Corticeira Amorim Q1 profit up 18% to €23.8M thanks to lower costs
Despite the negative impacts of higher cork consumption prices and increased personnel costs, Corticeira Amorim says, "significant savings in operating costs" were recorded in the quarter.
Corticeira Amorim, Portugal’s largest cork processing group, with activities in several countries, on Monday announced a first-quarter net profit up 18.2% at €23.8 million, – growth that it said was partly due to savings achieved in operating costs such as those of energy and transport.
The information, communicated to Portugal’s Securities Markets Commission (CMVM), also states that the company will pay a gross dividend of €0.20 per share on 15 May.
Despite the negative impacts of higher cork consumption prices and increased personnel costs, Corticeira Amorim says, “significant savings in operating costs” were recorded in the quarter, namely due to lower energy and transport prices.
Consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) in the first three months of the year rose to €47.9 million, against €44.1 million in the same period last year.
The results statement indicates that consolidated sales reached €259.9 million, a decrease of 1.4% on the same period of last year.
“The drop in sales in the Floor and Wall Coverings Business Unit (BU) was a determining factor in the evolution of consolidated sales, highlighting the 5.9% growth in sales by the Cork Stoppers” business unit, said the company.
It also recalls that, in overall terms, in 2022, “the first quarter was the highest in terms of sales growth, conditioning the comparison for the same period in 2023.”
At the end of March, the group’s net remunerated debt totalled €166 million (against €46 million a year earlier and €122 million at the end of 2022).
The company explains the growth in debt with the increase in working capital needs (€59 million) and the increase in investment in fixed assets (€20 million).