FULL YEAR RESULTS 2023
Key highlights
- Revenues* of € 3.9 billion (-7% vs. 2022)
- Adjusted EBITDA of € 972 million (-16% vs. 2022) and adjusted EBITDA margin of 25.0% (27.3% in 2022)
- Adjusted EBIT of € 674 million (-22% vs. 2022)
- ROCE of 13.5% (19.2% in 2022)
- Adjusted net profit (Group share) of € 447 million and adjusted EPS of € 1.86
- Cash flow from operations of € 1,217 million (€ 835 million in 2022); free operating cash flow of € 332 million (€ 344 million in 2022)
- Capital expenditures of € 857 million (€ 470 million in 2022)
- Net debt at € 1,266 million, compared to € 1,104 million at the end of 2022. This corresponds to a net debt/ LTM adj. EBITDA ratio of 1.30
- Proposed gross annual dividend for 2023 of € 0.80 of which € 0.55 to be paid in
May 2024 , with an interim dividend of € 0.25 already paid out inAugust 2023 .
- Catalysis1 delivered record results for the third consecutive year. Adjusted EBITDA amounted to € 436 million, up 4% compared to the previous year. The Business Group’s performance was mostly driven by Automotive Catalysts. Sales volumes and revenues for the business unit increased, benefiting from a rebound in the Chinese heavy-duty diesel production as well as year-on-year growth in global light-duty ICE production. In addition, Automotive Catalysts made further strong progress on efficiency improvements.
The Business Group generated substantial free cash flow. The adjusted EBITDA margin for theBusiness Group amounted to 24.2%.
- Revenues for Energy & Surface Technologies1 were below the level of 2022. The decrease mainly results from lower revenues for Rechargeable Battery Materials. These reflect the combined impact of a lower non-recurring lithium effect and lower volumes for cathode active materials from legacy contracts. Adjusted EBITDA amounted to € 259 million, with a slight increase in earnings for Rechargeable Battery Materials supported by a substantial one-off related to lower costs from mass production test runs and valuation of battery production scraps. Cobalt & Specialty Materials reported, as expected, a substantial decline in earnings. This combined with solid performance of the business units Electro-Optic Materials and Metal Deposition Solutions resulted in an EBITDA margin of 24.6% for the
Business Group .
- The Recycling1 performance in 2023 was resilient. Although it was below the exceptional performance of 2022, it was well above pre-2020 levels, the year in which the rhodium price started to peak. Adjusted EBITDA amounted to € 372 million, down 30%, reflecting a context of substantially declining PGM prices over 2023, as well as the impact of cost inflation mainly in the first half of the year. These headwinds were partially mitigated by the strong performance of the Precious Metals Management business unit, strategic metal hedges, as well as the introduction of an efficiency program which going forward will result in increased cost efficiencies to counteract the decreased PGM price environment. In a challenging market environment, the Recycling segment delivered an overall robust performance, resulting in an EBITDA margin of 36.7%.
Umicore’s Group revenues for the full year 2023 amounted to €3.9 billion versus € 4.2 billion in 2022. The adjusted EBIT for the Group stood at € 674 million and the adjusted EBITDA at € 972 million, both below the levels of 2022, including a more than € 200 million PGM price and inflation headwind2.
Capital expenditures amounted to € 857 million, up 82% year-on-year, mainly driven by investments to execute the contracts secured in the order book for Rechargeable Battery Materials. Operational free cash flow remained strong at € 332 million, despite the significantly increased capital expenditures, enabled through a Group-wide working capital improvement focus. Net financial debt slightly increased to € 1.3 billion resulting in a leverage ratio of 1.30x LTM adjusted EBITDA.
A gross annual dividend of € 0.80 per share, of which € 0.25 was already paid out in
Financial discipline, accelerating efficiencies and additional strategic metal hedging
In that context,
In addition,
Finally - and in the framework of its strategic metal hedging approach -
2024 Outlook
Since the introduction of the 2030 RISE Strategy in
Outlook
Based on the current market visibility and all else equal,
Given the absence of the one-off that supported 2023 earnings as well as the impact of costs related to the ongoing ramp-up and capacity expansions in
Revenues and earnings are expected to be weighted in the second half of 2024, reflecting mainly the ramp-up profile of the new customer contracts.
In 2024, the business unit Automotive Catalysts is expected to continue to benefit from its strong market position. Growth in heavy-duty diesel volumes in
Precious Metals Refining is expected to post solid underlying performance particularly in the second half of the year, with a maintenance shutdown of the smelter anticipated to impact volumes in the first half. Earnings of the Recycling
In Specialty Materials,
It is anticipated that Corporate costs will be € 15 to € 20 million lower in 2024 versus 2023.
Based on the above,
For more information
Investor Relations
Caroline Kerremans | +32 2 227 72 21 | caroline.kerremans@umicore.com |
+32 2 227 73 72 | benoit.mathieu@umicore.com | |
Adrien Raicher | +32 2 227 74 34 | adrien.raicher@umicore.com |
Media Relations
Marjolein Scheers | +32 2 227 71 47 | marjolein.scheers@umicore.com |
Caroline Jacobs | +32 2 227 71 29 | caroline.jacobs@eu.umicore.com |
Link to all documents related to Umicore’s 2023 FY results.
Financial calendar
22 March 2024 Publication of the annual report 2023
25 April 2024 Annual General Meeting
29 April 2024 Ex-dividend trading date
30 April 2024 Record date for the dividend
4 May 2024 Payment date for the dividend
26 July 2024 Half year results 2024
19 August 2024 Ex-dividend trading date, interim dividend 2024
Umicore’s industrial and commercial operations as well as R&D activities are located across the world to best serve its global customer base with more than 11,500 employees. The Group generated revenues (excluding metal) of € 3.9 billion (turnover of € 18.3 billion) in 2023.
A conference call and audio webcast for analysts and investors will take place today at
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* All references to revenues refer to revenues excluding metals (i.e. all revenue elements less the value of the following purchased metals:
Au, Ag, Pt, Pd, Rh, Co, Ni, Pb, Cu, Ge, Li and Mn).
1 Further details of the individual performance of the Business Groups and Business Units during the year can be found in the Catalysis, Energy & Surface Technologies and Recycling sections of this press release.
2 Of which the cost inflation headwind amounted to € 50 million over 2023.
3 All revenue elements less the value of the following purchased metals: Co, Ni, Li and Mn.
4 Net capital expenditures = capex – government grants and subsidies + equity contribution (e.g. Ionway).
5 More information can be found in the Financial Review – Hedging section of this press release.
6 VARA consensus as at
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