Elementis (ELM) Trading Update summary

Business performance

• Achieved profit growth and margin improvement despite a weak global demand environment, with adjusted operating profit and margins ahead of Q1 last year due to self-help initiatives and pricing.

• Constant currency revenue declined by approximately 2% compared to a strong prior year, but cash generation remained in line with expectations.

• Personal Care sales were marginally up, with higher profitability and margins, while Cosmetics remained flat amid soft Asian demand and weaker mix.

• Performance Specialties sales were modestly lower, mainly from weaker Coatings demand, but profitability and margins improved due to better Talc performance.

• Coatings sales fell mid-single digits, especially in Asia and EMEA, while Talc sales were slightly ahead of last year.

Strategic initiatives and outlook

• The Talc strategic review, initiated in August 2024, is ongoing with further updates to be provided.

• On track to achieve $12m in cost savings for the year, with additional savings opportunities identified.

• Well positioned to manage potential impacts from recent US tariffs due to a global manufacturing footprint, though future demand impacts remain uncertain.

• Full-year expectations remain unchanged despite increased economic uncertainty.

• Progress continues toward 2026 goals, with further details to be shared at interim results.