In This Article:
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EBITDA: EUR56 million for Q3 2024, with a margin of 27%.
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Net Debt: Reduced by 23% to EUR250 million in Q3 2024.
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Revenue Growth: Increased by 19% year-on-year for Q3 2024.
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EBITDA Growth: Up 244% year-on-year for Q3 2024.
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Net Profit: EUR19 million for the first nine months of 2024.
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Free Cash Flow: EUR75 million generated in Q3 2024.
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Return on Capital Employed (ROCE): Increased to 23% for the first nine months of 2024.
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Hardwood Pulp Prices: Average prices in Europe were 65% higher in Q3 2024 compared to Q3 2023.
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Dissolving Pulp Prices: Grew by 12% annually and 2% quarterly.
Release Date: November 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Altri SGPS SA achieved a significant EBITDA margin of 27% in the third quarter of 2024, compared to 9% in the same period last year.
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The company reduced its net debt by 23% during the quarter, bringing the net debt to EBITDA ratio to 1.1 times.
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Altri SGPS SA was ranked number one globally in the paper and pulp sub-industry for ESG risk rating by Sustainalytics.
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The company is advancing its diversification and growth projects, including a high-IRR project at Caima and a full migration of BHKP production to dissolving pulp by 2026.
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Altri SGPS SA reported a 19% year-on-year increase in revenues for the third quarter of 2024, with an 85% growth in EBITDA for the first nine months of the year.
Negative Points
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The global hardwood pulp market experienced a slowdown in the third quarter, primarily due to decreased demand in China.
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There was an incident with the cogeneration turbine at Selvi, expected to have a EUR6 million economic impact in the fourth quarter of 2024.
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Net profit for the first nine months of 2024 was EUR19 million, down from EUR28 million in the same period of 2023.
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The company anticipates potential increases in chemical prices, particularly caustic soda, in the fourth quarter of 2024.
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Altri SGPS SA's sales volumes were below expectations in the third quarter, partly due to maintenance stoppages and market conditions.
Q & A Highlights
Q: Could you share your thoughts on the outcome of the London Pulp Week and the sentiment across the industry for the end of this year and next year? A: The sentiment from London Pulp Week was positive. In the short term, China appears stable with prices expected to remain steady until the Chinese New Year. Europe is also stabilizing, with prices likely to converge towards China's, maintaining a small premium. Looking into next year, restocking in China post-New Year could absorb new supply, and we expect stability with a potential upswing in the second half of the year. (Jose Armindo Farinha Soares De Pina, CEO)