Tessenderlo Group (TESB) H2 2024 earnings summary

Executive summary

• 2024 revenue declined by 9.6% to €2,647.7 million, with profit down 61.5% to €44 million; new CFO and CTO appointed, and ExCom restructured.

• Adjusted EBITDA fell 16.7% to €265.6 million, and Adjusted EBIT dropped 46.8% to €63.8 million.

• Major investments included a €35 million chlorination plant, new weaving machine in China, and expansion into North America via Tiger-Sul acquisition.

• Significant restructuring and plant closures in the gelatin/Bio-valorization segment, with €40.5 million in related costs.

• Share repurchase and cancellation programs executed, with further buybacks planned due to undervaluation.

Financial highlights

• Revenue: €2,647.7 million (-9.6% year-over-year); Adjusted EBITDA: €265.6 million (-16.7%); Adjusted EBIT: €63.8 million (-46.8%).

• Net profit for the year was €44 million; basic EPS decreased to €0.70 from €1.74.

• Operating cash flow rose 52% to €333.2 million; net financial debt improved to -€5 million.

• Capital expenditures totaled €180.6 million, focused on growth and maintenance.

• Board proposes a gross dividend of €0.75 per share for 2024.

Outlook and guidance

• 2025 Adjusted EBITDA expected between 2024 (€265.6 million) and 2023 (€318.7 million) levels.

• High economic and geopolitical uncertainty anticipated to persist in 2025.

• Effective tax rate guidance is 25%-26%.

• CapEx for 2025 guided at €150 million, with major projects nearing completion.