SCR-Sibelco (094426466) H2 2024 earnings summary

Executive summary

• Revenue grew 6% year-over-year to €2,225 million, driven by price increases, product mix improvements, and the SMI acquisition, offsetting volume declines from the Russian divestment and weak European construction and PV markets.

• EBITDA rose 14% to €471 million, with margin improving to 21.2% from 19.7% in 2023.

• Net result attributable to the group was €131 million, down from €155 million in 2023, impacted by €70 million in non-recurring charges, including restructuring and acquisition costs.

• Major acquisition of Strategic Materials Inc. (SMI) in June 2024 expanded the glass recycling business, contributing €159 million in revenue and positioning the company as a global leader in glass recycling.

• Achieved a 36% reduction in Scope 1 and 2 CO2 emissions intensity since 2021.

Financial highlights

• Recurring EBIT increased 22% to €321 million; reported EBIT was €251 million (+2%).

• Free operating cash flow was €125 million (down from €441 million in 2023), but adjusted FOCF (excluding prepayments) improved to €239 million, up 41%.

• Net debt at year-end was €643 million, compared to a net cash position of €381 million in 2023, reflecting the share buyback and SMI acquisition.

• Shareholders’ equity decreased to €775 million from €1,303 million, mainly due to the share buyback.

• Gross margin improved to €753.5 million from €691.6 million.

Outlook and guidance

• Market conditions, especially in Europe, are expected to remain challenging in 2025, with continued geopolitical tensions and weak PV market.

• Despite headwinds, management has budgeted for an increase in EBITDA in 2025.

• Dividend of €146 per share proposed, unchanged from 2023, reflecting confidence in future cash flow generation.