Full Year 2024 Sims Ltd Earnings Call Transcript
Key Points
- Sims Ltd (SMSMY) reported a better-than-expected second half performance, with underlying EBIT coming in around EUR43 million, significantly higher than the anticipated EUR20-25 million.
- The company successfully integrated 17 new sites while maintaining a total recordable injury frequency rate below one, showcasing strong safety performance.
- Sims Ltd (SMSMY) achieved significant cost savings by removing 206 roles, resulting in annualized savings of $46 million.
- The SLS business delivered a strong financial year, with over a 100% EBIT increase compared to the prior year.
- The company has made substantial progress in improving its market responsiveness and simplifying business structures, which is expected to enhance operational efficiency.
- Sales volumes for the full year were down by 1.7%, despite a slight increase at the half-year mark.
- Inflationary pressures have been stubborn, impacting operating costs significantly.
- The company faced a challenging market environment, with all regions except SLS delivering lower EBIT in FY24 compared to FY23.
- Higher financing charges and a review of the carrying value of operating assets contributed to a statutory loss.
- The company experienced significant closure and dilapidation costs in the UK, impacting overall financial performance.
Thank you and good morning, good afternoon, or good evening depending on where you're dialing in from Today, we are here to present the full-year results for FY24. Presenting with me today is Warrick Ranson, our CFO; Rob Thompson, our Global Chief Commercial Officer is also here with me; and Warrick.
The presentation has been lodged with the ASX along with the results release. First up, I will run through an overview of the results, take a look at where the market is at and then focus on the progress we have made in implementing our business strategy, particularly in North America.
Warrick will then take us through the financials. At the end, I will return to talk about the outlook after which we will have Q&A.
I will turn straight to slide 5, which covers an overview of the results. There is no doubt when you look at the year-on-year comparison of the results, it was a difficult year. Mark is going to dissect the results in some detail in later slides. So let me just make three overall comments. Firstly, it is a
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