KME Group (KME) H2 2023 earnings summary

Executive summary

• First full year of industrial-participation consolidation: revenue €1,880.5m, EBITDA €134.5m and net industrial profit €32.6m; consolidated net loss €46.5m.

• Net loss included non-recurring expenses and €46m of IFRS inventory and forward-contract valuation impacts.

Financial highlights

• Consolidated sales and services revenue €1,880.5m vs. €1,464.7m in 2022; operating profit €32.8m vs. €0.1m.

• Consolidated net loss €46.5m vs. net profit €35.5m in 2022; net financial expense was €71.0m vs. net financial income of €15.6m.

• Parent-company net loss €14.5m vs. net profit €5.2m in 2022; results are not directly comparable following the change in investment accounting strategy.

Outlook and guidance

• Outlook tied to demand in KME SE reference sectors and broader macroeconomic trends; 2023 market trends did not undermine assumptions behind the New Strategy.

• Potential disposals of other participations or non-core copper activities could reduce debt.

• Expected mid-2024 closing of the SMW acquisition and Q2 2024 completion of the cunova business combination, subject to conditions and approvals.