4/27/2021 - Stock exchange release

Kemira Oyj’s Interim Report January-March 2021: Good start to the year with strong profitability

Kemira Oyj, Interim report, April 27, 2021 at 8.30 am (EEST)

Kemira Oyj’s Interim Report January-March 2021: Good start to the year with strong profitability  

This is a summary of the January-March 2021 Interim report. The complete Interim report with tables is attached to this release and available at www.kemira.com/investors.

First quarter:   

  • Revenue decreased by 6% to EUR 606.1 million (642.0) mainly due to negative currency impact. Revenue in local currencies, excluding acquisitions and divestments, decreased by 2% following lower sales prices.   
  • Operative EBITDA decreased by 4% to EUR 104.6 million (108.5). The operative EBITDA margin increased to 17.3% (16.9%). It was supported by good cost management and slightly higher sales volumes. EBITDA decreased by 5% to EUR 103.0 million (108.4). 
  • Operative EBIT decreased by 8% to EUR 55.7 million (60.8). EBIT decreased by 11% to EUR 54.2 million (60.7). The differences between operative and reported figures are explained by items affecting comparability.   
  • Cash flow from operating activities was EUR 13.8 million (50.2).  
  • EPS (diluted) was positively impacted by lower net finance costs and was EUR 0.25 (0.25).  

Outlook for 2021 (unchanged)

Kemira's revenue in local currencies, excluding acquisitions and divestments, is expected to increase from 2020 (EUR 2,427 million).

Operative EBITDA
Kemira's operative EBITDA is expected to be at the same or at a slightly (less than 5%) lower level than in 2020 (EUR 435 million)

Assumptions behind outlook (unchanged)
The COVID-19 pandemic continues to cause uncertainty in 2021, but Kemira's end market demand is expected to recover gradually from 2020 in line with forecasted economic growth. Demand, particularly in the oil and gas market, is expected to recover. The outlook assumes no significant disruptions to Kemira's operations. Currencies are expected to have a negative impact on operative EBITDA.   

Kemira’s President and CEO Jari Rosendal: 
“Demand continued to recover sequentially during Q1 2021 despite the on-going COVID-19 pandemic and global supply chain disruptions, and logistics issues in North America. Kemira's revenue declined by 6% to EUR 606 million mainly due to negative currency impact. Excluding the more volatile Oil & Gas business and negative currency impacts, revenue was stable. Profitability remained strong: operative EBITDA was EUR 105 million and the operative EBITDA margin was 17.3% thanks to good cost management and  recovery in demand. 

In Pulp & Paper, revenue declined by 2%. Excluding the negative currency impact, revenue grew by 2% thanks to higher sales volumes, which surpassed pre-pandemic Q1 2020 levels. We also saw strong revenue growth in APAC, a key strategic growth area for us. Segment profitability improved, and the operative EBITDA margin was strong at 17.0%.

In Industry & Water, revenue declined by 10%, mainly due to the Oil & Gas business. Shale demand continued to recover sequentially. In terms of profitability, the segment operative EBITDA margin was strong at 17.6%. 

During the quarter, Kemira issued a EUR 200 million bond maturing in 2028 with a fixed coupon of 1.0 percent and successfully tendered part of its notes outstanding in 2022. The new bond's low coupon demonstrates Kemira's strong credit profile.

Looking ahead, we have kept our outlook for 2021 unchanged. We see pressure towards higher input costs and some raw material availability issues, but we will continue our active work to mitigate this impact in the coming quarters. We expect revenue in local currencies, excluding acquisitions and divestments, to increase from 2020 (EUR 2,427 million). In terms of profitability, we expect operative EBITDA to be at the same or at a slightly (less than 5%) lower level than in 2020 (EUR 435 million)." 


EUR million

Jan-Mar Jan-Mar Jan-Dec
2021 2020 2020
Revenue 606.1  642.0  2,427.2 
Operative EBITDA 104.6  108.5  435.1 
Operative EBITDA, % 17.3  16.9  17.9 
EBITDA 103.0  108.4  413.2 
EBITDA, % 17.0  16.9  17.0 
Operative EBIT 55.7  60.8  237.7 
Operative EBIT, % 9.2  9.5  9.8 
EBIT 54.2  60.7  215.9 
EBIT, % 8.9  9.5  8.9 
Net profit for the period 40.8  39.6  138.0 
Earnings per share, diluted, EUR 0.25  0.25  0.86 
Capital employed* 1,958.8  1,995.7  1,964.9 
Operative ROCE*, % 11.9  11.8  12.1 
ROCE*, % 10.7  10.4  11.0 
Cash flow from operating activities 13.8  50.2  374.7 
Capital expenditure excl. acquisition 26.6  36.1  195.6 
Capital expenditure 26.6  38.7  198.2 
Cash flow after investing activities -13.1  11.5  173.3 
Equity ratio, % at period-end 40  42  43 
Equity per share, EUR 7.53  7.82  7.80 
Gearing, % at period-end 67  67  63 


*12-month rolling average
Unless otherwise stated, all comparisons in this Interim Report are compared to the corresponding period in 2020. 

Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments (=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and 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 from 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 www.kemira.com > 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 total figure presented. 


Kemira aims for above-market revenue growth with an operative EBITDA margin of 15-18%. The target for gearing is below 75%.    

Helsinki, April 26, 2021  

Kemira Oyj  
Board of Directors   


Half-year Financial Report January-June 2021            July 16, 2021
Interim Report January-September 2021                     October 26, 2021 


Kemira will arrange a webcast for analysts, investors, and media on Tuesday, April 27, 2021, starting at 10:30 am EEST (8:30 am UK time). During the webcast, Kemira’s President and CEO, Jari Rosendal, and CFO, Petri Castrén, will present the results. The webcast will be held in English and can be followed at www.kemira.com/company/investors. The presentation material and a recording of the webcast 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 call, please call in ten minutes before the conference begins: 

FI +358 (0)9 81710 310 
SE +46 (0)8 56642 651   
UK +44 (0)333 300 0804   
US +1 631 913 1422 

Conference ID: 72834553# 

For more information, please contact:

Kemira Oyj
Mikko Pohjala, Vice President, Investor Relations
Tel. +358 40 838 0709

Kemira is a global leader in sustainable chemical solutions for 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, water treatment and oil & gas. In 2020, Kemira had annual revenue of around EUR 2.4 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.