Corticeira Amorim S.G.P.S. (COR) Q1 2025 earnings summary

Executive summary

• Sales declined by 2.2% year-over-year to €229.4M, with EBITDA down 10.0% to €39.3M and net income up 2.1% to €16.4M.

• Amorim Cork segment grew sales by 4.8%, offsetting declines in Amorim Florestal (-5.3%) and Amorim Cork Solutions (-25.0%).

• EBITDA margin compressed to 17.1% from 18.6% due to higher cork and energy costs, despite operational efficiencies.

• Net debt reduced to €160.7M, supported by lower working capital needs and limited capex.

• Dividend of €0.32/share approved, to be paid in May.

Financial highlights

• Gross margin fell 4.4% year-over-year to €125.7M; gross margin as a percentage of sales at 54.8%.

• EBIT dropped 16.5% to €24.2M; earnings per share rose 2.1% to €0.123.

• Net working capital at €521.0M (56.8% of sales); net debt/EBITDA improved to 1.0x.

• Free cash flow for the period was €42.0M; return on invested capital (ROIC) at 7.1%.

Outlook and guidance

• Cork consumption prices expected to decline as 2024 campaign cork is incorporated, supporting future profitability.

• Further industrial optimization in Amorim Cork Solutions anticipated to enhance profitability.

• Stabilization of cork volumes and normalization of prices expected in upcoming campaigns.