(Update: details on Imerys’ strategic plan, share price)
PARIS (Agefi-Dow Jones)–The industrial minerals producer Imerys announced on Monday its strategic plan for the years 2023 to 2025, which should enable it to achieve in particular a current gross operating surplus (Ebitda) margin including between 18% and 20% within three years.
In a press release, Imerys indicated that it was entering “a new phase in its development” with the ambition of achieving organic growth in its turnover of between 3% and 5% per year on average between 2023 and 2025, “thanks strategic investments in high growth markets”. These markets are, according to the industrialist, “aligned with three major trends: green mobility and energy, sustainable construction and natural solutions for consumer goods”.
Thanks to an improved growth profile, Imerys expects to increase its current EBITDA margin to a range of 18% to 20% by 2025, while it should stand at 16.5% this year. “The increase in the contribution of strategic investments, and the continuous improvement of costs and operational efficiency, through purchasing and industrial operations optimization programs”, will help the group to reach this new target.
Investments of 400 million euros per year
Between 2023 and 2025, Imerys also intends to invest around 400 million euros per year, based on robust cash generation and the expected proceeds from ongoing asset disposals. About 40% of this envelope will be devoted to the construction of new production capacities in high-growth markets, such as lithium.
At the end of October, Imerys announced its desire to become a major lithium player in Europe with the Emili project at its French site in Beauvoir, in the Allier region. “Assuming the project is completed on time, Imerys is targeting production of 34,000 tonnes of lithium hydroxide per year from 2028,” the group said on Monday.
In parallel with these investments, Imerys intends to maintain “an attractive return for its shareholders”. The company plans to increase its dividend at the same rate as its net earnings per share over the next three years and to carry out share buybacks in the event of a context deemed “opportune”.
Shortly after the opening of the Paris Stock Exchange, the Imerys share yielded 0.3%, to 40.12 euros.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: VLV
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November 07, 2022 03:09 ET (08:09 GMT)