Viscofan (VIS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 2.5% year-over-year to €305.1 million, driven by higher volumes in collagen, fibrous, and cellulose casings, ending customer inventory adjustments despite lower co-generation and FX headwinds.

• EBITDA grew 18.3% to €74.8 million, with margin up 3.2 p.p. to 24.5%; operating profitability improved due to commercial discipline, cost savings, and production efficiencies.

• Net bank debt was reduced by 25.1% since June 2024, reaching €147.7 million in September, reflecting strong operating cash flow and inventory reduction.

• Strategic milestones include the acquisition of 60% of Brasfibra and Master Couros in Brazil and the completion of the Thailand plant, with production to start in Q4 2024.

• Net profit for Q3 2024 was €37.5 million, nearly flat year-over-year due to a higher effective tax rate and FX impacts.

Financial highlights

• Q3 2024 revenue reached €305.1 million (+2.5% y/y); EBITDA rose 18.3% to €74.8 million; net profit for Q3 was €37.5 million, down 1.2% due to FX and tax.

• For 9M24, revenue declined 3.0% to €898.3 million, mainly due to a 33.3% drop in energy sales; EBITDA increased 7.1% to €206.4 million.

• 9M24 net profit reached €106.3 million, up 5.5% year-over-year; operating profit up 9.8%.

• Q3 gross margin improved 3.6 p.p. to 66.7%; 9M24 gross margin up 1.4 p.p. to 67.3%.

• Net financial result in 9M24 was -€3.7 million, improved from -€7.9 million in 9M23.

Outlook and guidance

• 2024 EBITDA expected at €285–290 million (+6% to +8% vs. 2023); net profit forecast at €153–156 million (+8% to +10%), both record highs.

• Margin expectations raised due to higher-than-expected cost savings, despite lower co-generation revenue and adverse currency environment.

• Expected increase in volumes and further margin improvement anticipated in Q4 2024.