In This Article:
Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tessenderlo Group NV (TSDOF) launched a new Rapier weaving machine, which was well-received at the ITA Asia show, indicating strong market interest.
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The company opened a new liquid fertilizer plant in Helene, Holland, strengthening its market position and commitment to sustainability.
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Tessenderlo Group NV (TSDOF) acquired a dry sulfur-based fertilizer company, expanding its product offerings and regional footprint in North America.
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The construction of a new plant in Defiance, Ohio, is progressing well, promising improved logistics and customer service.
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The company reported a high cash flow from operating activities amounting to 333 million, indicating strong operational performance.
Negative Points
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Tessenderlo Group NV (TSDOF) faced a challenging year with a 9.6% decline in revenues compared to 2023.
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The bio valorization segment suffered due to a dramatic collapse in selling prices for gelatin, collagens, fats, and proteins.
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The company announced restructuring plans for its gelatin business, incurring estimated restructuring costs of about 40 million.
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The industrial solutions segment experienced a downturn due to a lack of dynamism in the European construction market.
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The machine and technology segment was negatively impacted by the global downturn in the textile industry.
Q & A Highlights
Q: Can you provide guidance on the effective tax rate expectations for this year? Also, do you see any signs of improvement in your segments, such as the textile markets or agricultural demand? A: Our guidance for the effective tax rate is around 25 to 26%, depending on tax legislation changes and deferred tax losses. As for market improvements, it's early in the year, and while we don't see a deterioration, we can't highlight significant improvements yet. We remain cautiously optimistic and will provide more insights at our Capital Day in September.
Q: Can you quantify the savings expected from the restructuring in the gelatin business? A: The restructuring is intended to save costs and positively impact the P&L, but we can't provide specific figures until negotiations conclude. The market is shifting, and we must adapt, especially as the gelatin market moves towards Asia and alternative materials.
Q: Is there any possibility of sourcing MOP from Russia or Belarus this year, given the geopolitical tensions? A: We have found new suppliers in Canada, and while geopolitical tensions have challenged our supply chain, we aim to diversify our sources. We remain cautious and respectful of those who supported us during the crisis.