Frigoglass (FRIGO) Q4 2024 earnings summary

Executive summary

• Achieved strong progress in transformation initiatives, with improved performance in both Commercial Refrigeration and Glass segments.

• Group sales declined 4.3% year-over-year to €428.0m, mainly due to currency headwinds in Glass and Naira devaluation.

• Commercial Refrigeration sales up 1% year-over-year, with notable growth in Asia and Africa, offsetting declines in Europe.

• Glass FX-neutral sales up 86% year-over-year (reported -17%), driven by pricing and volume growth despite Naira devaluation.

• Net loss attributable to shareholders was €29.6m, a significant improvement from €118.8m loss in 2023.

Financial highlights

• Adjusted EBITDA increased 22.1% year-over-year to €44.5m, with margin up 2.2pp to 10.4%.

• Commercial Refrigeration Adjusted EBITDA up 73.1% year-over-year, margin improved by 2.9pp to 6.9%.

• Glass Adjusted EBITDA down 6.6% year-over-year, but margin improved by 2.4pp to 21.6%; Q4 margin reached 27%.

• Gross profit rose 12.7% to €67.5m, margin up 240bps to 15.8% from cost reduction and pricing actions.

• Adjusted Free Cash Flow slightly below prior year, impacted by higher working capital needs and lower capex.

Outlook and guidance

• Anticipates continued progress and solid performance in 2025, leveraging transformation momentum.

• Plans to continue cost-out initiatives, agile pricing in Nigeria, and tight working capital management.

• FY 2025 capex expected at €35m, mainly for a furnace rebuild in Glass.

• Sustainability targets include significant GHG emissions reduction by 2030 and Net Zero by 2050.

• Material uncertainty exists regarding refinancing of 2026 Notes.