Aquafil (ECNL) Q3 2024 earnings summary

Executive summary

• Profitability surged in the first nine months of 2024, with EBITDA up 29.9% year-over-year despite a 5.9% decline in revenues, driven by cost containment, improved sales mix, and increased sales initiatives.

• EBITDA margin rose to 11.6% from 8.4% year-over-year, and adjusted EBIT turned positive.

• ECONYL® branded and regenerated products accounted for 54% of fiber revenues in 9M 2024, progressing toward the 60% target by 2025.

• US volumes showed recovery, while EMEA and Asia Pacific demand aligned with forecasts, despite disruptions such as Hurricane Helene.

Financial highlights

• 9M 2024 revenues: €416.1M, down 5.9% year-over-year; 3Q revenues: €127.9M, down 2.4%.

• 9M EBITDA: €48.1M, up 29.9% year-over-year; 3Q EBITDA: €15.5M, up 171.8%.

• Net loss narrowed to €8.8M in 9M 2024 from €17.1M in 9M 2023; 3Q net loss reduced to €2.6M from €12.9M.

• Net financial position (NFP) at €265.0M as of September 30, 2024, up from €248.5M at year-end 2023.

• NFP/EBITDA LTM improved to 4.52x from 5.23x at year-end 2023.

Outlook and guidance

• Further margin improvement, debt reduction, and volume growth expected in Q4 2024.

• Confident in achieving business plan targets for 2025 and 2026, with profitability expected to return in 2025 and potential for dividend distribution from 2026 onward.

• Capital increase with option rights to be completed by year-end 2024; unopted rights deadline January 31, 2025.