Vidrala (VID) Q3 2024 earnings summary

Executive summary

• Sales for the first nine months of 2024 reached €1,216.4 million, with organic growth of 0.9% year-over-year and EBITDA of €337.7 million, up 7.0%, resulting in a margin of 27.8%.

• Net income drove EPS up 26.2% to €7.22, with net profit at €232.1 million.

• Net debt as of September 30, 2024, was €299.1 million, representing 0.7x pro forma EBITDA.

• The business profile is more diversified and resilient, with strong cash generation and a strategic focus on core regions.

• Recent M&A activity, including the integration of Vidroporto and divestment of Vidrala Italia, impacted results.

Financial highlights

• Revenue grew 1.9% year-over-year, with organic growth of 0.9% after adjusting for scope and FX.

• EBITDA margin expanded to 27.8%, up 140 basis points year-over-year.

• Free cash flow for the period was €155.2 million, with last twelve months at €219 million.

• Earnings per share rose 26.2% year-over-year to €7.22.

• Net debt/EBITDA ratio at 0.7x as of September 2024.

Outlook and guidance

• Full-year 2024 EBITDA is expected to exceed €450 million, with cash generation above €180 million and likely over €200 million.

• FY 2024 sales are expected to reach €1,600 million, with modest volume recovery in Europe and the UK.

• Adjusted EPS projected at €8.74, reflecting double-digit growth.

• No significant capacity increases planned for 2025; CapEx will remain around €160 million, focused on technical improvements, vertical integration, and sustainability.

• More than 50% of sales are under price formulas that adjust for cost variations, with 2025 prices expected to see a modest low single-digit decline.