Kemira Oyj’s Half-year Financial Report 2019: Strong earnings improvement continued in the second quarter of 2019


Kemira Oyj
Half-year Financial Report
July 19, 2019 at 8.30 am (CET+1)

Kemira Oyj’s Half-year Financial Report 2019: Strong earnings improvement continued in the second quarter of 2019

This is a summary of the January - June 2019 Half-year Financial Report. The complete January - June 2019 Financial Report with tables is attached to this release and available at

Second quarter:

  • Revenue increased by 2% to EUR 663.6 million (647.6) due to a positive currency impact while higher sales prices were offset by lower sales volumes. Revenue in local currencies, excluding acquisitions and divestments, remained at the previous year’s level.
  • Operative EBITDA increased by 32% to EUR 106.1 million (80.2), by EUR 25.9 million, of which IFRS 16 standard explains EUR 8.3 million. Operative EBITDA margin increased to 16.0% (12.4%). EBITDA increased by 24% to EUR 102.1 million (82.5).
  • Operative EBIT increased by 34% to EUR 60.3 million (45.1). EBIT increased by 46% to EUR 56.3 million (38.5). The differences between operative and reported figures are explained by items affecting comparability.
  • EPS increased by 54% to EUR 0.22 (0.14) mainly due to higher EBIT


  • Revenue increased by 4% to EUR 1,311.4 million (1,261.4) as sales price increases and currency exchange rates impacted positively. Revenue in local currencies, excluding acquisitions and divestments, increased by 1%.
  • Operative EBITDA increased by 35% to EUR 201.8 million (149.6), by EUR 52.2 million, of which IFRS 16 standard explains EUR 16.0 million. Operative EBITDA margin increased to 15.4% (11.9%). EBITDA increased by 29% to EUR 194.6 million (150.7).
  • Operative EBIT increased by 40% to EUR 110.4 million (79.0). EBIT increased by 45% to EUR 103.3 million (71.2). The differences between operative and reported figures are explained by items affecting comparability.
  • EPS increased by 43% to EUR 0.40 (0.28) mainly due to higher EBIT. 

Kemira’s President and CEO Jari Rosendal: 

“Kemira’s strong performance continued in the second quarter. Our focus on value over volume is bearing fruit. Effective price and cost management combined with favorable raw material price development led to operative EBITDA margin of 16.0%.

In Pulp & Paper, operative EBITDA margin improved to 14.4% despite some softness in the short-term market demand. Operationally business is moving ahead with focus on higher value-adding products and increasing capacity where the market demand is high. By the end of the year, we expect to ramp-up the new AKD wax manufacturing site in Yanzhou, China.

In Industry & Water, the combination of higher sales prices and favorable raw material price fluctuations led to an exceptionally high operative EBITDA margin of 18.1% for the segment. Capacity utilization rates are high and the product mix has improved. Specifically in the North American oil & gas business the growth continued at very high rate, partly thanks to the seasonal oil sands tailings treatment business. With regard to growth investments, we expect to ramp-up additional Chemical Enhanced Oil Recovery polymer capacity in the Netherlands during the second half of the year.

In the first half of 2019, Kemira reached operative EBITDA margin of 15.4%, which is within our mid- to long-term 15-17% financial target range. The good progress shows that our strategy execution is on the right track.”

Kemira adopted the IFRS 16 accounting standard on January 1, 2019. In the profit and loss statement, the operating lease expenses are replaced by the depreciation of the right-of-use asset and interest cost associated with lease liability. As a result, it is estimated that the impact on EBIT is small positive, whereas the impact on the net profit is immaterial in 2019. Kemira estimated that the adoption of the IFRS 16 accounting standard increases EBITDA margin by approximately 1 percentage point and gearing by approximately 10 percentage points. In 2019, the impact on operative EBITDA due to the adoption of the IFRS 16 accounting standard is estimated to be around EUR +30 million. The prior year’s figures are not restated. The key figures (except revenue and capital expenditure) of the profit and loss statement, balance sheet and cash flow have been impacted by the adoption of the IFRS 16 accounting standard.

