par IMERYS (EPA:NK)
Imerys-press-release-FY2023-results-21-February-2024
PRESSRELEASE
PARIS, FEBRUARY 21, 2024
Imerys posts full year 2023 current EBITDA in line with guidance and substantial cash flow generation
● Full year revenue at €3,794 million impacted by weak demand in most markets, in particular residential construction, and adverse currency effect
● Current EBITDA in line with guidance1 at €633 million; current EBITDA margin resilient at 16.7% benefiting from cost reductions (€126 million)
● Substantial net current free operating cash flow generation of €191 million (2022: €20 million), and €288 million (2022: €105 million) before strategic capital expenditures, supported by working capital management actions
● Solid financial structure and strong liquidity position: net debt reduced by €548 million (-33%), improving the net financial debt to current EBITDA ratio to 1.8x compared to 2.3x in December 2022
● Proposal of a cash dividend of €1.35 per share, representing a total distribution of €115 million
● New 1.5°C trajectory validated by SBTi: reduction of 42% of scope 1 & 2 greenhouse gas emissions (tCO2eq) and of 25% of scope 3 by 2030 from 2021 base year
Consolidated results234 (€ millions) | FY 2022 | FY 2023 | Change 2023 / 2022 |
Revenue | 4,282 | 3,794 | -11.4% |
Organic growth | +12.5% | -9.0% | - |
Current EBITDA | 720 | 633 | -12.2% |
Current EBITDA margin | 16.8% | 16.7% | - |
Current operating income | 439 | 365 | -16.9% |
Current operating margin | 10.2% | 9.6% | - |
Operating income5 | 318 | 108 | -66.2% |
Current net income from continuing operations, Group share | 278 | 242 | -12.8% |
Net income from continuing operations, Group share5 | 173 | 8 | - |
Net income from discontinued activities, Group share | 64 | 44 | - |
Net income, Group share5 | 237 | 51 | -78.4% |
Net current free operating cash flow (incl. discontinued ope.) | 20 | 191 | +855% |
Net financial debt (as at December 31) | 1,666 | 1,118 | -32.9% |
Current net income from continuing operations per share6 | €3.28 | €2.86 | -12.8% |
1
Guidance announced on July 27, 2023: FY 2023 current EBITDA between €630 million and €650 million
2 According to IFRS 5, HTS is accounted for as a discontinued operation and reported under ‘Net income from discontinued activities’ (its revenue, expenses and pre-tax profits are not detailed in the consolidated income statement)
3
The definition of alternative performance measures can be found in the glossary at the end of the press release
4
Figures may not sum due to rounding
5 This includes the impairment of the assets serving the paper market for €175 million
6 Weighted average number of outstanding shares: 84,564,199 in 2023 compared with 84,575,054 in 2022
The audit procedures on the consolidated accounts are finalized. The audit report will be issued after the finalization of the procedures for the verification of the management report, and the presentation of the accounts to be included in the Universal Registration Document, in the format provided for in the ESEF Regulation.
Alessandro Dazza, Chief Executive Officer, said:
“In 2023, Imerys continued to demonstrate resilience and agility in a complex market environment.
The current EBITDA margin remained stable and cash flow generation increased significantly. These results have been achieved by a strongly committed team, of which I am extremely proud. Our main markets may have reached a low point and we will utilize every lever at our disposal to increase sales moving forward, supported by recent capacity additions and innovative mobile and sustainable energy products.
At Imerys, we look forward to demonstrating the robustness of our business model and achieving in 2024 new milestones on our strategic roadmap.”
Proposed dividend
At the Shareholders’ General Meeting of May 14, 2024, the Board of Directors will propose an ordinary cash dividend of €1.35 per share (vs. €1.50 ordinary cash dividend paid in 2023), which represents a distribution of €115 million[1]. This amount corresponds to 50% of net income from current operations, Group share (to be compared with 46% of last year for the ordinary cash dividend).
Update on strategic projects
As part of its drive to support the energy transition with mineral solutions, Imerys is:
● Completing its development in the fast-growing lithium-ion battery market (over €140 million invested in capacity increases over the past 3 years). As per plan, a new production line of carbon black for mobile energy at Willebroek (Belgium) was commissioned in 2023 while the construction of the next one is well underway. The capacity expansion for synthetic graphite production in Bodio (Switzerland) was commissioned in Q4 2023.
● Investing €43 million in a greenfield plant in Wuhu (China), producing high-quality talc used for lightweighting of polymers and typically addressing automotive applications, EVs in particular. This plant was successfully commissioned in Q4 2023.
In parallel, the lithium projects are progressing well:
● In France, the EMILI project made significant progress in 2023. The scoping study confirmed the attractiveness of the deposit and robustness of the technology with the production at laboratory scale of the first battery-grade lithium hydroxide from the Beauvoir granite. The locations of the loading station and the conversion plant were announced in January 2024. The "Commission Nationale du Débat Public" will host a public debate in Q2 2024 and will release its report in Q3. In parallel, pre-feasibility study is to be concluded before year end, and the construction of the industrial pilot is on track to be launched in 2024, pending necessary permitting.
● In the UK, the strategic partnership between Imerys and British Lithium, named “Imerys British Lithium”, aims at becoming the leading lithium hub in the UK, with a targeted annual production of 21,000 tons of lithium carbonate equivalent, enough to equip 500,000 electric cars per year, by the end of the decade. Drilling campaigns will continue to increase the level of accuracy on deposit size and grade.
Battery-grade lithium carbonate has been produced at a pilot lab scale, helping the process optimization as part of the pre-feasibility study still ongoing.
Imerys has received expressions of interest for the potential divestiture of its assets serving the paper market. The Group remains steadfast in its determination to execute its strategy of focusing on its core, high-growth specialty minerals business, and may therefore consider such expressions of interest for the benefit of its customers, employees and shareholders. In this context, and also reflecting current market conditions, Imerys has decided to adjust the value of these assets in its financial accounts.
