FLSmidth reports 2023 cement revenues of DKK6bn

FLSmidth has released its 4Q23 and full-year 2023 preliminary and unaudited results. The cement business recorded revenues of DKK1.4bn (US$203.3m) in the 4Q23 and DKK6bn in 2023. EBITDA margin for the cement business grew by 7.4 per cent in the 4Q23 and by 6.7 per cent in 2023. The order intake for the 4Q23 in the cement business totalled DKK1bn and in 2023 it reached DKK4.9bn.

In a statement the company stated, "We expect the short-term outlook for the cement industry to remain impacted by macroeconomic uncertainty. The guidance for revenue and adjusted EBITA margin reflects the ongoing execution of the ‘GREEN’26’ strategy, continued business simplification and product portfolio pruning, including the expected closing of sale of the MAAG gears and drives business during 1Q24. Further, the guidance for adjusted EBITA margin includes adjustment for transformation and separation costs of around DKK100m for the full year 2024.”

Meanwhile, the mining business reported revenue of DKK4.5bn in the 4Q23 and DKK17.1bn in 2023. Adjusted EBITDA margin totalled 11.8 per cent in the 4Q23 for the mining sector and 10.8 per cent in 2023. The order intake for the mining business reached DKK3.6bn in the 4Q23 and DKK16.2bn in 2023.

Non-core activities reported revenues of DKK94m in the 4Q23 and DKK951m in 2023. The EBITDA margin for the non-core activities saw a loss of DKK83m in the 4Q23 and a loss of DKK345m in the 2023. Order intake amounted to DKK8m in the 4Q23 for the non-core activities and DKK208m for the 2023.

The consolidated group reported revenues of DKK6.06bn in the 4Q23 and DKK24.1bn in 2023. EBITDA margin for the consolidated group totalled 6.9 per cent in the 4Q23 and six per cent in 2023. Order intake for the consolidated group reached DKK4.6bn win the 4Q23 and DKK21.4bn in 2023.

Guidance for 2024 forecasts revenue of DKK4-4.5bn in the cement sector and DKK16-17bn in the mining business. Non-core activity is forecast to see revenue of DKK250-350bn in 2024 and consolidated group revenue is expected to total DKK20-21.5bn in 2024.