Etex Full Year Results

Etex Full Year Results 2022
20 Mar 2023

Etex’s sustainable lightweight solutions drive very strong 2022 financial performance

Read the full article on the Etex website by clicking here

  • For the fifth year in a row, Etex achieved new record performance across the board, including in revenue, REBITDA and net recurring profit while setting another major milestone with its Road to Sustainability 2030 commitments
  • Record revenue of EUR 3.714 billion, corresponding to an increase of 25.0% compared to 2021, attributable to both the performance of recently acquired European insulation leader URSA and Australian plasterboard activities, together with stable volumes and increased average selling prices. Like-for-like¹ this represents an increase of 13.3%
  • Highest ever absolute value for REBITDA, at EUR 645 million for a 13.2% increase, driven mostly by increased revenues jointly with the positive impact of the acquisition of European insulation leader URSA. Like-for-like¹ increase of 2.8% versus 2021
  • Increase in net recurring profit (Group share) at EUR 275 million, +2.9% year-on-year
  • Increase in the net financial debt to EUR 1.031 billion versus EUR 214 million in 2021, driven mainly by the acquisition of URSA but partially offset by free cash flow generation
  • Gross dividend over 2022 profit: proposal by the Board of Directors of EUR 0.93 per share (+10.7%)
  • Outlook for 2023: volatility and uncertainty are expected to remain, particularly for energy and raw material prices, but Etex believes that demand for its products and solutions will remain strong given their intrinsic sustainable value and the ongoing needs in renovation and new build. REBITDA margin expected to stay solid
  • Sustainability: in 2022, improved ESG risk rating to reach the top 10 globally within its industry group. Between 2018 and 2022: 54% more recycled gypsum used – making Etex the most advanced gypsum recycler across Europe, including the UK – and decrease by 19.9% of absolute CO2 emissions
  • Etex’s Annual Report 2022 will be published on 6 April

Comments from Bernard Delvaux, CEO of Etex“I am proud to report that Etex delivered yet again significant growth in 2022, and this for the fifth year in a row. After an exceptional 2021 year, we achieved new record results, including in revenue, REBITDA and net recurring profit. This was reached despite an unfavourable business context that includes a world still recovering from the COVID-19 pandemic, the invasion of Ukraine by Russia, an energy crisis, and global inflation. Our lightweight construction solutions prove to be a great fit to answer the current needs in both renovation and new build given their intrinsic sustainable value. Etex’s products are up to 45% less emission intensive to produce compared to traditional construction methods, they provide up to seven times better thermal and sound insulation which increases energy-efficiency and emissions, and they are more recyclable, flexible and adaptable. In a nutshell, in 2022 Etex properly addressed urgent challenges in a volatile market while following a growth path to a sustainable future with our lightweight construction portfolio. Our promising results can be explained by several key contributors. Sales growth was particularly driven by some of our recent acquisitions, namely European insulation expert URSA in 2022 and the Australian plasterboard business in 2021. Our positive margins show agility and responsiveness through cost-to-price monitoring and swift adaptations to challenging market contexts. We were also successful in implementing a cautious approach on overhead costs while energy prices remained under control through an effective hedging strategy. Finally, faced with demand volatility, Etex showed impressive manufacturing agility across its more than 140 sites around the world. When looking back at Etex’s growth over the past years, it has been nothing short of impressive. Our dedicated focus to be a pioneer and leader in lightweight construction solutions has allowed the company to grow significantly. Next to this financial success, 2022 was also a year of other important moments for Etex. We launched our Road to Sustainability 2030 commitments, with clear targets and first progresses in terms of safety and well-being, diversity and inclusion, circularity, decarbonisation and customer engagement. We improved again our ESG risk rating to reach the top 10 in our industry group worldwide. Since 2018 we made significant progress on our sustainability journey, including through 54% more recycled gypsum used – making Etex the most advanced gypsum recycler across Europe, including the UK -, a decrease by 19.9% of absolute CO2 emissions and a reduction of waste sent to landfill by 26.5% in absolute value. Moreover, as soon as the conflict in Ukraine erupted, we immediately launched a support program for our 250 Ukrainian teammates and their families while taking a firm position on Russia. On pages 6 to 8 more details are shared on our achievements across our four strategic drivers of engaged people, operational excellence, customer experience and commercial excellence, as well as sustainability and innovation. For 2023, volatility and uncertainty are expected to remain, particularly for energy and raw material prices, but we believe that demand for Etex’s products and solutions will remain strong given their intrinsic sustainable value and the ongoing needs in renovation and new build. We therefore stay extremely attentive, agile and responsive on a month-per-month, country-by-country and product-by-product basis to navigate this uncertainty. We also see potential opportunities to grow across technologies and sustain our growth with a REBIDTA margin expected to stay strong. We have a clear focus to be the most innovative and sustainable global building material manufacturer. These elements combined should help Etex keep delivering good results and help building living spaces that are ever safer, more sustainable, smart and beautiful.”   Read the full article on the Etex website by clicking here

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sales.fsi.uk@etexgroup.com

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