FLSmidth Announces Strong Transformation Progress and Improved Financial Performance in 2023

FLSmidth reports significant progress in its transformation journey, leading to a notable improvement in financial performance, with a focus on divesting its Cement business and enhancing profitability in Mining and Cement sectors.

FLSmidth Announces Strong Transformation Progress and Improved Financial Performance in 2023

FLSmidth, a global leader in the mining and cement industries, has made notable progress in its strategic transformation, resulting in improved financial performance across its operations. The company reported a robust increase in its Cement segment's profitability, with an EBITA margin reaching 6.7% in the recent fiscal year. This achievement comes alongside the announcement in January 2024 of FLSmidth's decision to explore divestment options for its Cement business, aiming to optimize its portfolio and focus on core areas.

The company's exit from Non-Core Activities (NCA) is proceeding at an accelerated pace, contributing positively to its operational cash flow, which stood at DKK 623 million. Despite a 5% organic decrease in Mining order intake due to market conditions and a strategic shift, the company's focus on service order intake has shown resilience with a 3% increase, highlighting stable market demand.

In the Cement sector, FLSmidth anticipates the short-term outlook to remain influenced by macroeconomic uncertainties. The company's revenue and adjusted EBITA margin guidance for the Cement business reflects the diligent implementation of its 'GREEN’26' strategy, which focuses on business simplification and product portfolio optimization. This includes the anticipated sale of the MAAG gears and drives business in the first quarter of 2024. The company also plans to adjust its EBITA margin to account for transformation and separation costs of approximately DKK 100 million for the full year.

Group CEO Mikko Keto emphasized the dynamic nature of 2023 as a pivotal year for FLSmidth, highlighting the collective efforts of employees in driving business performance improvement amidst a changing business landscape. The company's dedication to integrating Mining Technologies, simplifying operations, and enhancing profitability has positioned FLSmidth for continued success in its industry sectors.

Source: FLSmidth