Half Year 2024 Umicore SA Earnings Call Transcript
Key Points
- Umicore SA (UMICF) reported a strong performance in its Catalysis business with impressive margins of 25% and a return on capital of 40%.
- The recycling business continues to perform well with EBITDA margins of 36.5% and a return on capital close to 70%, despite lower PGM prices and a maintenance shutdown.
- The Efficiency for Growth program is on track, expected to yield EUR70 million in savings for 2024, with more than half already achieved.
- Umicore SA (UMICF) maintains a strong balance sheet with a resilient debt maturity profile and a leverage ratio of 1.7.
- The company reconfirmed its adjusted EBITDA outlook for 2024, expecting it to be in the range of EUR760 million to EUR800 million.
- The battery materials business is facing significant challenges, with a EUR1.6 billion non-cash impairment mostly related to property, plant, and equipment and non-current inventory in Asia.
- The battery materials EBIT is expected to remain negative or below breakeven in 2025 and 2026.
- Revenues for the first half of 2024 were down 13% compared to the same period last year, amounting to EUR1.8 billion.
- The adjusted EBITDA for the first half of 2024 was EUR393 million, EUR125 million below the same period last year.
- The recycling business saw a 30% decline in revenues and a 16% decline in EBITDA due to a less favorable precious metals environment and a planned maintenance shutdown.
Hello and welcome to the Umicore half-year 2024 results call. My name is Caroline, and I'll be your coordinator for today's event. Today's call is being recorded (Operator Instructions) I will now hand over to you host, Bart Sap, the CEO, to begin today's conference. Please go ahead, sir. Thank you.
Yes, thank you. So good morning, everyone, and welcome to Umicore H1 results update. Today, I think we have a pretty packed and interesting agenda for you. We'll first start off with the strategic review on the battery materials where we stand, but then have a look at the key figures and the highlights of the first half 2024, then we'll go over the business review for the different business groups. Wannes will talk to you about the financials. I'll be coming back with the outlook for 2024, then we'll do a wrap-up, and then it's open for Q&A.
So let me start off by the strategic review for battery materials. Now, there's a new market reality out there and we have to adjust to it. The market context is
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