Cognor Holding (COG) Q4 2024 earnings summary

Executive summary

• 2024 marked a challenging year with revenue down to PLN 2.29bn from PLN 2.72bn in 2023, and a net loss of PLN 57.5m compared to a profit of PLN 235.8m last year.

• Lower prices, reduced non-core revenues, and higher energy costs drove profitability down, despite higher shipment volumes.

• Major capex projects advanced, including modernization in Kraków and commissioning of the Siemianowice Śląskie LSM mill.

Financial highlights

• Sales revenue fell 16% year-over-year; gross profit dropped 85% to PLN 42.2m.

• EBITDA declined sharply to PLN 24.6m from PLN 252.4m in 2023; EBIT turned negative at PLN -26.0m.

• Net debt increased to PLN 758.6m, with net debt/LTM EBITDA at 30.9x, reflecting higher leverage.

• Cash position decreased by PLN 29m to PLN 115.2m; liquidity ratios weakened, with a current ratio of 0.86.

• Working capital outflow and high capex contributed to negative free cash flow.

Outlook and guidance

• Full-scale production at the new Siemianowice LSM mill to start in Q4 2025, expected to boost capacity and efficiency.

• Market conditions for rebars are expected to improve, with stabilization in automotive and slight price recovery for billets and finished products.

• Rising capacity utilization anticipated across facilities, with Gliwice reaching full capacity by year-end.