Befesa FY Adjusted EBITDA drop 15% but 'strong growth' awaited in 2024
29/02/2024 06:30
Feb 29 (Reuters) - Luxembourg-based metal recycling
company Befesa BFSA.DE reported on Thursday a double-digit
fall in adjusted core profit (EBITDA) for 2023 due to the
persistence of temporary pressure on some metal prices, but it
expects "strong growth" in 2024.
The group's annual adjusted EBITDA dropped 15% year-on-year
to 182 million euros ($197.14 million), in line with guidance of
around 180 million, mainly driven "by lower zinc prices, the
unfavourable increase in zinc treatment charges (TC) and higher
coke prices", Befesa said.
Net profit in 2023 was also down 45% compared with 2022 to
58 million euros, while revenue grew 4% to 1.18 billion euros
thanks to a positive contribution from US zinc refining
operation.
"2023 has been a perfect storm for Befesa, as we faced a
confluence of adverse external factors ... . Despite these
challenges, our solid EBITDA levels and cashflow demonstrated
the resilience of our business model", said Befesa Executive
Chair Javier Molina.
The company will propose a dividend of 0.73 euro per share,
down from 1.25 euro the previous year, but in line with its
distribution dividend policy of 40%-50% of earnings.
However, Befesa sees strong growth for 2024 as "many of the
headwinds ... faced in 2023 should subside in 2024 due to the
temporary nature of the external pressures", it said.
It added it forecasts for 2024 a more positive combination
of zinc treatment charges and prices, a normalisation in coke
price and an improved zinc hedging price strategy.
In 2023, zinc price averaged 2,450 euro per tonne, down by
26% from 2022, while zinc TC was up 19% over the same period as
its price was set at $274 per tonne, the company said.
Befesa said it will release net profit guidance for the
current year once the 2024 benchmark TC for the zinc will be
settled in, coupling it with its Q1 results on April 25.
($1 = 0.9232 euros)
(Reporting by Alberto Chiumento; Editing by Chizu Nomiyama)
((Alberto.chiumento@thomsonreuters.com))