StockMarketWire.com - Refractory products group RHI Magnesita posted a rise in first-half profit driven by a recovery in demand, though its underlying earnings fell on margin pressure.

Pre-tax profit for the six months through June increased to €125 million, up from €70 million year-on-year, as revenue grew 2.5% to €1.20 billion.

Adjusted earnings before interest, tax, depreciation and amortisation fell 4% to €128 million.

RHI Magnesita said 'material' global supply chain challenges resulted in significant delays and higher freight costs.

Pricing pressure arising from additional supply chain costs and higher prices for raw materials would be passed on to customers through price increases in the second half.

The company said it was on track to achieve 2021 guidance of €310 million in adjusted EBITDA, with earnings weighted towards the second half, as expected.

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