Imerys posts record sales in H1 2022

2022-07-28

Jul. 28, 2022 - Revenue was €2,563 million, up 14.8% year-on-year at constant scope and exchange rates in the first half 2022.

Group sales volumes were down 1.3%, reflecting the impact of the Ukrainian crisis and the international economic sanctions against Russia, as well as local lockdowns in China following the resurgence of the Covid-19 pandemic and the weakness of the automotive industry.

In a highly inflationary environment, Imerys’ price effect accelerated from +11.9% in the first quarter of 2022 to +20.1% in the second quarter, averaging 16.1% in the first half.

Revenue included a positive currency effect of €101 million (+4.7%), primarily as a result of the appreciation of the U.S. dollar against the euro. The scope effect was €26 million negative, related to recent divestitures.

Current EBITDA fully benefited from higher selling prices, which became effective in the second quarter of 2022.

The strong price effect (€365 million) in the first half of 2022 compensated for the significant and rapid increase in variable costs, fixed costs and overheads, a consequence of extremely high inflation on all input factors. The currency effect was positive at €26 million.

Current operating income reached €293 million for the first half of 2022, a 19.5% increase compared to the first half of last year.

Net income from current operations, Group share, totaled €189 million, up 19.7% vs. last year. Net financial result was negative at €(17) million. The income tax expense of €(74) million corresponds to an effective tax rate of 27.0%. Net income from current operations, Group share, per share, was up 19.7% to €2.24.

Net income, Group share, totaled €192 million in the first half 2022. Other income and expenses, after tax, includes restructuring costs related to Russia and Ukraine compensated by a capital gain on the natural graphite disposal and a gain on the net monetary position of Haznedar (hyperinflation in Turkey in accordance with IAS 29). Excluding the latter, other income and expenses, after tax, represent a €15 million charge, in line with previous year.

Revenue generated by the High Temperature Materials and Solutions segment was up 18.4% in the first half of 2022 at constant scope and exchange rates. On a reported basis, revenue increased by 23.2% with a favorable currency effect of €42 million (+4.4%) and a negative scope effect of €3 million (-0.3%).

Revenue in High Temperature Solutions, which serves the iron & steel, thermal and foundry markets, increased by 19.2% year-on-year at constant scope and exchange rates, supported by strong activity and price increases. The business continued to benefit from various commercial initiatives and well oriented underlying markets. Haznedar, a high-grade refractory monolithics and bricks manufacturer in Turkey acquired in December 2020, achieved a record semester.

Revenue in the Refractory, Abrasives & Construction business area was up 17.6% at constant scope and exchange rates, driven by price hikes on all market segments, necessary to offset rising inflation especially on energy. Building and infrastructure held well while refractory and abrasive volumes experienced some softness in the second quarter of 2022 due to Russia and Ukraine, yet comparing favorably with market trends. In India, the new greenfield plant in Vizag, which produces refractories and specialty binders, continued to ramp up.