Zignago Vetro (ZV) Q3 2024 earnings summary

Executive summary

• Group revenues for 9M 2024 were €473.7M, down 13.2% year-over-year, with Q3 revenues at €144.7M, down 10.2% from Q3 2023, mainly due to lower prices despite higher sales volumes.

• Net profit for 9M 2024 was €32.3M, a 66.3% decrease year-over-year; Q3 net profit was €6M, down 71.6%.

• EBITDA for 9M 2024 was €102.7M (21.7% margin), down 39.1% year-over-year; Q3 EBITDA was €28.8M (19.9% margin), down 40.1%.

• Net financial debt at 30 Sep 2024 was €296.2M, up from €224.7M a year earlier, mainly due to higher capex and dividend payments.

• Market conditions remained challenging, with weak demand, ongoing destocking, and competitive price pressure in key segments.

Financial highlights

• Material and external service costs in 9M 2024 were €286.3M (60.4% of revenues), up as a percentage from 53.9% in 2023.

• Personnel expenses rose 1.7% to €84.7M in 9M 2024, now 17.9% of revenues (vs. 15.3% in 2023).

• EBIT for 9M 2024 was €49.4M (10.4% margin), down 57.4% year-over-year; Q3 EBIT was €11M (7.6% margin), down 63.7%.

• Cash flow from profit and amortisation/depreciation in 9M 2024 was €84.3M (17.8% of revenue), down from €147M in 2023.

• Export sales accounted for 32.9% of 9M revenues, down 9.9% year-over-year.

Outlook and guidance

• Beverage and Food container demand is expected to remain weak for the rest of 2024, with gradual recovery anticipated into 2025.

• Cosmetics and Perfumery container demand is also expected to stay subdued, with recovery projected in 2025.

• The Group will focus on production flexibility, inventory control, and cost management to align with market conditions.

• Long-term outlook for glass packaging remains positive due to consumer preference for recyclable materials.