Arco,
FINANCIAL YEAR 2023
COMPLETED THE START-UP ACTIVITIES
OF ENGINEERING PLASTICS IN EMEA
ECONYL® BRANDED AND REGENERATED PRODUCTS ACCOUNTED
FOR 49,6% OF REVENUES GENERATED FROM FIBERS
SLIGHT DECLINE IN VOLUMES COMPAREDO TO 2022
MAINLY RELATED TO FIBERS FOR GARMENTS IN EMEA
DECLINE IN MARGINS IN 2023
DUE TO THE HIGH UNIT VALUE OF THE INVENTORIES STOCKED IN 2022
COMPARED TO THE MARKET VALUE OF RAW MATERIALS
MAIN 2023 INDICATORS:
- Revenues: €571.8 million, -16.4% compared to €684.1 million for 2022;
- EBITDA: €47.5 million, -48.5% compared to €92.3 million for 2022;
- Net result: €25.8 million loss compared to a €29.2 million profit for 2022;
- Net Debt/EBITDA ratio at x5.23 at
December 31, 2023 compared to x2.69 atDecember 31, 2022 .
Arco,
“The year 2023 was characterized by a strong volatility of the reference market. The trends anticipated during the presentation of the Company’s targets last November were confirmed by the Group’s consolidated results.
Overall, the year just ended showed a modest volume decline compared to the previous one, though with different dynamics across the various product lines.
In the fourth quarter, demand in EMEA exceeded that recorded in the same period of the previous year for both fibers for carpets and polymers. As for the product line relating to fibers for garments, the strong weakness that characterized the whole year continued.
In terms of volumes sold,
In
The Engineering Plastics project in EMEA reached the objectives set for 2023, thus confirming the growth expectations for the next two-year period.
Margins significantly decreased as a result of the sharp decline in 2023 of the high unit value of inventories stocked in 2022, with an effect on the year of €24 million.
Volumes sold of ECONYL® branded products exceeded the previous year's levels.
The Group confirms the operating and financial results previously announced, while continuing to pursue the strategic goals of increasing productivity and energy efficiency, as well as reducing costs and containing debt.”
Outlook
As stated during the previous events, in 2023 Europe witnessed a sharp, important decline in the prices of raw materials. This entailed a significant mismatch between the unit values of inventories stocked in 2022 and the market price, with a temporary, yet significant impact on the Group’s margins. The results reported were negatively impacted by these trends, but they are in line with our previous announcements to the market.
Despite the uncertainty associated with the raw materials trends, the Company expects an increase in volumes across all three product lines for the 2024-2025 period. It also expects a recovery in the market of fibers for garments in EMEA and
Our target to reduce net financial position by 2025 of approximately €50-60 million remains confirmed. This result will be obtained through a higher EBITDA generated and the efficiency measures implemented during the period.
The Company continues to monitor the achievement of the business targets, also in light of the ongoing macro-economic instability due to the current global geopolitical uncertainty.
The first months of the year confirm the guidance presented last November.
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The full press release is available at: https://www.aquafil.com/investor-relations/press-releases/
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Founded in 1965,
For further information
Investors Contact
investor.relations@aquafil.com
+39 327 0820 268
joeh@gregoryfca.com
610-787-0464 (Cell)
Source:
2024 GlobeNewswire, Inc., source