JOHNSON MATTHEY PLC Catalysing the net zero transition to drive sustainable value creation.
Continued execution against a challenging economic backdrop
Good growth in underlying profit at constant FX and adjusting for precious metal prices
Overall results impacted by lower precious metal market prices as guided
Transformation progressing at pace to create a more streamlined organisation and stronger platform for growth
On track to deliver in excess of
Three year cumulative capex guidance to 2024/25 reduced by c.10% to c.
Delivering on strategic milestones, including winning key 'first of a kind' projects in sustainable fuels and low carbon hydrogen
Underlying performance - continuing operations-1,-2
Sales of
Underlying operating profit of
Underlying operating profit - adjusting for c.
Underlying earnings per share of 59.1p, down 33% due to lower underlying operating profit and higher net finance charges of
Strong balance sheet with net debt of
Reported results-2
Revenue down 11%, driven by lower average precious metal prices
Operating profit of
Profit before tax of
Reported earnings per share (continuing) of
Cash inflow from operating activities of
Interim dividend of
Operational and strategic highlights
Won nine large scale projects in Catalyst Technologies across low carbon hydrogen and sustainable fuels, worth c.
Delivered significant margin uplift in Catalyst Technologies, with first half margins up 480 basis points, and on track to achieve margin targets
Hydrogen Technologies sales up 61%
Achieved c.
Committed to achieving net zero by 2040. Targeting 42% reduction in Scope 1 and Scope 2 greenhouse gas emissions, and 42% reduction in Scope 3 greenhouse gas emissions from purchased goods and services by 2030
We are executing on our transformation at pace to simplify the business and drive improved performance. In
We have continued to make good progress in delivering against our strategic milestones whilst also driving transformation. In particular, we have secured important 'first of a kind' project wins in Catalyst Technologies which position us as a global leader in sustainable solutions. This is confirmation of the significant value we see in Catalyst Technologies as we help our customers to decarbonise. In Hydrogen Technologies we continue to see strong sales growth in the near term. The global hydrogen value chain is in an early stage of development and continues to evolve. We have a very disciplined and modular approach to investment that will ensure sustainable returns despite market volatility, and we expect a significant opportunity for value creation in the medium and long-term.
Looking forward, we are on track to deliver good growth in underlying performance and I am excited about the opportunities that lie ahead. I am confident we will achieve our 2023/24 milestones and deliver on our strategy, creating sustainable shareholder value and benefits for all our stakeholders.
Outlook for the year ending
For 2023/24, the outlook for underlying performance has improved and we now expect at least high single digit growth in operating performance at constant precious metal prices and constant currency (previously at least mid single digit). This is underpinned by transformation benefits of c.
In
Whilst precious metal prices have stabilised recently, it remains difficult to predict how they may develop. To illustrate the impact they may have on our results, assuming prices remain at their current level6 for the remainder of 2023/24 there would be an adverse impact of c.
At current foreign exchange rates8, translational foreign exchange movements for the year ending
Dividend
The board has approved an interim dividend of
Group Leadership Team changes
We have made changes to our Group Leadership Team as we reshape our business to drive improved profitability and position ourselves for long-term growth.
We have combined Strategy with Corporate Development given their strong interdependency.
Contact:
Tel: +44 20 7269 8241
(C) 2023 Electronic News Publishing, source
