Corticeira Amorim S.G.P.S. (COR) Q3 2025 earnings summary

Executive summary

• Sales declined 6.8% year-over-year to €676.5M, with EBITDA down 7.9% to €117.6M and net income down 4.5% to €45.7M, impacted by market headwinds and the sale of Timberman Denmark.

• Excluding the deconsolidation of Timberman, sales would have decreased by 3.6%.

• The business faced challenges from geopolitical tensions, shifting trade patterns, and changing alcohol consumption habits, particularly affecting the wine sector.

• Net debt was significantly reduced to €99.2M from €195.7M at year-end 2024, driven by lower working capital needs and strong free cash flow.

• A fire at Amorim Florestal's Spanish facility in October caused estimated losses of €7M, with insurance claims underway.

Financial highlights

• Gross margin improved to 54.2% of sales, up 142 bps year-over-year.

• EBITDA margin was 17.4%, down 20 bps from the prior year.

• Earnings per share fell 4.5% to €0.343.

• Free cash flow reached €153.5M, and capex was €24.6M.

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

Outlook and guidance

• Market conditions remain challenging, especially in the still wine segment and construction-related businesses, with continued uncertainty due to geopolitical and sector-specific pressures.

• Ongoing focus on cost control, operational efficiencies, and margin protection.

• Continued investment in sustainability, innovation, and ESG initiatives.