Billing was 440.5 million, 21.1% less
Ercros closed the first half of the year with a profit of 16.5 million euros, 64.3% less than in the same period of 2022, as the company communicated this Wednesday to the National Securities Market Commission (CNMV). .
The company obtained a turnover of 440.5 million euros, 21.1% less than the 558.7 million a year ago, while the gross operating result (Ebitda) was 42.2 million, 46, 5% less.
By type of income, Ercros closed the first six months of the year with sales of finished products of 419.5 million, 21.1% less, and income from services of 9.09 million, 31.7% less.
The company has explained that despite the increase in tons sold registered in the second quarter compared to the first, the semi-annual calculation "confirms the downward adjustment of quantities" that had been observed since mid-2022, with a total of 520,000 tons compared to the 588,000 of a year before.
In addition, the decrease in the average price per ton sold has had a negative impact of 57.5 million euros on Ercros' revenues during the first half of the year.
The company has indicated that revenues from services decreased by 31.7% due to lower demand and the reduction in prices due to lower transferred energy costs, since the drop in the price of electricity decreased spending on supplies by 34 ,1%.
CASH FLOW AND LIQUIDITY
On the other hand, free cash flow was negative by 2.37 million, while net financial debt increased by 32.52 million due to shareholder remuneration and lease renewal as the main causes.
As of June 30, Ercros had liquidity in the amount of 129.56 million euros, of which 32.63 million corresponded to treasury and 96.93 million to undrawn financing lines.
Ercros explained that the consensus of specialized publications maintains caution regarding the recovery of the European chemical sector in the remainder of the year.
For this reason, "the current weakness is expected to be maintained until the end of 2023 and then gradually improves throughout 2024".
The company estimates that the high uncertainty, the weakness of the demand and the drop in prices and volumes will negatively affect its margins, for which reason "the results of the second semester will foreseeably be lower than those of the first semester".