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Full-Year 2021 Highlights
- Revenue of US$4.9bn, an increase of 17% yr-on-yr
- Adjusted EBITDA1 of US$1.1bn, up 10% yr-on-yr
- Free cash flow2 of US$781M, a 4% increase yr-on-yr
Nouryon reported full-year 2021 results with revenue of US$4.9bn, an increase of 17% yr-on-yr, driven by volume growth and pricing actions. Excluding impacts from foreign exchange and acquisitions, revenue grew 13%. Adjusted EBITDA increased 10% yr-on-yr, despite significant cost headwinds from raw materials, energy, and logistics. Volume was the primary driver of adjusted EBITDA growth, with additional contributions from pricing, cost improvement initiatives and foreign exchange, offset partially by cost pressures.
"Nouryon’s 2021 full-year financial performance reflects the strength of our priority end-markets, as well as our ability to supply a record volume of products to our customers in the face of numerous logistics challenges in global supply chains,” said Charlie Shaver, Nouryon Chairman and CEO. "We accelerated our pricing actions in the fourth quarter, with pricing up 11% versus the prior year period, to help support the strong adjusted EBITDA growth for the full year.”
In the Performance Formulations segment, revenue grew 21% to more than US$3.4bn, and adjusted EBITDA increased 15% to US$755M. Revenue growth was particularly strong in several end-markets, including agriculture and food, cleaning goods, oil and gas, packaging, pharmaceuticals, and clothing and apparel. Segment adjusted EBITDA margins in Performance Formulations were 21.9%.
Revenue in the Technology Solutions segment increased 8% to nearly US$1.5bn, driven by strong growth in APAC and EMEA, along with a ramp up of production in two new plants in China. Segment adjusted EBITDA decreased by 3% to US$326M, due to higher costs for raw materials and energy. Technology Solutions segment adjusted EBITDA margins were 22.3%.
In 2021, Nouryon earned an EcoVadis Gold rating for its sustainability achievements, having achieved a score that placed it in the top 3% of companies rated by EcoVadis, the world’s largest provider of business sustainability ratings.
Nouryon also completed the spin-out of its base chemicals business, Nobian, into a separate company remaining under the ownership of Nouryon’s equity owners, The Carlyle Group and GIC, in July 2021.
1.Adjusted EBITDA consists of (loss)/profit for the period before finance income and expenses, results from joint ventures, income taxes, depreciation and amortisation, non-operating income or expenses items, the impact of certain non-cash, or other items that are included in profit for the period that we do not consider indicative of our ongoing operating performance.
2. Free cash flow is calculated using Adjusted EBITDA less capital expenditures, in Property, Plant and Equipment and Intangible Assets for continuing operations, for the applicable period and is a measure we utilise to assess our operating performance and to assess the amount by which our operating cash flows exceed our working capital needs and capital expenditures.