Victrex (VCT) Q3 2024 TU earnings summary

Executive summary

• Achieved 20% year-over-year volume growth and 2% revenue growth in Q3 2024, marking the first period of such growth since Q4 2022.

• Sustainable Solutions segments, especially VAR and electronics, saw strong double-digit volume growth, while Medical remained weak due to ongoing customer destocking.

• Year-to-date group revenue: £213.3m (down 9% year-over-year); year-to-date group volume: 2,716 tons (down 2%).

Financial highlights

• Q3 group volume: 979 tons (up 20% vs. Q3 2023); Q3 group revenue: £74m (up 2% vs. Q3 2023).

• Q3 average selling price: £76/kg, reflecting sales mix and improved VAR, offset by Medical softness and adverse currency effects.

• Q3 group revenue down 5% sequentially from Q2 2024, reflecting weaker Medical and higher VAR mix.

• Free cash flow improved to over £20m in Q3; net debt at 30 June 2024 was £39.6m, £10m lower than at H1 end; cash position at quarter end was £22.7m.

• Year-to-date group revenue: £213.3m (down 9% year-over-year); year-to-date group volume: 2,716 tons (down 2%).

Outlook and guidance

• Full-year volume growth guidance unchanged at low to mid-single digits.

• Medical segment expected to remain soft for the rest of the year; improvement in VAR, electronics, and energy anticipated.

• FY 2025 outlook more encouraging, with focus on profit growth and continued diversification.

• Capital expenditure for FY 2024 expected around £35m, with further reduction in inventory targeted.

• H2 profit before tax growth depends on improvement in Medical; current Medical performance is below expectations.