Elementis (ELM.L): Key take-aways from the Innovation Day in Porto

Yesterday, Elementis hosted an Innovation Day at its new office and laboratories in Porto, Portugal. The focus of the event was on emphasising the role of innovation – which Elementis expects to contribute around one-third of its targeted MSD% sales growth through the cycle – and showcasing the company's renewed approach to advancing innovation. While no new targets were provided at the event, with the company's current medium-term ambitions for MSD% growth and 23%+ EBIT margins reiterated, we view the event as supportive in illustrating that the key pillars are in place for the company to consistently achieve these targets through the cycle. The key pillars include: using the company's winning differentiators (hectorite, rheology and formulation solutions) as a foundation for innovation; capitalising on success in existing end markets (Personal Care and Coatings) while expanding into adjacent applications to grow the total addressable market; and focusing on delivering real customer i