Corticeira Amorim S.G.P.S. (COR) Q2 2024 earnings summary

Executive summary

• Sales declined 7.1% year-over-year to €500.7M, with EBITDA down 9.0% to €94.4M and net income falling 28.9% to €36.5M.

• Non-recurrent losses of €5.3M, mainly from Amorim Cork Flooring's restructuring, impacted results.

• Net debt decreased slightly to €237.5M despite higher working capital needs, dividends, and capex.

• Sustainability leadership recognized with multiple awards, including UN SDG Pioneer and Most Sustainable Company in the Wine Products Industry.

Financial highlights

• EBITDA margin at 18.9% (vs. 19.2% in 1H23); gross margin improved to 54.2% of sales.

• Earnings per share dropped to €0.275 from €0.386 year-over-year.

• Operating costs rose 2.9% to €206.4M, mainly due to higher energy and staff costs.

• Net financial costs more than doubled to €5.7M.

Outlook and guidance

• Restructuring and creation of Amorim Cork Solutions expected to drive efficiency from January 2025.

• Cork price normalization anticipated to support margins in H2 2024, especially for insulation.