Altri (ALTR) Q1 2025 earnings summary

Executive summary

• Global pulp demand rose 4.8% year-over-year in Q1 2025, led by China and Asia, while Europe and North America saw negative growth after a strong 2024.

• EBITDA fell 41.2% year-over-year to €29.4 million, with a margin of 14.5%, due to lower pulp prices, energy instability at Selby/Celbi, and ramp-up costs at Biotech/Biotek.

• Diversification projects advanced, including Biotech/Biotek's conversion to dissolving pulp by end-2026 and the acetic acid/fructose/furfural project at Kaima/Caima, with the latter launching in Q1 2026.

• Acquisition of Rinalia/Greenalia Forest and Logistics completed in May 2025 to secure raw material supply in Galicia.

• Net profit dropped 64.7% year-over-year to €7.6 million.

Financial highlights

• Revenues reached €203.6 million, down 8.6% year-over-year but up 9.7% sequentially, driven by higher volumes despite lower prices.

• EBITDA margin dropped to 14.5% in Q1 2025.

• EBIT was €18.1 million (-47.8% YoY), and net profit was €7.6 million (-64.7% YoY).

• Net debt was €211.0 million at end-March 2025, slightly down from €213.6 million at end-2024.

• Net investment in 1Q25 was €9.9 million, with 49% ESG-related.

Outlook and guidance

• Expect normalization of cash costs and improved efficiency as Selby/Celbi turbine resumes and Biotech/Biotek ramp-up continues.

• Stable variable costs anticipated for 2025, with over 50,000 tons of dissolving pulp targeted for production.

• Full Biotech/Biotek conversion to dissolving pulp expected by end of 2026; Kaima/Caima project to start in early 2026.

• Market uncertainty remains due to U.S.-China trade tensions, impacting short-term demand and prices.