Full Year 2024 Vesuvius plc Earnings Call Transcript
Key Points
- Vesuvius PLC (FRA:V4S) achieved a 10 basis point increase in return on sales despite challenging market conditions.
- The Steel division performed well, with a 110 basis point improvement in return on sales to 11.4%.
- The company launched 32 new products in 2024, a 50% increase from 2023, contributing to market share gains.
- Vesuvius PLC (FRA:V4S) maintained a low net debt to EBITDA ratio of 1.3 times, despite significant strategic CapEx and share buybacks.
- The company achieved a 27% reduction in CO2 intensity compared to its 2019 baseline, surpassing its sustainability targets.
- Revenues declined by 1.8% on an underlying basis due to significant market declines in the Foundry division.
- The Foundry division faced a 29% decline in trading profits and a 230 basis point reduction in return on sales to 7.4%.
- North America's steel production declined by 4.2%, negatively impacting Vesuvius PLC (FRA:V4S) as it is a key sales region.
- The company anticipates continued weakness in Steel and Foundry markets in Europe for 2025.
- Vesuvius PLC (FRA:V4S) faces potential negative impacts from trade tariffs and geopolitical uncertainties, which could affect trading profits.
Good morning, ladies and gentlemen. Welcome to Vesuvius full year 2024 presentation. My name is Patrick Andre, I'm the Chief Executive Officer 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 some more details on our financials. I will conclude at the end of the meeting with some perspectives on the year 2025 and beyond before opening the floor for questions.
Our results for the full year were in line with our expectations despite weaker market conditions than expected. Our revenues declined 1.8% on an underlying basis with market share gains in Flow Control and Foundry only partially compensating a very significant market decline in Foundry. Our credit profits remain robust with only a very slight decline of 0.2% as compared with last year on an underlying basis.
Despite the difficult market conditions, our return on sales increased by 10 basis points as compared to
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