By Najat Kantouar
Mincon Group, an Irish engineering company, has announced a decline in revenue for the third quarter, along with lower margins. This decrease is primarily attributed to weak sales in the mining industry and exceptional expenses incurred during the implementation of a cost-reduction program.
Revenue Decline and Sales Contraction
For the nine months leading up to September 30, Mincon Group experienced a 7% decrease in revenue compared to the same period in the previous year. The decline in sales was particularly prominent in certain regions within the mining industry. Africa witnessed a significant weakness in sales over the past few months, and one of two large-scale construction projects in North America was canceled.
Gross Margin Reduction
The gross margin for the year up to the third quarter fell from 32.0% to 30.4% compared to the corresponding period last year. This reduction can be attributed to an inventory reduction program and a decline in revenue within the mining industry.
Positive Outlook Despite Challenges
Despite the challenges faced by Mincon Group, the engineering company anticipates reporting full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately 20 million euros ($21.2 million). The company remains optimistic about its prospects in the medium term and aims to capitalize on new opportunities in existing and emerging industries that offer higher returns. In 2022, Mincon reported an EBITDA of EUR27.5 million.