Half Year 2024 RHI Magnesita NV Earnings Call Transcript
Key Points
- RHI Magnesita NV (WBO:RHIM) delivered a resilient set of results despite a challenging global demand environment.
- The company achieved a strong cash flow performance, with a cash conversion rate of 123% of EBITA and EUR233 million in operating cash flow, marking the highest since its listing in 2017.
- RHI Magnesita NV maintained stable revenues compared to the first half of 2023, supported by contributions from acquisitions.
- The company is actively transforming its business through strategic acquisitions, sustainability leadership, and the development of new products and technologies.
- RHI Magnesita NV is making significant progress in sustainability, with increased recycling rates and a notable reduction in CO2 emissions, positioning itself as a leader in the refractory industry.
- Global demand remains weak, with no short-term catalysts expected to drive a significant recovery in the second half of 2024.
- Steel sales volumes decreased by 1%, and industrial sales volumes were down by 10% compared to the previous period.
- Pricing has trended lower for both steel and industrial divisions, with an average reduction of 4% across the businesses.
- The company reported a tragic fatality at one of its plants in China, highlighting ongoing challenges in workplace health and safety.
- RHI Magnesita NV faces competitive pressures, particularly from Chinese imports affecting market share in regions like India and Southeast Asia.
(video playing)
Hello, and welcome to the RHI Magnesita half-year results 2024 webcast with Stefan Borgas, CEO; and Ian Botha, CFO. The webcast will consist of a presentation followed by Q&A. (Operator Instructions)
I would now like to hand over to Stefan to start the presentation. Stefan, please go ahead.
Here is my moment of safety. A handyman was preparing to cut a metal bar at my friend's house when I recently went to visit him on the weekend. The handyman didn't have the plastic cover on his cutting machine. Walking by, I asked him why? And he answered, it's too cumbersome to assemble and I never used this cover shield.
When I came back out of my friend's house, the handyman was sitting on the floor holding his bleeding eye, the metal splinter had flown into his eye. The plastic cover would have prevented this.
Why did I not insist when I walked by his workplace on the way in? Luckily, he recovered after a few hours without any long-term
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