RHI Magnesita shares fell 8.4% to 2,062p in late afternoon trading on Monday, despite a reported revenue growth to €1.5 million against €1.2 million year-on-year in its HY1 2022 results.
The group mentioned a reported EBITDA climb to €177 million from €136 million, along with a pre-tax profit of €142 compared to €125 million the year before.
RHI Magnesita confirmed €293 million in price increases successfully passed off to consumers since HY1 2022 in a move to fight the impact of rising inflation in energy, raw materials and labour costs.
Meanwhile, the company noted significant market share gains in steel on the back of investment in production network and inventory support earnings, linked to customer prioritisation of supply security.
The group commented its net debt climbed to €1.2 million against €1 million in the previous year, in line with management expectations as reduction in inventory volumes was offset by the growth in inventory and accounts receivable values due to cost inflation and soaring prices.
The firm said its FY 2022 expectations remained unchanged, with margins set to be maintained via price increases and support from cost saving initiatives.
However, the company added its global growth outlook was impacted by inflation and monetary policy response, labour and energy market tightness and ongoing supply chain challenges.
“In the first half of 2022 we further demonstrated the benefits of prioritising customer deliveries in an environment of continued supply chain volatility,” said RHI Magnesita CEO Stefan Borgas.
“Our investment in inventories to ensure our customers remain supplied with essential refractories has underlined the importance of supply reliability and has enabled us to simultaneously increase prices and gain market share.”
“Following major investments in our production network, SG&A reduction and progress on our sales strategies, the Group is in a strong position to maintain its leadership position in the refractory industry and to navigate future challenges.”
RHI Magnesita announced an EPS of €2.06 from €2.01 in HY1 2021, and a flat dividend per share of €0.50.