The following is a summary of the Umicore SA (UMICF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Umicore reported annual revenues of EUR 3.9 billion in 2023, a 7% drop due to declining PGM prices and lower non-recurring lithium margin effects.
Despite the decrease in revenues, the company remained profitable with a 25% EBITDA margin and amplified its cash conversion rate from 73% to 125%.
Adjusted EBITDA stood at EUR 972 million, reflecting a decrease from the previous year.
The company generated an adjusted net profit of EUR 447 million leading to an adjusted EPS of EUR 1.86.
Umicore's net financial debt was EUR 1.3 billion, resulting in a leverage ratio of 1.3x relative to adjusted EBITDA over the last 12 months.
Business Progress:
Umicore prepared for a major expansion in battery materials volume, anticipated to commence from 2024.
The company continued its commitment to sustainability by increasing renewable energy use to 41%, up from 35% in the previous year.
The company anticipates a revenue of EUR 575-675 million in the Battery Materials group for 2024.
Umicore projects an EBITDA between EUR 900 million to EUR 950 million for the full year of 2024 and expects an EBITDA margin larger than 25%.
The company is expanding into China with a focus on EVs, backed by strong order books and risk-mitigating take-or-pay contracts.
Over 350 initiatives have been identified to boost efficiency across the business segments, promising an EBITDA impact of EUR 70 million in 2024 and over EUR 100 million from 2025.
Umicore plans to invest around EUR 3.8 billion in capital expenditures for the period 2022-2026.
More details: UMICORE IR
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