation capabilities in its relevant markets. Kemira will invest in innovation, technical expertise, and competencies in its selected focus areas.

Outlook for 2015

In 2015, Kemira will focus on profitable growth both organically and inorganically. Kemira's revenue in 2015 is expected to increase compared to 2014 and operative EBITDA in 2015 to remain approximately at the same level or to increase compared to 2014. The outlook excludes the impact of AkzoNobel paper chemical business (acquisition expected to close in the second quarter of 2015). At closing, AkzoNobel paper chemical business is expected to add revenue of more than EUR 200 million on an annualized basis.

Helsinki, April 24, 2015

Kemira Oyj

Board of Directors


Interim Report January-June 2015                               July 22, 2015
Interim Report January-September 2015                      October 23, 2015
Financial Statements Bulletin 2015                             February 11, 2016
Interim Report January-March 2016                             April 26, 2016
Interim Report January-June 2016                               July 21, 2016
Interim Report January-September 2016                      October 25, 2016
Kemira Capital Markets Day will be held in Espoo R&D Center, Finland on September 17, 2015.

Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise, application know-how and chemicals that improve our customers' water, energy and raw material efficiency. Our focus is on pulp & paper, oil & gas, mining and water treatment. In 2014, Kemira had annual revenue of EUR 2.1 billion and around 4,250 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd.

Link to the release

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