Imerys (NK) H2 2023 earnings summary

Executive summary

• FY2023 revenue was €3,794m, down 9.0% like-for-like; current EBITDA was €633m, within €630m–€650m guidance, with a 16.7% margin.

• Net current free operating cash flow rose to €191m from €20m; net financial debt fell €548m, or 33%, to €1,118m.

• Current net income from continuing operations was €242m; reported net income was €51m, including €44m from discontinued activities.

Financial highlights

• Revenue was €3,794m versus €4,282m in 2022; reported change was -11.4%, with a negative €83m currency effect and negative €31m scope effect.

• Volumes reduced revenue by €483m; price-mix contributed €109m, or 2.6%, while Q4 pricing was -4.4% against a high comparison and after energy and freight surcharges ended.

• Current EBITDA was €633m versus €720m; margin was 16.7% versus 16.8%. Cost-saving actions delivered €126m, more than offsetting 2.8% inflation.

• Current operating income was €365m versus €439m; current net income from continuing operations was €242m, down 12.8%, and current EPS was €2.86 versus €3.28.

• Net current free operating cash flow was €191m after capex and right-of-use assets; before strategic capex it was €288m versus €105m in 2022.

Outlook and guidance

• FY2023 current EBITDA of €633m met July guidance of €630m–€650m.

• After unprecedented 2023 destocking, markets stabilized; construction, especially residential, and automotive were expected to remain weak, while consumer, life sciences, energy and electronics were expected to progress.

• Priorities included strict cost discipline and growth through new capacity, innovation, mobile and sustainable energy exposure, and continued GHG reduction.