Arkema Outlines Aggressive Growth Plan Fueled by Sustainability

Arkema Outlines Aggressive Growth Plan Fueled by Sustainability

(IN BRIEF) Arkema has revealed its ambitious growth strategy, aiming to achieve €12 billion in sales with an 18% EBITDA margin by 2028. This plan hinges on leveraging sustainable innovation and technologies, bolstering the company’s portfolio, and capitalizing on megatrends in the industry, while maintaining strict financial discipline. Arkema also pledges to prioritize sustainability, focusing on decarbonization and employee empowerment as key drivers of future success.

(PRESS RELEASE) COLOMBES, 28-Sep-2023 — /EuropaWire/ — Arkema presents the new stage of its development at the Capital Markets Day of 27 September 2023. Building on the achievements since the April 2020 strategy update, the Group now aims to accelerate its organic sales growth in the medium term, by capitalizing on its recent or future industrial investments in high value-added technological solutions serving fast-growing market segments supported by sustainable megatrends.

• By 2028, Arkema aims to achieve sales of around €12bn with an elevated EBITDA margin of around 18%
• Average organic sales growth is expected at around 4% per year and average organic EBITDA growth at 7 to 8% per year over the 2024-28 period
• Cash generation should remain strong and shareholder returns increase by 30% over the 2024-28 period versus the prior 5 year period
• The Group will also capitalize on the recent validation of its 1.5°C trajectory by SBTi to further strengthen its decarbonization initiatives, paving the way for Net-Zero by 2050

Since the April 2020 Strategy Update, the Group has steadfastly continued its value-creative transformation, nearly completing its shift into a pure Specialty Materials player thanks to targeted investments, cutting-edge sustainable innovation and a high value-added portfolio management strategy. Arkema’s materials science expertise is now built around the three coherent and complementary segments of Adhesive Solutions, Advanced Materials, and Coating Solutions, with an unmatched portfolio of cutting-edge technologies.

This transformation has generated strong financial returns for Arkema and enabled the Group to increase structural profitability. Arkema is thus on track to achieve the ambitious financial targets it set for 2024, while delivering €1.3bn of shareholder returns since 2020 via dividends and share buybacks and maintaining strict financial discipline. Importantly, Arkema has also markedly improved its corporate social responsibility profile, notably with an ambitious climate plan aligned with the 1.5°C trajectory validated by SBTi, as well as improvements in workplace safety and in promoting diversity within the organization.

Since Covid, disruptive megatrends have accelerated the world’s transformation, and Arkema is at the forefront of enabling change toward a more sustainable economy thanks to its high performance, innovative materials. Building on its successful evolution since 2020, having acquired or built an unparalleled portfolio of technologies, the Group is now ready to progress to the next level of its growth trajectory by leveraging its unique position.

Thus, by 2028, Arkema aims to achieve sales of around €12bn with an elevated EBITDA margin of around 18%, translating into average organic sales growth of around 4% per year and average organic EBITDA growth at 7% to 8% per year in the 2024-28 period. The Group will also maintain its strict financial discipline with a net debt to EBITDA ratio not greater than 2x.

Media Contacts:

Gilles Galinier
VP Communication
+33 (0)1 49 00 70 07

Anne Plaisance
Corporate Press Relations Manager
+33 (0)6 81 87 48 77

SOURCE: Arkema