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On Thursday, Deutsche Bank (ETR:DBKGn)’s analyst Lars Vom-Cleff updated Kloeckner (ETR:KCOGn) & Co SE’s (KCO:GR) financial outlook by increasing the price target from EUR 7.50 to EUR 8.50, while reiterating a Buy rating on the stock. The adjustment follows Kloeckner & Co’s latest financial results, which indicated mixed performance metrics for the fiscal year 2024.
The company reported a 5% year-over-year increase in shipments; however, sales experienced a 5% decline over the same period. EBITDA before special effects saw a significant drop of 29% year-over-year, resulting in an EBITDA margin of 1.6%, which is 110 basis points lower than the previous year. The net loss for the company was recorded at EUR 176 million, slightly less than the EUR 190 million loss in FY23. Additionally, cash flow from operating activities was reported at EUR 160 million, marking a 44% decrease year-over-year.
A notable aspect of Kloeckner & Co’s performance was the contribution of the US market to the company’s overall revenue and profitability. Approximately 60% of the group’s revenue was generated from the US, which also positively influenced the company’s profitability. For FY24, the adjusted EBITDA margin for the Americas stood at 2.3%, in contrast to Europe’s -0.3%.
In light of these results, management has announced its intention to propose a dividend of EUR 0.20 per share at the next Annual General Meeting (AGM). This proposed dividend is consistent with the previous year’s distribution and represents a yield of 2.9%. Shareholders are expected to review and vote on this proposal at the forthcoming AGM.
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