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Investing.com -- Etex’s (EBR:BE0941244536) net recurring profit dropped 17.8% in the first half of 2025 as lower operating cash flow and currency volatility weighed on results, though the Belgian building materials group reported higher net profit and stable revenue on Monday.
The company said recurring profit fell to €125 million from €152 million a year earlier.
Recurring operating cash flow (REBITDA) decreased 6.4% to €353 million, or 18.3% of sales, compared with 19.5% in the same period of 2024.
The decline was attributed to unfavorable currency conversion and weak markets in France, Argentina and Nigeria, partly offset by operational improvements across its plants.
Revenue stood at €1.93 billion, down 0.2% year on year, but up 1.5% on a like-for-like basis.
Net profit increased to €115 million from €107 million, reflecting lower non-recurring charges and reduced hyperinflation impacts.
Net financial debt remained broadly stable at €1.22 billion at the end of June, compared with €1.17 billion a year earlier.
CEO Bernard Delvaux said results were in line with forecasts and noted encouraging performance in Latin America, Southern Europe and the United Kingdom, where the company inaugurated a €200 million plasterboard production line in Bristol in March.
He said demand declined further in some key markets, but efforts to manage costs and improve operations supported profitability.
Divisional performance showed mixed trends. The Building Performance unit, which includes plasterboard and fiber cement boards, reported like-for-like revenue growth of 0.9% to €1.19 billion.
The Fibre Cement division rose 1.5% to €272 million, while the Industry division, focused on fire protection and insulation, recorded a 3.6% increase to €173 million. The Insulation division generated €288 million in revenue, up 2.6%. As of January, activities from the New Ways unit were integrated into Building Performance.
Geographically, revenue was lifted by gains in the United Kingdom, Southern and Eastern Europe, and Latin America, but offset by declines in France, Argentina and Nigeria.
The company said its plasterboard expansion in Bristol is already generating positive momentum.
Etex reported capital expenditure of €104 million in the first half, up from €87 million a year earlier.
The company said it will invest €65 million in Peru, Chile and Argentina by early 2027 to expand plasterboard capacity and improve sustainability.
During the period, Etex introduced new sustainability initiatives. These included Recyplac, a plasterboard made from 100% recycled gypsum, and Pureplac, a negative carbon impact plasterboard produced in France using bio-based wood fiber.
The company also published its third combined annual report covering economic, social and environmental performance on equal footing.
Two new members, Inge Boets and Yves Kerstens, joined the board of directors following the May shareholders meeting.
Etex said it expects volatility to continue through the rest of 2025 but aims to deliver stable performance compared with last year while pursuing investments, sustainability programs, strategic opportunities and cost reductions.