Altri (ALTR) Q4 2024 earnings summary

Executive summary

• EBITDA rose 59% to €218M in 2024, with margin improving to 25.5% from 17.4% in 2023.

• Net profit more than doubled to €107.2M, and EBIT grew 124% year-over-year.

• Net debt reduced by 40% to €213.6M, with Net Debt/EBITDA at 1.0x.

• Strategic projects advanced, including the Caima acetic acid/furfural project (completion by end-2025), Biotek’s migration to dissolving pulp (by end-2026), and the Gama project in Galicia receiving a favorable environmental impact statement.

• Acquisition of Greenalia Forest and Greenalia Logistics to reinforce wood sourcing in Galicia.

Financial highlights

• Revenues increased 8.5% year-over-year to €855.3M; full-year EBITDA margin reached 25.5%.

• Fourth quarter revenues fell 10.3% sequentially and 0.9% year-over-year; EBITDA declined 31.8% sequentially and 3.9% year-over-year.

• Cash cost decreased 3% year-over-year, outperforming previous forecasts.

• Total cash flow generation of €143M, aided by a €25M tax reimbursement.

• Total net investment in 2024 was €30M, with 77% classified as ESG investments.

Outlook and guidance

• Expectation for 2025 is for stable or slightly higher variable costs, with CapEx projected at €50–60M.

• Anticipate a small increase in production and sales volumes, with no major maintenance stoppages planned.

• Pulp prices in Europe expected to rise from $1,000/ton at end-2024 to $1,220/ton by March 2025.

• Growth projects, including higher dissolving pulp output and Gama project progress, remain on track.

• Variable costs may rise in 1Q25 due to operational normalization at Celbi and higher energy and chemical prices.