Elementis (ELM) Trading Update summary

Business performance

• Revenue increased 2% year-on-year (3% at constant currency), with both business segments contributing to growth.

• Adjusted operating margin remained steady at 17%, matching H1 2024 levels.

• Personal Care sales rose in both Cosmetics and AP actives, reflecting normal seasonality.

• Performance Specialties benefited from positive pricing and mix, offsetting market-related volume weakness.

• Coatings sales grew in Americas and EMEA due to price and mix, while Talc sales were flat and focused on higher value applications.

Strategic initiatives and cost savings

• Seven new products launched as part of the Innovation, Growth and Efficiency strategy.

• On track to achieve at least $15 million in annual cost savings for 2024.

• Fit for the Future restructuring progressing, with role eliminations and outsourcing of transactional services completed.

• New Porto centre set-up advancing as planned.

Regulatory and legal updates

• EU state aid case settlement will result in repayment of approximately £15 million from HMRC.

• Awaiting confirmation of repayment following the CJEU's annulment of the previous decision.