Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Imerys (IMYSF, Financial) reported a strong quarter with a 3.8% increase in volumes, driven by demand for Specialty Minerals and market share gains.
- The company achieved a positive pricing trend in Q3, reversing previous declines, with prices up 0.3% compared to last year.
- Adjusted EBITDA for the first nine months reached EUR 533 million, up 3% from last year, with a solid margin of 19.2%.
- Performance Minerals segment in the Americas showed an 11.6% organic growth in Q3, benefiting from strong volumes and market share gains.
- Imerys (IMYSF) confirmed its full-year 2024 adjusted EBITDA guidance between EUR 670 million and EUR 690 million, reflecting confidence in its operational performance.
Negative Points
- The disposal of assets serving the paper market resulted in a perimeter effect, impacting revenue by minus EUR 83 million in Q3.
- Weakness in the automotive and industrial markets, particularly in Europe, continues to be a concern, with a negative outlook for the rest of the year.
- The graphite and carbon business posted a 1% negative variation in Q3, highlighting competitive pressures and price adjustments.
- The company faces challenges in the construction sector, with residential markets remaining subdued, particularly in Europe.
- Imerys (IMYSF) is cautious about the macroeconomic environment, citing geopolitical uncertainties and potential impacts on consumer confidence and investment.
Q & A Highlights
Q: Can you provide an update on the guidance and the situation with solar panel prices?
A: We confirm our guidance range for the full year. Regarding solar panels, the market is experiencing destocking, particularly in China, which affects visibility. However, the long-term outlook remains positive due to expected investments in photovoltaic installations. (Alessandro Dazza, CEO)
Q: How is the situation with the asbestos litigation progressing?
A: The potential settlement agreement with Johnson & Johnson has been signed and approved. We are awaiting the judge's decision, which should be published soon. We remain confident that the agreements will withstand court reviews. (Alessandro Dazza, CEO)
Q: Can you elaborate on the performance of the US market, particularly in Performance Minerals?
A: The US market has shown strong volume growth, driven by consumer goods and market share gains. This growth is attributed to our strategic investments and innovation in key markets. (Alessandro Dazza, CEO)
Q: What is the outlook for the automotive sector, especially in Europe?
A: The automotive sector in Europe is facing significant challenges, with companies like Volkswagen considering factory closures. We are cautious about capital allocation in this sector and are focusing on more promising markets. (Alessandro Dazza, CEO)
Q: How do you view the organic growth trends in the coming quarters?
A: We expect continued growth driven by market share gains and positive pricing trends. While the macroeconomic environment remains challenging, we are confident in our ability to outpace market growth. (Alessandro Dazza, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
