Derichebourg (DBG) BNP 21st annual High Yield & Leveraged Finance Presentation summary

Key financial highlights

• FY24 revenue reached €3.6bn, with EBITDA of €330m (9.2% margin) and net income of €76.7m.

• Public Sector Services achieved record results, with revenue up 5.1% and EBITDA margin at 20.6%.

• Net financial debt decreased to €714m, leverage ratio at 2.16, and interest coverage at 8.12x.

• Board proposes €0.13 dividend per share, representing a 2.8% yield and 28% payout ratio.

• Strong liquidity with undrawn RCF and prudent financial policy; all covenants met.

Business performance and operational highlights

• H1 was impacted by a cyberattack, but H2 delivered the best six-month period in two years.

• Recycling revenue remained nearly stable despite a 5.7% drop in ferrous scrap volumes and challenging market conditions.

• Niche businesses, including new sorting lines, contributed additional profitability and resilience.

• Significant CAPEX in specialized sorting lines and technology upgrades to support growth.

• Public Sector Services growth driven by new contracts in La Réunion and Canada, and Olympic-related demand in Paris.

Market environment and strategic positioning

• European steel market faced headwinds from economic slowdown, high interest rates, and Chinese overcapacity.

• Non-ferrous metal prices surged in spring 2024, offsetting some weakness in ferrous markets.

• Group holds leading positions in Europe, especially in France and Spain, with a dense network and strong asset base.

• Niche businesses in recycling offer higher margins and lower volatility than mainstream scrap operations.

• Transition to green and circular economies is expanding market opportunities for metals recycling.