SigmaRoc Sees Growth in Revenue and EBITDA in Q3

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SigmaRoc Sees Growth in Revenue and EBITDA in Q3

LONDON - SigmaRoc PLC, a leading player in the European lime and minerals market, reported a significant increase in revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the third quarter of 2024. The company’s revenue rose by 67% year-on-year to £729 million, while core EBITDA reached £165 million, an 88% increase, and the margin improved to 22.6%.

Despite a 3% decline in volumes due to a downturn in residential construction and adjacent sectors, SigmaRoc's performance was supported by strong results in the food, agriculture, mining, and infrastructure sectors. Proforma revenue decreased by 4% due to softer volumes and lower input cost transfers. However, core proforma EBITDA increased by 2%, demonstrating effective cost control and resilient pricing strategies.

SigmaRoc completed the acquisition of Polish lime assets on September 1, 2024, and is on track to finalize the integration of all CRH lime operations acquired during the year. The company raised its synergy forecast for 2027 from €30 million to €35 million, anticipating further benefits from the recent Polish acquisition. The upper limit of the synergy forecast remains at €60 million.

The third quarter showcased strong trading in most markets for SigmaRoc, despite mixed demand in certain sectors such as residential construction and the energy/automotive industries in Germany. The company’s diversified business model and exposure to various end markets contributed to its resilience, with particularly strong performance in the North-East and North-West regions.

Looking ahead, SigmaRoc expects the positive effects of anticipated interest rate cuts in Europe and the UK, which could potentially revitalize the residential construction sector. The company's unique position in the European lime market and significant resource base set it apart from competitors with narrower market exposures or limited access to high-quality mineral resources.

CEO Max Vermorken expressed confidence in the Group's ability to navigate the mixed market environment and maintain full-year expectations. The Board's outlook for the financial year 2024 remains unchanged, with EBITDA expected to meet consensus forecasts.

This report is based on SigmaRoc's press release.