Half Year 2025 Vesuvius plc Earnings Call Transcript
Key Points
- Vesuvius PLC (CKSNF) achieved significant market share gains in both the steel and foundry divisions, nearly compensating for the overall market decline.
- The company maintained a strong safety performance, positioning itself among the best-in-class manufacturing companies worldwide.
- Vesuvius PLC (CKSNF) reported strong growth in India, with both the steel and foundry markets showing accelerated growth post-pandemic.
- The company successfully completed its capacity expansion program in Asia and Flow Control, which is expected to contribute to future growth.
- Vesuvius PLC (CKSNF) maintained its R&D efforts, with new product sales ratio increasing to 19.5%, close to its long-term target of 20%.
- Trading profit declined by 16.1% on an underlying basis due to adverse mix pricing and pricing effects.
- The company's return on sales declined by 160 basis points to 8.5%.
- Vesuvius PLC (CKSNF) faced challenges in recovering cost inflation through price increases, particularly in Europe and China.
- The Foundry division experienced a significant market decline, with revenue declining by 7% in EMEA.
- Net debt-to-EBITDA ratio increased to slightly below 2 due to the PiroMet acquisition and share buyback program, although it is expected to decline in the second half.
Ladies and gentlemen, welcome to Vesuvius Half Year 2025 results presentation. My name is Patrick Andre. I'm the Chief Executive of Vesuvius. And to my right with me this morning is Mark Collis, our Chief Financial Officer.
I will start with some updates on our performance during the year. Then Mark will give you more details on our financials and I will then conclude at the end of the meeting with some perspective on the full year 2025 and beyond before opening the floor for questions.
Our results for the half year were in line with our expectations despite the difficult market conditions. Our revenues declined only 0.4% on the underlying basis as market share gains in both the steel and foundry divisions nearly fully compensated the market decline as compared with last year.
Our trading profit however declined 16.1% on an underlying basis as our strong cost-cutting efforts could not fully compensate the adverse mix pricing and pricing effect during the first half. As a consequence, our return on sales
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