Zignago Vetro (ZV) Q3 2024 earnings summary

Executive summary

• Revenues declined 13.2% year-over-year to €473.7 million in the first nine months, with Q3 revenues down 10.2% due to lower prices despite higher sales volumes.

• Margins contracted from 2023's record levels; EBITDA margin fell to 21.7% in 9M and 19.9% in Q3.

• Net profit dropped 66.3% year-over-year to €32.3 million for 9M, and 71.6% in Q3 to €6 million.

• Free cash flow before investments was €75.3 million, but after capex and dividends, net free cash flow was negative.

• Net financial debt increased to €296.2 million, up from €224.7 million a year earlier, mainly due to higher capex and dividend payments.

Financial highlights

• 9M 2024 revenues: €473.7 million (-13.2% YoY); Q3: €144.7 million (-10.2% YoY).

• 9M EBITDA: €102.7 million (21.7% margin, -39.1% YoY); Q3: €28.8 million (19.9% margin, -40.1% YoY).

• 9M EBIT: €49.4 million (10.4% margin, -57.4% YoY); Q3: €11 million (7.6% margin, -63.7% YoY).

• 9M net profit: €32.3 million (6.8% margin, -66.3% YoY); Q3: €6 million (4.1% margin, -71.6% YoY).

• Export sales accounted for 32.9% of 9M revenues, down 9.9% YoY.

Outlook and guidance

• Beverage and Food container demand remains weak, with gradual recovery expected in late 2024 and into 2025.

• Cosmetics and Perfumery container demand also subdued, with recovery anticipated in 2025.

• The group will focus on production flexibility, cost control, and aligning production with demand.

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