Elementis PLC has released its preliminary results for the year ended 31 December 2023, showcasing a resilient financial performance, significant deleveraging, and the reinstatement of dividends. The company reported a 3% decrease in revenue to $713 million, attributed to lower volumes due to underlying demand weakness and destocking, partially offset by pricing and mix benefits. Adjusted operating profit increased by 3% to $104 million, with an improved operating margin of 14.6%. Net debt decreased by 45% to $202 million, and the net debt to EBITDA ratio reduced to 1.4x from 2.2x. The company also announced the reinstatement of a final dividend of 2.1 cents per share.
Elementis highlighted its strategic progress, including a record new business pipeline of $363 million and the launch of 12 new products in the year. The company also announced new efficiency programs targeting $30 million of annual savings by 2025. Additionally, the Talc business showed financial turnaround, with a focus on further growth in the near term. Looking ahead, Elementis emphasized its focus on self-help, with efficiency programs on track to deliver expected savings and a commitment to delivering Capital Markets Day objectives.
Paul Waterman, CEO of Elementis, commented on the results, emphasizing the company's progress on deleveraging and the announcement of new material growth and efficiency programs. He expressed confidence in Elementis' future performance and highlighted the combination of growth and efficiency programs as key drivers for making material progress in 2024 against the 2026 financial targets.
The company also provided a financial summary, including both statutory and adjusted results for 2023, showcasing the changes in revenue, operating profit, diluted earnings per share, net debt, and dividend per share. The CEO's overview highlighted the resilient financial performance, with a focus on the performance of the Performance Specialties and Coatings segments, as well as regional revenue trends.
Elementis will be holding a presentation for investors and analysts on 7 March 2024, providing further insights into the results and strategic outlook.