Altri (ALTR) Q4 2024 earnings summary

Executive summary

• EBITDA rose 59% to €218.3M in 2024, with margin improving to 25.5% from 17.4% in 2023, and net profit surged 150.6% to €107.2M.

• Net debt reduced by 40% to €213.6M, achieving a Net Debt/EBITDA ratio of 1.0x.

• Strategic projects advanced, including the Gama project in Galicia (favorable environmental approval), Caima acetic acid/furfural recovery, and Biotek’s migration to dissolving pulp.

• Acquisition of Greenalia Forest and Logistics to strengthen fiber supply and industry presence in Galicia.

• Positive non-recurring effects included a €25.2M tax reimbursement and a €2.5M electricity tariff premium; a €6M cost from the Celbi turbine incident was mostly insured.

Financial highlights

• Total revenues for 2024 increased 8.5% year-over-year to €855.3M; EBITDA up 59% to €218.3M; EBIT up 124% to €157.7M; net profit up 150.6% to €107.2M.

• EBITDA margin improved to 25.5% (from 17.4% in 2023); EBIT margin rose to 18.4% (from 8.9%).

• 4Q24 revenues were €185.6M, down 0.9% year-over-year and 10.3% sequentially; EBITDA at €38.3M, down 3.9% year-over-year and 31.8% sequentially.

• Cash cost decreased by 3% year-over-year; payroll costs rose high single digits due to inflation and higher variable pay.

• Free cash flow generation of €143M, aided by tax reimbursement.

Outlook and guidance

• Expectation for stable or slightly increased variable costs in 2025, with some short-term headwinds from energy and chemical prices.

• CapEx for 2025 projected at €50M–€60M, reflecting ongoing investment cycle and deferred growth projects.

• Anticipate a slight increase in production and sales volumes in 2025; Biotek’s transition to dissolving pulp and Caima’s acetic acid/furfural project progressing on schedule.

• Net debt/EBITDA may rise slightly but financial position remains strong.

• Positive momentum in pulp prices expected to continue into early 2025, though improvement in 1Q25 may be limited.