(AOF) – Imerys announces that its current operating profit amounts to 365 million euros in 2023, down 16.9% compared to the previous year. In addition, current EBITDA for 2023 amounting to 633 million euros fell by 12.2%. Net profit, group share, amounted to 51 million euros in 2023 compared to 237 million euros in 2022. Over this period, turnover amounted to 3.79 billion euros , down 9% at constant scope and exchange rates compared to the previous financial year.
The group’s sales volumes fell by 11.6%, driven by weakness in its main end markets, particularly residential construction, continued destocking and increased competition in certain regions.
At the general meeting of May 14, 2024, the board of directors will propose the payment of an ordinary cash dividend of 1.35 euros per share (compared to 1.50 euros per share paid in 2023), i.e. a total distribution of 115 million euros.
This amount corresponds to 50% of net current income from continuing activities, group share (compared to 46% the previous year for ordinary cash dividends).
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Key points
– World number 1 in mineral solutions for industry, created more than 100 years ago;
– Turnover of €4.4 billion refocused on 2 businesses – performance minerals (54%) and high temperature minerals (46%) – balanced between Europe-Middle East and Africa for 48%, North America for 29% and Asia-Pacific for 23%;
– Revenues by end markets: construction for 35%, consumption for 23%, industry for 13%, steel for 12%, paper for 10% and automobiles for 7%;
– Business model of maintaining the ranks of world No. 1 (75% of activities) and promoting mineral solutions by relying on 2 assets: control of supplies (2/3 of the turnover achieved “from the mine to market”) and strength of equity;
– Capital controlled jointly by the Desmarais and Frère families (54.56% of the shares and 68.37% of the voting rights) and Blue Crest 5.07% (5.9% of the voting rights), the board of administration of 12 members being chaired by Patrick Kron, Alessandro Dazza being general director;
– Solid balance sheet, with debt rated investment grade, reduced to €1.2 billion at the end of June 2023, or 36% of equity and 1.7 leverage.
Challenges
– 2023-2025 “Connect & Shape” strategic plan:
– annual organic growth of 3-5%, increase to 18-20% of the operating margin, industrial investments of €400 million per year, including 40% in production capacity,
– debt leverage around 1,
– dividend in line with net current profit and possibility of share buybacks;
– Innovation strategy protected by 2,150 patents and 4,000 trademarks;
– based on the “I-Cube” industrial excellence program,
– focused on natural minerals (replacement of fossil materials), circular minerals and synthetic minerals (niche applications, tailor-made solutions),
– reinforced by industrial partnerships;
– “SustainAgility” environmental strategy, with an increase in the 2030 objective of reducing CO2 emissions to 42% for scopes 1 and 2 and to 25% for scope A3 (suppliers) vs. 2021:
– 100% of the biodiversity and rehabilitation program completed in 2021,
– “sustainable solutions” rating for 50% of new products in 2022,
– launch of the first “sustainable” loan;
– Industrial projects in mobility – carbon black in Switzerland and Belgium, specialty talcs in China -, in energy recovery in the Netherlands and in lithium in England;
– Portfolio rotation: disposals to finance investments, acquisitions in minerals useful for the energy transition.
Challenges
– Ambition to be a major player in lithium in Europe via projects in France and Cornwall;
– Adoption of measures against energy inflation -10% of the cost structure- and ability to increase sales prices;
– Ceramic, paper, refractory and abrasive activities affected by customer destocking;
– After a 5.6% decline in revenue but an increase in margin to 16.7% in the first half, 2023 objective of an operating profit between 630 and 650 million.
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Lack of visibility
The National Union of Quarry and Construction Materials Industries (Unicem) indicates that, after an initial decline in the second quarter, activity continues to deteriorate in the third quarter and records a decline as much in aggregates (-1.3 %) than on ready-mixed concrete (-0.9%). Over the first nine months of the year, the decline was 2% for the entire materials activity. Only tiles and bricks manage to show slight increases in activity.
The general outlook is deteriorating and recruitment difficulties and rising costs are the main sources of concern. Furthermore, Unicem highlights the difficulties in implementing the projects. Production of materials could decline this year by 3% for ready-mixed concrete (BPE) and 4% for aggregates.