Altri (ALTR) Q3 2024 earnings summary

Executive summary

• Global hardwood pulp demand slowed in Q3 2024, mainly due to weaker demand in China, while Europe and North America remained stable; dissolving pulp demand and prices continued to rise year-over-year and quarter-over-quarter.

• EBITDA reached €56.1M in Q3 2024, with a margin of 27.1%, up from 9.3% in Q3 2023; net debt reduced by 23% to €249.8M by September 2024.

• Ranked number one globally in ESG risk rating for the paper and pulp sub-industry by Sustainalytics; Platinum Medal from EcoVadis maintained.

• Diversification projects at Caima (acetic acid and furfural) and Biotek (migration to dissolving pulp) are progressing as planned, with full Biotek conversion by end-2026.

• Net profit in Q3 2024 was €27.6M, up from €0.2M in Q3 2023, but down 31.7% from Q2 2024.

Financial highlights

• Q3 2024 revenues increased 18.7% year-over-year to €207M, but fell 13.8% sequentially; EBITDA up 243.9% year-over-year to €56.1M.

• Nine-month 2024 revenues up 11.4% to €669.7M and EBITDA up 84.6% to €180.1M compared to the same period in 2023.

• Net profit for the first nine months reached €89.6M, up 217.6% year-over-year.

• Free cash flow of €75M in Q3, aided by tax reimbursements of over €20M.

• Net financial expenses increased in Q3 2024 to €-7.4M, mainly due to lower derivative gains and negative FX differences.

Outlook and guidance

• Demand expected to stabilize in coming months, with the correction phase near its end; positive outlook for 2025–2028, with limited additional capacity and continued demand growth.

• Pulp prices in Europe may decrease further in Q4 2024 as the price gap with China narrows.

• Cost stabilization expected for Q4 2024, excluding a non-recurring €6M turbine incident; recovery expected in Q1 2025.

• Diversification and growth projects remain a strategic focus, with key milestones expected by end-2025 (Caima) and end-2026 (Biotek).