Zignago Vetro (ZV) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a recovery in Beverage and Food container demand, with sales volumes stabilizing above Q1 2024, while Cosmetics and Perfumery segments remained weak due to ongoing destocking and market turbulence.

• Group revenues for Q1 2025 were €155.4m, down 1.8% year-over-year; EBITDA fell 36% to €22.0m, and net profit dropped 90.3% to €1.1m, mainly due to higher input costs and a sharp increase in the tax rate.

• The Group maintained strong cash generation, with free cash flow of €15.1m after investments, and reduced net financial debt by €16.6m to €284.7m at quarter-end.

• Shareholders approved a €0.45 per share dividend (total €39.7m) and a new 18-month treasury share buyback authorization.

• Margins were pressured by higher energy costs and ongoing market competition.

Financial highlights

• Revenues: €155.4m (-1.8% vs Q1 2024); EBITDA: €22.0m (14.2% margin, -36%); EBIT: €4.4m (2.8% margin, -73.9%).

• Net profit: €1.1m (0.7% margin, -90.3%); tax rate rose to 48.9% from 22.2% in Q1 2024.

• Free cash flow: €15.1m after investments; net financial debt: €284.7m (down €16.6m from year-end 2024).

• Capex: €11.6m in Q1 2025 (vs €20.6m in Q1 2024), focused on plant upgrades and equipment.

• Export revenues: €47.3m (-15.0%), representing 23.9% of total.

Outlook and guidance

• Beverage and Food container demand is expected to remain stable, with sales prices normalizing after prior reductions.

• Cosmetics and Perfumery demand remains subdued but may recover later in 2025 as new product development signals emerge.

• The Group aims to rebalance production costs and selling prices, especially for energy, and maintain strong cash generation.

• Focus remains on cost control, production flexibility, and margin recovery amid ongoing economic and geopolitical uncertainty.

• Despite ongoing geopolitical and economic uncertainty, medium- to long-term prospects for glass containers and the Group remain positive.