Befesa Reports Q1 2024 Results and Projects Positive Full-Year EBITDA

Luxembourg-based Befesa S.A., a leader in hazardous waste recycling for the steel and aluminium industries, announced its Q1 2024 financial results with a projected full-year EBITDA of €195m to €235m. Despite a 7% year-over-year revenue drop to €298m from €322m, the company experienced an 8% increase from the last quarter of the previous year. The adjusted EBITDA was noted at €49m, marking a 3% decrease from the same quarter last year yet representing a 7% rise from Q4 2023.

The processed volume rose due to increased operational efficiency and cost-effective resource management, with a significant segment of the growth attributed to improved zinc treatment charges and favorable hedges against lower zinc prices. Notably, the company's efforts in operational enhancements in the US and market optimizations in China are expected to yield positive outcomes in the forthcoming periods. Befesa also highlighted robust improvements in reducing energy costs which favorably impacted the financial results.

In light of these developments, the executive leadership remains optimistic about achieving substantial EBITDA growth in 2024 driven by continued operational improvements and strategic market deployments. This outlook is underlined by the stabilization of metal prices and the anticipated normalisation of coke prices moving forward.