Vesuvius exceeds expectations in HY1, projects £127.4m EBITDA

Vesuvius shares rose 7.7% to 348p in late morning trading on Monday following stronger than expected trading in HY1 2022, with a revised EBITDA projection of £127.4 million.

The engineering firm attributed its outperformance to the successful implementation of its pricing strategy to recover input costs, alongside market share gains linked to the company’s technological differentiation.

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Vesuvius highlighted a remaining uncertainty concerning the strength of its markets in HY2 due to the ongoing geopolitical volatility and potential macro-economic weakness.

In light of its market uncertainty, Vesuvius confirmed its HY2 expectations remained broadly flat, with a material drop in volume against HY1 and challenging cost inflation providing a level of difficulty for the company in the coming financial term.

Vesuvius said it anticipated a FY EBITDA at the top end of the analyst consensus range.

The company mentioned that while the scale of the potential slow-down remained uncertain, Vesuvius was confident in delivering a resilient performance for the financial year.

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