Kemira Oyj’s Interim Report January-September 2020: Profitability remained strong

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Kemira Oyj, Interim Report, October 27, 2020 at 8.30 am (EET)

Kemira Oyj’s Interim Report January-September 2020: Profitability remained strong

This is a summary of the January-September 2020 Interim Report. The complete Interim Report with tables is attached to this release and available at

 Third quarter: Strong profitability and cash flow 

  • Revenue decreased by 13% to EUR 596.7 million (689.8) due to lower sales volumes. Revenue in local currencies, excluding acquisitions and divestments, decreased by 10%.   
  • Operative EBITDA remained strong and was EUR 113.0 million (118.1) following favorable development of variable costs and good fixed cost management. The operative EBITDA margin increased to 18.9% (17.1%). EBITDA decreased by 7% to EUR 109.8 million (118.1).  
  • Operative EBIT decreased by 12% to EUR 62.3 million (71.1). EBIT decreased by 15% to EUR 59.1 million (69.2). The differences between operative and reported figures are explained by items affecting comparability. 
  • Cash flow from operating activities remained strong at EUR 117.3 million (121.3).
  • EPS, diluted, decreased by 10% to EUR 0.24 (0.27). 

January-September: Strong profitability development despite lower sales volumes

  • Revenue decreased by 9% to EUR 1,821.6 million (2,001.1) due to lower sales volumes. Revenue in local currencies, excluding acquisitions and divestments, decreased by 8%.
  • Operative EBITDA increased by 2% to EUR 327.2 million (319.9) mainly due to favorable development of variable costs. The operative EBITDA margin increased to 18.0% (16.0%). EBITDA increased by 3% to EUR 322.0 million (312.7).
  • Operative EBIT was  EUR 180.7 million (181.6). EBIT increased by 2% to EUR 175.6 million (172.5). The differences between operative and reported figures are explained by items affecting comparability.
  • Cash flow from operating activities remained strong at EUR 228.3 million (243.7).
  • EPS, diluted, increased by 6% to EUR 0.71 (0.67), mainly due to higher EBITDA.

Kemira’s President and CEO Jari Rosendal:

“Kemira had strong profitability in the third quarter. The operating environment remained largely unchanged during the quarter, with the COVID-19 pandemic burdening the global economy. Kemira's operations remained uninterrupted, although with strict safety measures in place. Despite the challenging environment, our profitability remained strong during the quarter. Revenue declined by 13% as sales volumes were impacted by the economic slowdown. Revenue excluding currency impact and the Oil & Gas business declined by 5%, demonstrating the resilience of the majority of our businesses. Thanks to good management of variable and fixed costs and the contribution from recent investments, our operative EBITDA remained strong and was EUR 113 million. The operative EBITDA margin improved further and reached a high level of 18.9%.

In Pulp & Paper, market demand patterns were similar to Q2 2020. Demand was rather solid in all customer segments apart from printing and writing, which continued to be negatively impacted by the economic slowdown. Pulp & Paper's operative EBITDA margin improved to an exceptionally high level of 18.6% in Q3 2020 (16.0%). The ramp-up of the new AKD wax facility in China had a positive contribution to our operative EBITDA during the quarter.

In Industry & Water, water treatment demand remained quite resilient, particularly in municipal water treatment. In Oil & Gas, we saw a modest sequential pick-up in shale market activity during the quarter. We believe the low point in shale demand was seen during early summer 2020, but the timing of a more sustained recovery remains uncertain. Industry & Water's operative EBITDA margin was at a strong level of 19.5% in Q3 2020 (18.5%).

Following the strong development in Q3 2020, we have updated our outlook, which we communicated on October 9, 2020. We continue to expect the operative EBITDA in H2 2020 to be lower than in H1 2020 (EUR 214 million). However, for the full year 2020, we expect the operative EBITDA to increase from 2019 (EUR 410 million), in line with our original outlook at the start of the year. As another sign of our confidence about the future, Kemira's Board of Directors also decided on the payment of the second dividend installment, in the amount of EUR 0.28, which will be paid to Kemira's shareholders in early November.

