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 and net profit improving by 48.7%, despite a 5.9% decline in revenues, driven by cost containment, improved sales mix, and higher selling prices.

• 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.

• U.S. volumes recovered despite Hurricane Helene's impact; EMEA and Asia Pacific volumes and demand aligned with forecasts.

• Confident in achieving business plan targets and maintaining shareholder support.

Financial highlights

• 9M 2024 revenues: €416.1 million, down 5.9% year-over-year; Q3 revenues: €127.9 million, down 2.4%.

• 9M EBITDA: €48.1 million, up 29.9% year-over-year; Q3 EBITDA: €15.5 million, up 171.8%.

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

• Net financial position (NFP) at €265.0 million as of September 30, 2024, up from €248.5 million 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.

• Business plan anticipates return to profitability in 2025 and increased profitability in 2026.

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

• Potential for dividend distribution from 2026 onwards as profitability and debt improve.