4/25/2023 - Stock exchange release

Kemira Oyj’s January - March 2023 Interim Report: Excellent profitability and strong cash flow

Kemira Oyj, Interim Report, April 25, 2023 at 8.30 am (EEST)

Kemira Oyj’s January – March 2023 Interim Report:  Excellent profitability and strong cash flow

This is a summary of the January – March 2023 Interim Report. The complete report with tables is attached to this release and available at kemira.com/investors.
First quarter:   

•    Revenue increased by 18% to EUR 906.0 million (768.1). Revenue in local currencies, excluding acquisitions and divestments, increased by 17% driven by higher sales prices in both segments.

•    Operative EBITDA increased by 60% to a record-high of EUR 192.6 million (120.0) and it improved in both segments driven by higher sales prices. The operative EBITDA margin increased to a record-high level of 21.3% (15.6%) following improvement in both segments. EBITDA increased by 62% to EUR 184.1 million (113.5). The differences between operative and reported figures are explained by items affecting comparability, which consisted of a change in the expected loss related to the divestment of the majority of the colorants business.

•    Operative EBIT increased by 106% to EUR 141.9 million (68.9). EBIT increased by 114% to EUR 133.4 million (62.2).

•    Cash flow from operating activities was EUR 96.7 million (-10.9).

•    EPS (diluted) increased by 128% to EUR 0.60 (0.26) following higher EBIT.

Outlook for 2023 (upgraded on April 13, 2023)


Kemira’s revenue is expected to be between EUR 3,200 million and EUR 3,700 million in 2023 (2022: EUR 3,569.6 million).

Operative EBITDA

Kemira’s operative EBITDA is expected to be between EUR 550 and EUR 650 million in 2023 (2022: EUR 571.6 million).

Assumptions behind outlook

We expect demand in Kemira’s end-markets to be resilient despite the significant uncertainty related to the global macroeconomic environment, energy prices, and the development of the war in Ukraine. Overall, Kemira’s end-market demand (in volumes) is expected to decline somewhat. Demand in the oil & gas market is expected to grow. Variable costs overall are expected to decline, while electricity prices are expected to remain above long-term average in Europe. Market prices for caustic soda are expected to moderate during 2023. The outlook assumes no major disruptions to Kemira’s manufacturing operations, supply chain, or Kemira’s energy-generating assets in Finland. Foreign exchange rates are expected to remain at approximately current levels. The outlook is based on Kemira’s current portfolio, including the Oil & Gas business.

Previous outlook for 2023 (published on February 10, 2023

Revenue: Kemira’s revenue is expected to be between EUR 3,200 million and EUR 3,700 million in 2023 (2022: EUR 3,569.6 million).

Operative EBITDA: Kemira’s operative EBITDA is expected to be between EUR 500 and EUR 600 million in 2023 (2022: EUR 571.6 million).

Kemira’s President and CEO Jari Rosendal:
“Kemira had a strong start to the year with excellent financial performance. Revenue increased by 18% to EUR 906 million with growth in both segments. Revenue growth was driven by higher sales prices in both segments, while sales volumes declined somewhat following soft demand in Pulp & Paper. Operative EBITDA grew by 60% to a record-high of EUR 193 million. The operative EBITDA margin also reached a new high of 21.3% following strong margin improvement in both segments. Our expectation is that the exceptionally strong margin development will moderate somewhat as the year progresses.

In the Pulp & Paper segment, market demand remained soft due to slowdown in the global economy and inventory destocking in the customer value chain. As a result, our sales volumes also declined. However, our revenue grew by 13% to EUR 505 million driven by higher sales prices. The operative EBITDA margin improved and was strong at 21.7% partially helped by still high market prices of caustic soda. The bleaching capacity expansion in Uruguay is being completed and it will be ramped up in the coming quarters.

In Industry & Water, end-market demand remained resilient in municipal water treatment, while industrial water treatment was impacted by the slowdown in the economy. In Oil & Gas, the market demand continued to grow. Our sales volumes declined in water treatment, but grew in Oil & Gas. Total segment revenue, however, grew by 25% to EUR 401 million driven by higher sales prices. The operative EBITDA margin improved to the strong level of 20.7%. We are particularly pleased about the considerable profitability improvement in the Oil & Gas business.

In March, we announced a strategic review of the Oil & Gas business. We have expressed a desire to grow in water-related applications and given the strong growth in the Oil & Gas business in recent years, now is a good time to evaluate the best strategic options in the long-term for the Oil & Gas business, including a potential sale of the business. We will update on the progress of the strategic review in due course. During the first quarter, we also announced that Tuija Pohjolainen-Hiltunen will start as President of the Industry & Water segment in May 2023. In June 2023, Linus Hildebrandt will also join Kemira and start as EVP, Strategy. With our strengthened team, I am confident we are in a good position to take our profitable growth strategy forward.

The Annual General Meeting held in March approved the Board of Director’s dividend proposal of EUR 0.62 per share. The first installment of EUR 0.31 per share was paid in early April. Looking ahead, on April 13, 2023 we upgraded our 2023 outlook for operative EBITDA. Our 2023 revenue outlook is unchanged and we expect revenue to be between EUR 3,200 and EUR 3,700 million. Following our upgraded outlook, we now expect operative EBITDA to be between EUR 550 and EUR 650 million (2022: EUR 571.6 million).”


EUR million Jan-Mar Jan-Mar Jan-Dec
2023 2022 2022
Revenue  906.0  768.1  3,569.6
Operative EBITDA  192.6  120.0  571.6
Operative EBITDA, %  21.3  15.6  16.0
EBITDA  184.1  113.5  558.8
EBITDA, %  20.3  14.8  15.7
Operative EBIT  141.9  68.9  361.6
Operative EBIT, %  15.7  9.0  10.1
EBIT  133.4  62.2  347.6
EBIT, %  14.7  8.1  9.7
Net profit for the period  95.4  42.2  239.7
Earnings per share, diluted, EUR  0.60  0.26  1.50
Capital employed*  2,244.5  2,045.4  2,238.0
Operative ROCE*, %  19.4  11.7  16.2
ROCE*, %  18.7  8.7  15.5
Cash flow from operating activities  96.7  -10.9  400.3
Capital expenditure excl. acquisition  29.1  26.1  197.9
Capital expenditure  31.0  26.1  197.9
Cash flow after investing activities  66.5  -36.6  222.3
Equity ratio, % at period-end  45  40  46
Equity per share, EUR  10.05  8.50  10.89
Gearing, % at period-end  45  68  46

*12-month rolling average

Unless otherwise stated, all comparisons in this report are made to the corresponding period in 2022.

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 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%.


Half-year financial report January-June 2023   July 18, 2023
Interim report January-September 2023   October 24, 2023


Kemira will arrange a webcast for analysts, investors, and the media on Tuesday, April 25, 2023, 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 kemira.com/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 conference call. You can access the teleconference by registering on the following link: http://palvelu.flik.fi/teleconference/?id=1008733

After the registration you will be provided with phone numbers and a conference ID to access the conference. If you wish to ask a question please, dial *5 on your telephone keypad to enter the queue.

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 the best-suited products and services to improve our customers’ product quality, process, and resource efficiency. Our focus is on pulp & paper, water treatment, and energy sectors. In 2022, Kemira had annual revenue of around EUR 3.6 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd. www.kemira.com