Stalprodukt (STP) Q3 2024 earnings summary

Executive summary

• Sales revenue for the group in Q3 2024 was down 10.1% year-over-year, with a net loss of PLN 5,840 thousand versus a profit of PLN 13,452 thousand in Q3 2023.

• Electrical Sheets segment saw a 32.4% drop in sales revenue and a 15.1% decrease in volume, mainly due to aggressive pricing from Asian competitors.

• The Zinc segment improved, with Q3 2024 revenues up 6.4% year-over-year and a positive result of PLN 12,599 thousand, reversing a loss in Q3 2023.

• The company executed a share buyback of 306,837 shares (5.68% of capital) for redemption, aiming to reduce share capital.

Financial highlights

• Net sales for 9M 2024: PLN 2,828,612 thousand, down from PLN 3,610,184 thousand in 9M 2023.

• Operating loss for 9M 2024: PLN -36,136 thousand, compared to a profit of PLN 138,229 thousand in 9M 2023.

• Net loss for 9M 2024: PLN -25,221 thousand, versus a net profit of PLN 95,860 thousand in 9M 2023.

• Net cash flow from operating activities for 9M 2024: PLN 36,860 thousand, sharply down from PLN 532,890 thousand in 9M 2023.

• Dividend paid per share in 2024: PLN 15.00.

Outlook and guidance

• Key factors for upcoming quarters include input prices, demand for transformer sheets, zinc and lead prices, exchange rates, and energy costs.

• The company expects continued pressure from Asian competitors and high energy/CO2 costs impacting European producers.