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Highlights
Sims has already shared a robust outlook for the given fiscal.
The underlying EBIT is likely to be in the range of AU$750 million to AU$770 million.
Sims attributed the improvement in results over FY21 to higher metal prices and improved metal volumes.
Sims Ltd (ASX:SGM) on Wednesday provided a strong guidance for its FY22 financial results, in line with its robust outlook for the given fiscal. The ASX-listed metal recycling firm attributed the improvement in results over FY21 to higher metal prices and improved metal volumes.
The underlying earnings before interest and tax (EBIT) for the year ended 30 June 2022 are likely to be in the range of AU$750 million to AU$770 million, according to the latest ASX update released by Sims.
“It is worth noting that there are shipments scheduled to occur close to the year-end and, in accordance with revenue recognition policies, this has the potential to impact whether EBIT is attributed to FY22 or FY23,” Sims said.
Sims provides recycling solutions. The company operates in four segments namely -- Australia/New Zealand (ANZ) Metals, Europe Metals, North America Metals and Global E-Recycling.
What did Sims’ management say?
“Our strategy has, to date, served us well in navigating the challenging price volatility experienced in the second half of FY22. Due to geopolitical and economic uncertainty and associated volatility, we expect these challenging conditions to remain as we move into the first quarter of FY23,” said CEO Alistair Field.
“We are also closely managing impacts of freight and logistics volatility, and actively seeking medium-term efficiency gains to assist in mitigating inflationary cost pressures across the company.”
Share price snapshot
By 10:15 AM (AEST), Sims’ shares were trading at AU$17.54, down 3.25%. The stock is up over 4.5% on a year-to-date (YTD) basis. In the past year, the stock has risen by over 7%. The share price has fallen over 5% in the past month.
Meanwhile, the company last month announced that it had acquired a deep-water site in Brisbane for consideration of AU$88 million.
As per the announcement, the acquisition is aligned with the company's strategy to grow in large coastal markets using top-tier processing facilities and bulk export optionality.
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