The group of chemical specialties Ems-Chemie benefited in the first quarter from a good development of its business, its customers continuing to replenish their stocks and their production capacities after the tumults of the coronavirus. Turnover increased by 14.1% over one year to 566 million francs.
In local currencies (ML), revenues have returned to the pre-crisis level, benefiting from a 15.3% jump, the company led by UDC national councilor Magdalena Martullo-Blocher said on Friday. The evolution of the order book turned out to be favorable between January and March, without further details.
In the Polymers division, sales rose 15.1% to 507 million francs, or 16.4% in ML. Revenues generated by specialty chemicals reached 59 million, which represents growth of 5.6% in francs and 6.7% in ML. Ems-Chemie does not publish a profitability indicator for the first three months of the year.
The total turnover generated by the Grison group exceeds the most optimistic expectations of analysts surveyed by AWP, as do Polymers sales. Specialty Chemicals falls in the lower end of the forecast range.
The positive momentum of the Domat / Ems-based company in the third and fourth quarters continued at the start of the year. Overall, companies are rebuilding their stocks and production capacities. This strong demand, however, leads to dysfunctions in the supply chain.
In its press release, Ems-Chemie deplores the formation of bottlenecks which are hampering the recovery of business and having an impact on raw materials, the prices of which continue to rise. The group warns that this situation will sooner or later imply a price increase for its customers.
For 2021, management still expects to generate higher revenues and operating surplus (EBIT) compared to last year, based on a scenario of continued global economic recovery. .
Bottlenecks and price hikes are likely to persist, as is the shortage of semiconductors in the automotive industry, a major outlet for the chemist from Grison.
Despite figures generally above expectations, analysts are not sparing Ems-Chemie. For Mirabaud, the group could have done clearly better in view of the evolution of German car manufacturers in the first quarter. BMW and Mercedes-Benz published growth figures significantly higher than those of the chemist the day before.
The Cantonal Bank of Zurich is worried about bottlenecks and their effects in the second partial, anticipating a decline of 3% over three months in revenue to 547 million francs. Baader Helvea recalls that the investment of 300 million francs recently announced on the Domat site will weigh on cash and margins in the short term.
These reservations did not seem to have a hold on investors. Around 11:00 am, the Ems-Chemie share took 1.2% to 846.50 francs, in an SPI up 0.57%.