Imerys delivers a robust performance in the first nine months of 2024 and confirms its Adjusted EBITDA guidance for the full year

¹_{The definition of alternative performance measures can be found in the glossary at the end of the press release}

²_{According to IFRS 5, HTS is accounted for as a discontinued operation and reported under ‘Net income from discontinued activities’ (its revenue, expenses and pre-tax profits are not detailed in the consolidated income statement), linked to the divestiture of the High Temperature Solutions business in January 2023}

³_{Until December 31, 2023, the Group communicated on current EBITDA. Thereafter, the definition of adjusted EBITDA no longer takes into account dividends received from joint ventures and associates, but includes their share in net income, which is specified in the Glossary. Comparative information was restated.}

⁴_{Share of net income from joint ventures contributes 0.6 and 3.2 percentage points to Q3 2024 and first nine months of 2024 adjusted EBITDA margin, respectively 2.5 pp in Q3 2023, 2.3 pp in first nine months of 2023}

⁵_{As a reminder, the translation reserve associated with the assets serving the paper market disposed of (mainly relating to the devaluation of the Brazilian Real) has been recycled to the income statement in accordance with applicable IFRS standards. The Group’s shareholders' equity is not affected by this non-cash loss of €302 million that is accounted for in the financial statements of the third quarter ending September 30, 2024.}

_{⁶Including €44 million of contribution of discontinued operations (High Temperature Solutions disposed of in January 2023)}
 

Outlook

With a proven track record of resilience in challenging environments, a diversified portfolio of specialty minerals and a global geographical footprint, Imerys is able to confirm its adjusted EBITDA target of between €670 to 690 million for 2024.

Commentary on the results 

Revenue

Revenue in the third quarter of 2024 was €855 million, a 4.1% year-on-year increase at constant scope and exchange rates. Group sales volumes were up 3.8%. This good performance is coming from the US market, holding up well, European activities enjoying a light rebound, particularly in consumer goods, and Asia performing well. Automotive and industrial markets in Europe were lagging behind in Q3. Prices reverted to a positive trend in the third quarter of 2024. 

In the first nine months of 2024, volumes were slightly positive compared to the prior year at 0.9%, and revenue reached €2,773 million, slightly above the prior year at constant scope and exchange rates. First nine months revenue included a negative currency effect of €36 million (-1.2%), as a result of the strengthening of the euro against most currencies. The scope effect was negative €94 million, mainly attributable to the divestiture of the assets serving the paper market.

Adjusted EBITDA  
 

Adjusted EBITDA decreased by €24 million in the third quarter of 2024, principally due to perimeter effect (-€17 million) and the lower contribution from our joint-ventures (-€17 million compared to 2023). Imerys Performance Minerals performed strongly, driven by volume recovery and a positive price/cost balance. 

For the first nine months of 2024, adjusted EBITDA increased by 3.0% (+6.8% at constant perimeter) and reached a 19.2% margin on sales, with a significant progress of 140 bps compared to 2023, driven by a stronger operating leverage and an improved year-to-date joint ventures contribution more than offsetting the negative perimeter effect.

Current net income

Current net income, Group share, totaled €41 million in the third quarter of 2024, (Q3 2023: €53 million).
In the first nine months, current net income, Group share was €214 million, a significant improvement of 11.3% compared to last year.
 

Net income

Net income, Group share was -€285 million in the third quarter of 2024, after booking €326 million of net expenses, mostly originating from the translation reserve associated with the assets serving the paper market divested in July. As a reminder, this translation reserve is largely related to the devaluation of the Brazilian Real since the acquisition of the assets three decades ago. At closing, this translation reserve has been recycled to the income statement as "other income and expenses" in accordance with applicable IFRS standards. This non-cash loss has no impact on the Group shareholders equity.

For the first nine months of 2024, net income, Group share totaled -€143 million vs €184 million of prior year. This decline is linked to the accounting entry mentioned above and last year’s contribution of discontinued operations for €44 million (High Temperature Solutions, disposed of in January 2023). These two negative impacts are partly offset by a year-on-year improved current net income.
 

^{7_{Share of net income from joint ventures contributes 2.3 and 3.2 percentage points to the first nine months of 2023 and the first nine months of 2023 adjusted EBITDA margin, respectively}}

Performance by activity

Performance minerals

Third quarter 2024 revenue generated by Performance Minerals reached €514 million, reflecting an organic growth of 8.2% compared to last year. 

