Corticeira Amorim S.G.P.S. (COR) investor relations material

Executive summary

• Sales declined by 5.8% year-over-year to €445.8M, mainly due to lower volumes and a less favorable product mix.

• EBITDA fell 5.5% to €82.1M, with net income dropping 31.7% to €25.2M, impacted by €14.7M in non-recurrent restructuring costs.

• Net debt reduced to €63.6M, supported by lower working capital needs and disciplined capital allocation.

• Strategic initiatives included a US joint venture, minority stake acquisitions, and restructuring in the final flooring segment.

• The business model showed resilience, focusing on innovation, diversification, and sustainability.

Financial highlights

• Gross margin improved to 55.2% of sales (+95 bps year-over-year).

• EBITDA margin stable at 18.4%; EBIT margin at 11.7%.

• Earnings per share dropped to €0.189 from €0.277 year-over-year.

• Free cash flow for the period was €79.4M.

• Dividend per share increased 9.4% to €0.35, with a total payout of €46.6M.

Outlook and guidance

• Management expects easing of negative spirits segment comparisons and continued focus on cost discipline.

• Ongoing restructuring in flooring and distribution models aims to enhance profitability and operational agility.

• Continued resource allocation to innovation and openness to international partnerships, especially in the US and Asia.

• Cork prices stabilizing after years of volatility; demand remains soft.