Befesa S.A.
Befesa focuses on organic growth after record year 2017
DGAP-News: Befesa S.A. / Key word(s): Final Results Befesa focuses on organic growth after record year 2017
Luxembourg, 15 March 2018 – Befesa S.A. (“Befesa”), the European market leader for steel dust and aluminium salt slags recycling services, expects to grow earnings in 2018 at single-digits following the record 2017 performance. In the financial year 2017, Befesa significantly grew its revenue by 18% to EUR 725mn. Adjusted EBITDA developed in line with Befesa’s IPO-guidance, growing 30% to EUR 172mn, while adjusted EBIT increased even more significantly to EUR 144mn, up 39% compared to the previous year. Margins were at 24% and 20% respectively. Befesa finished 2017 with a Net Income of EUR 49mn (prior year: Net Loss EUR 53mn). Javier Molina, CEO of Befesa, said: “After concluding 2017 with record results across our segments, Befesa is looking forward to continued success in 2018. As we implement our next set of organic growth initiatives, including the capacity increase in our plant in Turkey during the fourth quarter, we will continue our company’s successful development in 2018 and beyond.” In 2017, Befesa delivered a strong net Cash Flow from Operating Activities[2] of EUR 91mn (prior year: EUR 56mn), with new record volumes in both core segments. The positive growth momentum is expected to continue in 2018. Befesa furthermore entered into a new financing agreement which became effective on 7 December 2017, replacing the outstanding PIK, HY Bond and other financial facilities. Together with strong cash generation, the company improved its Net Debt3 / adjusted EBITDA leverage to x2.4 at the end of 2017 (versus x3.5 at year-end 2016). The company also expanded its disciplined hedging program, extending zinc hedges to year-end 2020. In 2017, Befesa hedged 73kt of zinc (59% of zinc equivalent output volume) at EUR 1,876 per ton and sold an additional 51kt (41% of zinc equivalent output volume) at an average market price of EUR 2,572 per ton. This resulted in a blended average zinc price per ton of EUR 2,160. For 2018, Befesa has extended its zinc hedges to 92kt (approximately 70% of expected total zinc equivalent output volume) at EUR 2,051 per ton. Using the 2017 average LME market price of EUR 2,572 for 2018 for the remaining unhedged approximately 30% volume, the blended average 2018 zinc price would be EUR 2,207 per ton. For 2019 and 2020, Befesa has hedged 92kt each year at EUR 2,306 and EUR 2,245 per ton respectively. Befesa’s strategy for growth initiatives in 2018 includes increasing capacity in the Steel Dust Services segment in Turkey and construction of a washing plant for the Waelz oxide in South Korea. In the Aluminium Salt Slags Services segment, Befesa is upgrading the furnaces at its Barcelona and Bilbao plants as well as expanding capacity at its Hanover plant. ___ [2] Note Total Free Cash Flow measured as Adjusted EBITDA +/- Change in Working Capital – Maintenance CapEx – Taxes is approximately EUR133mn for the full year 2017. About Befesa Investor Relations Rafael Pérez Media Relations Maximilian Karpf
15.03.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Befesa S.A. |
46 Boulevard Grande-Duchesse Charlotte | |
1330 Luxembourg | |
Grand Duchy of Luxembourg | |
E-mail: | irbefesa@befesa.com |
Internet: | www.befesa.com |
ISIN: | LU1704650164 |
WKN: | A2H5Z1 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; London |
End of News | DGAP News Service |