Belgian building materials company Etex saw revenues fall by 4.2% in the first half of the year, noting "significant drops on the new build and renovation markets".
In the first half of 2024, Etex reported a revenue of €1.93 billion. This was a decrease of 4.2% compared to the same time last year, which the company has put down to poor market conditions and a resulting decrease in sales volumes.
Etex noted that over the past two years, housing construction indicators in core markets have "declined sharply", by between 35% and 50%.
"Housing starts have reached their lowest levels since 2003, while housing permits are nearing historically low levels recorded between 2008 and 2009. This sharp downturn highlights the challenging market conditions in the residential construction sector," the company said.
Etex CEO Bernard Delvaux. Credit: Belga / Eric Lalmand
Etex's recurring operating cash flow reached €377 million in the first half of the year, a decrease of 5% compared to the same period in 2023.
The company's net profit in the first half of 2024 fell by 46.7%, to €107 million. Etex said this was due to an erosion of operating income, reported losses due to hyperinflation in Argentina, and the fact that in the first half of 2023 the company made a significant gain from reselling a hedged interest contract.
Downturn across most regions and divisions amid "challenging" market
The company said it saw a downturn across most regions and divisions, except for upticks in Australia and in its industry division which specialises in fire protection and high performance insulation.
Bernard Delvaux, CEO of Etex, said the company delivered a "resilient" first half despite challenging market conditions in the construction sector.
"For the rest of 2024, we will continue our careful and regular assessment and adaptation to the volatile situation, just as we have done so in previous months and years. These elements combined should help Etex continue to deliver good results and help build living spaces that are ever safer, more sustainable, smart and beautiful," he said.
Zavantem headquartered Etex is an international building material manufacturer which employs more than 13,500 people globally. The company operates in 45 countries and reported a turnover of €3.81 billion last year.
