Corticeira Amorim S.G.P.S. (COR) Q2 2025 earnings summary

Executive summary

• Sales declined by 5.5% to €473.1M in 1H25, mainly due to the deconsolidation of Timberman and FX impacts; EBITDA margin fell to 18.4% from 18.9% year-over-year.

• Net income rose slightly to €36.8M from €36.5M in 1H24, supported by lower net financial costs and income tax.

• Net debt reduced to €153.1M from €195.7M at YE24, reflecting lower working capital needs and strong free cash flow.

• Sustainability and innovation remain strategic priorities, with multiple awards for carbon reduction and product innovation.

Financial highlights

• EBITDA totaled €86.9M (1H24: €94.4M), impacted by higher cork prices and product mix; gross margin was €256.8M, down 5.4% year-over-year.

• EBIT dropped 15.6% to €54.9M; earnings per share increased marginally to €0.277.

• Free cash flow reached €94.6M, and net debt/EBITDA improved to 1.02x.

• Dividend payout increased to €0.32 per share, totaling €42.6M.

Outlook and guidance

• Profitability in Amorim Florestal expected to improve as new cork from the 2024 campaign is integrated.

• Ongoing market challenges in the still wine segment and global alcohol consumption trends may continue to weigh on sales.

• Reorganization and cost control measures in Cork Solutions expected to support margins.