Sibelco deliver strong results despite tough market conditions
Difficult market conditions in Europe offset by strong performance by HPQ business in the US
IN their financial results for the year ended 31 December 2023, Sibelco report a 4.7% increase in revenue against last year to €2,104 million (2022: €2,009 million), and state that whilst tough economic conditions in Europe led to a 7.8% fall in sales volumes, this was offset by price increases and product mix improvements, mainly in the US, which saw EBITDA increase 22.3% to €414 million (2022: €339 million), and EBITDA margin increase to 19.7% compared with 16.9% in 2022.
Sibelco say market conditions in Europe were difficult with sales volumes down due to the slowdown in construction and certain targeted consumer good segments. However, a notably strong performance from Sibelco’s US high-purity quartz (HPQ) business compensated for the lacklustre European performance and was a key driver behind the group’s positive results. The company also made good progress towards its sustainability targets, cutting absolute scope 1 and 2 carbon emissions by 23% against the previous year, and emissions intensity by 30%.
Commenting on the results, chief executive officer Hilmar Rode said: ‘The cumulative impact of the recent period of high energy costs, high inflation, and high interest rates has led to a strong cyclical downturn in demand for Sibelco products across most of the company’s markets, especially in Europe. We are, therefore, pleased that Sibelco were able to deliver strong results in 2023 despite this very challenging economic environment.’
