Nouryon Reports Full Year 2022 Results with Strong Revenue Growth

Nouryon reported full-year 2022 results with revenue of $5.8 billion, an increase of 17% year over year, primarily due to price increases. Excluding impacts from foreign exchange, revenue grew 24%.

Adjusted EBITDA increased 15% year over year, driven by strong price increases throughout the year. These price increases were partially offset by significant cost head-winds from raw materials, energy, logistics, and selling, general and administrative (SG&A), along with considerable headwinds from foreign exchange.

“Nouryon’s 2022 full-year financial performance highlights the resiliency of our specialty portfolio in a challenging macro environment,” said Charlie Shaver, Nouryon chairman and CEO. “In 2022, pricing was up significantly and more than offset the raw material cost headwinds from 2021 and 2022. These pricing actions drove our strong adjusted EBITDA growth.”

In the Performance Formulations segment, revenue grew 20% to nearly $4.15 billion, and adjusted EBITDA increased 22% to $922 million. Revenue growth was driven by in-creased pricing across the company, as well as particularly strong growth in Natural Re-sources and Agriculture and Food business lines. Adjusted EBITDA margin in Perfor-mance Formulations was 22.2%.

Revenue in the Technology Solutions segment increased 11% to over $1.6 billion, primari-ly driven by higher pricing in both Polymer Specialties and Renewable Fibers business lines. Segment adjusted EBITDA increased by 3% to $335 million, with selling prices fully offsetting higher costs for raw materials and energy. The Technology Solutions segment adjusted EBITDA margin was 20.6%.

In 2022, Nouryon earned an EcoVadis Platinum rating for its sustainability achievements, having achieved a score that placed it in the top 1% of companies then rated by EcoVadis, the world’s largest provider of business sustainability ratings. Another sustainability high-light in the year was Nouryon achieving carbon neutrality at five manufacturing sites.

Nouryon continued to invest in growth opportunities throughout 2022 including acquir-ing an alkoxylates plant in Singapore to better serve growing demand in Southeast Asia and announcing the acquisition of ADOB (completed in January 2023) which broadens Nouryon’s crop nutrition portfolio.