AGM highlights and strategic updates

Sims (ASX:SGM), a global leader in metal recycling, held its 2024 Annual General Meeting on November 13, 2024. The meeting addressed shareholders on the company's performance, strategic priorities, and future outlook amidst challenging industry conditions.

Outlook and strategic focus

Sims (ASX:SGM) navigated a challenging fiscal year with strategic adjustments and operational improvements. Despite tight supply and declining demand in certain areas, the company focused on high-potential regions like Australia, New Zealand, and North America. Safety and performance were prioritized, with Sims Lifecycle Services reporting significant EBIT growth. The company emphasized capital management, offering a dividend while balancing growth investment. Looking ahead, Sims expects stable EBIT for its Metal businesses and remains committed to sustainability, aligning with global decarbonization trends. With new leadership on the board, Sims is poised for continued strategic growth in the recycling sector.

Executive insights from AGM

Fiscal Year 2024 presented challenges due to tight supply of ferrous materials, declining demand in certain geographies, and inflationary pressures. The company exhibited agility in this environment but acknowledged areas needing improvement.' 'Sims Limited redefined its strategic priorities, sold its UK Metals business, and implemented commercial and operational changes to drive long-term growth.' 'Achieved a new low Total Recordable Injury Frequency Rate, emphasizing a strong safety culture.' 'Sims Lifecycle Services (SLS) saw a remarkable EBIT increase of over 100% year-on-year, driven by demand in AI and data center industries.' 'The company declared a fully-franked final dividend of 10 cents per share, paid on October 16, 2024.' 'Significant margin improvements in North America due to better shredder utilization and higher intake of unprocessed materials.' 'Cost-out program realized $46 million in annualized savings, with divestitures strengthening the financial position.' 'The company expects EBIT for Metal businesses in Q2 FY25 to align with Q1, with strong trading despite market challenges.' 'Commitment to sustainability and operational excellence as industries increasingly demand recycled materials for decarbonization.' 'Introduction of Grant Dempsey to the Board, enhancing the mix of skills and experience.' 'CEO Stephen Mikkelsen expressed gratitude for the team’s resilience and the Board’s guidance in his first year.