Sustainability
Highlights
Imerys has further progressed on its ambitious decarbonisation roadmap, and its newly-set targets, validated last July by the SBTi8, are aligned with a 1.5°C trajectory for 2030. The Group set its objectives to reduce absolute scope 1 and 2 greenhouse gas emissions by 42% (tCO2eq) and scope 3 by 25% by 2030 from a 2021 base year. The scope 1 includes direct emissions from sources owned or controlled by Imerys, and scope 2 concerns indirect emissions from the production of electricity, heat or steam purchased by the Group.
To fulfill this ambitious roadmap, the Group has started to implement specific actions, such as a multi-year contract signed with E.On, one of Europe's largest operators of energy networks and energy infrastructure, in May 2023 to valorize waste syngas and generate electricity in Willebroek (Belgium). The majority of the energy produced will be supplied to the local grid to satisfy the yearly consumption of approximately 40,000 households.
Imerys confirmed its commitment to reducing carbon emissions by issuing in November 2023 a €500 million sustainability-linked bond (6-year maturity) with an annual fixed rated coupon of 4.75%. Bond investors will receive a premium payment in 2029 of 0.75% of the principal amount, should the Group not meet its objectives at the end of 2028.
Performance
Following the successful completion of its first ESG sustainability plan, the Group has launched a more ambitious plan for 2025 centered around three core pillars: empowering our people, growing with our customers and caring for our planet. With regards to the Group decarbonisation roadmap, several levers have been activated, such as fuel switching and biomass utilization, electrification, power purchase agreements, energy efficiency and process innovation. In 2023, Imerys has reduced its scope 1 & 2 CO2 emission by 24% compared to 2021 in absolute terms.
FY 2022 (baseline) | FY 2023 | Target 2025 | |
Empowering our people | |||
Occupational safety: ● Total recordable accident frequency rate 9 ● Average level of maturity of operational sites | 2.43 3.0 | 2.36 3.1 | 2.18 (2024) 3.3 |
Increase the score of the Diversity, Equity & Inclusion Index10 (including KPIs related to Gender, Nationality, Disability and inclusion) | 0% | 40% | 100% |
8The Science Based Targets initiative is a collaboration between the CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature.
9 Includes all accidents without lost time whenever a healthcare professional is involved in the treatment, even if only for first aid.
10 Imerys’ Diversity, Equity & Inclusion Index is a composite metric used to track diversity, equity and inclusion across a range of dimensions including gender balance, pay equity, nationality, disability, as well as inclusion.
Growing with our customers | |||
Business ethics and responsible purchasing management: proportion of suppliers assessed against environmental, social and governance criteria[2] | 53%[3] | 61%[4] | 75% |
Assess the Products in Application Combinations (PAC) of Imerys product portfolio (by revenue) according to sustainability criteria[5] | 55% | 65% | 75% |
Caring for our planet | |||
Improve water management by ensuring priority sites[6] comply with new water reporting requirements | 0% | 22% | 100% |
Reduce impact on biodiversity by filling our Act4nature commitments and conducting biodiversity audits at the priority sites[7] | 0% | 57% | 100% |
Reduce Group scope 1 & 2 greenhouse gas emissions (tCO2eq) by 42% from 2021 base year in alignment with a 1.5°C trajectory by the end of 2030 | 0% (2021 baseline) | -24% | -42% (2030) |
Outlook
After unprecedented destocking in 2023, markets have stabilized. Construction, notably residential, and, to some extent, Automotive, are expected to remain lackluster, still impacted by high interest rates, while other markets such as Consumers and Life Sciences, or Energy and Electronics are expected to progress. In this uncertain economic and geopolitical environment, Imerys will maintain strict cost discipline and prioritize growth thanks to new industrial capacities, innovative products and its exposure to mobile and sustainable energy.
COMMENTARY ON THE FOURTH QUARTER AND 2023 ANNUAL RESULTS
Revenue
Consolidated results (€ millions) | 2022 | 2023 | Change 2023 / 2022 | |||
Reported Change | Like-for-like change | Volumes | Price mix | |||
First quarter | 1,013 | 997 | -1.6% | -0.9% | -11.9% | +11.0% |
Second quarter | 1,129 | 985 | -12.7% | -10.0% | -13.7% | +3.8% |
Third quarter | 1,116 | 918 | -17.8% | -14.2% | -14.2% | +0.0% |
Fourth quarter | 1,024 | 894 | -12.6% | -10.4% | -6.1% | -4.4% |
Total | 4,282 | 3,794 | -11.4% | -9.0% | -11.6% | +2.6% |
Revenue was €3,794 million, down 9.0% year-on-year at constant scope and exchange rates in 2023, to be compared with a significant 16.8% increase in 2022. Group sales volumes were down 11.6%, reflecting weakness in main end markets especially residential construction, continued destocking and increasing competition in some geographies.
In a context of high inflation since H2 2022, Imerys’ pricing actions continued in 2023 (+2.6% of price effect), then lowered in Q4 at -4.4% due to a high comparison basis (+18.7% price effect in Q4 2022 vs. previous year) and the end of energy and freight surcharges.
Revenue for full year 2023 included a negative currency effect of €83 million (-1.9%), primarily as a result of USD depreciation vs Euro. The scope effect was -€31 million and related to recent divestitures.
Current EBITDA
Consolidated results (€ millions) | 2022 | 2023 | Change 2023 / 2022 | |
First quarter | 156 | 151 | -3.4% | |
Second quarter | 219 | 180 | -17.8% | |
Third quarter | 193 | 150 | -22.2% | |
Fourth quarter | 152 | 152 | -0.2% | |
Total | 720 | 633 | -12.2% | |
Margin | 16.8% | 16.7% | - |
At €633 million, 2023 current EBITDA was in line with the guidance announced on July 27, 2023, after a negative currency effect of -€18 million.
