CPH Group (CPHN) H2 2024 earnings summary

Executive summary

• CPH Group AG refocused on Chemistry and Packaging after spinning off the Paper Division and Perlen real estate into Perlen Industrieholding AG.

• Net sales declined due to lower raw material costs and reduced sales volumes, especially in Packaging.

• Zeochem (Chemistry) achieved record EBITDA; Perlen Packaging earnings matched solid 2022 levels after an exceptional 2023.

• Positive net result despite a CHF 22.3 million non-cash expense from the Paper Division spin-off.

• Continued global expansion with acquisitions in India (Chemistry) and Israel/Hungary (Packaging).

Financial highlights

• Net sales for 2024 were CHF 323 million, down 10.6% year-over-year (excluding spun-off Paper Division).

• EBITDA was CHF 54 million (16.6% margin), down 17.2% year-over-year, impacted by a CHF 3.7 million one-off spin-off expense.

• EBIT was CHF 39 million (12.1% margin), down 24.5% year-over-year.

• Net result was CHF 34 million, down 23.7% year-over-year, reflecting lower sales and absence of prior-year non-operating income.

• Free cash flow was CHF 35 million, down 36.4% year-over-year.

Outlook and guidance

• Slight increase in group net sales expected for 2025; group earnings and net result anticipated to improve.

• Chemistry Division expects net sales and EBITDA slightly above 2024; Packaging Division expects increases in both metrics.

• Positive impact from LOG Pharma acquisition in Packaging and continued investments in productivity and efficiency.

• Medium-term targets: 5–8% annual net sales growth, 16–18% EBITDA margin, 8–10% free cash flow margin, equity ratio over 50%.