In This Article:
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Revenue: Aggregated revenue up 4% to EUR74.1 million.
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Gross Margin: Increased by 210 basis points to 30.7%.
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EBITDA: Underlying EBITDA up to EUR8.3 million from EUR2.6 million; Adjusted EBITDA up to EUR4 million from EUR1.6 million.
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Net Debt: EUR40.2 million as of September 30, 2024, up from EUR37.1 million.
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Sales Volume: Total Accoya sales volume grew 10% to 31,553 cubic meters.
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Operating Costs: Reduced by EUR3.9 million year-on-year.
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Exceptional Costs: EUR3.9 million restructuring costs and EUR18 million non-cash impairment charge.
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Accoya Segment EBITDA: Increased by 44% from EUR9 million to EUR13 million.
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Tricoya Revenue: Up 11% to EUR12.7 million.
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CapEx: EUR0.7 million during the period.
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Operating Cash Flow: EUR8.7 million.
Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Accsys Technologies PLC (ACSYF) reported a strong half-year FY25 performance with EBITDA more than doubling year-on-year, exceeding the 30% gross margin target.
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Total Accoya sales volume grew by 10% globally, with significant growth in the UK and US markets, which saw increases of 24% and 18%, respectively.
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The company achieved EUR2.5 million in operational cost savings, with additional savings from lower Hull maintenance costs.
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The opening of the Accoya USA production site in Kingsport, Tennessee, provides local production capacity in a key market, enhancing supply reliability.
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Accsys is focusing on accelerating commercial activities to utilize available capacity, increase profitability, and reduce debt, with a strong emphasis on customer experience and market presence.
Negative Points
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Accsys Technologies PLC (ACSYF) reported a net debt increase to EUR40.2 million, up from EUR37.1 million at the start of the financial year.
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The company incurred EUR3.9 million in exceptional restructuring costs and a non-cash impairment charge of EUR18 million due to the closure of the Hull plant.
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Accoya USA joint venture reported a loss of EUR4.3 million, reflecting costs associated with the pre-revenue phase and production ramp-up.
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Sales in Germany were negatively impacted by the broader macroeconomic situation, contributing to a decline in the rest of Europe.
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The company faces challenges in raw material availability for Accoya Color, which limits production capacity despite strong demand.
Q & A Highlights
Q: Can you elaborate on the 10% sales growth and the factors driving it, such as restocking, underlying market demand, and market share gain? A: Jelena Van Os, CEO: Most of the growth is due to underlying demand and market share growth. While new distributors are building some stock, the majority of the growth is from market share gains and not just restocking.