OM (OMH) H2 2024 earnings summary

Executive summary

• Revenue increased 11% year-over-year to US$654.3 million, driven by record alloy production and higher trading volumes, but net profit attributable to owners fell 49% to US$9.3 million due to margin compression and higher costs.

• Adjusted EBITDA was US$76.0 million, with cash from operations at US$83.3 million.

• Basic and diluted EPS dropped to 1.22 cents from 2.45 cents in the prior year.

• Final dividend declared at A$0.004 per share, the first in several years.

• Mining segment remained under care and maintenance, while smelting achieved record output.

Financial highlights

• Gross profit margin for FY 2024 was 17.3%, peaking near 20% in H1 and declining to about 15% in H2.

• Net profit margin declined to 1.5% from 3.1% year-over-year.

• Cash and cash equivalents at year-end were US$59.6 million, nearly flat year-over-year.

• Net cash generated from operating activities rose to US$83.3 million from US$30.3 million.

• Loan repayments totaled US$66.1 million, mainly for project finance.

Outlook and guidance

• FY2025 total alloy production guidance: 440–490 ktpa, with FeSi at 170–190 kmt and Mn alloy at 270–300 kmt.

• Production expected to be slightly lower in FY 2025 due to power supply maintenance.

• Market normalization expected for manganese ore and alloys after recent price volatility.

• Continued near-term pressure on ferrosilicon due to declining coal and procurement costs.

• The report is based on financial statements in the process of being audited; no explicit forward guidance provided.