I am pleased that despite the challenging environment this year, Kemira's performance has been good. Our employees have worked hard to ensure our and our customers' business continuity, which I am proud of. I would like to warmly thank all our stakeholders for their trust during this exceptional year.“  


EUR million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
2020 2019 2020 2019 2019
Revenue 596.7  689.8  1,821.6  2,001.1  2,658.8 
Operative EBITDA 113.0  118.1  327.2  319.9  410.0 
Operative EBITDA, % 18.9  17.1  18.0  16.0  15.4 
EBITDA 109.8  118.1  322.0  312.7  382.3 
EBITDA, % 18.4  17.1  17.7  15.6  14.4 
Operative EBIT 62.3  71.1  180.7  181.6  224.0 
Operative EBIT, % 10.4  10.3  9.9  9.1  8.4 
EBIT 59.1  69.2  175.6  172.5  194.4 
EBIT, % 9.9  10.0  9.6  8.6  7.3 
Net profit for the period 39.0  43.3  114.2  107.9  116.5 
Earnings per share, diluted, EUR 0.24  0.27  0.71  0.67  0.72 
Capital employed* 1,977.2  1,961.8  1,977.2  1,961.8  1,998.2 
Operative ROCE*, % 11.3  11.5  11.3  11.5  11.2 
ROCE*, % 10.0  10.9  10.0  10.9  9.7 
Cash flow from operating activities 117.3  121.3  228.3  243.7  386.2 
Capital expenditure excl. acquisition 49.4  51.5  129.6  119.7  201.1 
Capital expenditure 49.4  51.8  132.2  121.6  204.1 
Cash flow after investing activities 68.6  73.1  96.8  129.9  189.8 
Equity ratio, % at period-end 44  43  44  43  43 
Equity per share, EUR 7.94  7.94  7.94  7.94  7.98 
Gearing, % at period-end 64  71  64  71  66 

*12-month rolling average
Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as organic growth (revenue growth in local currencies, excluding acquisitions and divestments), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and gearing, provide useful information about Kemira’s comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration. 

Kemira’s alternative performance measures should not be viewed in isolation from the equivalent IFRS measures, and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at > Investors > Financial information. All the figures in this interim report have been individually rounded, and consequently the sum of the individual figures may deviate slightly from the sum figure presented.


Outlook for July-December 2020 (updated on October 9, 2020)  
Kemira expects its operative EBITDA in H2 2020 to be lower than in H1 2020 (H1 2020: EUR 214 million), but expects its full-year 2020 operative EBITDA to increase from 2019 (2019: EUR 410 million). 

Assumptions behind Kemira's outlook for July-December 2020:
Overall demand in Kemira's end markets in H2 2020 is expected to be at approximately the same level as in Q2 2020. Demand in Pulp & Paper is expected to remain approximately at the Q2 2020 level, with printing and writing demand to remain weak. In Industry & Water, demand is also expected to remain at approximately the Q2 2020 level. The shale market has started to recover modestly from the Q2 2020 market lows. Kemira's outlook for H2 2020 assumes no significant disruptions in Kemira's manufacturing operations or supply chain.

Previous outlook (published on July 17, 2020)
Kemira expects its operative EBITDA in H2 2020 to be lower than in H1 2020 (H1 2020: EUR 214 million).


Kemira aims for above-market revenue growth with an operative EBITDA margin of 15-17%. The target for gearing is below 75%.   

Helsinki, October 26, 2020 

Kemira Oyj 
Board of Directors  


Financial Statements Bulletin 2020                                             February 11, 2021
Interim Report January–March 2021                                           April 27, 2021
Half-year Financial Report January–June 2021                          July 16, 2021
Interim Report January–September 2021                                   October 26, 2021

The Annual Report 2020 will be published in the week starting on February 15, 2021.
The Annual General Meeting is scheduled for Wednesday, March 24, 2021 at 1.00 pm (EET).


Kemira will arrange a webcast for analysts, investors, and media on Tuesday, October 27, 2020, starting at 1.30 pm EET (11.30 am UK time). During the webcast, Kemira’s President and CEO, Jari Rosendal, and CFO, Petri Castrén, will present the results. The webcast will be held in English and can be followed at The presentation material and a recording of the webcast will be available on the above-mentioned company website.

You can attend the Q&A session via a conference call. In order to participate in the conference, please call in ten minutes before the conference begins:

FI +358 (0)9 81710 310
SE +46 (0)8 56642 651  
UK +44 (0)333 300 0804  
US +1 631 913 1422

Conference ID: 42010853# 

For more information, please contact:

Kemira Oyj
Mikko Pohjala, Vice President, Investor Relations
Tel. +358 40 838 0709

Kemira is a global chemicals company serving customers in water intensive industries. We provide best suited products and expertise to improve our customers’ product quality, process and resource efficiency. Our focus is on pulp & paper, oil & gas and water treatment. In 2019, Kemira had annual revenue of around EUR 2.7 billion and over 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.