Elementis plc: history, ownership, mission, how it works & makes money

A Brief History of Elementis plc

Elementis plc, founded in 1845, is a global specialty chemicals company headquartered in London, UK. Over the years, it has evolved from a traditional chemical manufacturer into a focused player in the specialty chemicals market, primarily catering to the consumer goods, personal care, and industrial sectors.

In 1995, Elementis was formed through the merger of several companies, marking a significant shift in its operational strategy. The company has continuously adapted through various acquisitions, divestitures, and expansions into new markets. A notable acquisition occurred in 2010, when Elementis acquired the specialty chemicals business of Ashland Inc. for approximately £200 million. This acquisition enhanced Elementis' product offerings in personal care and industrial applications.

In 2014, Elementis reported revenues of £670.8 million, and in 2015, it further expanded operations by acquiring the polymer additives business of the German company, Additives International for around £88 million, reinforcing its commitment to growth in high-performance additives.

As of 2022, Elementis plc reported a revenue of £650 million, with a net income of £45 million. The company’s operating profit margin stood at 7.5%, reflecting its focus on high-quality specialty products and efficient operational management.

The company operates through three main segments: Personal Care, Coatings, and Specialty Products. Each segment has shown resilience and growth potential, contributing significantly to revenue generation. The financial performance across these segments in 2022 can be summarized in the following table:

Elementis has undertaken a strategic transformation aimed at prioritizing sustainability and innovation. In 2021, the company launched its sustainability strategy, committing to reducing greenhouse gas emissions by 30% by 2030. The company recognizes the importance of sustainability in its operational and business models, aligning its interests with global climate change initiatives.

In the stock market, Elementis plc trades on the London Stock Exchange under the ticker symbol ELM. As of October 2023, the stock price was approximately £1.50, with a market capitalization of about £1.1 billion. The company’s P/E ratio is around 24.5, indicating investor confidence in its long-term growth prospects.

Overall, Elementis plc has experienced a dynamic history characterized by strategic growth initiatives, acquisitions, and a commitment to sustainability, positioning itself well within the specialty chemicals sector.

A Who Owns Elementis plc

Elementis plc is a publicly traded company listed on the London Stock Exchange under the ticker symbol ELM. As of October 2023, it has a market capitalization of approximately £775 million.

The ownership structure of Elementis is diverse, with several institutional investors holding significant stakes. According to the latest data from September 2023, the largest shareholders are as follows:

The total free float of Elementis plc stands at approximately 70%, which indicates that a significant portion of shares is available for trading in the public market.

In terms of insider ownership, as of the most recent filings, executive officers and directors hold around 2.1% of the company's shares, which aligns with industry norms regarding executive shareholding.

The remaining shares are distributed among individual investors and smaller institutional firms. The top ten shareholders collectively own approximately 52% of the company's stock, providing a major influence over company decisions and direction.

In the broader context of institutional ownership, around 71% of Elementis is owned by institutional investors, a figure that highlights the company's appeal to large investment firms.

Regarding performance, Elementis reported a revenue of approximately $1.35 billion for the fiscal year 2022, with a net income of around $80 million, reflecting a moderate growth trajectory despite challenges in the global market.

Elementis operates primarily in the specialty chemicals sector, which has faced fluctuations due to supply chain disruptions and raw material price increases, factors that investors closely monitor.

Elementis plc Mission Statement

Elementis plc is a global specialty chemicals company that aims to enhance the performance and sustainability of its customers' products. The company is structured around its three main business segments: Personal Care, Coatings, and Energy. Elementis is committed to delivering innovative solutions that meet the evolving needs of its diverse client base.

The mission statement of Elementis reflects its dedication to providing high-quality products while prioritizing safety, sustainability, and operational excellence. Elementis strives to be the partner of choice for its customers, leveraging its expertise to create customized solutions that enhance product performance.

As of the latest financial report for the fiscal year ending December 31, 2022, Elementis reported a total revenue of £358.6 million, showing an increase from £345.4 million in 2021. The company achieved an adjusted EBITDA of £64.2 million, with an EBITDA margin of 17.9%.

Elementis emphasizes sustainability as a core principle in its mission. The company is actively working to reduce its carbon footprint and increase the efficiency of its production processes. In 2022, Elementis reported a reduction of 10% in greenhouse gas emissions per ton of product compared to the previous year.

The company also focuses on innovation, committing over 1.5% of its total revenue to research and development each year. This investment is crucial to developing new products that cater to the changing market demands, particularly in areas such as environmentally-friendly chemicals and performance-enhancing additives.

