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Imerys (IMYSF) Full Year 2024 Earnings Call Highlights: Strong EBITDA Growth and Strategic ...

In This Article:

  • Revenue: EUR3.6 billion for 2024, with a 1% organic growth.

  • Q4 Organic Growth: 3.5% increase, marking the third consecutive quarter of improvement.

  • Adjusted EBITDA: EUR675 million for the full year, an 11.4% increase like-for-like.

  • Adjusted EBITDA Margin: 18.7%, up 110 basis points from the previous year.

  • Free Operating Cash Flow: EUR209 million before strategic CapEx, EUR136 million reported.

  • Ordinary Cash Dividend: Proposed EUR1.45 per share, a 7.4% increase from last year.

  • Cost Savings: EUR111 million of gross savings, representing approximately 3% of total costs.

  • Performance Minerals Revenue: EUR2.2 billion, with 2.4% organic growth.

  • Solutions for Refractory, Abrasive, and Construction Revenue: EUR1.2 billion, stable compared to 2023.

  • Graphite & Carbon Revenue: 3.5% decrease for 2024, with a Q4 sales increase of 16% year-over-year.

  • Net Income: EUR196 million for the full year, a 22% increase compared to the prior year.

  • Net Debt: Represents 1.9x adjusted EBITDA.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Imerys (IMYSF) achieved a solid performance in 2024 with a 1% organic growth in revenues, reaching EUR3.6 billion.

  • The company posted an adjusted EBITDA of EUR675 million, marking an 11.4% increase over the prior year like-for-like.

  • Imerys generated a free operating cash flow of EUR209 million before strategic CapEx, indicating strong cash generation capabilities.

  • The company continues to offer attractive shareholder remuneration, proposing a 7.4% increase in ordinary cash dividends.

  • Imerys has made strategic acquisitions, such as the European diatomite and perlite business, enhancing its product portfolio in filtration and life sciences.

Negative Points

  • The automotive market remains a significant concern, with weakness expected to continue, particularly in Europe.

  • The energy sector is weak in Europe and the US, impacting Imerys' performance in these regions.

  • The iron and steel market is under pressure, with recovery delayed until the second half of 2025.

  • Imerys faces challenges in the photovoltaic market due to high inventory levels, particularly in China.

  • There is uncertainty regarding the lithium project's competitiveness without subsidies, given the low-cost brine production in Latin America.

Q & A Highlights

Q: Can you provide more details on the guidance for EBITDA growth in 2025? A: Alessandro Dazza, CEO, stated that while they do not provide early-year guidance due to uncertainties, they expect growth to continue based on strong markets, new products, and capacities. He noted that pricing improved in Q4 2024, suggesting a positive trend for 2025.