The following is a summary of the The Weir Group PLC (WEIGF) 2023 Full Year Results Earnings Call Transcript:
Financial Performance:
Weir Group saw a 9% increase in revenue, delivering within the target range for cash conversion.
Operating profit rose 18% from last year with margins at 17.4%, exceeding their 2023 target.
Earnings per Share increased 18% to 115.9p per share. Capital expenditure also increased, but free operating cash conversion stayed within the target range at 85%.
Net debt reduced to 1.1x EBITDA, and return on capital employed increased by 280 basis points to 18%.
The company anticipates growth in revenue, profit, and operating margin expansion in 2024.
Weir Group has set a target operating margin of 20% in 2026 and committed to improving cash generation from 2024 onwards.
Business Progress:
The company began sea production at Ironbridge with their energy and water-saving high pressure grinding rolls.
Significant progress was made with Synertrex, which is now active on around 400 pieces of equipment at over 60 mines.
Weir Group acquired SentianAI to boost their digital capability and plans to accelerate the rollout of their process optimization solutions.
The company launched new training and leadership programs, setting up new chapters of the Weir Women's Network global affinity group.
A noticeable shift towards High-Pressure Grinding Rolls (HPGRs) was observed, presenting commercial and ESG opportunities.
Weir Group plans further investments in bolt-on acquisitions to boost its organic growth strategy and expects to deliver growth and margin expansion in 2024.
More details: WEIR GROUP IR
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