Sims Limited today announced fiscal year 2024 (FY2024) sales revenue of $8,562.7 million. This was up 6.2% compared to FY2023 sales revenue of $8,061.1 million. The increase was principally attributed to an 8.7% increase in metal average sales prices. Notwithstanding, the group´s FY2024 underlying earnings before interest and tax (EBIT) was $42.9 million compared to $252.2 million in FY2023. This represented an 83.0% decrease. Operating cash flow of $202.5 million was down 54.9% from the prior corresponding period.

Commenting on the FY2024 results, CEO and Managing Director, Stephen Mikkelsen, said: “The past year proved challenging as our metal business, like all players in the industry, faced difficult market conditions. Despite the obstacles, our revised strategy and disciplined approach has enabled us to deliver a solid full year performance, with the second half of the year showing good progress, particularly in North America Metal (NAM), which returned to profit in the fourth quarter. Sims Lifecycle Services (SLS) delivered a strong performance, continuing to scale up and demonstrating its pathway to sustainable growth.”

Further details of the FY2024 included: statutory net profit after tax (NPAT) decreased by 131.9% to $57.8 million; and underlying NPAT was $45.4 million in FY2024 compared to $156.9 million in the prior year, representing a decrease of 128.9%. The Australia and New Zealand Metal section partially offset the overall result by achieving underlying EBIT of $95.5 million in FY2024, representing a 32.7% decrease on the prior year.

On 12 August 2024, Sims Limited announced it had entered into a binding agreement to sell its UK business and had also signed a letter of intent to sell its remaining interest in CLP Circular Services Holdings. These divestments will generate cash proceeds of approximately $435 million which in turn will enable a strategic refocus on high-potential markets in the United States, and Australia and New Zealand, where the company´s business position and demand for scrap are stronger.

Regarding the near future, the company expects global steel demand to remain muted, with broader economic indicators showing little improvement and Chinese steel exports continuing to affect the market. Inflationary pressures are likely to continue, requiring further cost reduction strategies to mitigate.