Sustainability transformation driving profitable growth – aim to double the revenue in water. In addition, by the end of 2030 over 500 million of our revenue is targeted to come from the renewable solutions portfolio.
Kemira has a resilient business model that is supported by a well-diversified customer base. Majority of contracts with fixed annual pricing.
Contract types and pricing terms*
Pulp & Paper
Length – Around 95% of contracts are 1-year or longer / only 5% are spot deals
Pricing – Around 65% fixed / 35% formula or spot pricing
Industry & Water
Length – Around 70% of contracts are 1-yr or longer / 30% spot deals
Pricing – Around 70% fixed (particularly in municipal) / 30% formula or spot pricing.
*contract length does not necessarily correlate with fixed pricing. Kemira has a number of multi-year contracts that are based on formula pricing.
Customer concentration
Kemira has around 5,000 customers with the largest single customer accounting for around 5% of revenue. The 50 largest customers account for around 50% of revenue.
In recent years, one of Kemira’s key strategic focus areas has been to improve profitability. Proactive action have been taken on three fronts: improving customer profitability (e.g. customer-level reporting and pricing actions), efficiency of operations (e.g. investments in backward integration and cost savings actions) and simplification of product portfolio and product mix. As a result, Kemira’s margins have improved clearly.
Kemira updated its financial targets in September 2024. The new long-term financial targets are: an average annual organic growth of over 4%, operative EBITDA margin of 18–21% and operative ROCE over 16%.
After several years of focusing on profitability improvement, Kemira is placing stronger emphasis on profitable growth. The ambition is to double the revenue in water. In addition, by the end of 2030 over 500 million of our revenue is targeted to come from renewable solutions portfolio.
Learn more about Kemira’s strategy: Capital Markets Day 2024