Vesuvius plc: history, ownership, mission, how it works & makes money

A Brief History of Vesuvius plc

Vesuvius plc, a leading global ceramics and engineering company, has its roots in the United Kingdom, with a history tracing back to the 1910s. Originally established as a supplier for the iron and steel industry, the company has evolved significantly over the decades, expanding its product offerings and geographical reach.

In 2012, the company underwent a significant transformation when it rebranded itself as Vesuvius plc, following its demerger from the international engineering company, Cookson Group. This strategic move allowed Vesuvius to focus entirely on its core markets in steel and foundry, providing advanced materials and technology.

As of the financial year ending December 31, 2022, Vesuvius reported revenues of approximately £1.55 billion, illustrating a growth from £1.43 billion in 2021. The operating profit for 2022 was £233 million, a notable increase compared to £221 million in the previous year. This growth is attributed to strong demand in the steel and foundry markets, driven by infrastructure projects worldwide.

The company operates through two main segments: Steel and Foundry. In the Steel segment, Vesuvius generated about £1.1 billion in revenue, driven by increased steel production globally. The Foundry segment brought in around £450 million, reflecting robust demand for castings in various industries including automotive and aerospace.

Vesuvius's global footprint includes manufacturing and service sites in over 40 countries, with a workforce of approximately 10,000 employees. The company focuses heavily on research and development, with an annual R&D investment of about £30 million to foster innovative solutions.

In terms of stock performance, as of October 2023, Vesuvius shares are trading at approximately £5.60 per share, reflecting a market capitalization of around £1.6 billion. This represents an increase of over 15% year-to-date, driven by positive market sentiment and strong financial performance.

Vesuvius remains committed to sustainability, targeting a reduction of carbon emissions by 30% by 2030 as part of its environmental strategy. This commitment not only aligns with global sustainability trends but also enhances its competitiveness in the market.

Overall, Vesuvius plc's rich history and strategic initiatives position it favorably within the ceramics and engineering sectors, demonstrating resilience and adaptability in a dynamic industrial landscape. The company's focus on innovation, customer service, and market expansion continues to drive its financial success.

A Who Owns Vesuvius plc

Vesuvius plc is a global leader in the supply of molten metal flow engineering, providing innovative products and services for the steel and foundry industries. The ownership of Vesuvius plc is characterized by a mix of institutional and retail shareholders.

As of October 2023, the major shareholders of Vesuvius plc include:

In total, Vesuvius plc has approximately 125 million shares outstanding, which provides context for the ownership percentages listed above.

The company has seen a notable change in its shareholding structure over the past year, notably increasing its percentage of institutional ownership. This shift indicates growing confidence from large asset managers in Vesuvius plc's potential for future growth.

As for Vesuvius plc's stock performance, the company was trading at around £5.85 per share as of the latest market close in October 2023. Over the past year, the stock has had a high of £6.50 and a low of £4.60, reflecting a volatility of approximately 40.86%.

Financially, Vesuvius plc reported a revenue of £1.5 billion for the fiscal year 2022, with a net profit margin of 7.5%. This equates to a net income of about £112 million, showcasing the company's ability to maintain profitability in a challenging market environment.

With a market capitalization of approximately £730 million, Vesuvius plc remains a prominent player within its sector, backed by solid institutional support and a diverse ownership structure.

Vesuvius plc Mission Statement

Vesuvius plc is a global leader in molten metal flow engineering, serving the steel and foundry industries. The company's mission statement emphasizes their commitment to innovation, sustainability, and customer-centric solutions. They aim to provide advanced technologies and services that enhance the performance and reliability of their customers’ operations.

The mission statement reflects Vesuvius's core values of integrity, accountability, and respect for the environment. The company strives to deliver superior value to customers by employing cutting-edge technologies and promoting sustainable practices throughout its operations.

Vesuvius operates through two main divisions: Steel and Foundry. The Steel division offers a range of products essential for steel production, while the Foundry division focuses on creating advanced materials that improve casting processes.

In their 2022 annual report, Vesuvius highlighted that they invested approximately £30 million in research and development to drive innovation. This commitment not only supports their mission of sustainability but also aims to reduce carbon emissions across their production processes.

The company is also focusing on expanding its global footprint. In 2022, Vesuvius entered new markets in Asia-Pacific, which contributed to a revenue increase of 10% in that region alone.

Furthermore, Vesuvius boasts a strong commitment to environmental, social, and governance (ESG) practices. They aim to achieve a 30% reduction in greenhouse gas emissions by 2030. Their 2023 ESG report indicated that they are on track to meet this goal, with a 15% reduction already achieved since 2020.

The company also embraces a culture of safety, reporting a 50% decrease in workplace incidents over the past five years. This indicates a robust commitment to employee welfare which aligns with their mission statement of fostering a responsible business environment.

