Kemira: Long-Term Growth Potential Remains Intact

2025-02-24 10:30:00 ET

Summary

• Kemira's 2024 financial results were flat, with a strong balance sheet after selling its oil & gas division, reducing net debt significantly.
• Despite a 10% revenue drop, excluding the oil & gas division, underlying revenue increased by 5%, and net profit was EUR 48M.
• Kemira's 2024 free cash flow was robust at EUR 273M, with a potential increase to EUR 2 per share when excluding growth investments.
• The 2025 outlook is modest with a slight revenue and EBITDA increase, but strong cash flow and a low payout ratio suggest a potential dividend hike.

Introduction

Kemira ( KOYJF ) has released its financial results for 2024, and those results were pretty flat as there were no surprises (nor positive nor negative). I originally liked the company for its relatively defensive characteristics, as this specialty chemicals company is very active in the water treatment industry . The exposure to water solutions and water treatment is the main reason why I’m interested in this Finnish company. ...

Read the full article on Seeking Alpha

For further details see: