Hazardous waste recycling business BEFESA has reported continued strong performance and earnings growth.
The company, which specializes in waste recycling for the steel and aluminium industries, has reported adjusted EBITDA for Q3 2022 of 45.9 million Euros, up from 42.7 million Euros for the same period last year.
According to BEFESA, year-to-date growth was 163.9 million Euros for the first nine months, up 27 million Euros (or 20 million Euros) when compared with the previous year (2021). The company attributes its growth to good volume performance at its Steel Dust business unit, and its US operations as well as overall high plant utilization levels of around 80% in both of its core businesses.
In addition to the Steel Dust business unit, Befesa's other business unit is its Aluminium Salt Slags recycling services.
“These projects will seize the opportunities that megatrends such as decarbonization and electric vehicle growth are generating in the steel and aluminium industries.”Javier Molina, executive chair, Befesa.
The company believes its full year results will be good with year-on-year growth expected to be at or above 11%.
In September, Befesa acquired the remaining 93% stake in a zinc refining asset from American Zince Recycling (AZR) for $47 million, down 65% from the original price of $135 million due to high inflation and energy prices.
The company has continued to expand in China, commissioning its second plant in Henan (scheduled for completion in Q4) and is working on new projects and further expansion in the country.
In July this year the company unveiled it’s Sustainable Global Growth Plan with the aim of investing 500 million Euros in growth projects. “These projects will seize the opportunities that megatrends such as decarbonization and electric vehicle growth are generating in the steel and aluminium industries,” says Befesa, adding that the projects in question will enable the company to target double-digit earnings growth on average over the next five years.
The company is celebrating its five-year anniversary on the Frankfurt Stock Exchange, says Befesa’s executive chair, Javier Molina. “In the past five years, we have developed Befesa from a leading European-focused company to an international market leader with a globally balanced footprint. We are proud of what we have achieved, however, we are even more excited about the next five years,” he said.