Highlights
• Sibelco’s safety performance deteriorated slightly in the first half of 2022. RIR (# of recordable injuries per million hours worked) over that period recorded at 2,2 compared to 1,7 for the full year 2021. A comprehensive health and safety strategy is in place to reverse this trend.
• Sibelco generated revenue of EUR 973 million, representing an increase of 19% against the same period in 2021. Business remained strong in an environment characterized by high volatility. Volumes remained stable in Q1, but with the exception of certain high value items, reduced slightly in Q2.
• EBITDA was up 22% from EUR 147 million to EUR 180 million in 2022. A sharp rise in operating costs, particularly energy and logistics, was offset through operating efficiencies, an improvement in the product mix (especially high purity quartz) and sales price increases.
• Operations in Ukraine shut down, except for limited activity at one quarry. Impairment of asset values and loss of control are under review; worst-case scenario could be substantial (in excess of EUR 100 million).
• The Group's net cash position at 30 June was EUR 4 million compared to EUR 147 million at 31 December 2021. Sibelco generated limited positive free operating cash flow during the first half of the year as the increase in revenues caused higher working capital levels. Working capital as a percentage of revenue remained stable.
• Sibelco acquired Kremer Zand en Grind - a Dutch producer of silica sands and gravels, Krynicki Recyckling - one of Eastern Europe’s leading glass recyclers based in Poland, and further expanded its footprint in glass recycling by acquiring the remaining 51% of shares in Recyverre in France. The group also took a minority share in Australian listed silica producer Diatreme.
• In March, Sibelco was awarded a BBB- investment grade credit rating by Standard & Poors, and on the back of this issued an inaugural five-year bond for EUR 350 million in April.
• Whilst the Board of Directors acknowledges the good first half results, Sibelco is still in a transformative phase and the economic picture remains volatile with ongoing challenges around logistics, cost inflation, and product and material shortages. The Board of Directors will therefore only propose a dividend over the full year of 2022 in April 2023.
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Commenting on the results, CEO Hilmar Rode said:
Sibelco had a strong first half of 2022. Increased input costs were compensated by improvements in operating efficiencies, product mix, in particular high purity quartz, and through sales price increases. The war in Ukraine did affect our activities, but I am proud to say that Sibelco’s diverse product portfolio enabled us to offer substitute solutions to our clients which largely compensated for the margin loss. The implementation of our new company structure is on track and should be completed by the end of 2022. Sibelco saw signs of a slowdown in demand for its products in Q2. We expect this trend to intensify in the second half of the year given the extremely challenging economic environment. Considering our strong H1 results and momentum going into H2, we anticipate an increase in full year 2022 EBITDA compared to 2021. My thanks go to all Sibelco employees who achieved business success in a challenging transformational environment.
Hilmar Rode
Sibelco CEO
