In the first nine months of the current year, Altri achieved a net result of 117.4 million euros, an increase of 29.9% compared to 90.4 million recorded in the same period last year.
However, in the third quarter alone, profits amounted to 47.7 million euros, with a growth of only 3.8%, which the company explained “by the negative development of currency hedging with the dollar, recorded in the financial results, and the increase in the effective tax rate in the quarter”.
In a statement to CMVM, Altri adds that, through Caima, Celbi and Biotek, it produced 852,100 tons of cellulosic fiber in the first nine months of this year, 1.6% less than in the same period last year,” given the scheduled shutdown. Biotek in May”, with overseas markets absorbing 86% of the total.
“The group’s financial performance was affected by production and sales volumes but also by prices,” says the pulp producer when presenting the accounts.
Total revenues amounted to 805.9 million euros, a growth of 37.7% compared to the first nine months of 2021. Total revenues amounted to 667.8 million euros, an increase of 36.9% over the same period in 2021.
EBITDA was €223.4 million for the year, up 25.4% year-on-year. In the third quarter alone, EBITDA amounted to 92.6 million, stressing in the statement that “EBITDA per ton amounted to 338 euros, which is a record level in the history of the group, showing the focus on efficiency and profitability.”
EBITDA margin was 27.7% at the end of September, 2.7 percentage points lower than the same period in 2021.
“Despite a favorable pulp price environment, the inflationary context of several variable costs limited margin development,” Eltry explains, noting that it “continues to see significant increases in chemicals, natural gas and timber prices.”
Until September, the group’s investments doubled to 34.8 million euros, compared to 16.8 million in the same period last year.
However, net debt at the end of September was around 358.9 million euros, which was slightly higher than the 356.9 million euros recorded at the end of June. The net debt/EBITDA ratio was 1.3 times.
Jose Soares de Pena, CEO of Altri, confirmed in the letter accompanying the disclosure of the results that the numbers were reached “in a challenging environment, specifically with regard to inflation of various variable costs,” adding that “significant increases were recorded in natural gas prices as well as chemicals.” He also says that the average cost of lumber “was considerably higher which reflects the higher level of imports”.
“All of these factors have an impact on the Altri Group, resulting in an appropriate increase in production costs per ton. However, as a result of focusing on the efficiency of our operations, we more than make up for these charges.”
José Soares de Pena notes that the low level of net debt “allows us to maintain the financial capacity to consider opportunities for a dynamic economy”.
Regarding the project of the new industrial unit for the production of sustainable textile fibers in Galicia, the CEO says that he intends to announce the final investment decision in the first half of next year. Regarding the Gamma project, Altri also states that it continues to advance in key pillars of decision-making, specifically in environmental impact study, engineering project, economic feasibility, financing structure and access to EU funds.
In addition to the international context of increased pulp demand, Eltry notes that the level of inventories in European ports remains well below the averages of recent years, “having reached its lowest level in the past five years in July 2022,” which “has a positive impact on prices.” Hardwood Fiber (BHKP), which remained at $1,380/ton” during the third quarter.
Regarding the year-end outlook, the group notes that “the low level of inventories in European ports combined with strong demand in key sectors such as textiles are good indicators for the near future.”
On the supply side, he stresses that “global logistics is in the process of normalizing, but it still has some impact on many value chains.”
Al-Tari notes that “general inflation of variable costs was the main challenge for the group in 2022,” stressing that “the rise in natural gas prices, the cost of chemicals, and the cost of wood, are largely related to the increase in imports.” , were the main factors for the related increase in production costs per ton.
Regarding the solutions that have been adopted to reduce this impact, the group says that it has recently begun “implementing some solutions, which is to reduce the consumption of natural gas when using alternative products.
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