CELSA Group starts a new era with a new management and consolidated accounts without qualifications
- The company presented its financial statements for 2023, restoring its equity balance thanks to the recapitalization of debt in the amount of €1,418 million, and other accounting adjustments, the impact of which enabled it to close the year with positive consolidated shareholders’ equity of €326 million
- In order to correct the qualifications in pre-restructuring audits, accounting adjustments have been made in the amount of €1,339 million which, pre-restructuring, would have implied negative equity of €1,187 million.
- The consolidated group’s profit after tax was €459 million, thanks to capitalisation income and despite the recognition of the loss on bad loans granted by Celsa to the previous owners of €539 million and the impairment of assets of €245 million.
- With the capitalization and restructuring of the debt and the reorganization of the management team, CELSA Group lays the foundations to consolidate the continuity of its trajectory.
- The company remains committed to sustainability and aims to reduce its CO2 emissions by 50% by 2030 and become Net Positive by 2050.
Barcelona, April 9th 2024.- CELSA Group, a leading company in the production of low-emission circular steel, presented today, after the Shareholders’ Meeting in Castellbisbal, the key points of the beginning of its new stage. Rafael Villaseca, Chairman of CELSA Group, and Jordi Cazorla, CEO of CELSA Group, have announced the financial results for the last year, as well as the priorities for 2024.
At the end of 2023, CELSA’s new management team began a process of auditing, financial consolidation, and correction of accounting qualifications. In March, the Board of Directors drew up the first consolidated annual accounts at all levels and without qualifications, restoring the assets’ balance. Without the restructuring process, the company would have registered losses of €918 million in 2023, with a negative equity of €1,187 million, due to accounting cautions detected in previous audits. However, the recapitalisation of debt for an amount of €1,418 million has made it possible to close the last financial year with consolidated equity of €326 million. This and other accounting adjustments have resulted in a consolidated annual profit after tax of €459 million.
Highlights for 2024
In response to the financial situation encountered by the new management team, and once the ruling on the approval of the Restructuring Plan had been executed, various actions were launched to ensure the continuity of CELSA’s operations. Among them, Citi was commissioned to carry out a valuation process for foreign subsidiaries with the aim of assessing possible asset rotation options.
In addition, CELSA has strengthened its governance with the appointment of four independent and renowned directors: Hilario Albarracín, Elena Guede, Juan José Nieto and Mario Longhi, who have been ratified at this morning’s Shareholders’ Meeting. Since March 4, it has also brought on board a new chief financial officer (CFO), Borja García-Alarcón.
The new management team is working on a new Strategic Plan with consulting firm Bain & Co, which will help define the strategy for the next five years. This plan will be aimed at generating value and boosting the group’s competitiveness and operational development, reinforcing its position as the leading producer of low-emission circular steel.
Sustainability Commitments
On the other hand, CELSA Group is also working to meet its ambitious commitments to sustainability and circularity in the short and medium term. The group’s output was 5.6 million tonnes of 100% recyclable steel in 2023.
The finished product in 2023 contains 97.4% recycled material, and the goal is to achieve 98% circularity by 2030. Thanks to the manufacture of steel by recycling scrap metal, the percentage of waste recovered in the CELSA Group’s steel process stood at 94.4% in 2023.
In terms of climate commitments, CELSA Group is working to reduce scope 1 and 2 CO2 emissions by 30% by 2030, and scope 3 emissions by 25% compared to 2021. Since 2005, the company has already reduced its carbon footprint by 39%. In addition, CELSA Group’s goal is to be a Net Positive company by 2050.
Sobre CELSA Group
CELSA Group is Europe’s first low-emission circular steel producer with the largest circular supply chain in Europe. It recycles ferrous scrap to produce steel in electric arc furnaces, using the most sustainable and energy-efficient technology.
The company is made up of several business groups and has 120 work centres, 7 steel mills, 12 rolling mills and 48 recycling plants (circular hubs), as well as processing and distribution companies, which generate direct, indirect and induced employment for more than 70,000 professionals in Europe. It is present in Spain, France, the United Kingdom, Denmark, Finland, Norway, Poland, Sweden and Ireland.
The group works to solve the planet’s greatest systemic risks: resource depletion and the fight against climate change. To this end, it has set itself the objectives of reducing its CO2 emissions by 50% and reaching 98% circularity by 2030 and completing its circularity and becoming a Net Positive company by 2050.
For more information:
Nuria Jimenez
Tel. +34 693 33 80 47
njimenez@kreab.com
