(AOF) – In the third quarter of 2023, Imerys’ current EBITDA fell by 22.2% to reach 150 million euros. Over this period, its net profit, group share, amounted to 38 million euros. The turnover of the producer of industrial minerals amounted to 918 million euros, a decrease, compared to the same period last year, of 14.2% at constant scope and exchange rates.
Imerys maintains a current EBITDA margin close to 17% over the first nine months of 2023, supported by the fall in variable costs, in particular energy and freight, fixed costs also falling despite inflation, and the dividend contribution of joint ventures and associated companies.
Net profit, group share at the end of September 2023 reached 184 million euros, down 4.9% compared to the same period last year.
Imerys’ turnover for the first nine months of 2023 amounted to 2.9 billion euros, a decrease of 8.5% compared to the same period of last year at scope and rate. constant exchange rates.
Over 9 months, the Group’s sales volumes fell by 13.3%, due to the weakness of its main end markets, the continued destocking of its customers due to a lack of visibility on the economic recovery, and increased competition in certain geographic areas.
In terms of prospects, Imerys plans to be at the bottom of the range of its EBITDA forecast for 2023 of between 630 and 650 million euros, as the company announced on July 27.
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Key points
– World number 1 in mineral specialties for industry, more than a century old;
– 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 to maintain the ranks of world No. 1 (75% of activities) and to promote mineral solutions based on 2 key assets: control of supplies (2/3 of the turnover generated from the mine to the market”) and strength of equity;
– Capital controlled jointly by the Desmarais and Frère families (54.56% of the shares and 67.53% of the voting rights) and Blue Crest 5.07% (6.05% 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 reduced to €1.5 billion, or 44% of equity and leverage of 1.9.
Challenges
– Towards a new 2023-2025 strategic plan presented on 4
th
quarter ;
– Innovation strategy protected by 2,150 patents and 4,000 brands, 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) / dynamic with the launches of 80 mineral solutions in 2021;
– “SustainAgility” environmental strategy structured around controlling impacts, biodiversity & rehabilitation of sites and climate change, and characterized by regularly exceeding objectives: 100% of the biodiversity and rehabilitation program completed in 2021, “sustainable solutions” rating “ for 50% of new products in 2022, 2030 objective of a 36% reduction in CO 2 emissions by 36% vs. 2018;
– Launch of 1
er
“sustainable” loan;
– Industrial projects in mobility – carbon black in Switzerland, specialty talcs in China – and in energy recovery in the Netherlands;
– As part of the strategy of refocusing on specialty mineral solutions and expansion in the markets of green mobility, sustainable construction and natural solutions for consumer goods, sale of the High Temperature Solutions activity , for €930 million.
Challenges
– Adoption of measures against energy inflation -10% of the cost structure- and ability to compensate for it by the increase in sales prices, of 16.1% on 1
er
semester ;
– After an increase of 18.7% in turnover and 19.7% in current net profit on 1
er
half-year, anticipation of a slowdown in growth in 2
n/a
half-year but an improvement in operating profit between €810 and €840 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.