Elementis (LSE:ELM) said organic revenue rose c.2% in the quarter ended 31 March and adjusted operating profit and margins grew strongly year-on-year, while it left its full-year 2026 outlook unchanged (excluding the pharma manufacturing business).
The group, a global specialty chemicals company focused on Personal Care and Coatings, said progress on self-help initiatives and pricing actions supported the improvement in revenue and profitability.
Personal Care revenue improved marginally on an organic basis as higher pricing and improved mix offset isolated weaker demand in the Americas, with margins broadly comparable to Q1 last year. Coatings delivered good organic revenue growth driven by higher volumes in Asia that offset weakness in the Americas, and the Energy business benefited from operational improvements at the St. Louis plant, with margins up materially year-on-year.
The integration of the Alchemy brand is progressing in line with expectations and it said customer interest in Alchemy's products is strong.
The company added that the Middle East conflict had not had a material impact on Q1 performance, direct exposure is below 2% of group annual revenue, and pricing actions are expected to fully offset higher input costs. Cash generation in the first quarter was in line with expectations.
The sale of the pharma manufacturing business to Associated British Foods remains on track to complete in Q2 2026 subject to regulatory approvals, and net proceeds are expected to be returned to shareholders.
"We are mindful of the uncertainty arising from the geopolitical and macroeconomic backdrop, and therefore our current outlook for the full year 2026 remains unchanged," said Luc van Ravenstein, CEO of Elementis.
