In This Article:
-
Revenue: DKK5 billion for the quarter.
-
Adjusted EBITA Margin: 12.6%.
-
Reported EBITA Margin: 11.4%.
-
Net Profit: DKK289 million.
-
Gross Margin: Strong quarter, driven by mining (31%-33%) and cement.
-
SG&A Costs: Decreasing due to restructuring and simplification efforts.
-
Free Cash Flow: DKK129 million for the quarter.
-
Net Working Capital: 10.6% of revenue, driven by work in progress.
-
Debt Leverage: 0.6x, below capital structure target.
-
Mining Segment Revenue Guidance: Unchanged at DKK15.5 billion.
-
Mining Segment Adjusted EBITA Margin Guidance: Adjusted to around 13%.
-
Cement Segment Revenue Guidance: DKK4 billion to DKK4.5 billion.
-
Cement Segment Adjusted EBITA Margin Guidance: Adjusted to around 9%.
-
Non-Core Activity Segment Loss: Expected to be around DKK200 million to DKK250 million.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
FLSmidth & Co AS (FLIDY) signed one of its largest agreements, supplying 80% of the MOF flowsheet in Uzbekistan, indicating strong market presence and potential growth in the region.
-
The company successfully implemented a new ERP system in its Tucson facility, enhancing operational efficiency and contributing to revenue growth.
-
There has been a significant improvement in profitability, with reported EBITA increasing from 8.2% to 12.4%, indicating effective cost management and operational improvements.
-
The company is ahead of its transformation plan, particularly in closing the non-core activity (NCA) segment, which is expected to be completed by the end of 2024.
-
FLSmidth & Co AS (FLIDY) is progressing well in its sustainability targets and continues to focus on safety improvements across its operations.
Negative Points
-
The capital market remains slow, with subdued activity expected until the end of 2025, impacting potential growth in capital order intake.
-
The service business in the cement sector experienced a low quarter, with expectations for improvement in the fourth quarter, indicating volatility in this segment.
-
There is uncertainty in the timing of CapEx investments, with significant activity not expected until late 2025 or early 2026, which could delay revenue growth.
-
The company is facing challenges with provisioning levels, particularly in the mining segment, which could impact financial stability.
-
FLSmidth & Co AS (FLIDY) is still working on reducing SG&A costs, which remain high relative to current volumes, indicating ongoing cost management challenges.