Growth Plan RisksThe success of Befesa's 5-yr growth plan relies on increased steel dust supply, but the shift to a mix of direct reduced iron, pig iron, and scrap could lead to steel dust of inferior quality, presenting risks to group return ambitions.
Operational ImprovementsThe pull-back has been triggered by the lack of operational improvements that were unveiled during the 1Q results.
Revenue DeclineIn 1Q24 total revenue decreased by 7% YoY to €298m and adj. EBITDA was in line with consensus at €48.6m driven by a mix of improved volumes, the favourable decrease in zinc TC, better zinc hedges as well as lower energy prices but offset by lower zinc LME prices.