Synthomer expects NBR latex premium to normalise to pre-crisis levels this year

London – The ‘exceptional performance’ of its nitrile butadiene rubber latex (NBR latex) segment has helped Synthomer plc double its earnings in 2021, but the UK chemicals group expects the momentum to ease this year. 

In a trading update 14 Feb, the group said it saw strong trading across all divisions during 2021 with full year earnings (EBITDA) expected to be double the prior year at £518.4 million (€620 million).
 
While the 2021 performance benefitted from peak margins within the NBL business, Synthomer noted that margins have “normalised to pre-pandemic levels’, since the beginning of 2022. 

Accordingly, the group does not expect any NBR pandemic premium in 2022.
 
In addition, Synthomer said year-to-date NBR demand had continued to be subdued due to high inventory levels of medical gloves and reduced demand due to the easing of the Covid19 pandemic. 

“Trading conditions in NBR are expected to normalise by the end of first half with market growth returning to 2019 levels in the second half,” it added.
 
All other divisions have had an encouraging start to the year, said Synthomer, adding that the group remained on track to complete the acquisition of Eastman's Adhesives Resins business in the first quarter. 

Synthomer also signalled further M&A activities, stating that it would continue to look for further bolt-on acquisition opportunities geared towards attractive end-markets.

The UK group will publish its full year results on 3 March.