Arkema reported its third quarter 2021 results. Supported by accelerating demand for high-performance materials in an environment marked by strong inflation of raw materials and supply chain disruptions that are weighing on organic growth, group EBITDA rose by a significant 54.4% year-on-year, and is well above the pre-COVID level of 2019.

This performance reflects in particular the evolution in the group’s profile towards Specialty Mate-rials and its positioning to provide technological solutions that address the major challenges linked to sustainable development.

Group sales of €2.4 billion were up, at constant scope and currency, nearly 30% versus 2020 and approximately 17% versus 2019. Solid growth was seen in volumes (+5.3% versus Q3’20) in an operating context marked by the shortage of an increasing number of raw materials and logistics constraints in Asia and the US.

In a context of strong raw materials and energy inflation, significant increase in selling prices (+23.8% versus Q3’20) reflected the group’s initiatives to adapt to the situation, as well as an im-proved product mix. EBITDA of €474 million was up by a strong 54.4% compared to Q3’20, and EBITDA margin was close to 20%, a record level for a third quarter.

Net debt of €1.255 billion (including €700 million in hybrid bonds) represented 0.8x last-twelve-months EBITDA, integrating a recurring cash flow of €236 million.

“We can be proud of Arkema’s strong financial performance, achieved in a complex and demand-ing operating environment,” said chairman and CEO Thierry Le Hénaff. “It is our whole sustaina-ble growth strategy which really stands out. Our Specialty Materials are fully benefiting from their positioning on societal megatrends. We are seeing our developments accelerate structurally across many high-stake markets, such as batteries, 3D printing, eco-friendly paint, sports, home comfort and electronics.

“Moreover, we are actively continuing the roll-out of our 2024 strategy and the refocusing of the Group toward Specialty Materials,” he added. “Thus, by acquiring Ashland’s performance adhe-sives business, we will strengthen our Adhesive Solutions segment with this first-class activity, which through its technological know-how, will enable Bostik to accelerate its growth. The di-vestment of our epoxides business to Cargill is also in line with our pro-active management of the portfolio. These positive developments make us truly confident about our future.”