At Euro 291.0 million, cumulative Steico Group sales after the first nine months of 2024 were up 3.1% on the same period of the previous year. In the Q3 2024, a pick-up in demand was recorded in some markets despite a strong competitive situation. At Euro 100.3 million, Q3 revenues were up 5.7% on the Q2 2024 and 8.6% on the Q3 2023. Business in the core German market is stable with growth attributed mainly to the Western European markets.
Earnings also improved over the nine-month period. EBITDA increased by 45.9% to Euro 69.1 million compared to the same period of the previous year while EBIT increased by 86.4% to Euro 47.9 million. This development is strongly supported by earnings from currency hedging of Euro 25.6 million recognised under German GAAP.
As previously indicated, the Management Board expects that these gains will not be generated to a comparable extent in the future.
This is evidenced by the fact that earnings slowed in the Q3 2024, compared to the Q2 2024.
Q4 Outlook
The Q4 is usually weaker due to weather conditions. In view of the positive performance to date, management expects revenue of in the region of Euro 375 million, approx. 3% above prior year.
During Q4 lower income from currency hedging and increased depreciation due to the commissioning of the new facility at Gromadka will prevent further earnings development. Based on these factors management expects to close the year with a comparatively high EBIT of around Euro 53-55 million.
The STEICO Group is the world market leader in the production and sale of ecological wood fibre insulation materials and a leading supplier of innovative timber construction products.
