Half Year 2024 Befesa SA Earnings Call Transcript
Key Points
- Befesa SA (WBO:BFSA) reported a 9% year-on-year increase in adjusted EBITDA for the first half of 2024, reaching EUR103 million.
- The company successfully extended the maturity of its debt to July 2029, reducing refinancing risks.
- Befesa SA (WBO:BFSA) completed the acquisition of the remaining 50% of Recytech, enhancing its leadership position in Europe.
- The company has extended its zinc hedging program until the first quarter of 2026 at record price levels, providing earnings visibility.
- Operational improvements in the US recycling operations have contributed positively to EBITDA.
- The aluminum salt slag business experienced a 19% year-on-year decrease in EBITDA due to lower aluminum metal margins.
- The company's operations in China remain challenging due to a weak real estate market, affecting plant utilization rates.
- Despite improvements, the zinc refining plant in the US is still in turnaround and ramp-up, with breakeven expected by year-end.
- Befesa SA (WBO:BFSA) faces ongoing pressure from lower zinc LME prices, impacting overall profitability.
- The company anticipates continued volatility in zinc prices, which could affect future earnings.
Good morning and welcome to the first half 2024 results conference call of Befesa. I am Rafael Perez, CFO of Befesa. Today, we have with us Javier Molina, Executive Chair of Befesa; and Asier Zarraonandia, CEO of the company.
Javier Molina will start with an executive summary of the first half of the year. After that, Asier will explain the business highlights of the period covering steel dust and aluminum salt slag recycling. I will then review the financials with a focus on commodity prices, cash flow, net debt and our hedging program. Asier will close the presentation providing an update on the outlook for the rest of 2024 as well as our growth plan.
Finally, we will open the line for the Q&A session. Before getting started, let me remind you that this conference call is being webcast live. You can find the link to the webcast on the first-half 2024 results presentation on our website www.befesa.com.
Now let me turn the call over to our Chairman. Javier, please?
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