A combination of the positive price effect, significant cost reductions in all input factors (€126 million of savings), together with the dividends received from our joint ventures and associates in 2023, contributed to a resilient EBITDA margin.
Current operating income reached €365 million for 2023, a 16.9% decrease compared to last year.
Current net income
Current net income, Group share, totaled €242 million, down 12.8% vs. 2022. Net financial result was negative at €38 million. The income tax expense of €81 million corresponds to an effective tax rate of 24.9%. Current net income, per share, Group share, reached €2.86.
Net income
(€ millions) | 2022 | 2023 | |
Current net income, Group share | 278 | 242 | |
Net Others, Group share | -105 | -235 | |
of which Other, including impairment of paper assets[8] | -120 | -257 | |
Tax | 14 | 21 | |
Minority Interest | 2 | 2 | |
Net income from continuing operations, Group share | 173 | 8 | |
Net income from discontinued activities, Group share | 64 | 44 | |
Net income, Group share | 237 | 51 |
Net income, Group share, totaled €51 million in 2023. Net income from continuing operations reached €8 million after other income and expenses of -€235 million in 2023, including €175 million for the impairment of the assets serving the paper market.
The net income also includes €44 million of net income from discontinued activities and €2 million of minority interests.
Net current free operating cash flow
(€ millions) | 2022 | 2023 | ||
Current EBITDA (including discontinued operations) | 859 | 640 | ||
Increase (-)/ decrease (+) in operating working capital | -233 | 86 | ||
Notional tax on current operating income | -155 | -96 | ||
Other | 11 | 9 | ||
Net current operating cash flow (before capital expenditure) | 482 | 639 | ||
Capital expenditure | -406 | -390 | ||
Right-of-use assets (IFRS 16) | -56 | -58 | ||
Net current free operating cash flow | 20 | 191 | ||
of which discontinued operations | 14 | 6 | ||
Net current free operating cash flow before strategic capex | 105 | 288 |
Imerys generated a substantial net current free operating cash flow of €191 million in 2023, up €171 million vs the prior year. Capital expenditures amounted to €390 million, lower than last year, and reflecting the Group’s effort on strategic projects aimed at increasing production capacity primarily in mobile energy and the lithium projects (€97 million, up from €85 million). Operating working capital improved by €86 million in 2023, thanks to working capital management actions and lower inflationary pressure. The net current free operating cash was also supported by dividends received from joint ventures and associates in 2023.
(€ millions) | 2022 | 2023 | ||
Net current free operating cash flow | 20 | 191 | ||
Acquisitions and disposals | 86 | 644 | ||
Dividend | -138 | -330 | ||
Change in equity | -11 | -11 | ||
Increase (-)/ decrease (+) in other operating items | 51 | 19 | ||
Other non-recurring income and expenses | -46 | -43 | ||
Debt servicing costs | -36 | -34 | ||
Exchange rates and other | -19 | -7 | ||
Change in net financial debt | -93 | 428 | ||
(€ millions) | 2022 | 2023 | ||
Opening net financial debt | -1,451 | -1,666 | ||
Change in net financial debt | -93 | 428 | ||
Discontinued operations | -122 | 119 | ||
Closing net financial debt | -1,666 | -1,118 |
Financial structure
(€ millions) | 2022 | 2023 |
Net financial debt at January 1 | 1,451 | 1,666 |
Net financial debt at December 31 | 1,666 | 1,118 |
Equity at December 31 | 3,385 | 3,157 |
Current EBITDA | 720 | 633 |
Net financial debt/Equity | 49.2% | 35.4% |
Net financial debt/current EBITDA | 2.3x | 1.8x |
At December 31, 2023, net financial debt totaled €1,118 million, down by €548 million (-33%) compared to December 31, 2022. The reduction in net indebtedness reflects the Group’s continued focus on cash generation and includes the impact of the disposal of HTS completed at the end of January 2023.
With the net debt to current EBITDA and gearing ratios significantly improved compared to the prior year, Imerys demonstrates its ability to maintain a robust financial structure.
Imerys "investment grade" ratings were confirmed by Standard and Poor's (November 24, 2023, BBB-, stable outlook) and Moody's (March 11, 2023, Baa3, stable outlook).
At December 31, 2023, Imerys’ bond financing amounted to €2.2 billion with an average maturity of 4 years, after a new Sustainability Linked bond emission in November for €500 million with a maturity of 6 years, covering the next repayment planned in December 2024. The Group also has €1.3 billion in cash and more than €1 billion available in bilateral credit lines.
SEGMENT PERFORMANCE
Following the High Temperature Solutions disposal, the Group has updated its reporting around three operational segments: “Performance Minerals Americas”, “Performance Minerals EMEA”, “Solutions for Refractories, Abrasives and Construction”.
As the “Graphite & Carbon” segment does not exceed the 10% threshold as defined by IFRS 8, it is reported under “Others”, together with the lithium projects, holdings and joint ventures. For each reporting segment 2022-2023 performance, please refer to Appendix.
Performance Minerals (62% of consolidated revenue)
Q4 2022 | Q4 2023 | LFL change on Q4 2022 | Consolidated data (€ millions) | 2022 | 2023 | LFL change on 2022 |
286 | 246 | -10.9% | Revenue Americas | 1,188 | 1,034 | -9.9% |
392 | 336 | -11.5% | Revenue EMEA and APAC | 1,608 | 1,423 | -9.1% |
(46) | (24) | - | Eliminations & others | (197) | (116) | - |
633 | 559 | -8.5% | Total revenue | 2,600 | 2,341 | -7.2% |
Current EBITDA | 480 | 374 | -22.1% * | |||
Current EBITDA margin | 18.5% | 16.0% | - |
* reported variation
Revenue generated by the Performance Minerals activity was down 7.2% like-for-like in 2023. On a reported basis, revenue was down 10.0% and includes a negative currency effect of €52 million (-2.0%).
