Viscofan (VIS) Q2 2023 earnings summary

Executive summary

• H1 revenue rose 10.7% to €628.6m and EBITDA increased 5.6% to €129.4m; net profit fell 3.1% to €62.9m, largely as €8.1m of negative exchange differences erased operating profit growth.

• Results reflected stronger price mix and volumes, cost control, and production efficiency amid continued cost pressure; EBITDA margin recovery in Q2 exceeded expectations in constant currency.

Financial highlights

• Q2 revenue was €320.2m, up 4.9% reported and 7.4% like-for-like; EBITDA was €67.6m, up 4.4% reported and 12.9% like-for-like.

• Q2 operating profit increased 3.3% to €47.0m, while net profit declined 0.9% to €37.1m.

• H1 operating profit rose 4.5% to €88.1m; the net financial result was -€10.7m versus +€4.2m in H1 2022.

• H1 personnel expenses increased 10.2% to €140.7m; other operating expenses rose 11.4% to €157.5m, while transport costs fell 13.9%.

Outlook and guidance

• FY revenue, EBITDA, and net profit are expected to reach all-time highs, with results tracking the low end of March guidance at current average exchange rates.

• If current exchange differences persist, FY net profit is expected at €145–148m, growth of 4%–6%, versus the initial 10%–15% growth expectation.

• Lower electricity sales are expected to reduce revenue by €23m versus initial expectations; lower natural gas and electricity costs are expected to offset the impact.

• Inventory reduction projects target a ~2 p.p. reduction in the inventories-to-revenue ratio in H2.