Imerys falls after Q3 volume decline, demand slowdown

Imerys SA

02/11/2022 09:03

** Shares in Imerys  IMTP.PA  fall around 5% after the
French minerals group posted Q3 results showing a slowdown in
demand
    ** Q3 current EBITDA was up 15% and revenue up 20.8%,
volumes however declined 8.7%
    ** Downwards trends in demand are likely to persist, CEO
Alessandro Dazza said in the earnings release
    ** "The market is reacting negatively probably because
Imerys sees a softening demand which is likely to be
persistent," AlphaValue analyst Sejal Varshney says 
    ** Imerys confirmed its EBITDA guidance of between 810
million euros and 840 million euros (before IFRS 5), compared to
a consensus of 820 million euros, according to ODDO BHF
    ** The brokerage expects a downgrade to consensus for 2023
due to a sharper slowdown in Q3 than expected
    ** ODDO BHF analyst Sven Edelfelt points out the published
results exclude Imerys' subsidiary Calderys, as the company is
selling its high temperature solutions business
    ** "At first glance, the market could be surprised by the
deconsolidation of Calderys, making the release difficult to
read and a decline in volumes more marked," Edelfelt writes
    ** Imerys shares jumped 5% on Oct. 24 after the company
launched a project to mine lithium in France
    ** Up to Tuesday's close, shares were up 14.6%​ YTD
 (Reporting by Valentine Baldassari)
 ((Valentine.baldassari@tr.com))