EUR million Apr-Jun 2019 Apr-Jun 2018 Jan-Jun 2019 Jan-Jun 2018 Jan-Dec 2018
Revenue 663.6 647.6 1,311.4 1,261.4 2,592.8
Operative EBITDA 106.1 80.2 201.8 149.6 323.1
Operative EBITDA, % 16.0 12.4 15.4 11.9 12.5
EBITDA 102.1 82.5 194.6 150.7 314.8
EBITDA, % 15.4 12.7 14.8 11.9 12.1
Operative EBIT 60.3 45.1 110.4 79.0 173.8
Operative EBIT, % 9.1 7.0 8.4 6.3 6.7
EBIT 56.3 38.5 103.3 71.2 148.2
EBIT, % 8.5 5.9 7.9 5.6 5.7
Net profit for the period 35.2 23.5 64.6 46.6 95.2
Earnings per share, EUR 0.22 0.14 0.40 0.28 0.58
Capital employed* 1,901.0 1,754.6 1,901.0 1,754.6 1,781.4
Operative ROCE*, % 10.8 9.7 10.8 9.7 9.8
ROCE*, % 9.5 8.3 9.5 8.3 8.3
Cash flow from operating activities 57.2 23.4 122.4 57.9 210.2
Capital expenditure excl. acquisition 39.9 39.8 68.2 63.0 150.4
Capital expenditure 41.5 37.4 69.9 59.8 193.7
Cash flow after investing activities 16.9 -12.9 56.7 3.5 29.0
Equity ratio, % at period-end 41 43 41 43 44
Equity per share, EUR 7.58 7.42 7.58 7.42 7.80
Gearing, % at period-end 79 67 79 67 62

*12-month rolling average (ROCE, % based on the EBIT)

Kemira provides certain financial performance measures (alternative performance measures), which 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, cash flow after investing activities as well as 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 to 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.


Kemira expects its operative EBITDA to increase from the prior year (2017: EUR 311.3 million).


Kemira aims at above-the-market revenue growth with operative EBITDA margin of 15-17%. The gearing target is below 75%. (Before the adoption of IFRS 16 accounting change as of January 1, 2019, the financial targets were: Kemira aims at above-the-market revenue growth with operative EBITDA margin of 14-16%. The gearing target is below 60%.)

Helsinki, July 18, 2019

Kemira Oyj
Board of Directors


Interim Report January-September 2019                     October 24, 2019
Financial Statements Bulletin 2019                               February 11, 2020
Interim Report January-March 2020                             April 28, 2020
Interim Report January-June 2020                               July 17, 2020
Interim Report January-September 2020                     October 27, 2020

Annual Report 2019 will be published the week starting on February 17, 2020.

The Annual General Meeting will be held in the Finlandia Hall on March 25, 2020.


Kemira will arrange a press conference for analysts, investors, and media on Friday, July 19, 2019, starting at 1 pm (11 am UK time) at Hotel Kämp, Kluuvikatu 2, 2nd floor, Helsinki. During the conference, Kemira’s President and CEO Jari Rosendal and CFO Petri Castrén will present the results. The press conference will be held in English and will be webcasted at The presentation material and the webcast recording 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 ten minutes before the conference begins:

FI +358 9 8171 0310
SE +46 8 5664 2651
UK +44 333 300 08 04
US +1 631 913 14 22

Conference ID: 86550162#

For more information, please contact:

Kemira Oyj
Olli Turunen, Vice President, Investor Relations
Tel.  +358 40 552 8907

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 2018, Kemira had annual revenue of around EUR 2.6 billion and 4,915 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.


About GlobeNewswire

One Liberty Plaza - 165 Broadway
NY 10006 New York

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

ENR Russia Invest SA announces a new private equity investment and end third quarter 2019 net asset value per share23.10.2019 19:15:00 CESTPress release

Press Release Geneva, 23 October 2019 ENR RUSSIA INVEST SA ANNOUNCES A NEW PRIVATE EQUITY INVESTMENT AND END THIRD QUARTER 2019 NET ASSET VALUE PER SHARE New private equity investment ENR Russia Invest SA, via a wholly owned subsidiary (“ENR”), acquired a 50% interest in a 27.4 hectare greenhouse and engineering facility for flower growing in the Kaluga Oblast in Russia (“Flower Growing Facility”). ENR teamed-up with a Russia based investment group, who owns the remaining 50% interest (collectively referred to as the “Investors”). The purchase price and initial investment for capital and operational expenses is RUB 742 million (approximately CHF 11.5 million). ENR’s 50% contribution is RUB 371 million (approximately CHF 5.75 million). Together with further investments (see below), it is anticipated that the Investors could ultimately invest a total of about CHF 20 million (or less if low interest rate Russian bank funding can be obtained under Russian agricultural incentive programs).

