Aurubis (NDA) Q3 23/24 earnings summary

Executive summary

• Operating EBT for the first nine months reached €333 million, up 30% year-over-year, driven by higher treatment and refining charges, improved metal results, copper premiums, strong wire rod demand, and lower energy costs, despite increased costs from strategic investments and criminal activities.

• Net cash flow remained positive at €52 million, down from €73 million last year, due to higher inventory payments and the Hamburg shutdown.

• Major strategic investments totaling €1.7 billion are underway, including €250 million for Hamburg's maintenance and modernization, a new precious metals refinery, and the Aurubis Richmond plant in the US.

• The largest and most complex maintenance shutdown in Hamburg's history was completed, modernizing primary smelters and installing hydrogen-ready anode furnaces.

• Prior-year figures were restated due to the financial impact of criminal activities.

Financial highlights

• Revenues for the first nine months were €12,939 million, flat year-over-year; gross profit increased 18% to €1,282 million; EBITDA rose 21% to €475 million.

• EBIT grew 32% to €328 million; EBT up 30% to €333 million; consolidated net income up 31% to €267 million.

• Group costs increased by 6% to €1,479 million, mainly due to higher personnel and legal costs, and startup costs for strategic projects.

• Capital expenditure surged 49% to €556 million, reflecting growth projects across the group.

• Net cash flow for 9M was €52 million, down from €73 million last year due to higher inventory payments.

Outlook and guidance

• Full-year operating EBT guidance confirmed at €380–480 million, with expectations to reach the upper end; operating ROCE expected between 10% and 14%.

• Multimetal Recycling segment EBT guidance: €60–120 million; Custom Smelting & Products segment: €410–470 million.

• Operating free cash flow guidance confirmed at €500–600 million.

• Stable demand anticipated for copper cathodes and wire rod; sulfuric acid revenues expected slightly below previous year.

• Energy costs projected to be slightly lower, with significant US dollar exposure hedged.