Corticeira Amorim S.G.P.S. (COR) Q3 2024 earnings summary

Executive summary

• Sales declined 4.8% year-over-year to €726.2M, with EBITDA down 8.7% to €127.6M and net income falling 28.6% to €47.8M.

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

• Net debt reduced to €214.1M, supported by lower capex and dividend payments.

• SACI agreed to acquire 100% of Intercap for €10M, strengthening the sparkling wine segment.

Financial highlights

• EBITDA margin at 17.6% (down from 18.3% in 9M23); EBIT fell 16.2% to €85.2M.

• Gross margin improved to 52.8% of sales (+133 b.p. YoY).

• Earnings per share dropped 28.6% to €0.36.

• Net working capital rose to €560.9M, with NWC/Sales at 59.1%.

• Net debt/EBITDA at 1.3x; gearing at 26%.

Outlook and guidance

• Board to propose an additional €0.09/share dividend at the December 2 Shareholders Meeting.

• Restructuring and new organizational model for flooring, composites, and insulation units to drive efficiency from January 2025.

• Cork price normalization expected to support margins in coming months.