Revenue in the Americas was down 9.9% at constant scope and exchange rates in 2023. Sales in the fourth quarter (-10.9% like-for-like) were impacted by a demand slowdown for minerals dedicated to the construction industry in the US and significant destocking at paper producers worldwide.
Revenue in Europe, Middle East, Africa and Asia-Pacific decreased by 9.1% at constant scope and exchange rates in 2023 and -11.5% in the fourth quarter, impacted by weak construction markets, prolonged destocking and soft consumer demand in Asia.
Current EBITDA for Performance Minerals activity totaled €374 million in 2023. It represents a resilient current EBITDA margin at 16.0% thanks to prices and costs actions partly compensating sales reduction.
Solutions for Refractory, Abrasives and Construction (32% of consolidated revenue)
Q4 2022 | Q4 2023 | LFL change on Q4 2022 | Consolidated data (€ millions) | 2022 | 2023 | LFL change on 2022 |
329 | 288 | -9.4% | Revenue Solutions for Refractory, Abrasives & Construction | 1,434 | 1,233 | -11.9% |
- | - | - | Eliminations & others | - | - | - |
329 | 288 | -9.4% | Total revenue | 1,434 | 1,233 | -11.9% |
Current EBITDA | 208 | 141 | -32.0% * | |||
Current EBITDA margin | 14.5% | 11.5% | - |
* reported variation
The Solutions for Refractory, Abrasives & Construction segment revenue decreased by 14.1% on a reported basis with an unfavorable currency effect of €35 million (-2.4%). Revenue was down -11.9% at constant scope and exchange rates in 2023. Volumes were weighed down by the low construction and industry end-markets, in Europe, in Asia and to a lesser extent in the US. In Europe, certain energy-intensive accounts were lost due to increased competition from Asian players benefiting from lower energy and logistic costs.
In the fourth quarter, the 9.4% like-for-like decrease was driven by lower volumes (weak end-markets and some destoking). Despite adverse market conditions, speciality binders for construction kept good momentum thanks to market share gains.
Current EBITDA for the segment totaled €141 million, or 11.5% of revenue in 2023, impacted by revenue decrease. Savings actions were put in place to mitigate the volume impact.
2023 annual results webcast
The press release is available on the Group’s website www.imerys.com. The Group will hold a live webcast to discuss the 2023 annual results at 09.30 AM (CET) on February 22, 2024, which can be accessed via this link.
Financial Calendar
April 30, 2024 | First quarter 2024 results |
May 14, 2024 | General Meeting of Shareholders |
July 29, 2024 | First half 2024 results |
October 30, 2024 | Third quarter 2024 results |
These dates are subject to change and may be updated on the Group’s website https://www.imerys.com/finance.
Imerys is the world’s leading supplier of mineral-based specialty solutions for the industry with €3.8 billion in revenue and 13,700 employees in 54 countries in 2023. The Group offers high value-added and functional solutions to a wide range of industries and fast-growing markets such as solutions for the energy transition and sustainable construction, as well as natural solutions for consumer goods. Imerys draws on its understanding of applications, technological knowledge, and expertise in material science to deliver solutions which contribute essential properties to customers’ products and their performance. As part of its commitment to responsible development, Imerys promotes environmentally friendly products and processes in addition to supporting its customers in their decarbonization efforts.
Imerys is listed on Euronext Paris (France) with the ticker symbol NK.PA.
More comprehensive information about Imerys may be obtained from its website (www.imerys.com) in the Regulated Information section, particularly in its Registration Document filed with the French financial markets authority (Autorité des marchés financiers, AMF) on March 22, 2023 under number D.23-0127 (also available from the AMF website, www.amf-france.org). Imerys draws investors’ attention to chapter 2 “Risk Factors and Internal Control” of its Registration Document.
Disclaimer: This document contains projections and other forward-looking statements. Investors should be aware that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.
Analyst/Investor Relations: Cyrille Arhanchiague : +33 (0)1 49 55 64 84 finance@imerys.com | Press contacts: Claire Garnier : +33 (0)1 49 55 64 27 Mathieu Gratiot : +33 (0)7 87 53 46 60 Hugues Schmitt (Primatice) : + 33 (0)6 71 99 74 58 |
Olivier Labesse (Primatice) : + 33 (0)6 79 11 49 71
APPENDIX
KEY INCOME STATEMENT INDICATORS
(€ million) | 2022 | 2023 | Change | ||
Revenue | 4,282 | 3,794 | -11.4% | ||
Current EBITDA | 720 | 633 | -12.2% | ||
Current operating income | 439 | 365 | -16.9% | ||
Current financial expense | (50) | (38) | - | ||
Current taxes | (105) | (81) | - | ||
Minority interests | (6) | (3) | - | ||
Current net income from continuing operations, Group share | 278 | 242 | -12.8% | ||
Other operating income and expenses, net, Group share | (105) | (235) | - | ||
Net income from continuing operations, Group share | 173 | 8 | - | ||
Net income from discontinued activities, Group share | 64 | 44 | - | ||
Net income, Group share | 237 | 51 | - |
Sales per segment
Sales (€ millions) | PM Americas | PM EMEA & APAC | Others PM | PM | ||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |||
First quarter | 271 | 266 | 376 | 386 | -48 | -30 | 599 | 622 | ||
Second quarter | 305 | 267 | 419 | 361 | -45 | -32 | 679 | 596 | ||
