SigmaRoc sees revenue and EBITDA jump in third quarter

LONDON – SigmaRoc PLC, a prominent player in the European lime and minerals market, has reported a substantial increase in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter of 2024. The company’s revenue surged by 67% year-over-year to £729 million, while underlying EBITDA rose by 88% to £165 million, reflecting a margin improvement to 22.6%.

Despite a 3% decrease in volumes, influenced by a downturn in the residential construction and environment sectors, SigmaRoc’s performance was bolstered by strong results in the food, agriculture, mining, and infrastructure sectors. The company’s proforma revenue saw a 4% decline due to softer volumes and lower input cost pass-through. However, underlying proforma EBITDA increased by 2%, demonstrating effective cost control and resilient pricing strategies.

SigmaRoc completed the acquisition of Polish lime assets on September 1, 2024, and is nearing the completion of integrating all CRH (NYSE:) lime businesses acquired within the year. The company has raised its synergy guidance for 2027 to €35 million, up from €30 million, with further benefits expected from the recent Polish acquisition. The upper-end synergy guidance remains at €60 million.

The third quarter showcased robust trading across most markets for SigmaRoc, despite mixed demand in specific sectors such as residential construction in Germany and the power/auto industries. The company’s diversified business model and exposure to various end markets have been instrumental in its resilience, with regions in the North-East and North-West performing notably well.

Looking ahead, SigmaRoc anticipates a positive impact from expected interest rate reductions in Europe and the UK, potentially revitalizing the residential construction sector. The company’s unique positioning in the European lime market, coupled with a significant resource base, sets it apart from competitors with narrower market exposure or limited access to high-quality mineral resources.

SigmaRoc’s CEO, Max Vermorken, expressed confidence in the Group’s ability to navigate the mixed market landscape and maintain its full-year expectations. The Board’s outlook for the fiscal year 2024 remains unchanged, with EBITDA projected to meet consensus expectations.

This report is based on a press release statement from SigmaRoc.

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