In This Article:
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EBITDA: Increased by 59% to EUR218 million in 2024, with a margin of 26% compared to 17% in 2023.
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Net Debt: Reduced by 40% to EUR214 million, with a net debt to EBITDA ratio of 1.0x.
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Revenue Growth: Increased by 9% for the full year 2024.
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Net Profit: More than doubled to EUR107 million in 2024.
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Cash Costs: Decreased by 3% in 2024 compared to 2023.
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Free Cash Flow Generation: EUR143 million total cash flow generated in 2024.
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Return on Capital Employed (ROC): Reached 23% in 2024, above the historic level of 18%.
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Hardwood Pulp Prices: Average fixed prices in Europe were 18% higher in 2024 versus 2023.
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Dissolving Pulp Prices: Grew by 9% year-on-year in the fourth quarter of 2024.
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CapEx for Acetic Acid and Furfural Project: EUR25 million, with an expected IRR above 15%.
Release Date: March 21, 2025
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 59% increase in EBITDA to EUR218 million in 2024, with a margin of 26%, up from 17% in 2023.
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The company reduced net debt by 40% to EUR214 million, achieving a net debt to EBITDA ratio of one time.
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Altri SGPS SA's diversification and growth projects, such as the acetic acid and furfural project, are progressing well, with an expected IRR above 15% and an EBITDA margin near 80%.
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The company reported a significant increase in net profit, more than doubling to EUR107 million in 2024 compared to 2023.
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Altri SGPS SA's sustainability efforts include launching a program with Lisbon's Catholic Lisbon School of Business and Economics and participating in the United Nations Climate Change Conference COP29.
Negative Points
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Global pulp demand decreased by 1% in 2024, with China experiencing volatility and a slowdown mid-year.
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The fourth quarter of 2024 saw a 10% decrease in revenues and a 32% decline in EBITDA compared to the third quarter.
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Pulp prices experienced a correction, with a 20% decrease during the fourth quarter of 2024 compared to the third quarter.
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The incident in the coal generation turbine at Celbi had an economic impact of around EUR6 million during the fourth quarter of 2024.
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Chemical prices have been trending downwards since 2023, but there was an increase in the fourth quarter of 2024, likely impacting the first quarter of 2025.
Q & A Highlights
Q: Can you elaborate on the factors contributing to the positive cash cost evolution in 2024? A: Jose Armindo Farinha Soares De Pina, CEO: The positive cash cost evolution was influenced by stable chemical prices, a better fiber cost mix, and efficient operations. We maintained discipline in fixed costs, resulting in favorable outcomes.