Third quarter | 327 | 255 | 421 | 339 | -59 | -30 | 689 | 564 | ||
Fourth quarter | 286 | 246 | 392 | 336 | -45 | -23 | 633 | 559 | ||
Full Year | 1,188 | 1,034 | 1,608 | 1,423 | -197 | -116 | 2,600 | 2,341 | ||
Sales (€ millions) | P | M | RAC | Others | Group | |||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |||
First quarter | 599 | 622 | 356 | 319 | 58 | 56 | 1,013 | 997 | ||
Second quarter | 679 | 596 | 388 | 328 | 62 | 61 | 1,129 | 985 | ||
Third quarter | 689 | 564 | 362 | 297 | 65 | 57 | 1,116 | 918 | ||
Fourth quarter | 633 | 559 | 329 | 288 | 62 | 47 | 1,024 | 894 | ||
Full Year | 2,600 | 2,341 | 1,434 | 1,233 | 248 | 221 | 4,282 | 3,794 | ||
Current EBITDA per segment
Current EBITDA (€ millions) | PM Americas | PM EMEA & APAC | Others PM | PM | ||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |||
First half | 110 | 83 | 132 | 100 | -3 | 3 | 239 | 186 | ||
Second half | 118 | 84 | 138 | 102 | -15 | 2 | 241 | 188 | ||
Full Year | 228 | 167 | 271 | 202 | -18 | 4 | 480 | 374 | ||
Current EBITDA (€ millions) | P | M | RAC | Others | Group | |||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |||
First half | 239 | 186 | 127 | 76 | 9 | 69 | 375 | 331 | ||
Second half | 241 | 188 | 81 | 66 | 23 | 48 | 345 | 302 | ||
Full Year | 480 | 374 | 208 | 141 | 32 | 118 | 720 | 633 | ||
CONSOLIDATED INCOME STATEMENT
(€ millions) | 31.12.2023 | 31.12.2022 |
Revenue | 3 794,4 | 4 281,6 |
Raw materials and consumables used | (1365,3) | (1472,5) |
External expenses | (990,1) | (1208,9) |
Staff expenses | (869,1) | (872,7) |
Taxes and duties | (28,5) | (37,6) |
Amortization, depreciation and impairment | (299,7) | (303,1) |
Intangible assets, mining assets and property, plant and equipment | (249,5) | (254,8) |
Right-of-use assets | (50,2) | (48,3) |
Other current income and expenses | 33,5 | 25,4 |
Share in net income of joint ventures and associates | 89,5 | 26,6 |
Current operating income | 364,7 | 438,8 |
Gain (Loss) from obtaining or losing control | (14,1) | 22,8 |
Other non-recurring items | (242,9) | (143,2) |
Operating income | 107,7 | 318,4 |
Net financial debt expense | (24,3) | (32,9) |
Income from securities | 16,7 | 5,1 |
Gross financial debt expense | (41,0) | (38,0) |
Interest expense on borrowings and financial debt | (36,8) | (34,9) |
Interest expense on lease liabilities | (4,2) | (3,1) |
Other financial income (expenses) | (14,1) | (17,4) |
Other financial income | 255,5 | 228,3 |
Other financial expenses | (269,6) | (245,7) |
Financial income (loss) | (38,4) | (50,3) |
Income taxes | (60,4) | (91,0) |
Net income from continuing operations | 8,9 | 177,1 |
Net income from continuing operations, Group share (2) | 7,6 | 172,9 |
Net income from continuing operations attributable to non-controlling interests | 1,3 | 4,2 |
Net income from discontinued operations (1) | 44,9 | 77,3 |
Net income from discontinued operations, Group share | 43,7 | 64,3 |
Net income from discontinued operations attributable to non-controlling interests | 1,2 | 13,0 |
Net income | 53,8 | 254,4 |
Net income, Group share (2) | 51,3 | 237,2 |
Net income attributable to non-controlling interests | 2,5 | 17,2 |
(1) High Temperature Solutions line of business (note 25). | ||
(2) Net income per share | ||
Basic net income per share, Group share (in €) | 0,61 | 2,80 |
Diluted net income per share, Group share (in €) | 0,60 | 2,76 |
Basic net income from continuing operations per share, Group share (in €) | 0,09 | 2,04 |
Diluted net income from continuing operations per share, Group share (in €) | 0,09 | 2,01 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ millions) | 31.12.2023 | 31.12.2022 |
Non-current assets | 4 469,8 | 4 357,4 |
Goodwill | 1 839,1 | 1 852,2 |
Intangible assets | 333,3 | 287,5 |
Right-of-use assets | 151,4 | 133,1 |
Mining assets | 391,1 | 415,5 |
Property, plant and equipment | 1 475,9 | 1 410,7 |
Joint ventures and associates | 122,7 | 90,5 |
Other financial assets | 5,6 | 25,4 |
Other receivables | 36,0 | 31,8 |
Derivative financial assets | 0,2 | - |
Deferred tax assets | 114,5 | 110,7 |
Current assets | 2 643,6 | 2 137,4 |
Inventories | 734,6 | 789,9 |
Trade receivables | 398,5 | 489,9 |
Other receivables | 237,1 | 208,4 |
Derivative financial assets | 14,8 | 27,0 |
Other financial assets | 673,6 | 2,0 |
Cash and cash equivalents | 585,0 | 620,2 |
Assets held for sale ⁽1⁾ | 38,5 | 1 376,2 |
Consolidated assets | 7 151,9 | 7 871,0 |
(€ millions) | 31.12.2023 | 31.12.2022 |
Equity, Group share | 3 124,0 | 3 337,9 |
Share capital | 169,9 | 169,9 |
Share premium | 614,4 | 614,4 |
Treasury shares | (16,5) | (18,7) |
Reserves | 2 304,9 | 2 335,1 |
Net income, Group share | 51,3 | 237,2 |
Equity attributable to non-controlling interests | 33,3 | 47,5 |
Equity | 3 157,3 | 3 385,4 |
Non-current liabilities | 2 497,6 | 2 465,6 |
Provisions for employee benefits | 160,6 | 160,2 |
Other provisions | 426,6 | 388,8 |
Borrowings and financial debt | 1 691,3 | 1 694,5 |
Lease liabilities | 119,2 | 98,1 |
Other debts | 18,4 | 20,0 |
Derivative financial liabilities | 0,3 | 4,1 |
Deferred tax liabilities | 81,2 | 99,9 |
Current liabilities | 1 471,0 | 1 551,1 |
Other provisions | 43,5 | 34,3 |
Trade payables | 377,9 | 540,1 |
Income tax payable | 86,1 | 104,9 |
Other debts | 364,6 | 344,3 |
Derivative financial liabilities | 32,1 | 29,0 |
Borrowings and financial debt | 520,2 | 452,7 |
Lease liabilities | 41,3 | 42,1 |
Bank overdrafts | 5,3 | 3,7 |
Liabilities related to assets held for sale ⁽²⁾ | 26,0 | 468,9 |
