Stock exchange release

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

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.

In Industry & Water, our Oil & Gas revenue grew organically 26% even as the short-term market growth moderated somewhat. Margins in Oil & Gas were good due to pricing and the product mix. In water treatment the market is solid and we are better positioned to meet continued inflationary pressures. The combination of higher sales prices and favorable short-term raw material price fluctuations led to a record-high operative EBITDA margin of 16.8% for the segment in the quarter. During the quarter, some supply disruptions occurred regarding a key polymer raw material. However, our production did not suffer thanks to rapid mitigating actions, but some impact is expected in the second quarter due to higher raw material and logistic costs. With regard to growth investments, we expect to add Chemical Enhanced Oil Recovery polymer capacity in the second half of the year.

All in all, our business is proceeding according to our strategy. We continue to drive for higher profitability and we implement measures to support that.” 


Kemira adopted IFRS 16 accounting standard on January 1, 2019. In the profit and loss statement, the current operating lease expenses are replaced by the depreciation of the right-of-use asset and interest cost associated with lease liability. As a result, it is estimated that the impact on EBIT is small positive and net profit is immaterial in 2019. Kemira currently estimates that the adoption of IFRS 16 accounting standard increases EBITDA margin by approximately 1 percentage point and gearing by approximately 10 percentage points. In 2019, the impact on operative EBITDA due to the adoption of IFRS 16 accounting standard is estimated to be around EUR +30 million. The prior year’s figures are not restated. Key figures (except revenue and capital expenditure) of profit and loss statement, balance sheet and cash flow have been impacted by the adoption of the IFRS 16 accounting standard. See pages 28-29 for more details.

EUR million Jan-Mar
Revenue 647.8 613.7 2,592.8
Operative EBITDA 95.6 69.4 323.1
Operative EBITDA, % 14.8 11.3 12.5
EBITDA 92.5 68.2 314.8
EBITDA, % 14.3 11.1 12.1
Operative EBIT 50.1 33.9 173.8
Operative EBIT, % 7.7 5.5 6.7
EBIT 47.0 32.7 148.2
EBIT, % 7.3 5.3 5.7
Net profit for the period 29.3 23.0 95.2
Earnings per share, EUR 0.18 0.14 0.58
Capital employed* 1,843.6 1,753.9 1,781.4
Operative ROCE*, % 10.3 9.7 9.8
ROCE*, % 8.8 8.1 8.3
Cash flow from operating activities 65.2 34.5 210.2
Capital expenditure excl. acquisitions 28.3 23.2 150.4
Capital expenditure 28.3 22.4 193.7
Cash flow after investing activities 39.8 16.4 29.0
Equity ratio, % at period-end 39 41 44
Equity per share, EUR 7.39 7.13 7.80
Gearing, % at period-end 74 61 62

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

Kemira provides certain financial performance measures (alternative performance measures), which are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as organic growth (revenue growth in local currencies, excluding acquisitions and divestments), EBITDA, operative EBITDA, cash flow after investing activities as well as gearing, provide useful information about Kemira’s comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration.

Kemira’s alternative performance measures should not be viewed in isolation to the equivalent IFRS measures and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at > Investors > Financial information. All the figures in this interim report have been individually rounded, and consequently the sum of the individual figures may deviate slightly from the sum figure presented. 


Kemira expects its operative EBITDA (2018: EUR 323.1 million) to increase from the prior year on a comparable basis excluding the impact of the IFRS 16 accounting change. 


Kemira aims at above-the-market revenue growth with operative EBITDA margin of 15-17%. The gearing target is below 75%. (Before the adoption of IFRS 16 accounting change as of January 1, 2019, the financial targets were: Kemira aims at above-the-market revenue growth with operative EBITDA margin of 14-16%. The gearing target is below 60%.)

Helsinki, April 25, 2019

Kemira Oyj

Board of Directors


Half-Year Financial Report January-June 2019         July 19, 2019
Interim Report January-September 2019                   October 24, 2019


Kemira will arrange a press conference for analysts, investors, and media on Friday, April 26, 2019, starting at 10.30 am (8.30 am. UK time) at Hotel Kämp, Kluuvikatu 2, 2nd floor, Helsinki. During the conference, Kemira’s President and CEO Jari Rosendal and CFO Petri Castrén will present the results. The press conference will be held in English and will be webcasted at The presentation material and the webcast recording will be available on the above-mentioned company website.

You can attend the Q&A session via a conference call. In order to participate in the conference, please call ten minutes before the conference begins: 

FI +358 9 8171 0310
SE +46 8 5664 2651
UK +44 333 300 08 04
US +1 631 913 14 22

Conference ID: 77236042#

For more information, please contact:

Kemira Oyj
Olli Turunen, Vice President, Investor Relations
Tel. +358 40 552 8907 


is a global chemicals company serving customers in water intensive industries. We provide best suited products and expertise to improve our customers’ product quality, process and resource efficiency. Our focus is on pulp & paper, oil & gas and water treatment. In 2018, Kemira had annual revenue of around EUR 2.6 billion and 4,915 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.


Kemira January-March 2019 Interim Report (.pdf)


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