Aquafil (ECNL) Q2 2024 earnings summary

Executive summary

• Profitability improved significantly in H1 2024, with Q2 EBITDA up 77.7% year-over-year and steady operational recovery nearing ordinary profitability.

• ECONYL® branded and regenerated products accounted for 52.8% of fiber revenues in H1 2024, up from 47.2% in H1 2023.

• EMEA and Asia-Pacific saw volume recovery, while the US market remained weak due to contract termination and slow automotive demand.

• Actions on personnel rationalization and working capital optimization are finalized and delivering expected results.

• A new 2024–2026 industrial plan was approved, including a proposed capital increase of up to €40 million.

Financial highlights

• H1 2024 revenues were €288.1 million, down 7.4% year-over-year; Q2 revenues were €140.6 million, down 2.5%.

• H1 2024 EBITDA was €32.6 million (+4.0% year-over-year); Q2 2024 EBITDA was €17.3 million (+77.7%).

• Net loss for H1 2024 was €6.1 million, compared to a €4.1 million loss in H1 2023.

• EBITDA margin was 11.3% in H1 2024, up from 10.1% in H1 2023; Q2 margin was 12.3%.

• Net financial position improved to €243.0 million at June 30, 2024, from €248.5 million at December 31, 2023.

Outlook and guidance

• Profitability margins in H1 2024 were in line with expectations, with better results expected in H2 2024 and especially in 2025.

• Limited volume growth is expected in H2 2024, with a substantial recovery anticipated in 2025.

• The new industrial plan targets 2024 EBITDA of ~€65 million and NFP of ~€207 million, with further improvements in 2025 and 2026.

• EMEA and Asia Pacific are expected to maintain or grow volumes, while the US is projected to see slight improvement.

• New guidance and business plan to be presented in September.