Q3 2024 Befesa SA Earnings Call Transcript
Key Points
- Befesa SA (XTER:BFSA) reported a strong third quarter with adjusted EBITDA of EUR 49 million, up 16% year-on-year.
- Operating cash flows increased by nearly 40% year-to-date, driven by strong cash conversion.
- The steel dust recycling business delivered strong results in Europe and the US, maintaining high capacity utilization around 90%.
- The company expects full-year 2024 adjusted EBITDA to be between EUR 210 million and EUR 215 million, representing a growth of 15% to 18% year-on-year.
- Befesa SA (XTER:BFSA) has extended its hedging book to cover close to 24 months, providing earnings visibility and predictability.
- The secondary aluminum business was negatively impacted by weak demand in the European automotive industry.
- The zinc refining operations in the US are experiencing a double-digit negative contribution for the full year 2024.
- The company's expansion plan in China is on hold due to current market conditions.
- Aluminum metal margins are under pressure due to weak demand and difficult access to aluminum scrap.
- Net debt at the end of Q3 stood at EUR 662 million, with a net leverage of 3.36 times.
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Good morning and welcome to the third quarter, 2024 results conference call of the Visa. I am Rafael Perez CFO of the Visa.
This morning, I'm joined by a group CEO Ata Roana.
I will start with an executive summary of the period and then he will cover the business highlights for the steel dust as well as aluminum. So like recycling businesses. I will then review the financials by business.
We cover the evolution of commodity prices or hedging program and finally cash flow and net debt as here will close this presentation provided an update on the outlook for the rest of 2024. How we see 2025 and an update or a growth plan. Finally, we will open the lines for the Q organization before getting started. Let me remind you that this conference call is being webcast as light.
You can find the link to the webcast on the third quarter, 2024 results presentation on our website www dot deveer dotcom.
Now let me turn this call over to our CEO here, please.
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