Half Year 2024 Tessenderlo Group NV Earnings Call Transcript
Key Points
- Tessenderlo Group NV (XBRU:TESB) has a new executive committee with experienced leaders, including a new CFO and Chief Transformation Officer.
- The company is making significant investments, such as the EUR35 million expansion of ferric chloride production capacity in Loos, France.
- Construction of the Defiance plant, which will produce liquid sulfur-based fertilizers and sulfite chemicals, is progressing well and is expected to start operations in Q1 2025.
- The Geleen plant in the Netherlands is in its final construction stage and is expected to be operational by late Q3 2024.
- The company has a strong net cash position of EUR32.6 million, an improvement from the previous year, and has focused on reducing working capital and managing inventories effectively.
- Revenues for the first half of 2024 decreased by nearly 15% compared to the previous year, amounting to EUR1.389 billion.
- The adjusted EBITDA margin dropped to close to 11% from 12.6% last year, indicating a decline in profitability.
- The machine & technology segment, particularly Picanol weaving machines, is suffering from a downturn in the textile industry, resulting in an EBITDA margin below 6%.
- The industrial solutions segment, especially DYKA Group, has been negatively impacted by lower construction demand in Europe.
- The company is operating in a volatile environment with high energy costs and increased labor costs, particularly in Europe, which poses challenges for future profitability.
Hello, and welcome to the Tessenderlo Group half year 2024 results. My name is Caroline, and I will be your coordinator for today's event. Please note, this call is being recorded. (Operator Instructions)
For today's event, we have Luc Tack, the CEO; and Miguel Potter, the CFO with us. I will now hand over to Luc Tack, the CEO to begin today's conference. Thank you.
Good morning, good afternoon, and thank you all for joining us today on our half year results release. I will start by talking to you first about some key events that happened in the first half of the year, after which my colleague, Miguel will give you in-depth comments on the numbers.
So let me first start by telling you that as of January 1, we have a new excom, Miguel de Potter has joined Tessenderlo Group as the Chief Financial Officer. Meanwhile, Mrs. Sandra Hoeylaerts, who started on September 2023 as a Chief HR Officer at Tessenderlo Group, has taken up the
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