2018 Full Year Results

27. March 2019

RHI Magnesita N.V.

(“RHI Magnesita” or the “Company” or “Group”)


2018 Full Year Results


Strong organic growth, continued synergy delivery and rapid deleveraging


RHI Magnesita today announces its 2018 full year results for the year ended 31 December 2018 (“2018” or “the Year”).

See below the highlights of the year. To access the full release please follow the link, here.



(€m unless stated otherwise)






pro-forma3 constant currency







Adjusted EBITA




Adjusted EBITA margin




Adjusted EPS




Net debt




Net debt to adjusted EBITDA

















Profit before tax







1 A full table of reported and pro-forma results is provided on page 18
2 Adjusted measures are alternative performance measures excluding impairments, amortisation of acquisition intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details of the APMs can be found on page 17
3 Whilst the merger became effective on 27 October 2017, the pro-forma results were prepared as if the Group had existed since 1 January 2017. Full details on page 18
4 As reported in 2018 Annual Report following purchasing price allocation (“PPA”) and other reclassifications


  • Strong revenue growth of 21% to €3,081 million reflecting increased volumes and commercial and raw material pricing gains:
    • Steel Division revenues up 15%;
    • Industrial Division revenues up 33%; and
    • Significant growth in China and India, with revenues up 36% and 21% respectively.
  • Adjusted EBITA up 81% to €428 million, representing an adjusted EBITA margin of 13.9%, 460bps higher than in 2017:
    • Continued successful integration with synergies of €70 million, exceeding the previously increased target;
    • Benefits of volume and price increases retained through integrated model; and
    • Improved efficiency and network optimisation, partially offset by short term operational issues at certain plants and some supply chain challenges during H2.
  • Free cash flow of €220.5 million, underpinned by an improvement in working capital intensity5 of 680bps to 15.4% and supporting robust organic growth, alongside significant expansion potential.
  • Leverage reduced significantly, from 1.9x to 1.2x net debt to adjusted EBITDA.
  • Financial performance and strong balance sheet underpin capital allocation policy:
    • Progressive dividend policy with proposed 2018 dividend of €1.50 per share, representing a 100% increase on 2017 and dividend cover of 3.5x6;
    • Incremental efficiency and growth capex programme starting in 2019; and
    • Flexibility to pursue acquisition opportunities in growth markets.

5 Working capital as a percentage of last three months annualised revenue 
6 Calculated using adjusted earnings per share


Commenting on the results, Chief Executive Officer, Stefan Borgas said:

This was our first full financial year as a new company and I am delighted by the significant amount that we have achieved. Underpinned by the strength of the markets in which we operate, we have reported very strong financial results, successfully delivered on our integration plans and benefitted from the synergies of the combination.

More broadly, we continue to navigate well the challenges of the integration process and have set the business on the right path to support its ongoing strategic development.

Whilst some uncertainties exist in the macroeconomic outlook for 2019, robust customer markets in the medium term (albeit with some uncertainty in the short term) and positive trends in raw material pricing support our expectation to deliver modest organic revenue growth, with improved operating margins from 2018 levels, driven by continued synergy generation and further optimisation initiatives, in addition to further growth potential from acquisitions.”

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.


For further enquiries, please contact:

RHI Magnesita N.V.:       

Guy Marks, Head of Investor Relations
+44 7741 73068


Conference call

The Company will host a presentation for analysts and investors at the offices of Peel Hunt LLP, Moor House, 120 London Wall, EC2Y 5ET at 8:30am (GMT) on Wednesday 27 March 2019 to discuss the results. The presentation will also be available via webcast and conference call. The webcast can be accessed using the following link: A replay will be available on the same link shortly after event. 

Conference call participant dial-in numbers are as follows:

UK: 020 3936 2999
All other locations: +44 20 3936 2999
Access code: 471643

The Company’s 2018 Annual Report has been published and is available to view on the website at: In compliance with Listing Rule 9.6.1, a copy will also be submitted to the National Storage Mechanism and will shortly be available for inspection at

This announcement also contains as appendices additional information for the purposes of compliance with DTR 6.3.5 (1) of the UK Disclosure and Transparency Rules. The information below is extracted, in full unedited text, from the Annual Report 2018. Page numbers and cross references in the extracted information refer to page numbers and cross-references in the Annual Report. This announcement should be read in conjunction with and is not a substitute for reading the full Annual Report 2018.

About RHI Magnesita

RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers in nearly all countries around the world. The Company has a high level of geographic diversification with more than 14,000 employees in 35 main production sites and more than 70 sales offices around the world. RHI Magnesita intends to leverage its global leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefitting from more dynamic economic growth prospects.

Its shares have a premium listing on the London Stock Exchange (symbol: RHIM) and are a constituent of the FTSE 250 index. For more information please visit: