Corticeira Amorim S.G.P.S. (COR) Q4 2024 earnings summary

Executive summary

• Sales declined 4.7% to €939.1M in FY24, with EBITDA down 11.0% to €157.6M and net income falling 21.6% to €69.7M compared to FY23.

• Net debt reduced to €195.7M from €240.8M, supported by lower working capital needs and the sale of Timberman.

• Board proposes a €0.32/share dividend for approval at the April 28 General Shareholders Meeting.

• New organizational model: Amorim Cork Solutions to consolidate non-stoppers operations from January 2025.

Financial highlights

• EBITDA margin decreased to 16.8% (FY23: 18.0%), with gross margin improving to 52.8% (FY23: 51.5%).

• Non-recurrent gains from Timberman sale (€13.8M) offset by restructuring and product discontinuation costs.

• Capex was €43.0M; free cash flow rebounded to €109.5M.

• Net financial costs rose to €11.9M (FY23: €7.8M).

Outlook and guidance

• Management expects margin recovery in insulation and flooring, contingent on easing volume pressures and continued industrial efficiencies.

• New structure aims for enhanced synergies and efficiency in non-stoppers business units.