|
DGAP-News: Befesa S.A.
/ Key word(s): Quarterly / Interim Statement/Dividend
/ PRESS AND INVESTOR ANNOUNCEMENT First quarter 2022 results Befesa delivers record €61m EBITDA up 25% in Q1 and guides towards strong full-year growth, despite volatile market environment - Q1'22 adjusted EBITDA at record €61.1m, +25% or +€12m yoy (Q1'21: €48.8m) - US operations delivering as planned, driving progress on integration and synergies - China expansion on track: First plant in Jiangsu in commercial production and selling Waelz Oxide (WOX) at high-capacity loading; Second plant in Henan ramping up in Q2 with commercial output in H2 - Capacity utilisation and volumes continued at high pre-pandemic levels - Net leverage improved further to x2.13, down from x2.16 at YE'21; Continued strong liquidity of more than €300m including record €237m cash on hand - Dividend distribution of €50m (€1.25/share) proposed for FY'22, equal to 50% of FY'21 net profit - Outlook: FY'22 EBITDA expected to be between €220m and €270m, +11 to +37% yoy growth Luxembourg, 26 April 2022 - Befesa S.A. ("Befesa"), the leading provider of hazardous waste recycling services enabling the circular economy within the steel and aluminium industries, has delivered its strongest quarterly results in the Company's history, with Q1 adjusted EBITDA of €61.1m (+25% versus Q1 2021) supporting a positive business outlook for the financial year 2022. The yoy positive earnings development in Q1'22 was primarily driven by the strong base metal prices and good volume performance. This included the contribution from US zinc operations and initial volume from the first China plant, more than offsetting energy inflation and higher zinc treatment charges (TC) considered at $230/t. Overall plant utilisation was high at pre-pandemic levels, with Steel Dust at around 88% and Aluminium Salt Slags & SPL at around 80%. Zinc LME prices averaged at €3,337/t in Q1 (up 46% yoy); Zinc TC were considered at $230/t with escalators retroactively from Jan'22 and for full year 2022 (2021: $159/t). Aluminium alloy FMB prices also traded at the highest levels on record and were up 33% over the same period at €2,627/t. During the first three months of 2022, Befesa continued its hedging rigour and sold further zinc volume forward, up to and including January 2025. Befesa closed the quarter with record cash on hand of €237m, up €13m from year end. Together with the entirely undrawn Revolving Credit Facility (RCF) of €75m, Befesa maintains a strong financial position of more than €300m liquidity. Befesa's net leverage ratio further improved to x2.13 (from x2.16 at YE'21). Befesa's expansion in China continued to progress while managing COVID restrictions: The first plant in Jiangsu has been in commercial production since Dec'21, selling WOX. The commissioning of the second plant in Henan started in January 2022; ramp up is expected in Q2 with the first commercial output scheduled for H2. Looking ahead, Befesa expects to deliver double-digit earnings growth again in 2022, driven by the execution of its expansion projects and supported by the resilience of its business, diversified global footprint and robust cash management. More specifically: - Befesa expects FY'22 EBITDA between €220m and €270m, delivering +11 to +37% yoy growth; the midpoint of €245m is aligned with the annualised Q1 €61.1m quarterly run rate - The wide guidance range is mainly driven by market (volume), energy and base metal price volatility - Continuing to fund the global expansion Befesa expects total capex of €55m to €65m - Total cash flow is expected to be within an approximately €40m to €80m range, further decreasing net leverage at or below x2 and below x1.75 by YE'22 - Board proposing a €50m dividend (€1.25 per share) at the Annual General Meeting (AGM), equal to 50% of FY'21 net profit of €99.7m, at the upper end of Befesa's dividend policy. Javier Molina, CEO of Befesa, said: "Our customers and our company face a market environment of very high volatility. Befesa fortunately entered this challenging year in the best financial and strategic shape. Our key growth initiatives in the US and China are delivering. Our conservative hedging approach and long-term capital structure safeguard the proposed dividends and funding of our growth roadmap. As a result, even in this volatile environment, we expect to achieve between +11 and 37% yoy growth and deliver another record year to our shareholders. We continue to work diligently on expanding our state-of-the-art environmental service solutions and contributing to protecting the environment." Following the publication of the 2021 Annual Report in March and the publication of the Q1 2022 results, Befesa will publish its 2021 ESG Report in Q2 2022, including disclosures on taxonomy eligibility. The report will also define Befesa's 2030 and 2050 CO2 reduction plan. Key figures
1) Q1 2021 as reported; AZR acquisition closed and consolidated only from mid-Aug '21 onwards Webcast Financial Calendar Investor Relations Media Relations
26.04.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | Befesa S.A. |
| 68-70, Boulevard de la Pétrusse | |
| 2320 Luxembourg | |
| Luxemburg | |
| E-mail: | irbefesa@befesa.com |
| Internet: | www.befesa.com |
| ISIN: | LU1704650164 |
| WKN: | A2H5Z1 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London |
| EQS News ID: | 1334917 |
| End of News | DGAP News Service |
|
|
1334917 26.04.2022
P R O D U C T S U G G E S T I O N S
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.
