Sibelco generates improved financial performance driven by economic recovery in most sectors
Sibelco today announced half year results that reflect a recovery in most of the sectors served by the company. Revenues and EBITDA were back above the levels of the equivalent period in 2019 and the company also generated positive cash flow and an improved return on capital employed.
Sibelco continued to deploy its Sibelco 2025 vision and strategy during recent months. This maps out a transformational path to further improvements in operational, commercial and financial performance and a clear commitment to sustainability. As part of this transformation Sibelco today published an ambitious strategy to reduce CO2 emissions. This strategy aims to improve Sibelco’s scope 1 & 2 emissions efficiency by 5% a year between 2021 and 2030. You can read more about this in a separate release here.
- Sibelco’s continuing operations (i.e. excluding the effect of divestments and closures) generated an increase in revenue of 17% (from EUR 700 million to EUR 816 million). This increase was driven primarily by higher sales volumes resulting from the recovery in most of Sibelco’s end-markets.
- For Sibelco’s continuing operations the improvement in EBITDA was 56% (from EUR 94 million to EUR 147 million).
- Sibelco generated positive cash flows during the first half of the year although the improving business environment and resulting higher sales led to an increase in net working capital. The Group’s net cash position at 30 June was EUR 135 million compared to EUR 168 at 31 December 2020.
- Sibelco will pursue substantial sales price increases to compensate for cost increases, particularly in logistics.
- While the Board of Directors acknowledges the good first half results, Sibelco is still undergoing transformation and the economic picture remains volatile (e.g. logistics, cost inflation, shortages of certain products and materials). The Board of Directors will therefore only propose a dividend over the full year of 2021 in April 2022.
- Sibelco’s safety performance continued to improve with a recordable injury rate (RIR) of 2.2. This is below Sibelco’s improvement target for 2021 and well below the total RIR for 2020 of 4.0.
Commenting on the results, Sibelco CEO Hilmar Rode said:
“Sibelco can be pleased with the rebound shown in the first half of 2021 in most of the markets that use our materials. We should temper this with some caution. Most industries – particularly in Europe – are far from a return to long term structural growth and competitive pressure and cost inflation remains intense. Through our Sibelco 2025 strategy we will continue to seek ways to better serve our customers and to generate sustainable levels of profitability. I would like to recognise the efforts of our Sibelco colleagues around the world who have supported the recovery and achieved a much improved safety performance during a period of rapid change for the company.”
You can read the full report here.