French cable manufacturing company Nexans unveils strong performance in H1 2021

The Paris, France headquartered global cable and optical fiber manufacturing company, Nexans S.A. published its financial statements for H1 2021 ending June 30, as approved by the Board of Directors,  Chaired by Jean Mouton has revealed strong performance.

Christopher Guérin, Nexans’ Chief Executive Officer, while commenting on the Group’s performance,  said: “Ahead of expectations for 2021, we are confidently building the blocks of our 2022 – 2024 new strategic ambition presented at our Capital Markets Day last February.”

“This first semester’s strong performance anchors the first steps of our strategic vision to become the pure player in sustainable electrification. Nexans is now a structured, healthy and solid Group. We will continue to trigger structural value growth while amplifying our impact on energy transition.”

Nexans leadership in subsea High Voltage & Projects was illustrated by the signing of a preferred supplier agreement by Empire Wind LLC to electrify the future of New York State by connecting the Empire Offshore Wind Farms to the onshore grid. In parallel, Nexans Aurora vessel construction was completed early June, while Charleston US plant conversion is on track for completion in the third quarter despite logistical constraints due to Covid-19 travel restrictions and material supply delays. Both investments will support the performance acceleration expected in the second half.

Convinced that remaining a generalist will be more weakness than strength, Nexans unveiled its ambition to become an Electrification Pure Player on February 17, 2021, at its Capital Markets Day. The Group will cover the entire electrification value chain: from the very start of production of energy to transmission and distribution of energy, all the way to usage of energy.

In the first half of 2021, sales at standard metal prices totalled 3,112 million euros, up +12% organically compared to the first half of 2020 and up +24.2% in the second quarter of 2021 illustrating demand upturn and positive mix/price management.

Nexans benefitted from sound commercial momentum and pursued selective growth across its businesses to support a healthy backlog for the period and beyond. The Group pursued its strict monitoring of raw material supply and price inflation pass-through, partly enabled by its unique vertically integrated model.

The H1 2021 results reflect a good start to the year with a record EBITDA of 222 million euros, up +37.2%. The EBITDA margin grew by +155 bps against H1 2020 to 7.1% driven by volume rebound and operating leverage linked.