Brussels – March 1, 2024 – Aliaxis, a world leader in fluid management solutions that enable access to water and energy, maintains strong profitability in 2023 despite challenging market conditions.

Highlights – 12-month period ended December 31, 2023

  • Revenue of €4.1 billion, a like-for-like1 decrease of 5.3% vs 2022
  • Recurring EBITDA2 of €619.5 million, decrease of 12.9% on a like-for-like basis1 vs 2022
  • Recurring EBITDA margin of 15.3%, declined by 1.5 p.p. vs 2022 (margin of 15.8% excluding one off year-end adjustments in Asia region)
  • Net profit of €324 million, down 12.7% vs 2022, including a realised net gain3 of €76 million on disposal of shares in Uponor accounted for in the net result as a gain on financial assets with no impact on Recurring EBITDA
  • Net financial debt4 of €754 million, an increase of €12 million vs December, 2022. Our investments in acquisitions (€239 million) and capex (€331 million) were financed in part by improved working capital (€209 million). Leverage of 1.2x last-twelve-months Recurring EBITDA
  • Strategic acquisitions of Valencia Pipe Company, expanding our presence in the West of the US, Zypho in Europe, at the forefront of drain water heat recovery solutions, and Comspec, a recycling specialist in New Zealand
  • Proposed dividend of €0.9460 gross per share (10% increase)

CEO Eric Olsen comments on the 2023 results:

“As anticipated, market conditions continued to be challenging throughout 2023, with volumes down globally. We have seen significant declines in housing starts in most of our relevant markets, ranging from 6% in Canada and 8% in the US, up to 19% in France. In the face of market slowdowns and the impact of high inflation, we maintained overall solid performance across the Group with robust profitability. Revenues were €4.1 billion with a Recurring EBITDA margin remaining above 15%. Since 2021, we have confirmed a step change, achieving Recurring EBITDA over €600 million for three years in a row.

We were able to adapt to deteriorating market conditions in Latin America and the UK. Meanwhile, we continue to deliver strong results in North America and the Pacific, with excellent commercial management focused on delivering for our customers. It shows the strength of our regional teams as well as the advantage of having a globally diversified portfolio to weather economic challenges.

Our Growth with Purpose strategy, centered on sustainability and innovation, continues to progress. On the sustainability front, we achieved a Silver EcoVadis rating, and over a third of our operations are now powered by renewable electricity, against 22% in 2022. We are successfully bringing the new products and systems our customers need, with new-to-market solutions making up 8.6% of our sales.”

Notes

1 2022 adjusted on a pro-forma basis to reflect the impact of the acquisition of Harco Fittings LLC in April 2022, Aquarius Spectrum in August 2022, OptiRTC Inc. in November 2022, Lareter in December 2022, Zypho in May 2023, Valencia Fittings LLC in June 2023 and the discontinued operations in Russia in June 2022.  Impact of FX excluded to reflect underlying performance at constant exchange rate.

2 Recurring EBITDA is Operating income (EBIT) exclusive of adjusted items plus depreciation, amortisation, and impairment (other than goodwill impairment).

3 Net gain after tax including dividends received and excluding bank fees, M&A transaction costs and interest expenses.

4 Includes IFRS 16 leases.

Media contact

Annamaija Bergius
Global Communications Director

+32 (0)2 775 57 57

Email Annamaija

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Press release: Aliaxis maintains strong profitability in 2023 despite challenging market conditions

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