Metlen Energy & Metals (MYTIL) Q4 2024 earnings summary

Executive summary

• Achieved record-high EBITDA of €1,080 million, up 7% year-over-year, with turnover of €5,683 million, a 3% increase, and net profit at €615 million, slightly down 1% year-over-year; EPS at €4.46.

• Maintained robust profitability margins and strong liquidity, with net debt/EBITDA at 1.7x, supporting ongoing investment and M&A plans.

• Proposed a dividend of €1.5 per share for 2024, marking the 8th consecutive annual dividend, with potential upward adjustment for treasury shares.

• Completed second major transformation, expanded internationally, rebranded, and secured major agreements and acquisitions in Energy and Metals.

• Launched flagship investments in bauxite, alumina, and gallium, aiming to double business size by 2028.

Financial highlights

• Revenue reached €5,683 million, up 3% year-over-year, despite a 25% drop in electricity and 16% drop in natural gas prices.

• EBITDA margin improved to 19.0%, net profit margin at 10.8%, and net profit to EBITDA margin above 55%.

• Financial expenses rose 59% year-over-year to €170 million, mainly due to a €1.1 billion increase in debt to fund renewables expansion.

• CapEx for 2024 was €800 million, down from over €1 billion in 2023, with 90% dedicated to growth, mainly renewables.

• Liquidity at €3.5 billion, up 37% year-over-year; raised €750 million through a 5-year, 4% Green Bond.

Outlook and guidance

• Management targets doubling business size by 2028, leveraging new investments, digital transformation, and international expansion.

• Digital transformation plan expected to add ~10% to EBITDA over five years, with €80 million investment in 2024-2025.

• EBITDA guidance for 2028 is over €2 billion, excluding M&A.

• CapEx for 2025 projected to be below 2024 levels; net leverage expected to improve further, targeting ratios below 2.

• Considering a potential international listing, including LSE, within 12-18 months, while retaining Athens Exchange listing; Capital Markets Day in April will provide updates.