Arkema has reported its financial results for the third quarter of 2024, showing a 2.9% increase in sales to €2.4 billion. The company also saw a 5.4% increase in EBITDA, which reached €407 million. This growth was driven by strong performance in the Adhesive Solutions and Advanced Materials segments, as well as better resilience in the US and Asia.

Despite a challenging macroenvironment, particularly in Europe, Arkema was able to achieve a high-level EBITDA margin of 17.0%. The company’s sales were supported by positive organic growth in Asia and North America, as well as the integration of PIAM. However, Arkema did face some challenges, including a decline in demand and customer destocking at the end of the quarter.

In terms of its financial position, Arkema reported a solid recurring cash flow of €190 million and a slight decrease in net debt to €3.1 billion. The company’s adjusted net income for the quarter was €168 million, representing €2.25 per share.

Looking ahead, Arkema is targeting an EBITDA at the lower end of its guidance range of €1.53 billion for 2024. The company is also focused on maintaining strict cost management and continuing to progress on its major growth projects.

In a statement, Arkema Chairman and CEO Thierry Le Hénaff highlighted the company’s strong performance in the face of a challenging environment. He also emphasized the importance of the company’s ongoing efforts to focus on Specialty Materials and its upcoming acquisition of Dow’s flexible packaging laminating adhesives business.

“Arkema's Specialty Materials sales grew by 4% year-on-year despite a third quarter marked by a challenging environment, particularly in Europe. After an encouraging July, the end of the quarter was marked by weaker demand. I would like to congratulate our teams, whose efforts in this unfavorable environment have enabled the Group to achieve a strong financial performance. In particular, our EBITDA margin increased to reach 17%, showing our resilience and validating our strategy of focusing on Specialty Materials. Over the coming months, we will be maintaining our efforts on strict management of costs, capital expenditure and working capital. We will also continue to progress on our major growth projects in order to start 2025 in the best possible position. We are also looking forward to welcoming Dow’s teams very soon, following the closing of the acquisition of the flexible packaging laminating adhesives business, expected by the end of the year, and which will mark a new chapter in Bostik's growth in high-performance adhesives,” said Le Hénaff.

Overall, Arkema’s Q3 2024 results demonstrate the company’s ability to navigate a challenging macroenvironment and deliver strong financial performance.