Press Release: Giuseppe Pasceri appointed as General Manager for Adevinta in Italy23.10.2019 17:00:00 CESTPress release

Italy, 23 october 2019: Adevinta, a global online classifieds company with generalist, real estate, cars, jobs and other internet marketplaces in 16 countries, today announces that Giuseppe Pasceri will succeed Melany Libraro as the new General Manager for Adevinta in Italy, overseeing Subito and InfoJobs. Giuseppe joined Adevinta Italy in 2018 from the Italian Government Digital Team, bringing extensive experience in digital transformation and user-centered businesses. He most recently served as Chief Product Officer and Chief Technology Officer for Adevinta Italy. Giuseppe has over 25 years of experience in digital businesses, having worked for companies such as Yahoo!, eBay, RCS, Jobrapido and the Italian Government Digital Service. In his new role, Giuseppe will oversee all aspects of Subito and InfoJobs’ strategy and execution, with the goal to increase Adevinta’s leadership position in Italy and improve our users experience. “Giuseppe brings a thorough understanding of our users

Articles of Association, Seluxit A/S23.10.2019 15:32:00 CESTPress release

Articles of Association, Seluxit A/S Company Announcement No. 15 Aalborg, 23. October 2019 Articles of Association, Seluxit A/S. Following the completion of the registration with the Danish Commerce and Companies Agency (Erhvervsstyrelsen), attached you find the updated articles of association containing the changes which were decided at Seluxit A / S 'annual general meeting on October 22, 2019 For further information, please contact CEO Daniel Lux. You can subscribe to our investor newsletter on and get company announcements directly in your mail box. You can also follow news from Seluxit on Homepage: LinkedIn: Facebook: Seluxit A/S Hjulmagervej 32B 9000 Aalborg Denmark Tel.: +45 46 922 722 E-mail: Web: CVR/VAT nr. 29388237 Certified Adviser Norden CEF ApS, V/ John Norden Kongevejen 365, 2840 Holte Denmark Tel.: +

Aker and REV Ocean Pledge USD 11 million to Technology Initiatives for a Healthy Ocean23.10.2019 15:15:00 CESTPress release

Oslo, 23 October 2019 – The Aker Group, REV Ocean and The Resource Group (TRG) today announced a joint pledge of USD 11 million to three initiatives dedicated to developing disruptive technology solutions for a healthy and productive ocean. “Throughout its 180-year history, the Aker group has been a driving force in the development of knowledge-based industry related to ocean resources. All our industrial activities are part of the ocean economy,” said Aker President and CEO Øyvind Eriksen. “Today, our ocean is at risk and changes are needed. I strongly believe that solutions for the ocean are developed more robustly and swiftly if businesses like Aker join forces with governments, NGOs and other stakeholders. A healthier ocean is a shared interest,” he said. The USD 11 million pledge will go towards three initiatives, covering costs for the next three years. The initiatives include the Centre for the Fourth Industrial Revolution (C4IR) in Norway, which will receive USD 6 million, the

AB Klaipėdos nafta (KN) will hold an Investor Conference Webinar to introduce unaudited financial results for the nine months of 201923.10.2019 14:33:00 CESTPress release

KN invites shareholders, investors, analysts and other stakeholders to join its investor conference webinar scheduled on the October 30th of 2019 at 8.30 am (EET). The presentation will be held in English. The webinar will be hosted by Company’s management who will introduce the performance and unaudited financial results of KN for the nine months of 2019. After the presentation investors are welcome to ask questions. Due to limited webinar time, we encourage participants to send their questions before the webinar until October 28th to How to join the webinar? To join the webinar, please register via following link: You will be provided with the webinar link and instructions how to join successfully. When joining the webinar for the first time, you will be asked to download the plug-in which will take only few seconds. In case plug-in can't be downloaded, a web browser which enables attending the w

ProMIS Neurosciences advances ALS program selectively targeting toxic form of TDP-4323.10.2019 13:30:00 CESTPress release

Results follow recent updates to ProMIS antibody programs selectively targeting root cause of multiple neurodegenerative diseases TORONTO and CAMBRIDGE, Mass., Oct. 23, 2019 (GLOBE NEWSWIRE) -- ProMIS Neurosciences, Inc. (TSX: PMN) (OTCQB: ARFXF), a biotechnology company focused on the discovery and development of antibody therapeutics targeting toxic oligomers implicated in the development of neurodegenerative diseases, has generated antibody candidates targeting the neurotoxic form of TAR DNA-binding protein 43 (TDP-43), a protein found in all cells and implicated as a root cause in a spectrum of diseases such as amyotrophic lateral sclerosis (ALS) and frontotemporal dementia (FTD). New data generated by ProMIS’ unique drug discovery and development platform demonstrate that several antibody candidates show selectivity for toxic, misfolded intracellular aggregates of TDP-43 with no binding to normal TDP-43 located in the cell nucleus. ProMIS antibody candidates also show selective bi