Altri (ALTR) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw strong demand and higher pulp prices in Europe and North America, with China showing signs of slowdown late in the quarter after a record 2023.

• EBITDA for Q2 2024 was €74M, up 138% year-over-year and 48% sequentially, with a margin of 30.8%.

• Net profit in Q2 2024 was €40.4M, nearly five times higher than Q2 2023, and 87.5% above Q1 2024; H1 2024 net profit reached €62M, up 122% year-over-year.

• Net debt reduced to €324.8M at June 2024, despite a €51M dividend payout, reflecting strong free cash flow and disciplined capital management.

• Diversification and growth projects, including Caima acetic acid/furfural recovery and Gama project, are progressing.

Financial highlights

• Q2 2024 revenues reached €240M, up 19% year-over-year and 8% sequentially; H1 2024 revenues were €463M, up 9%.

• Q2 2024 EBIT was €58.6M (+329% YoY), with margin at 24.4%.

• Free cash flow in Q2 2024 was €66M, driven by higher EBITDA and lower investment needs.

• Net financials improved to €-4.9M in Q2 2024 from €-10.3M in Q2 2023.

Outlook and guidance

• Pulp demand in Europe and North America remains robust, but China is stabilizing after a record 2023.

• Short-term pulp price correction expected as new capacity enters the market and temporary disruptions subside.

• Variable/cash costs expected to remain steady in H2 2024, with full-year evolution in low single digits.

• CapEx projected at mid-40s EUR million for the full year, with higher spending in H2.

• Diversification projects ongoing, with Caima project completion in 2025 and Gama project awaiting environmental license.