FLSmidth preliminary and unaudited 2Q24 and 1H24 results

FLSmidth has announced preliminary and unaudited financial results for the 2Q24 and 1H24. Consolidated group revenue totalled DKK5bn (US$729.9m) in the 2Q24 and DKK9.8bn in the 1H24.

Cement revenue reached DKK1.1bn in the 2Q24 and DKK2.3bn in the 1H24. Adjusted EBITDA margin for cement equalled 9.6 per cent in the 2Q24 and 8.6 per cent in the 1H24.

The updated Adjusted EBITA margin guidance for cement reflects a better-than-expected impact from the implementation of the service-oriented business model, FLSmidth continued de-risking strategy and the ongoing business simplification.

The updated Mining revenue guidance of DKK3.8bn in the 2Q24 and DKK7.4bn in the 1H24 reflects the expectation of lower revenue from the order backlog due to customer-driven delays affecting the execution and finalisation of certain legacy products orders.

It remains the expectation that the total loss of exiting the non-core activities (NCA) segment will be around DKK1bn (over the period since the establishment of the segment as of the 4Q22 until end of 2024). Revenue in this sector reached DKK44m in the 2Q24 and DKK94m in the 1H24. 

Financial guidance for FY24
FLSmidth's updated financial guidance for the full year 2024 forecasts group revenue down DKK20bn and reflects the ongoing business simplification and transformation efforts, continued improvement in the core mining business, realisation of the full cost synergies from the Mining Technologies acquisition, continued profitability progress in the Cement business and the ongoing exit from the NCA segment.

FLSmidth 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 completed sale of the MAAG business in the 1Q24. Further, the guidance for adjusted EBITA margin includes an adjustment for transformation and separation costs of around DKK100m for the full year 2024.