Nouryon today reported full-year 2022 results with revenue of $5.8 billion, an increase of 17 percent year over year, primarily due to price increases. Excluding impacts from foreign exchange, revenue grew 24 percent. Adjusted EBITDA increased 15 percent year over year, driven by strong price increases throughout the year. These price increases were partially offset by significant cost headwinds 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 percent to nearly $4.15 billion, and adjusted EBITDA increased 22 percent to $922 million. Revenue growth was driven by increased pricing across the company, as well as particularly strong growth in Natural Resources and Agriculture and Food business lines. Adjusted EBITDA margin in Performance Formulations was 22.2 percent.
Revenue in the Technology Solutions segment increased 11 percent to over $1.6 billion, primarily driven by higher pricing in both Polymer Specialties and Renewable Fibers business lines. Segment adjusted EBITDA increased by 3 percent to $335 million, with selling prices fully offsetting higher costs for raw materials and energy. The Technology Solutions segment adjusted EBITDA margin was 20.6 percent.
In 2022, Nouryon earned an EcoVadis Platinum rating for its sustainability achievements, having achieved a score that placed it in the top 1 percent of companies then rated by EcoVadis, the world’s largest provider of business sustainability ratings. Another sustainability highlight in the year was Nouryon achieving carbon neutrality at five manufacturing sites.
Nouryon continued to invest in growth opportunities throughout 2022 including acquiring an alkoxylates plant in Singapore to better serve growing demand in Southeast Asia and announcing the acquisition of ADOB (completed in January 2023) which broadens Nouryon’s crop nutrition portfolio.
This release contains financial measures presented on a non-IFRS basis, including adjusted EBITDA, free cash flow, and adjusted EBITDA margins. Management believes that, when considered together with reported amounts, these measures are useful to third parties and management in understanding our ongoing operations and in the analysis of ongoing operating trends. These metrics should be considered in addition to, and not as replacements for, the most comparable IFRS measure. Refer to the reconciliations below of non-IFRS financial measures to the most directly comparable IFRS measures.
Adjusted EBITDA reconciliation ($ in millions)
* Loss for the period of $455 million in 2021 was primarily driven by non-cash financing expenses resulting from foreign exchange movements impacting our long-term debt of $534 million and the related impact from fair value movements of derivative financial instruments related to that debt of $300 million.
Nouryon is a global, specialty chemicals leader. Markets and consumers worldwide rely on our essential solutions to manufacture everyday products, such as personal care, cleaning goods, paints and coatings, agriculture and food, pharmaceuticals, and building products. Furthermore, the dedication of approximately 8,300 employees with a shared commitment to our customers, business growth, safety, sustainability and innovation has resulted in a consistently strong financial performance. We operate in over 80 countries around the world with a portfolio of industry-leading brands.
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