Ercros earned three million euros in the first quarter, which represents a sharp drop of 76% compared to the same period of the previous year. The Spanish chemical group points out that the profit has been achieved in the middle of an adjustment cycle, with European demand showing signs of weakness and very volatile markets and subject to strong competition. These results are the first to be published since the Portuguese group Bondalti announced a takeover bid for 100% of the company at the beginning of March.
The company also announced the payment of a dividend of 9.6 cents per share, if the general meeting of shareholders decides so. This figure will mean a disbursement for the company of 8.8 million euros, 32.7% of the 2023 profit.
Billing fell by 15.7%, to 188 million euros. While the gross operating result (ebitda) sank 48.9%, to 14.2 million. Ercros indicates that there is a general consensus from specialized publications that predicts that the recovery in demand from the European chemical industry will occur throughout the second half of 2024.
Ercros increased its net financial debt by 25.5%, to 113 million euros, after having generated negative free cash flow. The company claims to maintain a solid financial situation, with 141 million euros of liquidity.
The National Securities Market Commission (CNMV) admitted the takeover bid on March 20. However, the regulator is waiting for the National Markets and Competition Commission (CNMC) to resolve its file to continue the process.
Bondalti has presented an offer of 3.6 euros per share, which means valuing the company at 329 million euros. The offer is conditional on achieving acceptance of more than 75% of the capital and obtaining all relevant regulatory and government authorizations.
If this percentage is not reached, the company could remain a shareholder with a smaller stake and control the company in alliance with the minority shareholders. However, market sources suggest that this option would greatly complicate Bondalti's operations.
The Portuguese company, owned by the José de Mello group, wants to establish an Iberian champion in the chemical sector to compete with giants such as Basf, Covestro or Dow. The Portuguese company has a turnover of 1,255 million euros in turnover in 2022, 2,400 million euros in assets and more than 14,800 workers.
