Imerys (NK) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached €1,919 million, marking three consecutive quarters of sequential growth, with Q2 volumes up 2.7% year-over-year and strong U.S. demand alongside gradual European recovery.

• Adjusted EBITDA for H1 2024 was €384 million, up 11% year-over-year, with a 20% margin (+260 bps), driven by volume recovery, cost savings, and positive price-cost balance.

• Net current free cash flow before strategic CapEx was €120 million; net financial debt stable at €1.2 billion, with a net financial debt/adjusted EBITDA ratio of 1.7x.

• Completed disposal of paper market assets for ~€150 million in July 2024, streamlining the portfolio and eliminating exposure to graphic paper.

• Disclosed a Climate Transition Plan targeting 42% reduction in scope 1 & 2 and 25% in scope 3 GHG emissions by 2030, and renewed a biodiversity partnership.

Financial highlights

• H1 2024 sales reached €1.9 billion, with a 7% sequential increase from Q1 and Q2 revenue of €992 million (+0.7% year-over-year, +2.2% like-for-like), entirely volume-driven.

• Adjusted EBITDA margin improved to 20% in H1 2024, up from 17.4% in H1 2023, supported by €70 million in cost savings and joint venture contributions.

• Current operating income for H1 2024 was €253 million (13.3% of sales); current net income from continuing operations was €173 million, up 25% year-over-year.

• Net income, Group share, was €142 million, slightly down year-over-year due to lower discontinued operations.

• Net current free operating cash flow was €88 million, with €1.1 billion in cash and €960 million in credit lines as of June 30, 2024.

Outlook and guidance

• Expects continued positive business momentum in H2 2024, targeting full-year adjusted EBITDA of €670–690 million, compared to €668 million in 2023, despite the absence of paper business contributions.

• Guidance assumes stable macroeconomic conditions and a significantly lower contribution from joint ventures in H2.

• Anticipates ongoing recovery in traditional businesses and further improvement in graphite and carbon, while remaining prudent on high purity quartz due to inventory overhang.