Bernardo Velazquez, CEO of Esrinox Manuel Casamayon
Acerinox is preparing to grow again after filling the box in 2022, in which it closed with the best results in the company’s history with a turnover of 8,688 million euros, up 30% from 2021, and a net profit of 556 million The gain was underweight by 3% annually on the euro, an asset loss in Malaysia.
After a failed merger attempt with Mittal family-owned Aperum last year that would have created a global steel giant, the company continues to grow organically and inorganically, especially in the US, where it focuses on 50 Continuing to look for placement opportunities. % of sales and where it announced an investment of 225 million euros earlier this year to increase the production capacity of its stainless steel factory by 20%. “The US has a very stable economy, strong demand and a very buoyant job market that is giving us great financial strength,” he said. Carlos Ortega, Non-Executive Chairman of AcerinoxIn a meeting with the media before the General Meeting of Shareholders.
In his opinion, investment is one of the keys to driving growth. Low level of leverage in an adverse context with rising interest rates, “We have 600 million in debt with an operating result (Ebitda) of 1,200 million, which gives us a very low ratio of 0.5 times and allows us to generate a lot of cash to invest in upward cycles. “
The company also does not rule out continuing growth in Europe, where it took over German VDM at the start of the pandemic for 532 million euros. “We do not stop investing, but in Europe we are not looking at increasing capacity. The aim is to move towards products with more added value as we did with VDM (special alloy)”, he stressed. Said by giving Bernardo Velazquez, CEO of Acerinox, “The only stipulation for the buyout is that they improve our company and that they generate shareholder value,” he said.
Velazquez advanced that after a historic 2022 there will be a cyclical correction this year. “Despite this, we expect it to be a very positive year.” The CEO stressed that the main change that would take place would be the business model which would lead to greater regionalisation. “After the pandemic, the Suez Canal crisis or the war in Ukraine, Countries have realized that they have to diversify the countries they supply goods and services to and bring them closer together to avoid problems arising with China or Russia., This will increase purchases in America and Europe and increase the load of industry in Spain.
Acerinox shareholders’ meeting votes on Tuesday 20% increase in dividend, which will be fixed at 0.60 Euro per share, disbursed in two payments in January and June. “We plan to take care of the shareholders, because they are hardy and mature,” said Ortega, who remarked that the possibility is being considered, whenever market conditions allow it to reward the shareholder with an extraordinary dividend. allows. For this, the debt should be less than 1.2 times of Ebitda and there will be no scope for growth.
“Our stock is critically low”
Both Acerinox’s non-executive chairman and CEO made several references throughout their speech to the heavy punishment the company’s stock was receiving in the stock market compared to the opposite reality of the income statement. “The stock is highly undervalued. If the company’s average EBITDA over the past fifteen years, including the financial crisis, demand and covid, has been 450 million and if 100 million is added to this, the integration of VDM will contribute and What will happen from this In the process of concentration of production in Europe and America, our price is well above the mark of its market value [la capitalización bursátil rozaba ayer los 2.600 milones de euros]Velazquez said. Traditionally, Acerinox used an eight-times EBITDA multiple to determine the company’s value, which would value it at more than 4,000 million euros.
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