LUXEMBOURG (dpa-AFX) - The industrial recycler Befesa earned less at the start of the year. Lower zinc prices were the main reason for this, as the company announced in Luxembourg on Thursday. For the current year, Befesa expects an increasing improvement in the development and announced an increase in the operating result. However, the company is issuing a wide range. The outlook was not well received on the financial market.

The MDax-listed share fell to a low since November. Most recently, it was at the bottom of the index with a drop of nine percent to 28.58 euros. In the current year, the share price has lost a good 18 percent in value. Over the past 12 months, the drop amounted to a good quarter.

Analyst Martin Comtesse from the investment bank Jefferies commented that the forecast seemed cautious, but also left plenty of room for maneuver. However, market expectations tend to be at the upper end of the forecast operating profit range. However, Comtesse remains confident that Befesa will turn the corner in 2024.

For the current year, Befesa is forecasting adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 195 million to EUR 235 million - an increase of 7 to 29 percent. Significantly lower zinc smelting charges and better price hedging for zinc should have a positive effect on the results, it said. Smelters receive zinc smelting charges when they convert ore into pure zinc. Befesa also expects coke prices to normalize and efficiency to improve in US recycling operations and in China. The company explained the wide range with the volatility of metal prices, among other things.

In the first quarter, the adjusted operating result fell by 3 percent to 48.6 million euros due to lower zinc prices. Befesa's bottom line was almost 38 percent lower at just under 9.5 million euros. Sales fell by around seven percent to 298.3 million euros. The figures were weaker than expected by analysts overall./nas/mis/stk