Elementis PLC has reported its interim results for the six months ended 30 June 2024, showcasing a strong financial performance. The company's revenue increased by 5% to $383 million, driven by improved volumes and mix. Adjusted operating profit also saw a significant rise of 24% to $65 million, with strong performance in the Personal Care and Coatings segments. However, the company reported a statutory operating loss of $11 million, reflecting a $66 million impairment of assets in Talc. The adjusted operating margin improved to 17.0%, up from 14.4%, benefiting from improved mix and cost management actions as well as restocking by customers in the period. The net debt of $196 million reduced by 3% since 31 December 2023, with a net debt to EBITDA of 1.3x.
Elementis also announced a strategic review of the Talc business. The company made good progress against its target of $90 million above market revenue growth by the end of 2026, expecting to deliver $20-25 million in 2024. Nine products were launched in the first half, and $29 million of new business was delivered. Efficiency programs were ahead of schedule, with $7 million cost savings delivered in H1. The company expressed confidence in achieving its 2026 targets, with an adjusted operating profit margin of 19%+, a three-year average operating cash conversion above 90%, and ROCE (excluding goodwill) above 20%.
The CEO, Paul Waterman, commented on the results, highlighting the strong first half performance and the progress made towards the 2026 targets. He mentioned that the company's efficiency programs are ahead of plan, and they expect to deliver $15 million savings this year and an additional $15 million of savings in 2025. Following a strong performance in the first half, Elementis upgraded its profit expectations for the full year and remains confident in delivering its 2026 targets.
In the Personal Care segment, Elementis saw a record first half performance, with profit growth of 22% on a constant currency basis to $34 million. The Asia cosmetics market remains a strong growth driver, with sales up over 30% in the period. The company also reported strong growth in China and other Asian markets, driven by new product launches and route to market changes.
The company will be holding a presentation for investors and analysts on 1 August 2024 to discuss the results in detail.