Mincon Group (MCON) H2 2023 earnings summary

Executive summary

• FY2023 was challenging: revenue fell 8% to €156.9m and EBITDA declined 23% to €21.1m, with mining contraction and lower manufacturing volumes weighing on results.

• Balance-sheet progress included a €6.4m reduction in net debt and a 9% decrease in inventory; the H2 market slowdown continued into H1 2024, though the order book began to improve.

Financial highlights

• Revenue was €156.931m versus €170.008m in 2022; foreign-exchange headwinds accounted for 5% of the contraction.

• Gross profit was €45.523m, down 16%; operating profit was €12.290m, down 38%; EBITDA was €21.074m, down 23%.

• Profit for the period fell 49% to €7.470m; basic EPS was €3.52 cents versus €6.92 cents, and diluted EPS was €3.50 cents versus €6.85 cents.

• Net cash from operating activities rose to €22.491m from €8.064m; cash at year-end increased to €20.482m from €15.939m.

Outlook and guidance

• Subdued market conditions continued into H1 2024, but order-book improvement had begun; improving input costs and market conditions underpin greater confidence in H2 performance.

• A root-and-branch business review is ongoing into H1 2024, with actions intended to improve stability and competitiveness.

• R&D expenditure is expected to decrease in 2024; capital equipment spending is expected to be below depreciation after near-term investment peaked in 2023.

• Further Americas investment was planned for Q1 2024; revenue rebuilding efforts are focused on APAC and Africa.