maxamthe explosives giant owned by the Rhone Capital fund (74.73%) and the management team (25.27%), closed its last fiscal year – ended August 31, 2024 – with a record portfolio of contracts and a gross operating profit, which reached 271 million euros, 11.47%. The company that has José Manuel Vargas, former president of Aena, as CEO, obtained these results after a year marked by the sale of its subsidiary Expal to Rheinmethall and the consequent decrease in final profits, which stood at around 108 million of euros.
In its management report, Maxam elaborates that the period analyzed “was once again very positive in terms of growth and improved profitability.” The sale of the defense business unit “significantly simplified the group’s organizational model, thus allowing it to focus on the Civil Explosives business and focus exclusively on the awarding of new contracts with large mining operators worldwide. “adds the company in the documentation deposited in the Alternative Fixed Income Market (BMERF).
The company highlighted above all that it has managed to almost double its portfolio – a turnover guaranteed for the coming years by long-term contracts awarded – from 1,345 million euros to 2,333 million. These new contracts won and the renewal of existing ones were signed mainly in Latin America and Australia, as well as in those markets in which it already had a strong presence, such as Europe or Africa.
Maxam highlights in its accounts its “great cash generation capacity”, given that operating cash flow stood at 152 million euros thanks to the rigorous control of working capital and capex along with economies of scale.
The group’s total income, however, has decreased due to the application of price transfer clauses to clients in the main mining contracts following the rise in the price of ammonium nitrate.
On the debt side, the company has comfortable terms after signing in 2022 with its pool of banks (BBVA and Santander) a novation of the terms to extend debt payment until 2027.
Future forecasts
For the next fiscal year, the company expects even greater sales volume growth and that Europe, Latin America and Africa will continue to be the main drivers of this growth at a global level. Australia, for its part, will considerably increase its relative weight with the implementation of the recently awarded operations.
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