Kemira tanks on Q1 revenue, profitability drop; announces 5% U.S. trade surcharge

Published 25/04/2025, 09:16
© Reuters

Investing.com -- Finnish chemicals firm Kemira Oyj (HE:KEMIRA) saw its shares plummet more than 11% on Friday after reporting a decline in first-quarter revenue and profitability. The company also announced a minimum 5% trade surcharge in the U.S. 

Kemira’s revenue for the quarter fell 1% year-on-year to €708.8 million. In local currencies and excluding acquisitions and divestments, revenue fell 2%.

The company said solid performance in Water Solutions and Fiber Essentials helped cushion a drop in Packaging (NYSE:PKG) & Hygiene Solutions.

Overall sales volumes remained stable compared to a year earlier, though prices edged slightly lower, it added. On a sequential basis, volumes declined amid weak market conditions, while pricing held steady.

Operative EBITDA fell 15% to €135.5 million, mainly due to lower sales prices, resulting in an EBITDA margin of 19.1%, down from 22.2%.

Total (EPA:TTEF) EBITDA declined 13% to €134.6 million, and operative EBIT dropped 25% to €85.6 million.

In response to cost pressures, Kemira said it will introduce a minimum 5% surcharge on all products and services sold in the U.S. beginning May 1. The charge applies across its Packaging, Hygiene, and Water Solutions segments and is driven by “significant increases in external costs driven by recent global trade policies.”

“The surcharge is designed to partially offset these rising costs while ensuring the reliability, availability, and high quality of Kemira’s offerings," it added.

Kemira’s 2025 outlook was unchanged. 

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