Nouryon reported further growth in profitability in its full-year 2019 financial results, despite challenging conditions in several end markets.
Adjusted EBITDA increased by 5%, driven by margin management and cost initiatives.
Revenues were slightly up, as a small decline in volumes was more than offset by price and product portfolio mix benefits.
“This is another solid set of results,” said Nouryon Chairman and CEO Charlie Shaver.
“Our commercial excellence and operational improvement initiatives along with our cost discipline have shown that we can deliver improvements in profitability even when market conditions are challenging.”
The company’s improved adjusted EBITDA performance and strong cash position have helped its deleveraging efforts, including an early voluntary debt repayment of US$110M (equivalent to approximately €100M) in the fourth quarter.
It also recently completed a successful repricing of its Euro and US Dollar term loans, reducing annual interest payments by approximately €18.5M.
Shaver added that the company continues to invest in capacity expansions and bolt-on acquisitions to support the growth of its customers.
Key growth investments in 2019 included organic peroxide expansions in China, Mexico and the US, and expansions of colloidal silica and expandable microspheres in Sweden.
Nouryon also completed the acquisition of a leading producer of metal alkyls in China in 2019.
The company recently announced two further proposed moves to optimise its portfolio; the acquisition of the carboxymethyl cellulose business of J.M. Huber Corporation and the divestment of its redispersible polymer powders business to Celanese.