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Corticeira Amorim’s profit was € 48.5 million in the first nine months of this year, 10.8% less than in the same period last year, excluding the non-recurring effect of the sale of US Floors in 2019, profits would now have fallen by just 6.8%, the largest cork product company in the world points out, in a statement released Thursday, November 5 with the Securities Market Commission (CMVM).
The company headed by António Rios Amorim adds that, up to September, consolidated EBITDA (pre-tax profit, interest, depreciation and write-downs) was 94.9 million euros, which represents a 2% year-on-year reduction.
“This evolution essentially reflects the reduction in the consumer price of raw materials, the increase in sales prices and the increase in operational efficiency, which offset much of the negative effect of a lower level of activity,” he explains. Corticeira Amorim.
It should be noted that the decrease in EBITDA was substantially lower than that of sales, resulting in an improvement in the EBITDA / sales ratio from 16.1% to 16.6% compared to the same period.
Sales were 571.4 million euros between January and September of this year, 5.2% less than those recorded a year ago.
A decline determined by the “adverse conditions deriving from the covid-19 pandemic and consequent measures implemented by various countries to contain the spread”, which “negatively affected the turnover of all business units, with the second quarter the most penalized” , justifies Corticeira Amorim.
The company notes that, unlike at the beginning of the year, sales reflect an unfavorable evolution of the exchange rate – “excluding this impact, sales would have decreased by 4.4% in the first nine months of the year (minus 3.5% in the third quarter) “, details.
Sales of the corks business unit, which represent 70% of the consolidated turnover of Corticeira Amorim, fell by 5.6% to 407.9 million euro, “having been negatively affected by the decline in wine consumption, essentially in The HoReCa channel, as well as the temporary closure of some of its customers “, notes the company.
The segment of corks for sparkling wines suffered the greatest decline in sales, “particularly penalized by the champagne and cider segment”.
The coatings business was the only one to record an increase in sales to 86.2 million euros in the first nine months of this year, 4% more than a year earlier “, mainly driven by sales growth of the artifacts, namely the Amorim WISE product line (sales of € 9.6 million) “.
Another strong point is the solidity of Corticeira Amorim’s balance sheet. Despite the increase in investments in fixed assets (29 million euros), the payment of dividends (25 million) and the acquisitions of 10% of Bourrassé (5 million) and 30% of Elfverson (two million), it managed to reduce the debt 43 million euros at the end of 2019, standing at 117.8 million euros at the end of September this year.
A final word from Corticeira Amorim on the impact of the pandemic on its business, stating that “uncertainty and poor visibility remain high, making it difficult to assess the extent of the direct and indirect impacts of the covid-19 pandemic in the future”.
“The evolution and extent of its diffusion, as well as the possible need to implement further containment measures, will determine its effects on the global economy and consumption patterns and, consequently, on Corticeira Amorim’s business”, concludes the group based in Mozelos, Santa Maria da Feira, which employs over 4,350 people worldwide.
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