Morgan Advanced Materials PLC (CHIX:MGAMl)
£ 2.275 -0.050 (-2.15%) Market Cap: 637.61 Mil Enterprise Value: 948.31 Mil PE Ratio: 13.06 PB Ratio: 1.83 GF Score: 71/100
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Full Year 2024 Morgan Advanced Materials PLC Earnings Call Transcript

Feb 28, 2025 / 10:30AM GMT
Release Date Price: £2.15 (-15.52%)

Key Points

Positve
  • Morgan Advanced Materials PLC (MCRUF) reported a revenue of GBP1.1 billion for 2024, with an organic revenue growth of 3.7% and 7.6% growth in faster-growing markets.
  • The company achieved an operating margin of 11.7%, up 90 basis points, and adjusted operating profit increased by GBP18.2 million or 16.5% on an organic constant currency basis.
  • Cash generated from operations increased by 29%, reflecting effective working capital management.
  • The restructuring program is expected to deliver GBP27 million in annual savings by 2026, with GBP8 million already realized in 2024.
  • Morgan Advanced Materials PLC (MCRUF) reduced scope 1 and 2 CO2 emissions by 3% in 2024, continuing its commitment to sustainability.
Negative
  • The company experienced a volume decline of around 6% in the second half of 2024, particularly impacting the semiconductor market.
  • Revenue from the semiconductor sector declined by 10% in the second half of 2024 due to slower growth in battery electric vehicle sales.
  • FX had a negative impact of GBP10.1 million on adjusted operating profit due to currency fluctuations.
  • The company scaled back its investment in semiconductor capacity, reducing expected spending from GBP100 million to GBP60 million over 2024-2026.
  • Morgan Advanced Materials PLC (MCRUF) expects revenues to be down mid-single digits in 2025 due to weak industrial and semiconductor markets.
Operator

Hello everyone, and thank you for joining the Morgan Advanced Materials, full year 2024 results. My name is Lucy, and I will be coordinating your call today. (Operator Instructions)

I will now hand over to Pete Raby, Chief Executive Officer, to begin. Please go ahead.

Pete Raby
Morgan Advanced Materials PLC - Chief Executive Officer, Executive Director

Thanks very much, Lucy. Good morning, everyone. I said, I'm Pete Raby, the Chief Executive of Morgan Advanced Materials. I'm joined on the call by Richard Armitage, our CFO. Welcome to our preliminary results call for 2024. I will start with a summary of the results. Richard will then take you through the financial position, and I'll then cover the segmental drivers, non-financial metrics, and the outlook.

In 2024, we delivered revenues of GBP1.1 billion, and organic revenue growth of 3.7% and 7.6% growth from our faster growing markets. In light of the trading conditions, we've accelerated our restructuring program, and we will now deliver run rate savings of GBP27 million a year from 2026

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