RHI Magnesita today announces its 2019 full year results.
Commenting on the results, Chief Executive Officer, Stefan Borgas said:
“In 2019, RHI Magnesita has further demonstrated strong progress in executing our strategy, resolving previously identified operational issues and implementing the initiatives that will underpin our long-term growth. We have delivered a resilient financial performance in the year, despite difficult market conditions and lower raw material prices, particularly in our Steel Division in the second half.
“Looking forwards, we will benefit from the steps we have taken to strengthen the business, particularly from the Production Optimisation Plan. However, the difficult market environment in the second half of 2019 has continued in the first quarter of 2020. Whilst COVID-19 has not had a material financial impact on the business to date, we have seen a recent slowdown in customer activity, particularly in our Steel Division, and the future demand environment is very uncertain. We have undertaken extensive scenario testing, factoring in a range of potential outcomes, which indicate that the Company has sufficient liquidity to withstand an extended period of uncertainty.”
“Longer term we see clear opportunities to further progress our refractory margin, whilst also continuing to benefit financially and strategically from our backward integration. The business benefits from a strong financial position, with low leverage and significant liquidity, and is well positioned to take advantage of growth opportunities when markets improve.”
|
Financial results |
2019 |
2018 |
||
|
(€m unless stated otherwise) |
Adjusted1 |
Adjusted at constant currency |
Change |
|
|
Revenue |
2,922 |
3,126 |
(6.5)% |
|
|
Adjusted EBITA |
408 |
448 |
(8.9)% |
|
|
Adjusted EBITA margin |
14.0% |
14.3% |
(30 bps) |
|
|
Adjusted EPS |
5.57 |
5.31 |
4.9% |
|
|
Net debt2 |
650 |
697 |
(6.7)% |
|
|
Net debt to adjusted EBITDA2 |
1.2x |
1.3x |
(0.1)x |
|
|
2019 |
2018 |
|
|
(€m unless stated otherwise) |
Reported |
Reported |
|
Revenue |
2,922 |
3,081 |
|
EBITA |
300 |
427 |
|
Profit before tax |
200 |
246 |
|
EPS |
2.82 |
3.52 |
1 Adjusted figures are alternative performance measures “APM” excluding impairments, amortisation of acquisition intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details are shown in the APM section.
2 Following the introduction of IFRS 16 Leases, 2019 net debt includes the impact of IFRS 16 of €62 million. 2018 adjusted net debt figures are shown including the impact of IRFS 16 (€58 million) to facilitate comparison between reporting periods.
The global impact of the COVID-19 virus is a fast moving and uncertain situation. RHI Magnesita´s primary focus is the health and safety of the employees around the world. The company has continued to operate its production capabilities and supply chain, enabling it to deliver for customers as normal. In China the plants have remained open through the crisis, with employees safe. Across the rest of the world, plants are also open and are operating with strict restrictions such as pre-work temperature checks and no travel between plants. All corporate offices are closed with employees working from home. Whilst the company has seen no material financial effects on the business to date, the impact of COVID-19 on demand from its customers is very uncertain. RHI Magnesita is engaging customers closely to understand their current production rates, stock levels and short-term requirements.
About RHI Magnesita
RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers in nearly all countries around the world. The Company has a high level of geographic diversification with more than 13,650 employees in 32 main production sites and more than 70 sales offices around the world. RHI Magnesita intends to leverage its global leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefitting from more dynamic economic growth prospects.
Its shares have a premium listing on the London Stock Exchange (symbol: RHIM) and are a constituent of the FTSE 250 index. For more information please visit: www.rhimagnesita.com
Annual Report 2019
The Company’s 2019 Full Year Results has been published and is available to view. In compliance with Listing Rule 9.6.1, a copy will also be submitted to the National Storage Mechanism and will shortly be available for inspection at http://www.morningstar.co.uk/uk/NSM.
Pictures:
Photo RHI Magnesita Headquarters Vienna
For further enquiries, please contact:
Investors:
Guy Marks
Head of Investor Relations, RHI Magnesita
+44 7932 013 357
Media:
Lisa Fuchs
Head of Corporate Communications, RHI Magnesita
Lisa.fuchs@rhimagnesita.com
+43 6991 870 6198