SCR-Sibelco (094426466) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results despite challenging European markets, with growth in North America, Asia, and South America offsetting European declines.

• Revenue rose 2% year-over-year to EUR 1,078 million, EBITDA up 26.5% to EUR 277 million, and net result up 36.7% to EUR 147 million.

• Completed acquisition of Strategic Minerals Inc., making the company a leading global player in glass recycling.

• Continued progress on USD 200 million HPQ capacity expansion in Spruce Pine, USA.

• Issued a benchmark EUR 500 million six-year Eurobond and executed a significant share buyback.

Financial highlights

• Revenue increased 2% year-over-year to EUR 1,078 million.

• EBITDA rose 26.5% to EUR 277 million; EBIT up 33.5% to EUR 198 million.

• Net result (Group share) up 36.7% to EUR 147 million.

• Free operating cash flow turned negative at EUR -8 million, mainly due to high CAPEX and HPQ expansion.

• ROCE increased to 14.4% from 9.2% year-over-year.

Outlook and guidance

• H2 2024 expected to mirror H1 trends, with no significant improvement in European markets.

• HPQ growth to slow as PV segment overcapacity is absorbed.

• 2024 EBITDA now anticipated below previous EUR 630 million guidance but substantially above 2023's EUR 414 million.