Nouryon increased its profit in its full-year 2020 financial results with continued commitment to customers and disciplined cost management.
“I am pleased with our 2020 results as they reflect our responsiveness to customer needs and a strategic investment in high-growth and resilient end markets,” said Nouryon Chairman and CEO Charlie Shaver.
“The strength of our portfolio is evident in the diversity of our customer base and the global nature of our businesses. That strength is supported by the cost discipline of our team, and our ability to bring innovative, new and sustainable solutions to market in a timely way,” he said.
Overall demand remained robust in many of Nouryon’s key end markets, such as agriculture and home care, with reduced volumes in some markets due to the COVID-19 pandemic. Full-year 2020 revenue decreased by 4% due to lower prices and volumes, while adjusted EBITDA increased by 3% to €1,162 million. The company’s strong cash position also enabled it to voluntarily repay €100 million of its Euro term loan.
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Selected financial data (in € millions) |
|||
|
|
2019 |
2020 |
Change |
|
Revenue |
5,082 |
4,700 |
(4%)1 |
|
Adjusted EBITDA2 |
1,128 |
1,162 |
3% |
|
EBITDA margin (%) |
22.2% |
24.7% |
|
Shaver said the company’s targeted transformation activities are continuing to yield positive results. For example, its acquisition of the carboxymethyl cellulose (CMC) business of J.M. Huber Corporation in 2020 allowed Nouryon to significantly broaden its portfolio of products in CMC, a sustainable, bio-based water-soluble polymer that is used in a broad range of end markets from home and personal care, to buildings, food and pharmaceuticals.
Strategic acquisitions such as this one and the divesting of non-core businesses, such as the company’s 2020 sale of redispersible polymer powders (RPP) and the recent announcement to divest its salt specialties business, underscore Nouryon’s strategy of being highly attuned to customer needs and creating scale that will help it become a world leader in key specialty chemicals markets.
The rebranding of the Industrial Chemicals business to Nobian further strengthens this strategy by positioning Nouryon to focus on and grow its leading position in global specialty chemicals.
Building on its 2020 EcoVadis Silver rating achievement, Nouryon committed to enhanced sustainability targets, specifically to reduce its carbon emissions by 25% and increase its share of low-carbon and renewable energy to 60% by 2025. The company also launched new sustainable products in 2020 to support its customers to achieve their targets too, including anti-viral paint coatings, biodegradable crop protection ingredients, and products for cool roof coatings that reduce the need for air conditioning.
1. Excluding impact from currency and portfolio changes.
2. EBITDA adjusted to: (i) eliminate certain non-operating income or expense items, (ii) eliminate the impact of certain non-cash and other items that are included in profit for the period and EBITDA that the company does not consider indicative of its ongoing operating performance, and (iii) eliminate certain unusual items impacting results in a particular period.
Improving profitability during a challenging year
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About Nouryon
Nouryon is a global, specialty chemicals leader. Markets and consumers worldwide rely on our essential solutions to manufacture everyday products, such as personal care, cleaning goods, paints and coatings, agriculture and food, pharmaceuticals, and building products. Furthermore, the dedication of approximately 8,200 employees with a shared commitment to our customers, business growth, safety, sustainability and innovation has resulted in a consistently strong financial performance. We operate in over 80 countries around the world with a portfolio of industry-leading brands.
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