Johnson Matthey profit hit by lower PGM prices

23rd May 2024 07:55

(Sharecast News) - Johnson Matthey posted a fall in full-year underlying profit on Thursday as it was hit by lower metals prices.

In the year to the end of March, underlying operating profit declined to £410m from £465m as PGM (platinum group metals) prices fell. Excluding the £85m impact from PGM prices, underlying operating profit was 11% higher on the year, "driven by transformation benefits and higher pricing".

Revenue fell to £12.8bn from £14.9bn.

The company said it plans to launch a £250m share buyback programme, after receiving net proceeds of more than £500m from business divestments.

Chief executive Liam Condon said: "In May 2022, we set out Johnson Matthey's reinvigorated strategy and transformation. We are now two years into executing on that strategy and, with the benefits progressively coming through, I am more confident than ever that we will be successful.

"We have built on the momentum from the first half, delivering good growth in underlying operating profit in the year, although lower PGM prices have impacted our headline profitability.

"We are delivering against our strategic milestones, and are announcing new commitments to 2025/26 which will continue to build a strong platform for growth."

For the year to the end of March 2025, on a continuing basis excluding value businesses, the group expects at least mid single-digit growth in underlying operating performance at constant precious metal prices and constant currency.