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Jun 30, 2021

Avient Q2 2021 Earnings Report

Achieved record second quarter sales and adjusted EPS, driven by sustainable solutions portfolio and strong demand conditions.

Key Takeaways

Avient Corporation reported record second-quarter results for 2021, with sales increasing by 42% to $1.235 billion and adjusted EPS increasing by 107% to $0.87. The company raised its full-year adjusted EPS guidance from $2.80 to $3.00, representing a 55% growth over the prior year. Robust demand across all end markets, particularly in consumer applications, and synergy capture from the Clariant Masterbatch integration contributed to the strong performance.

GAAP EPS from continuing operations increased to $0.74 from $0.25 in the prior year quarter.

Sales increased 42% to $1.235 billion and adjusted EPS increased 107% to $0.87 driven by very strong demand conditions in nearly all end markets.

Full year adjusted EPS guidance for 2021 increased from $2.80 to $3.00, representing 55% growth over the prior year adjusted EPS of $1.93.

Acquired Magna Colours Ltd., a market leader in sustainable, water-based inks technology for the textile screen printing industry.

Total Revenue
$1.24B
Previous year: $609M
+102.8%
EPS
$0.87
Previous year: $0.28
+210.7%
Adjusted Gross margin
23.37%
Previous year: 24.6%
-5.0%
Adjusted Operating income
8.75%
Previous year: 6.2%
+41.1%
Gross Profit
$289M
Previous year: $150M
+92.9%
Cash and Equivalents
$616M
Previous year: $1.98B
-68.8%
Free Cash Flow
$38.9M
Previous year: $78.6M
-50.5%
Total Assets
$5.05B
Previous year: $4.34B
+16.4%

Avient

Avient

Avient Revenue by Segment

Forward Guidance

The company expects seasonality of the business to play out in the third quarter and estimates sales of $1.15 billion and adjusted EPS of $0.68. For the full year 2021, the company expects revenues of approximately $4.6 to $4.7 billion and adjusted EPS of $3.00.

Positive Outlook

  • Demand continues to be strong
  • Confident in team’s ability to continue navigating the supply chain dynamics
  • Ensure we deliver for our customers
  • Expect sales of $1.15 billion in Q3
  • Expect adjusted EPS of $0.68 in Q3

Challenges Ahead

  • Seasonality of the business to play out in the third quarter
  • Ongoing COVID-19 pandemic
  • Significant supply chain disruptions
  • Inflation
  • Challenging conditions

Revenue & Expenses

Visualization of income flow from segment revenue to net income