Imerys Reports 7.4% Drop in Sales and Lower Results Amid Weak Demand in Building Sector

PARIS (Agefi-Dow Jones)–Industrial minerals producer Imerys reported on Thursday a 7.4% drop in sales and lower results in the first half, in a context of weak demand in the building sector.

The group earned revenues of 1.98 billion euros over the first six months of the year, a decline of 5.6% at constant scope and exchange rates compared to the same period a year earlier .

Imerys said in a statement that its business was impacted “by continued customer destocking, a weak macroeconomic environment in key end markets and a high basis for comparison.”

Visibility remains “limited on customer demand” and the company is prioritizing cost reduction and cash generation, she said.

In the first half, the current gross operating surplus (Ebitda) fell by 12%, to 331 million euros. It shows an operating margin down slightly to 16.7%, against 17.5% in the same period a year earlier. However, net current free operating cash flow increased to €135 million before strategic investments, compared to €48 million in the first half of 2022.

Imerys said it expects current Ebitda of 630 million to 650 million euros for the whole of 2023 “within the current scope and on the basis of current activity”.

“The macroeconomic context remains difficult in all geographic areas. The economy is slowly picking up in China and the weakness of the construction market continues to weigh on the sector. Due to a lack of sufficient visibility on the evolution of demand, which remains For the time being, hampered by ongoing destocking, the group will focus on cost reduction measures and cash generation,” the group said.

-Jérôme Batteau, Agefi-Dow Jones; 01 41 27 47 99; jbatteau@agefi.fr ed: VAT

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July 27, 2023 3:56 PM ET (7:56 PM GMT)