SigmaRoc PLC Reports Strong Q3 2024 Results

LONDON – SigmaRoc PLC, a key player in the European lime and minerals market, has reported significant increases in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter of 2024. The company's revenue surged by 67% year-over-year to £729 million, while underlying EBITDA rose by 88% to £165 million, achieving a margin improvement to 22.6%.

Despite a 3% decrease in volumes, influenced by a downturn in the residential construction and environment sectors, SigmaRoc's performance was supported by strong results in the food, agriculture, mining, and infrastructure sectors. The company's proforma revenue saw a 4% decline due to softer volumes and lower input cost pass-through. However, underlying 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 close to finishing the integration of all CRH (NYSE:CRH) lime businesses acquired within the year. The company has raised its synergy guidance for 2027 to €35 million, up from €30 million, with further benefits anticipated from the recent Polish acquisition. The upper-end synergy guidance remains at €60 million.

The third quarter showcased robust trading in most markets for SigmaRoc, despite mixed demand in specific sectors such as residential construction in Germany and the power/auto industries. 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 a positive impact from anticipated interest rate reductions in Europe and the UK, potentially revitalizing the residential construction sector. The company's unique positioning in the European lime market, along with a significant resource base, differentiates it from competitors with narrower market exposure or limited access to high-quality mineral resources.

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

This report is based on a press release statement from SigmaRoc.
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