Consolidated equity and liabilities | 7 151,9 | 7 871,0 |
(1) Of which, at December 31, 2023, the bauxite production business for €38.5 million and at December 31, 2022, the High Temperature Solutions line of business for €942.8 million and the business serving the paper market for €433.4 million. | ||
(2) Of which, at December 31, 2023, the bauxite production business for €26.0 million and at December 31, 2022, the High Temperature Solutions line of business for €335.5 million and the business serving the paper market for €133.5 million. | ||
Current EBITDA At December 31, 2023
(€ millions) | PM Americas | PM EMEA & APAC | Others PM | PM |
Revenue | 1 033,9 | 1 422,9 | (115,8) | 2 341,0 |
Current operating income | 82,2 | 115,6 | 4,4 | 202,2 |
Adjustments | ||||
Amortization, depreciation and impairment | 84,0 | 85,7 | - | 169,7 |
Change in current operating write-downs and provisions | 1,1 | 4,5 | (0,1) | 5,5 |
Share in net income of joint ventures and associates | (0,7) | (8,7) | (0,1) | (9,5) |
Dividends received from joint ventures and associates | 0,7 | 5,2 | - | 5,9 |
Current EBITDA | 167,3 | 202,3 | 4,2 | 373,8 |
(€ millions) | PM | RAC | Others | Total |
Revenue | 2 341,0 | 1 232,7 | 220,7 | 3 794,4 |
Current operating income | 202,2 | 46,9 | 115,6 | 364,7 |
Adjustments | ||||
Amortization, depreciation and impairment | 169,7 | 89,7 | 40,3 | 299,7 |
Change in current operating write-downs and provisions | 5,5 | 4,7 | (6,9) | 3,3 |
Share in net income of joint ventures and associates | (9,5) | - | (80,0) | (89,5) |
Dividends received from joint ventures and associates (1) | 5,9 | 0,1 | 48,5 | 54,5 |
Current EBITDA | 373,8 | 141,4 | 117,5 | 632,7 |
(1) Of which €48.5 million received from the joint venture The Quartz Corporation |
At December 31, 2022
(€ millions) | PM Americas | PM EMEA & APAC | Others PM | PM |
Revenue | 1 188,0 | 1 608,4 | (196,7) | 2 599,7 |
Current operating income | 125,7 | 192,5 | (8,8) | 309,4 |
Adjustments | ||||
Amortization, depreciation and impairment | 94,5 | 85,4 | (9,4) | 170,5 |
Change in current operating write-downs and provisions | 7,9 | (4,2) | - | 3,7 |
Share in net income of joint ventures and associates | (0,6) | (7,7) | - | (8,3) |
Dividends received from joint ventures and associates | 0,4 | 4,5 | - | 4,9 |
Current EBITDA | 227,9 | 270,5 | (18,2) | 480,2 |
(€ millions) | PM | RAC | Others | Total |
Revenue | 2 599,7 | 1 434,4 | 247,5 | 4 281,6 |
Current operating income | 309,4 | 120,2 | 9,2 | 438,8 |
Adjustments | ||||
Amortization, depreciation and impairment | 170,5 | 91,0 | 41,6 | 303,1 |
Change in current operating write-downs and provisions | 3,7 | (3,2) | (0,5) | - |
Share in net income of joint ventures and associates | (8,3) | (0,1) | (18,2) | (26,6) |
Dividends received from joint ventures and associates | 4,9 | - | - | 4,9 |
Current EBITDA | 480,2 | 207,9 | 32,1 | 720,2 |
NET CURRENT FREE OPERATING CASH FLOW
(€ millions) | 31.12.2023 | 31.12.2022 |
Items from the Consolidated Income Statement | ||
Revenue | 3 867,4 | 5 172,6 |
Raw materials and consumables used | (1 403,2) | (1 898,2) |
External expenses | (1 000,6) | (1 357,3) |
Staff expenses | (882,5) | (1 021,3) |
Taxes and duties (1) | (28,7) | (40,7) |
Other current income and expenses | 30,3 | 3,7 |
Share in net income of joint ventures and associates | 90,6 | 32,6 |
Adjustments | ||
Change in provisions for employee benefits | (1,5) | (2,7) |
Change in current operating write-downs and provisions | 4,2 | (2,9) |
Share in net income of joint ventures and associates | (90,6) | (32,6) |
Dividends received from joint ventures and associates | 54,7 | 5,8 |
Current EBITDA | 640,1 | 859,0 |
of which discontinued operations (2) | 7,4 | 139,0 |
Income taxes | ||
Notional income tax on current operating income | (95,8) | (155,1) |
Adjustments | ||
Change in operating working capital requirement (3) | 86,3 | (232,8) |
Carrying amount of intangible assets and property, plant and equipment disposed of | 8,9 | 10,7 |
Net current operating cash flow | 639,5 | 481,8 |
of which discontinued operations (2) | 8,2 | 41,0 |
Investing activities | ||
Acquisitions of intangible assets and property, plant and equipment (4) | (390,3) | (406,2) |
Additions to right-of-use assets | (58,2) | (55,8) |
Net current free operating cash flow | 191,0 | 19,8 |
of which discontinued operations (2) | 5,9 | 14,2 |
(1) Consolidated Income Statement | ||
(2) High Temperature Solutions line of business. | ||
(3) Change in operating working capital requirement (Consolidated Statement of Cash Flows) | 86,3 | (232,8) |
Adjustments for decrease (increase) in inventories | 135,8 | (198,8) |
Adjustments for decrease (increase) in trade receivables | 133,0 | (79,1) |
Adjustments for decrease (increase) in trade payables | (182,5) | 45,1 |
(4) Acquisitions of intangible assets and property, plant and equipment (Consolidated Statement of Cash Flows) | (390,3) | (406,2) |
Acquisitions of intangible assets | (68,5) | (44,5) |
Acquisitions of property, plant and equipment | (330,1) | (345,1) |
Change in payables on acquisitions of intangible assets and property, plant and equipment | 8,3 | (16,6) |
The following table presents the cash flow from non-recurring operations, i.e. non-recurring operating transactions, changes in the scope of consolidation, financing transactions and transactions with shareholders. These cash flows, added to the net current free operating cash flow from the previous table, give the total change in net financial debt.
