Synthomer, a leading chemical supplier, expects a gradual recovery in customer demand, projecting that it may not fully bounce back until the end of 2023. Despite the challenging market conditions, the company is optimistic about implementing self-help measures worth around £20 million ($26.1 million) in the latter half of this year.
In the first half of 2022, Synthomer reported a decline in revenue to £1.1 billion, compared to £1.33 billion during the same period the previous year. However, the company managed to offset the impact of reduced volumes through robust pricing strategies and a strong focus on margins. Factors contributing to the lower demand were destocking, subdued levels of demand across most end-markets, and increased competition in specific base chemical product ranges.
Looking ahead, Synthomer remains confident in its ability to make progress in the second half of the year and achieve its medium-term targets established last October. These targets include mid-single-digit growth in constant currency over the business cycle, EBITDA margins above 15%, and mid-teens return on invested capital.
At 0808 GMT, Synthomer’s shares saw a 2.6% increase, rising by 2.05 pence to reach 82.05 pence.