Tessenderlo Group (TESB) H2 2024 earnings summary

Executive summary

• 2024 was marked by a 9.6% revenue decline to €2,647.7 million and a 61.5% drop in profit to €44.0 million, with leadership changes including a new CFO and CTO.

• Major investments included €35 million in chlorination/ferric chloride plants and the launch of a new weaving machine in China.

• Strategic acquisitions, notably Tiger-Sul, expanded the North American footprint and diversified into dry sulfur-based fertilizers.

• Significant restructuring and plant closures occurred in the gelatin/Bio-valorization segment, with €40.5 million in restructuring costs.

• Share repurchase and cancellation programs were executed, with further buybacks planned.

Financial highlights

• Revenue declined by 9.6% to €2,647.7 million; adjusted EBITDA fell 16.7% to €265.6 million; adjusted EBIT dropped 46.8% to €63.8 million.

• Net profit for the year was €44.0 million; basic EPS decreased to €0.70.

• Operating cash flow rose 52% to €333.2 million; net financial debt position improved to -€5.0 million.

• Capital expenditures totaled €180.6 million, split between growth and maintenance.

• Board proposes a gross dividend of €0.75 per share for 2024.

Outlook and guidance

• 2025 adjusted EBITDA is expected between 2023 (€318.7 million) and 2024 (€265.6 million) levels.

• High economic and geopolitical uncertainty anticipated to persist in 2025.

• Effective tax rate guidance is 25%-26%.

• CapEx for 2025 guided at €150 million, with major projects nearing completion.