Santa Maria da Feira, ~Portugal, Feb. 20, 2025 (Lusa) - Corticeira Amorim's profit fell by 21.6% in 2024, to €69.7 million, penalised by lower activity, higher cork prices and higher financial charges on debt, the group announced on Thursday.
"After results attributable to non-controlling interests, Corticeira Amorim closed 2024 with a net profit of €69.7 million, a reduction of 21.6% compared to the same period last year, also penalised by the increase in financial charges resulting from higher average borrowings," the company said in a statement sent to the Portuguese Securities Market Commission (CMVM).
Non-recurring results totalled €1.4 million.
In 2024, Corticeira Amorim's consolidated sales totalled €939.1 million, down 4.7% on the previous year due to the "adverse market context, with significant impacts on volumes".
All of the group's business units recorded a contraction in sales, except for Amorim Cork Composites, which increased by 2.7% to €732.3 million, representing 76% of consolidated sales.
Consolidated EBITDA (earnings before taxes, interest, depreciation and amortisation) fell by 11.0% to €157.6 million. In comparison, the EBITDA margin was 16.8% (18.0% in 2023), "penalised above all by the effects of lower levels of activity, higher consumption prices for cork raw materials and the quality of the cork in some batches processed".
Conversely, Corticeira emphasises "the positive contribution to profitability resulting from greater industrial efficiencies, improved mix and lower non-cork raw material costs".
At the end of December, Corticeira Amorim's net interest-bearing debt was €195.7 million, a reduction of €45.2 million (-19%) compared to the end of December 2023 (€240.8 million), favourably impacted by the reduction in working capital requirements (€16.4 million) and the sale of Timberman (€18.9 million).
The company also informed the market that the Board of Directors has decided to propose to the general meeting of shareholders, to be held on 28 April, the distribution of a total gross dividend of €0.32 per share, to be paid in full in May.
Quoted in the statement, Corticeira Amorim's chairman and chief executive officer (CEO) highlights "resilience [...] and continuous action aimed at improving operational efficiency and optimising the group's mix" as having been "decisive" in a year "marked by an unfavourable market context, with increased uncertainty and volatility".
In the past financial year, António Rios de Amorim highlighted the acquisition of Intercap S.r.l., which specialises in the production of surbouchage capsules for sparkling and still wines, the reorganisation of the "non-cork stopper" business into a single business unit (Amorim Cork Solutions) and the adoption of a new distribution model for coatings, favouring an international network of distributors over in-house distribution companies (which led to the sale of the stake in Timberman Denmark).
The CEO expects 2025 will be "equally challenging", but he views the year "with optimism", noting that "after two consecutive years of strong inflation of the raw material cork, the result of the 2024 campaign was more favourable".
Although he predicts that "the cork stopper business will continue to be conditioned by the evolution of global consumption", he says that "improvements to the product mix, initiatives to improve the cost structure and gains in operational efficiency should result in increased profitability".
In addition, Amorim Cork Solutions" new organisational model “should strengthen the ”non-cork stopper" business, ensuring it will have greater operational flexibility, optimising existing assets and enhancing the value of cork as a benchmark raw material".
PD/ADB // ADB.
Lusa
