Grigeo (GRG1L) Q3 2024 earnings summary

Executive summary

• Revenue rose by 6% to €158.2m for the nine months ended 30 September 2024, but EBITDA fell 24% and profit before tax dropped 31% year-over-year.

• Tissue paper segment revenue grew 12.8%, but gross margin declined due to higher raw material costs.

• Wood fibre boards segment maintained revenue, with gross profit up 66% and margin rising from 13.9% to 23.2%.

• Raw materials for corrugated cardboard segment revenue was flat, but gross margin decreased from 22.8% to 20.4%.

Financial highlights

• Net profit for the period was €14.1m, down from €20.4m year-over-year.

• EBITDA was €23.7m (down from €31.1m), EBIT €16.3m (down from €24.1m).

• Gross margin decreased to 22.6% from 26.8% year-over-year.

• Basic EPS was €0.109, diluted EPS €0.108, both down from prior year.

• Net cash from operating activities was €14.4m, with a net decrease in cash of €7.9m over the period.

Outlook and guidance

• Management notes ongoing uncertainty due to the war in Ukraine, with high risk related to Ukrainian subsidiary Mena Pak AT.

• No significant changes in risk management or financial risk profile expected for the remainder of 2024.