Preliminary and unaudited results for FY2023 in line with guidance and FY2024 financial guidance is introduced. Annual cost synergies from the Mining Technologies acquisition raised to around DKK 600m
January 29 2024 - 12:06PM
Preliminary and unaudited results for FY2023 in line with guidance
and FY2024 financial guidance is introduced. Annual cost synergies
from the Mining Technologies acquisition raised to around DKK 600m
COMPANY ANNOUNCEMENT NO. 2-2024 29 January
2024, Copenhagen, Denmark
Today we are pleased to announce that our full year 2023
preliminary and unaudited results are in line with guidance. In
addition, financial guidance for 2024 is introduced, which reflects
FLSmidth’s continued transformation as part of the strategic
journey towards FY2026.
In October 2022, FLSmidth raised the expected annual cost
synergy target from the Mining Technologies* acquisition (ref.
Company Announcement no. 17-2022) to around DKK 560m. The
integration of Mining Technologies into FLSmidth is now more or
less completed. Consequently, we now have a complete view of the
synergies that will be fully realised in our FY2024 results and
onwards. Based on a better-than-expected integration, the total
annual cost synergies amount to around DKK 600m, and consequently
above our own expectations. The results for the full year 2023
include realisation of around DKK 200m of the total annual cost
synergies.
To realise these synergies, we previously expected the total
integration costs to be around DKK 800m (ref. Company Announcement
no. 17-2022), of which DKK 252m were recognised in 2022. Due to the
successful integration process, we have managed to keep integration
costs to a total of DKK 733m.
FLSmidth will, as previously communicated, release the detailed
and audited financial results for the full year of 2023 on 21
February 2024.
Preliminary and unaudited key figures for Q4 and
FY2023
|
Mining |
Cement |
Non-Core Activities |
Consolidated Group |
|
Q4 2023 |
FY 2023 |
Q4 2023 |
FY 2023 |
Q4 2023 |
FY 2023 |
Q4 2023 |
FY 2023 |
Revenue, DKK |
4.5bn |
17.1bn(~17.0bn) |
1.4bn |
6.0bn (~6.0bn) |
94m |
951m (0.9-1.0bn) |
6.0bn |
24.1bn (~24.0bn) |
Adj. EBITA margin |
11.8% |
10.8% (10.5-11.0%) |
|
|
|
|
9.2% |
8.0% (7.5-8.5%) |
EBITA margin |
|
|
7.4% |
6.7% (5.5-6.5%) |
Loss of DKK 83m |
Loss ofDKK 345m(loss of ~DKK 300-350m) |
6.9% |
6.0% (5.5-6.5%) |
Order intake, DKK |
3.6bn |
16.3bn |
1.0bn |
4.9bn |
8m |
208m |
4.6bn |
21.4bn |
Note: Numbers in brackets represent latest FY2023 guidance
*Mining Technologies refers to the former thyssenkrupp Mining
business, which FLSmidth acquired on 31 August 2022The adjusted
Mining EBITA margin includes adjustment for integration costs of
DKK 481m for FY2023, and the Cement EBITA margin for FY2023
includes a one-off net gain of ~DKK 100m from the sale of the
filter media business in July 2023.
Financial guidance for FY2024Our guidance for the full
year 2024 reflects the ongoing business simplification and
transformation efforts, continued improvement in the core Mining
business, realisation of the full cost synergies from the Mining
Technologies acquisition, continued profitability progress in the
underlying Cement business and the ongoing exit from the Non-Core
Activities segment.
Guidance 2024 |
Mining |
Cement |
Non-Core Activities |
Consolidated Group |
Revenue, DKK |
16.0-17.0bn |
4.0-4.5bn |
250-350m |
20.0-21.5bn |
Adj. EBITA margin |
11.5-12.5% |
5.5-6.5% |
|
9.0-10.0% |
EBITA margin |
|
|
Loss of DKK 200-300m |
7.5-8.5% |
Note: Consolidated Group adj. EBITA margin is not adjusted for
the loss in Non-Core Activities.
MiningCompared to 2023, we expect market demand to be
softer in 2024, mainly driven by the Products business due to some
customers delaying larger investment decisions. However, the mining
industry continues to benefit from a positive long-term outlook for
minerals crucial to global economic development and the green
transition.
Guidance for adjusted EBITA margin includes adjustment for
transformation and separation costs of around DKK 200m for the full
year 2024. The adjusted EBITA margin is impacted by the realisation
of the full cost synergies from the Mining Technologies
acquisition, cost base inflation and re-investment of parts of the
synergies into key commercial areas to support our CORE’26 strategy
and to fuel our long-term growth ambitions.
CementWe expect the short-term outlook for the cement
industry to remain impacted by macroeconomic uncertainty. The
guidance for revenue and adjusted EBITA margin reflects the ongoing
execution of the ‘GREEN’26’ strategy, continued business
simplification and product portfolio pruning, including the
expected closing of sale of the MAAG gears and drives business
during Q1 2024. Further, the guidance for adjusted EBITA margin
includes adjustment for transformation and separation costs of
around DKK 100m for the full year 2024.
Non-Core ActivitiesThe guidance for revenue reflects
continued execution of the order backlog and contract negotiations
aimed at reducing the scope of the remaining Non-Core Activities
order backlog. The EBITA margin guidance reflects the operational
loss-making nature of the business as well as costs related to
finalise the exit of the business segment by end of 2024.
Consolidated Group The Consolidated Group guidance
reflects the sum of the guidance for the three business segments.
The guidance for 2024 is subject to uncertainty due macroeconomic
uncertainty and geopolitical turmoil.
Contacts:
Investor RelationsJannick Lindegaard Denholt, +45 21 69
66 57, jli@flsmidth.comAndreas Escherich Holkjær, +45 24 85 03 84,
andh@flsmidth.com
Media RelationsRasmus Windfeld, +45 40 44 60 60,
rwin@flsmidth.com
About FLSmidthFLSmidth is a full flowsheet technology and
service supplier to the global mining and cement industries. We
enable our customers to improve performance, lower operating costs
and reduce environmental impact. MissionZero is our sustainability
ambition towards zero emissions in mining and cement by 2030. We
work within fully validated Science-Based Targets, have a clear
commitment to reducing the sustainability footprint of the global
mining and cement industries and aim to become carbon neutral in
our own operations by 2030. www.flsmidth.com.
- FLSmidth Company Announcement no. 2-2024
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