SigmaRoc (SRC) H1 2024 earnings summary

Executive summary

• Completed major CRH lime and minerals acquisitions in Germany, Czechia, Ireland, UK, and Poland, creating a leading European footprint with 2.7 billion tonnes of high-purity limestone reserves.

• Integration of new businesses ahead of schedule, with synergy program target raised to €35M–€60M by 2027.

• Strong operational performance, with results ahead of internal budgets and in line with consensus.

• CFO succession announced, with Jan Holbeek or Jan Van Beek to take over at year-end or in 2025.

• Portfolio rationalisation and disposal of non-core assets under consideration.

Financial highlights

• Revenue up 60% year-over-year to £469M, driven mainly by acquisitions.

• EBITDA up 82% year-over-year to £100M, with margin rising 240bps to 21.3%.

• Pro forma revenue €532M and EBITDA €118M for H1, reflecting full integration.

• Underlying EPS on a pro forma basis up 6%, but statutory EPS down 20% year-over-year due to acquisition costs.

• Free cash flow conversion at 43%, with net debt at £533M and leverage at 2.57x, on track to reach 1.5x medium term.

Outlook and guidance

• Full-year outlook unchanged, with positive trading in early H2 and FY24 guidance in line with consensus.

• Industrial demand in steel expected to slow modestly, while paper, pulp, board, chemistry, mining, agriculture, and food remain robust.

• Environmental and agriculture demand solid; infrastructure construction strong, residential weak but expected to recover with lower interest rates.

• Targeting mid-20s EBITDA margin (24–25%) post-synergies and ROIC of 15% by 2027.

• Board's expectations for FY24 remain unchanged.