Vesuvius's mission statement is not only a declaration of purpose but also a measurable business strategy, firmly positioning them as a leader in the molten metal industry. Their ongoing efforts to innovate and promote sustainability underscore their dedication to both stakeholders and the environment.

How Vesuvius plc Works

Vesuvius plc is a leading engineering company focused on the design and manufacture of advanced materials and solutions for the steel and foundry industries. The company operates globally, providing innovative solutions that enhance processing efficiency and product quality.

The firm is divided into two main segments: Steel and Foundry. Each segment offers specialized products and services that cater to the unique needs of their respective markets.

Steel Segment

In the Steel segment, Vesuvius supplies products such as refractory materials, flow control systems, and monitoring equipment. For the year ending December 2022, the Steel segment generated revenues of approximately £1.2 billion, accounting for around 60% of the company’s total revenue.

Foundry Segment

The Foundry segment focuses on providing solutions for the casting industry, including advanced ceramics, coatings, and other specialty products. This segment reported revenues of about £792 million in 2022, contributing to nearly 40% of Vesuvius' overall revenues.

Geographical Distribution

Vesuvius operates in various key markets across the world, with significant revenues coming from the Asia Pacific region, Europe, and North America. In 2022, the geographical breakdown of revenues was as follows:

Innovation and R&D

Vesuvius is committed to innovation, investing approximately 3.2% of its revenues back into research and development (R&D). In 2022, this investment amounted to around £57 million. This focus on R&D has led to the development of advanced materials that enhance energy efficiency and reduce emissions in industrial processes.

Financial Performance

In terms of overall financial performance, Vesuvius reported an operating profit of approximately £202 million in 2022, with a profit margin of around 10.1%. The EBITDA for the same year reached £271 million, indicating strong operational efficiency.

As of October 2023, Vesuvius plc had a market capitalization of approximately £1.5 billion. The company’s share price has shown resilience, fluctuating between £4.00 and £4.50 over the past year.

The return on equity (ROE) stood at approximately 12%, reflecting the company’s efficiency in generating profit from its equity investments. Furthermore, the debt-to-equity ratio was around 0.6, indicating a balanced approach to financing growth through both equity and debt.

Conclusion

Vesuvius plc’s operations are characterized by a robust commitment to innovation, a diverse product offering, and a solid geographical presence, enabling the company to effectively serve the global steel and foundry markets.

How Vesuvius plc Makes Money

Vesuvius plc operates in the advanced materials and technology sector, primarily focusing on the steel and foundry industries. The company generates revenue through the provision of products and services that enhance production processes, improve efficiency, and reduce environmental impact. The primary segments of Vesuvius’ business include Steel, Foundry, and Emerging Markets.

Revenue Breakdown

For the year ending December 31, 2022, Vesuvius reported a total revenue of £1.19 billion. This was an increase from £1.12 billion in 2021, representing a growth of approximately 6.3%.

Key Revenue Drivers

Vesuvius generates income through various revenue streams, including:

• Sales of refractories and fluxes to the steel industry
• Foundry consumables
• Engineering services for process technology and automation
• Research and development services tailored for specific client needs

Market Demand and Pricing

The demand for Vesuvius products is closely tied to the health of the global steelmaking and foundry industries. As of late 2022, the global steel production was approximately 1.95 billion metric tons, a slight decrease from 2021 due to economic headwinds. Nevertheless, prices for steel and related materials remained high, contributing to Vesuvius' revenue growth. In Q1 2022 alone, the average steel price surged to about $800 per metric ton, compared to $750 in Q4 2021.

Geographical Distribution

Vesuvius operates globally, with a notable presence in Europe, North America, and Asia-Pacific. In 2022, the revenue distribution by geography was as follows:

Investment in Innovation

A key part of Vesuvius’ strategy to ensure ongoing profitability is its commitment to research and development. In 2022, the company invested approximately £30 million in R&D, which accounts for around 2.5% of total revenue. This investment focuses on developing new materials and technologies that enhance efficiency and reduce carbon emissions in the steelmaking process.

Recent Acquisitions

Vesuvius continues to expand its capabilities and market reach through strategic acquisitions. In July 2022, the company acquired a leading supplier of specialty products for the steel industry, which is expected to contribute an additional £50 million in annual revenue.

Financial Performance

Vesuvius' earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2022 was reported at £188 million, yielding an EBITDA margin of approximately 15.8%. Net profit for the fiscal year stood at £125 million, showcasing a net profit margin of 10.5%.

In summary, Vesuvius plc leverages its strong market position, diverse product offering, and commitment to innovation to generate revenue across multiple segments and geographies. With a focus on sustainability and efficiency, the company is well-positioned for future growth despite challenges in the global economy.