Bekaert: 2023 Full Year Results
01 Mars 2024 - 7:00AM
Bekaert: 2023 Full Year Results
2023 Full Year Results
Bekaert delivers strong cash generation and improved
marginsSales at € 4.3 billion • EBITu of € 388
million (margin 9.0%) • FCF up 40% • Leverage remains low at 0.5x
Net debt/EBITDAu • Proposed dividend of € 1.80 per
share (+9%)
Bekaert delivered a resilient financial performance in 2023,
further improving profit margins (EBITu margin at 9.0%, up 80bps vs
FY2022) and delivering strong cash flows (Free Cash Flow of
€ 267 million, up +40% y-on-y). Despite lower volumes and
weaker conditions in many of its end markets, the business
continues to benefit from the successful execution of Bekaert’s
strategy, maintaining pricing discipline, enhancing the mix of
higher margin products, and driving cost efficiencies. Looking
ahead, the repositioning to target new growth opportunities linked
to the energy transition and decarbonization trends continues and
supports the company’s ambitious financial targets for 2026.
Financial Highlights
- Consolidated sales
of € 4.3 billion (-13.5%) and combined sales of
€ 5.3 billion (-13.9%), driven primarily by the reversal
of raw material cost inflation, lower volumes and an unfavorable
impact from exchange rate movements
- The reversal of previous input cost
inflation reduced sales by € -437 million and lower
volumes (-3.7%) reduced sales by € -188 million. Currency
effects had an impact of € -152 million.
- Successful focus on price and mix
optimization towards higher margin products increased sales by
€ +101 million.
- Gross profit underlying remained
stable despite lower sales (€ 745 million vs
€ 749 million in FY2022) at a margin of 17.2% (vs 15.0%
in FY2022)
- Strong operating result and margin
performance, driven by ongoing business mix improvements including
the contribution of higher margin growth applications
- EBITDAu of € 561 million
(-5.1%), delivering a margin on sales of 13.0% (improvement of
+120bps vs FY2022)
- EBITu of
€ 388 million (-5.3%), resulting in a margin of 9.0% (vs
8.2% in FY2022)
- EPS from continued operations of €
4.75 (up +5.5% vs € 4.50 in FY2022)
- Strong cash conversion, despite
lower sales
- Free Cash Flow (FCF) of
€ 267 million, up +40% compared to
€ 191 million in FY2022, benefiting from further improved
working capital management
- Net debt of
€ 254 million (€ 380 million in FY2022)
including proceeds of the disposal of Steel Wire Solutions
businesses in Chile and Peru, resulting in net debt to EBITDAu of
0.5x
- Proposed dividend of € 1.80 per share (+9% y-on-y)
Operational and strategic highlights
- Strong pricing
progress from ongoing mix improvements with higher added value
products and applications, minimizing the impact of lower
volumes
- Intense focus on cost efficiencies
and operational excellence, including reduced procurement costs as
part of an ongoing range of initiatives, as well as further
footprint rationalization including:
- Closure of a Rubber Reinforcement plant
in China in Q3 2023
- Decision to close two Steel Wire
Solutions plants in India and Indonesia in December 2023
- Ongoing successful strategic
execution, re-positioning the business towards higher margin,
higher growth and less commoditized sectors, and focusing on growth
markets, innovation, and sustainability:
- Increased customer penetration of
higher margin 4D and 5D Dramix® products
- Continue to scale production in
Currento® (porous transport layer for hydrogen electrolyzers)
having doubled sales in 2023
- Significant customer interest in
Armofor® in both traditional and clean energy applications
- Signed agreement with Toshiba to
move downstream into membrane electrode assembly, growing Bekaert’s
capabilities in hydrogen electrolysis
- Partnership with ABB to deliver
predictive maintenance services for mine hoist systems
- 12 MWp solar power farm at the
production plant in Burgos, Spain, now fully operational
- The disposal of Steel Wire Solutions businesses in Chile and
Peru completed
Outlook
The financial performance delivered in 2023 and the company’s
robust financial position give us confidence in our ability to
further deliver on our strategic priorities. Whilst economic
uncertainties continue and a number of end markets remain
challenging, our trading in 2024 has started well across the
majority of our business units and management anticipates modest
sales growth and at least stable margins in 2024.
Looking beyond 2024, we also remain confident in our targets of
a sales growth rate of more than 5% per year in the mid-term and
from 2026 an EBITu margin of more than 10%, ROCEu of more than 20%
and over 50% of sales generated from sustainable solutions.
Committed to return value to our shareholders
The Board of Directors is committed to maintaining a strategic
capital allocation policy, balancing investment in future growth
and innovation, with maintaining a strong balance sheet and growing
shareholder returns over time. Over the last two years Bekaert has
successfully returned more than € 400 million, through
share buyback programs of approximately € 240 million and
a significantly increased dividend, up 50% in 2022, and a further
10% increase in 2023.
The continued successful execution of the strategic plan in
recent years has strengthened Bekaert’s financial performance,
operational resilience and consistency, balance sheet position,
cash generation potential, and the returns to shareholders.
Whilst this strategic plan remains clear and unchanged, the
arrival of the new CEO, Yves Kerstens, in September 2023, has been
a catalyst for the Board to review capital allocation priorities.
Building on the strong foundations of business and financial
improvements in recent years, the Board has concluded that it is
now the right time to accelerate this plan and Bekaert’s
transformational agenda, to take advantage of growth opportunities.
Therefore, the Board intends to prioritize investment in the
business in the next 12-24 months, both organically and
inorganically, and has taken the decision to pause the share
buyback program.
The group intends to maintain its policy of progressively
growing the dividend year-on-year and today announces a gross
dividend of € 1.80 per share (an increase of 9% y-on-y), to be
proposed by the Board at the Annual General Meeting of Shareholders
in May 2024.
Conference Call
The CEO and the CFO of Bekaert will present the 2023 results to
the investment community at 10:00 a.m. CET on Friday March 1st.
This presentation can be accessed live upon registration via the
Bekaert website (bekaert.com/en/investors) and will be available on
the website after the event.
- p240301E - 2023 Full Year Results
NV Bekaert (EU:BEKB)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
NV Bekaert (EU:BEKB)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024