In addition, EBITDA margin was up at 18.1% from 17.5% in 2Q 2016, confirming the group’s ability to adapt to a rising raw material cost environment. Adjusted net income was also significantly up by 28% to €172 million, i.e. €2.28 per share. Arkema reported cash generation with free cash flow multiplied by two to €158 million.
“In line with its excellent start to the year, Arkema confirms its development momentum with a 13% growth in sales in second quarter and new record EBITDA for a quarter, close to €400 million,” said chairman and CEO Thierry Le Hénaff. “This performance reflects the Group’s favorable positioning with a majority of resilient specialty activities and a good momentum in more cyclical activities. It highlights the Group’s strategy focused on innovation in Advanced Materials, growth in Adhesives with the integration of Den Braven, and developments in Asia. It also illustrates Arkema’s ability to operate in a higher cost environment for raw materials. Finally, the excellent cash generation enabled the Group to maintain its net debt at the same level as at the end of last year, despite the dividend payment.”