Corticeira Amorim with sales of 202.3 million euros in the first quarter – The Economic Journal


Corticeira Amorim reported sales of 202.3 million euros in the first quarter, which represents a 9.2% increase over the same period of 2018, a company statement said, explaining that "this increase does not include any variation effect perimeter ".

"Excluding the effect of exchange variation, sales variation would reflect an increase of 7.9% over the same period of the previous year, which represents a significant increase in consolidated sales," the statement said.

By business units (UN), Corticeira highlights "the growth of sales of Cork Stopper BU (11.3%), given the weight they have in total sales" of the company. UN Raw Materials (up 28.7%), Composite Agglomerates (up 9.2%) and Isolations (plus 26.5%) also contributed significantly to this increase, the company says.

"Raw Materials BU recorded sales of € 58.7 million, up 28.7% year-on-year," the statement said. Sales of "Cork Stopper BU" amounted to 143.4 M €, an increase of 11.3% over the same quarter of last year, "he said, adding that" at constant exchange rates, sales growth would be 10.1%. " The company led by António Rios de Amorim also highlighted increased sales to the U.S., Spain and Italy, while sales to France reflected the weakest vintage of 2017.

"Sales of UN Revestimentos totaled 28.4 M €, a decrease of 2.6% over the same period, maintaining the trend registered in 2018," says Corticeira explaining that "sales for this period still do not reflect the prospective sales effect of the new WISE product line, which is expected to occur in the second half of the year. "

Finally, the Composite Composites BU recorded "sales of € 26.6 million, a growth of 9.2% compared to the same quarter of the previous year". The "increase in sales prices", the "favorable effect of the USD and the mix", "explain the evolution," the statement said.

Corticeira Amorim ended the first three months of the year with a net result of 18.6 million euros, a decrease of 1.1% over the same period of 2018. Against a background of EBITDA reduction, resulting from the increase in the consumer price cork and the negative performance of UN Revestimentos, "the reduction in net income is less significant than could be anticipated," the company said.

Consolidated EBITDA was 5.6% lower than in the same quarter last year, reaching 34.8 million euros (compared to 36.8 million euros in the same quarter of the previous year). As a result of the increase in the raw material consumption price, the EBITDA / Sales ratio decreased from 19.9% ​​to 17.2% in relation to the same period last year.

With reference to the ratio of 12 months of 2018 (17.6%), it is verified that the reduction is not significant and is in line with the existing expectation. The price increases and operating efficiency gains mitigated the EBITDA reduction.

EBITDA of raw materials and cork stoppers reached 33.9 million euros, an increase of 1% over the same period last year (33.5 million euros in the first quarter of 2018). The reduction in the profitability of these BUs (EBITDA / Sales rose from 25.1% to 22.8%) "occurs in a context of increasing cork prices," the Corticeira statement said. "The increase in prices charged to customers and the gains in operating efficiency were not enough to compensate for the increase in raw material consumption prices," he said.

At the end of the quarter, net interest-bearing debt amounted to 141.7 million euros (against 139.0 million euros at the end of 2018). "After results attributable to interests that do not control, net income reached 18.6 million euros, in line with those recorded in the equivalent period of the previous year," the company said.



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