Recycling group Sims is predicting a sharp year-over-year increase in its underlying earnings before interest and tax (Ebit) on the back of high metal prices and improved metal volumes. In guidance issued in the middle of last week, Sims said it is expecting to generate underlying Ebit of AUD750-770m (ca. €503-516m) for the financial year ending 30 June 2022. This would be around twice the prior-year figure of AUD387m. In 2020/21, Sims achieved statutory Ebit of AUD314m and net profit after tax of AUD229m.
The US-Australian metals recycling concern noted that changes in the timing of shipments scheduled close to the financial year’s end had the potential to shift some earnings into the following year.
CEO Alistair Field said, “Our strategy has, to date, served us well in navigating the challenging price volatility experienced in the second half of FY22. Due to geopolitical and economic uncertainty and the associated volatility, we expect these challenging conditions to remain as we move into the first quarter of FY23.” Sims continued to closely manage the impacts of freight and logistics volatility, and actively seek medium-term efficiency gains to assist in mitigating inflationary cost pressures, he added....