(€ millions) | 31.12.2023 | 31.12.2022 |
Net current free operating cash flow | 191,0 | 19,8 |
Of which discontinued operations (1) | 5,9 | 14,2 |
Income taxes | ||
Notional income tax on financial income (loss) | 5,9 | 13,3 |
Change in current and deferred tax assets and liabilities | 12,1 | 12,7 |
Change in income tax payables and receivables | (22,7) | 20,9 |
Income taxes paid on non-recurring income and expenses | 23,3 | 2,9 |
Consolidated Income Statement | ||
Financial income (loss) | (36,5) | (52,8) |
Other operating income and expenses | (231,9) | (137,6) |
Adjustments | ||
Change in non-operating working capital requirement | 14,4 | 1,2 |
Change in financial write-downs and provisions | (6,4) | 2,7 |
Change in fair value of hedging instruments | 2,2 | 3,6 |
Non-recurring impairment losses | 5,4 | 108,0 |
Change in non-recurring write-downs and provisions | 211,7 | 10,0 |
Share in net income of joint-ventures and associates | - | (3,3) |
Gain (loss) on businesses disposed of | (53,6) | (28,5) |
Gain (loss) on intangible assets and property, plant and equipment disposed of | 0,9 | 2,4 |
Investing activities | ||
Acquisition of businesses | (26,0) | (20,3) |
Disposal of businesses | 666,6 | 100,9 |
Disposal of intangible assets and property, plant and equipment | - | 0,5 |
Loans and advances in cash received from (granted to) third parties | 3,2 | 4,6 |
Equity | ||
Share capital increases (decreases) | 3,6 | - |
Disposals (acquisitions) of treasury shares | (14,8) | (10,9) |
Share-based payments | 10,3 | 13,5 |
Dividends | (330,3) | (137,5) |
Change in net financial debt excl. exchange rate effects | 428,4 | (73,9) |
(1) High Temperature Solutions line of business. | ||
CHANGE IN NET FINANCIAL DEBT
(€ millions) | 31.12.2023 | 31.12.2022 |
Net financial debt at the beginning of the period | (1 666,2) | (1 451,1) |
Change in net financial debt excl. exchange rate effect | 520,7 | (73,9) |
Reclassification to/from liabilities related to assets held for sale (1) | 35,3 | (122,1) |
Exchange rate effet | (8,2) | (19,1) |
Change in net financial debt | 547,8 | (215,1) |
Net financial debt at the end of the period | (1 118,4) | (1 666,2) |
(1) At December 31, 2023, the business serving the paper market for €38.2 million and the bauxite production business for -€2.9 million and at December 31, 2022, the High Temperature Solutions line of business for -€83.1 million, -€38.2 million for the business serving the paper market and -€0.8 million for the hydrous kaolin business in the US. | ||
CONSOLIDATED STATEMENT OF CASH FLOWS
(€ millions) | 31.12.2023 | 31.12.2022 |
Net income | 53,8 | 254,4 |
Adjustments | ||
- for depreciation and amortization | 510,6 | 335,4 |
- for impairment loss on goodwill | 5,4 | 108,0 |
- for impairment loss (reversal of impairment loss) recognized in profit or loss, trade and other receivables | (4,8) | (2,6) |
- for impairment loss (reversal of impairment loss) recognized in profit or loss, inventories | (0,5) | 4,8 |
- for provisions | 3,1 | (14,4) |
- for share-based payments | 10,3 | 13,5 |
- for losses (gains) on disposal of non-current assets | (54,1) | (25,1) |
- for undistributed profits from joint ventures and associates | (90,6) | (35,8) |
- for net interest income and expense | 24,4 | 37,6 |
- for fair value losses (gains) | 2,2 | 3,7 |
Other adjustments for non-cash items | 0,1 | (0,9) |
Other adjustments for which cash effects are investing or financing cash flow | 28,8 | 16,8 |
Change in working capital requirement | 100,7 | (231,6) |
- for decrease (increase) in inventories | 135,8 | (198,8) |
- for decrease (increase) in trade receivables | 133,0 | (79,1) |
- for increase (decrease) in trade payables | (182,5) | 45,1 |
- for other receivables and debts | 14,4 | 1,2 |
Adjustments for income tax expense | 57,5 | 129,7 |
Net cash flow from (used in) operations | 646,9 | 593,5 |
Interest paid | (26,4) | (41,9) |
Income taxes refund (paid) | (72,4) | (105,4) |
Adjustments for dividends received from joint ventures and associates | 54,7 | 5,8 |
Net cash flows from (used in) operating activities | 602,8 | 452,0 |
Of which discontinued operations (1) | 11,9 | 17,1 |
Acquisitions of intangible assets | (68,5) | (44,5) |
Acquisitions of property, plant and equipment | (330,1) | (345,1) |
Change in payables on acquisitions of intangible assets and property, plant and equipment | 8,3 | (16,6) |
Cash flows used in (from gaining) control of subsidiaries or other businesses | (25,8) | (20,8) |
Proceeds from disposals of intangible assets and property, plant and equipment | 10,3 | 10,2 |
Cash flows from losing control of subsidiaries or other businesses (2) | 541,9 | 84,4 |
Other cash payments related to the acquisition of equity and debt instruments of other entities | 0,9 | 0,0 |
Cash advances and loans granted to third parties | (7,5) | (3,0) |
Cash receipts from repayment of advances and loans granted to third parties | 9,0 | 7,3 |
Interest received | 9,5 | 5,5 |
Cash flow from investing activities | 148,0 | (322,6) |
Of which discontinued operations (1) | (60,7) | 23,9 |
Proceeds from issuing shares | 3,6 | 0,0 |
Payments to acquire or redeem treasury shares | (14,8) | (10,9) |
Dividends paid | (330,3) | (137,5) |
Proceeds from borrowings | 496,5 | 0,0 |
Repayments of borrowings | 0,0 | (6,8) |
Payments of lease liabilities | (52,1) | (61,1) |
Other cash inflows (outflows) (3) | (1 033,7) | 318,9 |
