Grigeo (GRG1L) Q4 2024 earnings summary

Executive summary

• Revenue increased by EUR 17.6 million (9%) year-over-year to EUR 213.0 million, while EBITDA decreased by EUR 4.0 million (10%) and profit before tax fell by EUR 4.3 million (15%).

• Tissue paper segment revenue rose 18% year-over-year, but gross margin declined from 33.7% to 25.7% due to higher raw material costs and product mix changes.

• Wood fibre boards segment revenue decreased 4%, but gross profit rose 47% and gross margin improved from 13.9% to 21.3%.

• Raw materials for corrugated cardboard segment revenue grew, but gross margin dropped from 21.7% to 19.9% due to increased costs.

Financial highlights

• Net profit for 2024 was EUR 22.1 million, down from EUR 25.3 million in 2023.

• Adjusted EBITDA for 2024 was EUR 34.9 million, a 10% decrease year-over-year.

• Gross margin declined to 21.9% from 26.4% year-over-year.

• Basic earnings per share were EUR 0.168, compared to EUR 0.193 in 2023.

• Cash and cash equivalents at year-end were EUR 14.0 million, down from EUR 19.0 million.

Outlook and guidance

• Management notes ongoing uncertainty due to the war in Ukraine, particularly regarding the Ukrainian subsidiary Mena Pak AT.

• No significant changes in risk management or financial risk profile during 2024.