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Research and development in Kemira's laboratory
9/25/2024

Outlook and financial targets and definition of key figures

Outlook for 2024 (upgraded on June 10, 2024)

Revenue:
Kemira’s revenue is expected to be between EUR 2,800 million and EUR 3,200 million in 2024 (reported 2023 revenue: EUR 3,383.7 million).

Operative EBITDA:
Kemira’s operative EBITDA is expected to be between EUR 540 and EUR 640 million in 2024 (reported 2023 operative EBITDA: EUR 666.7 million).

Assumptions behind outlook (updated):
Kemira’s end-market demand (in volumes) is expected to grow in 2024 following expected gradual demand recovery in the pulp and paper market. The water treatment market is also expected to grow in 2024. Input costs are expected to remain rather stable during the year. 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 for 2024 includes the Oil & Gas business until February 2, 2024, the closing date of the divestment transaction.

Previous outlook for 2024 (published on April 26, 2024)

Revenue:
Kemira’s revenue is expected to be between EUR 2,700 million and EUR 3,200 million in 2024 (reported 2023 revenue: EUR 3,383.7 million).

Operative EBITDA:
Kemira’s operative EBITDA is expected to be between EUR 480 and EUR 580 million in 2024 (reported 2023 operative EBITDA: EUR 666.7 million).

Assumptions behind outlook (specified):
Kemira’s end-market demand (in volumes) is expected to grow slightly in 2024 following expected gradual demand recovery in the pulp and paper market. The water treatment market is expected to remain steady in 2024. Input costs are expected to remain rather stable during the year. The outlook assumes no major disruptions to Kemira’s manufacturing operations, supply chain or Kemira’s energy-generating assets in Finland. There is uncertainty related to the political strikes in Finland and their implications on Kemira’s customers and Kemira. Foreign exchange rates are expected to remain at approximately current levels. The outlook for 2024 includes the Oil & Gas business until February 2, 2024, the closing date of the divestment transaction.

Kemira’s long-term financial targets (updated on September 25, 2024)
Revenue Average annual organic growth over 4% (previously: above-the-market growth)
Operative EBITDA margin 18–21% (previously: 15–18%)
Operative ROCE Over 16%

 

Definition of key figures

Operative EBITDA
Operating profit (EBIT) + depreciation and amortization + impairments – items affecting comparability

Items affecting comparability 1)
Restructuring and streamlining programs + transaction and integration expenses in acquisitions + divestment of businesses and other disposals + other items

Operative EBIT
Operating profit (EBIT) – items affecting comparability

Interest-bearing net liabilities
Interest-bearing liabilities – cash and cash equivalents

Equity ratio, %
Total equity x 100                             
Total assets – prepayments received

Gearing, %
Interest-bearing net liabilities x 100
Total equity

Interest cover
Operating profit + depreciation, amortization and impairments
Finance costs, net

Return on investment (ROI), %
(Profit before taxes + interest expenses + other financial expenses) x 100
(Total assets –  non-interest-bearing liabilities)2)

Return on equity (ROE), %
Net profit attributable to equity owners of the parent x 100
Equity attributable to equity owners of the parent 2)

Cash flow return on investment (CFROI), %
Net cash generated from operating activities  x 100
(Total assets – interest-free liabilities)2)

Cash flow after investing activities

Net cash generated from operating activities + net cash used in investing activities

Operative return on capital employed (OPERATIVE ROCE), %
Operative EBIT + share of profit or loss of associates x 100 3)
Capital employed 4)5)

Return on capital employed (ROCE), %)
Operating profit + share of the results of associates x 1003)
Capital employed 4) 5)

Capital turnover
Revenue                    
Capital employed 4) 5)

Interest-bearing net liabilities / EBITDA
Interest-bearing net liabilities
Operating profit (EBIT) + depreciation and amortization +, impairments

Net financial cost, %
(Finance costs, net – dividend income – exchange rate differences) x 100
Interest-bearing net liabilities 2)

Net working capital
Inventories + trade receivables + other receivables, excluding derivatives, accrued interest income and other financing items – trade payables – other liabilities, excluding derivatives, accrued interest expenses and other financing items

1) Non-GAAP measures excludes the effects of significant items of income and expenses which may have an impact on the comparability in the financial reporting of Kemira Group. Restructuring and streamlining programs; transaction and integration expenses in acquisition; divestments of businesses and other disposals are considered to be the most common items affecting comparability.
2) Average
3) Operating profit and share of profit or loss of associates taken into account for a rolling twelve month period ending at the end of the review period.
4) 12-month rolling average
5) Capital Employed = property, plant and equipment + intangible assets + net working capital + investments in associates

Earnings per share (EPS)
Net profit attributable to equity owner of the parent
Average number of shares

Net cash generated from operating activities per share
Net cash generated from operating activities
Average number of shares

Dividend per share
Dividend paid
Number of shares

Dividend payout ratio, %
Dividend per share x 100
Earnings per share (EPS)

Dividend yield, %
Dividend per share x 100
Share price

Equity per share
Equity attributable to equity owners of the parent
Number of shares

Share price, year average
Shares traded (EUR)
Shares traded (volume)

Price per earnings per share (P/E)
Share price                     
Earnings per share (EPS)

Price per equity per share
Share price                                                                           
Equity per share attributable to equity owners of the parent

Price per net cash generated from operating activities per share
Share price                                                                   
Net cash generated from operating activities per share

Share turnover, %
Number of shares traded x 100
Average number of shares

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