Cash flow from financing activities | (930,8) | 102,6 |
Of which discontinued operations (1) | (58,6) | (35,1) |
Change in cash and cash equivalents | (180,0) | 232,0 |
(1) High Temperature Solutions line of business. | ||
(2) Of which in 2023, €554.2 million received with respect to the loss of control of High Temperature Solutions line of business and in 2022, €49.0 million received with respect to the loss of control of the US hydrous kaolin business and €33.4 million with respect to the loss of control of the Canadian and Namibian natural graphite business. | ||
(3) In 2023, mainly made up of the acquisition of investment securities (€670.0 million) and repayment of debt securities (€433.0 million) and in 2022, mainly made up of short-term negotiable debt securities issued. | ||
GLOSSARY
Imerys uses “current” indicators to measure the recurrent performance of its operations, excluding significant items that, because of their nature and their relatively infrequent occurrence, cannot be considered as inherent to the recurring performance of the Group (see section 5.5 Definitions and reconciliation of alternative performance measures to IFRS indicators in the 2021 Universal Registration Document).
Alternative Performance Indicators | Definitions and reconciliation to IFRS indicators |
Growth at constant scope and exchange rates (also called life-for-like change, LFL growth organic or internal growth) | Calculated by stripping out the impact of currency fluctuations as well as acquisitions and disposals (scope effect). Restatement of the currency effect consists of calculating aggregates for the current year at the exchange rate of the prior year. The impact of exchange rate instruments qualifying as hedging instruments is taken into account in current data. Restatement of Group structure to take into account newly consolidated entities consists of: subtracting the contribution of the acquisition from the aggregates of the current year, for entities entering the consolidation scope in the current year; subtracting the contribution of the acquisition from January 1 of the current year, until the last day of the month of the current year when the acquisition was made the prior year, for entities entering the consolidation scope in the prior year. Restatement of entities leaving the consolidation scope consists of: subtracting the departing entity’s contribution from the aggregates of the prior year as from the first day of the month of divestment, for entities leaving the consolidation scope in the current year; subtracting the departing entity’s contribution from the aggregates of the prior year, for entities leaving the consolidation scope in the prior year. |
Volume effect | The sum of the change in sales volumes of each business area between the current and prior year, valued at the average sales price of the prior year. |
Price mix effect | The sum of the change in average prices by product family of each business area between the current and prior year, applied to volumes of the current year. |
Current operating income | The operating income before other operating income and expenses (income from changes in control and other non-recurring items). |
Net income from current operations | The Group’s share of income before other operating income and expenses, net (income from changes in control and other non-recurring items, net of tax) and income from discontinued operations. |
Current EBITDA | Calculated from current operating income before operating amortization, depreciation and impairment losses and adjusted for changes in operating provisions and write-downs, share in net income and including dividends received from joint ventures and associates. |
Net current operating cash flow | Current EBITDA after notional income tax on current operating income, adjusted for changes in operational working capital requirement and proceeds from divested intangible and tangible assets. |
Net current free operating cash flow | Current EBITDA after notional income tax on current operating income, adjusted for changes in operational working capital requirement, proceeds from divested intangible and tangible assets, paid intangible and tangible capital expenditure and changes in right-of-use assets. |
Net financial debt | Difference between financial liabilities (borrowings, financial debts, and IFRS 16 liabilities) and cash and cash equivalents. |
Notional income tax rate | Income tax rate on current operating income |
[1] Ex-dividend and payment dates would be May 21, 2024 and May 23, 2024 respectively
[2] By expenditure.
[3] In 2023, the 2022 baseline was recalculated based on spending from January 1st to December 31st 2022.
[4] Based on spending from January 1st to June 30th 2023.
[5] Based on the SustainAgility Solutions Assessment framework a “SustainAgility Solution” is a product in an application that has scored within the two highest categories of the four possible categories.
[6] Priority sites refer to withdrawal > 1 Mm3 or located in water stress zones.
[7] Priority sites for biodiversity audits have been defined as sites with a quarry that extracts more than 1 million tons per year, or are located within a radius of 5 km of an area classified as IUCN category I, II or III, or are located in a biodiversity hotspot within a radius of 5 km of an area classified IUCN category IV.
[8] Impairment of paper assets: €108 million (2022) and €175 million (2023)