Elementis has established a clear roadmap to achieve its mission, which includes expanding its product portfolio and enhancing customer engagement through a more tailored approach. By 2025, the company aims to achieve an annual growth rate of 3% to 5% in its specialty products segment.

In conclusion, Elementis plc's mission statement encapsulates its vision for growth, innovation, and sustainability, setting a solid foundation for its ongoing operations in the specialty chemicals market.

How Elementis plc Works

Elementis plc is a global specialty chemicals company headquartered in London, UK. It operates through three main segments: Personal Care, Coatings, and Specialty Products. Each of these segments serves diverse industries including cosmetics, automotive, and pharmaceuticals.

As of the latest financial data available for the year ended December 31, 2022, Elementis reported revenues of approximately £623 million, representing a decline from £663 million in 2021. The drop was primarily attributed to decreased sales in the Coatings and Specialty Products segments.

The company's operating profit decreased to £70 million in 2022 from £104 million in 2021, reflecting a 32.7% decline. This was largely due to rising input costs and supply chain disruptions exacerbated by global events.

Elementis has a strong focus on innovation and sustainability. For instance, in the Personal Care segment, the company introduced products with sustainable ingredients, leveraging consumer trends towards eco-friendly formulations. In 2022, they increased their investment in R&D to £18 million, up from £15 million in 2021.

In terms of profitability metrics, Elementis recorded a net profit margin of 11.2% in 2022, compared to 15.7% in the previous year. This reflects challenges in maintaining profit levels amid fluctuating market conditions.

The company reported a gross margin of 24.2% in 2022, down from 30.6% in 2021. The decline was influenced by higher raw material costs and operational inefficiencies.

Elementis also maintains a robust balance sheet. As of December 31, 2022, the company held total assets of £1.2 billion, with total liabilities amounting to £690 million, resulting in a debt-to-equity ratio of 0.45.

Operationally, Elementis is focused on enhancing its global footprint. In 2022, the company generated approximately 56% of its revenues from North America, 30% from Europe, and 14% from Asia and the Rest of the World.

The stock performance of Elementis has shown volatility in recent years. As of October 2023, the share price has fluctuated between £1.80 and £2.80, reflecting wider market conditions and investor sentiment towards the specialty chemicals sector.

Looking ahead, Elementis aims to enhance its product portfolio while focusing on sustainability initiatives. The company's long-term strategy includes investing in capacity expansions and entering new markets to foster growth amid evolving consumer demands.

How Elementis plc Makes Money

Elementis plc, a global specialty chemicals company, generates revenue through a diversified portfolio of products primarily in the personal care, coatings, and plastics industries. The company focuses on high-margin specialty products that cater to various market needs.

For the year ended December 31, 2022, Elementis reported revenues of £356 million, representing an increase of 10% from £323 million in 2021. This growth was driven by strong demand across several sectors and the successful implementation of strategic pricing initiatives.

Revenue Streams

Elementis' revenue is segmented into three main categories:

• Personal Care
• Coatings
• Plastics

Each segment contributes differently to the overall revenue, as illustrated in the table below:

Key Products and Innovations

Elementis is renowned for its innovative approach, launching products such as:

• Glycolic Acid for personal care formulations
• Organoclay for thickening and suspension in coatings
• Hydrophilic Silica for enhanced performance in plastics

The company invests significantly in research and development, allocating approximately 4.5% of its annual revenues, or £16 million, towards R&D in 2022. This investment has led to the introduction of high-performance products, enhancing customer loyalty and market share.

Geographical Insights

Elementis operates globally, with major markets located in North America, Europe, and Asia-Pacific. In 2022, the breakdown of revenues by region was:

The North American market remains the largest contributor, accounting for over 50% of total revenues, as the region continues to adopt innovative products in personal care and coatings.

Profit Margins and Financial Performance

Elementis maintains a healthy profit margin, with an EBITDA of £64 million in 2022, resulting in an EBITDA margin of 18%. This is a slight increase from the previous year's EBITDA of £55 million, which gave a margin of 17%.

As of September 30, 2023, Elementis' stock traded at £1.75 per share, with a market capitalization of approximately £1 billion. The company's current ratio stands at 1.7, indicating strong liquidity and financial health.

Elementis plc's diversified product range, strategic pricing, and innovation drive its revenue generation, coupled with robust financial management that supports growth and profitability.