Revenue in the Americas was up 11.6% at constant scope and exchange rates, reaching €224 million in the third quarter of 2024. Sales were supported by volumes (+9.8% vs Q3 2023), mainly driven by a good dynamic in consumer goods end-market, market share gains, as well as sustained prices. 

Revenue in Europe, Middle East, Africa and Asia-Pacific increased by 5.7% at constant scope and exchange rates in the third quarter of 2024 compared to last year. Sales benefit from a good business momentum in plastics, with some market share gains and the ramp up of the Group’s new plant in China. Filtration and life sciences business is holding well, while pricing is back to a positive trend. 

In the first nine months of 2024, revenue for Performance Minerals increased by 2% at constant scope and exchange rates to reach €1 714 million. In comparison with last year, growth was mainly driven by Performance Minerals America, while Europe, Middle East, Africa and Asia-Pacific have returned to positive growth after a low Q1 2024.
 

Solutions for Refractory, Abrasives and Construction

Third quarter 2024 revenue generated by Solutions for Refractory, Abrasives and Construction reached €284 million, a decrease of 1.4% compared to prior year at constant scope and exchange rates. Volumes reflect low industrial activity in Europe, the weakness of the automotive sector impacting especially abrasive demand, partially offset by a good momentum in the US and resilient prices in a deflationary environment.

Sales in the first nine months 2024 for Solutions for Refractory, Abrasives and Construction business reached €904 million (-1.6% at constant scope and exchange rates vs last year) and benefited from a good momentum in the US, but low industrial activity in Europe. 

Solutions for Energy Transition

The Graphite and Carbon business generated €57 million in revenue in the third quarter of 2024, in line with prior year. It benefited from the lithium-ion batteries market growth and market share gains partially compensated by some price adjustments. In the first nine months of 2024, revenue was behind last year, adversely affected by Asian destocking and price concessions during the first semester.

The US operations of The Quartz Corporation (high purity quartz joint venture, 50% owned by Imerys) suffered limited disruptions from Hurricane Helene. Careful safety stock management ensured no supply interruption occurred and production is gradually returning to normal. The outlook for photovoltaic installations for the remainder of the year remains positive, though the business is still negatively impacted by high inventories in the value chain.
 

2024 first nine months results webcast 

The press release is available on the Group’s website www.imerys.com. The Group will hold a live webcast to discuss the first semester 2024 results at 9.30 AM (CET) on July 30, 2024, which can be accessed via this link.

*For the appendix, download the PDF version of press release

Imerys is the world’s leading supplier of mineral-based specialty solutions for the industry with €3.8 billion in revenue and 13,700 employees in 54 countries in 2023. The Group offers high value-added and functional solutions to a wide range of industries and fast-growing markets such as solutions for the energy transition and sustainable construction, as well as natural solutions for consumer goods. Imerys draws on its understanding of applications, technological knowledge, and expertise in material science to deliver solutions which contribute essential properties to customers’ products and their performance. As part of its commitment to responsible development, Imerys promotes environmentally friendly products and processes in addition to supporting its customers in their decarbonization efforts.

Imerys is listed on Euronext Paris (France) with the ticker symbol NK.PA.

More comprehensive information about Imerys may be obtained from its website (www.imerys.com) in the Regulated Information section, particularly in its Registration Document filed with the French financial markets authority (Autorité des marchés financiers, AMF) on March 26, 2024 under number D.24-0183 (also available from the AMF website, www.amf-france.org). Imerys draws investors’ attention to chapter 2 “Risk Factors and Internal Control” of its Registration Document.

Disclaimer: This document contains projections and other forward-looking statements. Investors should be aware that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.

Analyst/Investor Relations:

Cyrille Arhanchiague : +33 (0)6 07 16 67 26  
finance@imerys.com  
 

Press contacts:

Claire Garnier : +33 (0)1 49 55 64 27 
Mathieu Gratiot : +33 (0)7 87 53 46 60 
Hugues Schmitt (Primatice) : + 33 (0)6 71 99 74 58 
Olivier Labesse (Primatice) : + 33 (0)6 79 11 49 71