Zignago Vetro (ZV) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues were €329 million, down 14.5% year-over-year, with exports accounting for 34.2% of sales.

• EBITDA fell 38.6% to €73.8 million (22.4% margin), and net profit dropped 64.8% to €26.3 million (8.0% margin).

• The Group leveraged flexibility to limit volume declines and maintain margins amid weak demand and increased competition.

• Q2 showed sequential improvement in sales and margins over Q1, despite ongoing market headwinds.

• €66.4 million in dividends were distributed, and the treasury share buyback program continued, with 0.92% of share capital held as treasury shares at period end.

Financial highlights

• H1 2024 consolidated revenues: €329 million (down 14.5% year-over-year).

• EBITDA: €73.8 million (22.4% margin), down 38.6% from H1 2023.

• EBIT: €38.4 million (11.7% margin), down 55.1% year-over-year.

• Net profit: €26.3 million (8.0% margin), down 64.8% year-over-year.

• Net financial debt: €297.6 million at 30 June 2024, up from €227.9 million at year-end 2023.

• Free cash flow before investments was €49.4 million, compared to €102.6 million in H1 2023.

• Equity: €348.1 million at 30 June 2024, down from €388.7 million at year-end 2023, mainly due to dividend distribution.

Outlook and guidance

• Beverage and Food container demand is expected to remain weak through H2 2024, with gradual recovery forecast for 2025.

• Luxury Cosmetics and Perfumery demand is also expected to stay subdued, especially in high-end and Chinese markets.

• The Group will focus on efficiency, production flexibility, and cost control to maintain capacity utilization and balanced costs.

• Despite market volatility, the long-term outlook for glass packaging remains positive due to consumer preference for sustainable materials.