Full Year 2024 Mersen SA Earnings Call Transcript
Key Points
- Mersen SA (CBLNY) achieved record sales of EUR1.244 billion in 2024, marking a significant growth since 2020 with a CAGR of 10%.
- The company successfully acquired three companies, enhancing its growth profile and market presence.
- EBITDA reached EUR206 million, a record for the group, with a solid margin of 16.5%.
- Mersen SA (CBLNY) demonstrated strong cash generation, leading to a proposed dividend of EUR0.9 per share.
- The company has secured financing for its 2029 plan, ensuring financial stability and future growth potential.
- There was a slowdown in the solar market, particularly in China, affecting overall growth in Asia.
- Operating income for the advanced materials segment decreased by EUR9 million due to increased amortization and negative mix-volumes.
- Net income declined due to non-recurring costs and increased financial expenses, partly due to higher debt levels.
- The electrical power segment, while showing margin improvement, still faces challenges with profitability in the EV sector.
- The company anticipates a slowdown in 2025, with organic growth expected to be between minus 5% and zero.
Welcome to the 2024 annual results. That's Mersen's results. Now, let's perhaps say something about the past two years and what we did with our operations.
Well, in 2023, we've decided to refocus to some extent after many years of growth. As you will see, we have a growth in sale which is remarkable, which started in 2020 or perhaps a bit earlier than that. So in 2023, as you probably know, the markets were turning to us for silicon carbide semiconductors for EVs and for electric components for EVs. And therefore, we decided to change our growth strategy.
We contemplated a capital increase, which is what we did because there were massive investments to be made. And as you will see, we always talk about capital expenditure at Mersen. The level is high, and that's because at the time, we had constraints with our deliveries. You can't say that you're going to do something if your deliveries are vague. There were penalties for some contracts, so we did the job.
We changed the group quite
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