SGL Carbon Reports Sales Dip but Improves EBITDA Margin

SGL Carbon's latest report reveals a decrease in sales for FY2024 while maintaining EBITDA figures. The company expects to meet its adjusted EBITDA target but faces challenges with declining revenue.

Date: 24-10-2024

AI Rating: 5

SGL Carbon (SGLFF) has provided a mixed report for fiscal year 2024. While the company anticipates achieving its adjusted EBITDA for the year at the lower end of the projected range of 160 million to 170 million euros, it has reported a decrease in group sales.

For the first nine months of FY2024, SGL Carbon's sales totaled 781.9 million euros, representing a 4.8% year-over-year decline from 821.7 million euros last year. This suggests potential issues with revenue growth, which could put pressure on stock prices given the declining sales figures.

However, it is important to note that the preliminary adjusted EBITDA remained relatively stable when compared to the previous year, coming in at 127.6 million euros against 130.0 million euros last year. This stability indicates that while sales have dipped, the company's ability to manage its costs effectively is reflected in its adjusted EBITDA figures.

Another positive aspect to highlight is the improvement in the adjusted EBITDA margin, which has risen to 16.3% for the current fiscal year from 15.8% in the previous year. This could suggest better efficiency or pricing power despite lower sales. The margin improvement might attract investors looking for companies that can maintain profitability even in the face of declining sales.

Stocks: SGLFF