Link Securities | Acerinox (ACX) presented on Thursday its results for the first half of the year (1H2024), of which we highlight the following aspects:
The 1H2024 results have been affected by the strike at the Acerinox Europe plant from 5 February to 21 June.
- Thus, ACX’s 1H2024 turnover reached €2,781 million, 21.0% lower than in the same half of the previous year.
- Also, ACX’s EBITDA ended June at €236 million, down 48.9% year-on-year in the first half of the year. The impact of the strike on Acerinox Europe’s EBITDA was -€43 million. In terms of sales, the EBITDA margin stood at 8.5%, compared to 13.1% in 1H2023.
- However, in quarterly terms, 2Q2024 EBITDA, at €125 million, was 13% higher than 1Q2024 (and 47% lower than 2Q2023). The margin on sales was 10% (7% in 1Q2024).
- ACX’s EBIT in 1H2024 amounted to €155 million, 59.0% lower than in the same period of the previous year.
- Profit before tax (PBT) amounted to €155 million in H1 2024, 58.2% lower than in the same period of the previous year. Finally, ACX’s net attributable profit amounted to €114 million, 59.0% lower than in 1H2023.
- Operating cash flow in H12024 was €266 million, as a result of the EBITDA generated and the reduction in working capital, €84 million. An investment payment of €78 million was made and €77 million was paid to shareholders. As a result, ACX’s net financial debt of €191 million at 30 June was €43 million lower than in 1Q2024 and 44% lower than at the end of December 2023.
- Outlook: Market weakness in stainless steels and lack of visibility remain for the third quarter, although inventories at stockists are below historical average. On the other hand, the market for high performance alloys remains stable. ACX’s position in the American and high performance alloys market, and the gradual recovery in Acerinox Europe, allow them to expect an EBITDA in 3Q2024 similar to 2Q2024.
