Vesuvius realizes robust financial results in 2023 despite difficult market conditions

2024-03-01

Mar. 1, 2024 - Vesuvius plc, a global leader in molten metal flow engineering and technology, announces its audited results for the twelve months ended 31 December 2023.

Highlights

Revenue of £1,929.8m, was 3.1% lower on an underlying basis vs. 2022, reflecting lower volumes in a weaker market, partially offset by good pricing performance and market share gains in Flow Control and Foundry

Robust trading profit of £200.4m, 6.7% lower on an underlying basis vs. 2022. Return on sales of 10.4%, 40bps lower than 2022 on an underlying basis

Increased R&D investment (£37.4m, up 3.7% vs. 2022 and now 1.9% of sales) leading to 21 new products launched in 2023 and a strong pipeline of new products for the coming years

Strategic expansion programme in Asia and Flow Control fully on track

Strong cash management performance (cashflow conversion of 93%) with an increase in cash generated from operations despite reduction of trading profit, due to good progress on reducing trade working capital, supporting the launch of our £50m share buy-back programme

Strong, stable balance sheet with net debt / EBITDA of 0.9x (31 December 2023)

Proposed final dividend of 16.2p, bringing the full year dividend to 23.0p, +3.4%

Programme to achieve cash cost savings of £30m by 2026 initiated

Best ever health and safety performance with our Lost-Time Injury Frequency Rate down to 0.6

Reduction of 20% in CO2e intensity vs. 2019 baseline, reaching 2025 interim target two years earlier than planned

Comment from Patrick André, CEO:

“Despite the short-term uncertainties in our end steel and foundry markets, we remain confident in the mid to long term growth potential of these markets and in particular the steel market outside of China, which should be a tailwind for us.

The strength of our technology-based business model should also enable us to continue simultaneously outperform our underlying markets in Flow Control and Foundry and maintain a positive pricing performance for all our business units in the coming years.

This, coupled with our relentless drive to optimise our cost base as illustrated by the launch of our new cost optimisation programme, positions us very well to achieve our objectives of 12.5% return on sales by 2026 and free cash flow generation of £400m over the next three years.”