Cork conglomerate profits up 15.1% in H1 to €39.4M

Corticeira Amorim’s profits increased in the first half of this year by 15.1% to €39.4 million compared to the same period in 2020, according to a statement released on Tuesday.

In the statement, the group said that in the first six months of this year, sales reached €433.3 million, up 10.7% year-on-year, with “all business units recording robust growth and ending the period with sales levels higher than those recorded in the first half of 2020”.

According to Corticeira Amorim, “this evolution reflects a more favourable context in terms of economic activity and consumption, after the negative effects arising from the restrictive measures implemented by different countries to contain the spread of the covid-19 pandemic.”

In the statement, Corticeira Amorim indicated that consolidated EBITDA (earnings before tax, interest, depreciation and amortisation) for the period under review reached €77.3 million, “a growth of 17.2% compared to the first half of 2020 and higher than sales (+10.7%).”

The company also said that “this good performance essentially reflects the higher levels of activity and cork consumption prices, although operating results were penalised by the aforementioned unfavourable exchange rate effect, the significant increase in the price of some non-cork raw materials and worsening transport costs.”

Corticeira also pointed out that “the contribution of the second quarter of 2021 was decisive for this strong operating performance, having made it possible to offset the restrained activity in the first three months of the year”, adding that EBITDA in this period “grew by 49.6%, above sales (24.4%)”.

In parallel, at the end of June, the group’s net remunerated debt “totalled 53 million euros, a reduction of €57 million, compared to the end of 2020”. The company believes that the strength of its balance sheet “associated with the support of financial institutions guarantees an adequate and balanced capital structure”.

By segments, Corticeira Amorim stated that sales of the cork stoppers business unit “totalled €311.3 million (+11.3% year-on-year), contributing 70% of Corticeira Amorim’s consolidated sales”.

The coverings unit recorded “a 7.7% increase in sales to €63.5 million, benefiting from higher levels of activity”, while sales of the composite agglomerates unit reached €57.7 million (+14.9% year-on-year).”

In the insulation cork unit, Corticeira Amorim’s sales “maintained the strong growth trend recorded at the beginning of the year, totalling €7.2 million (+20.6% year-on-year), driven by the recovery of activity in its most relevant markets, namely France, Portugal and Italy.”