Viscofan (VIS) Q2 2024 earnings summary

Executive summary

• Achieved all-time high in operating and net profit despite revenue declines and ongoing inventory adjustment impacts from 2H23, supported by operational excellence and efficiency gains.

• Revenue declined 5.6% year-over-year to €593.1 million, mainly due to a sharp drop in energy sales and continued weakness in cellulose volumes, while collagen and fibrous technologies showed growth.

• Inventory reduction and focus on operational excellence supported profitability despite lower sales.

• New converting plant in Thailand to start operations in 4Q24, reinforcing long-term presence in Asia Pacific.

Financial highlights

• 2Q24 revenue was €303.4 million, down 5.3% year-over-year; EBITDA rose 3.5% to €70.0 million, with a margin of 23.1% (+2.0p.p.).

• 1H24 revenue was €593.1 million, down 5.6% year-over-year; EBITDA increased 1.7% to €131.6 million, margin at 22.2% (+1.6p.p.).

• 1H24 net profit hit €68.8 million, up 9.5% year-over-year.

• Operating profit (EBIT) for 1H24 was €89.4 million, up 1.4% year-over-year.

• Net bank debt increased to €197.3 million at June 2024, reflecting higher shareholder remuneration and share buybacks.

Outlook and guidance

• Positioned to benefit from expected volume increases and further margin improvement in 2H24, with management expecting higher margins and operating leverage.

• Production at the new Thailand plant scheduled to begin in 4Q24, supporting growth in Asia Pacific.