Corticeira Amorim’s profits rose 20.6% in the first six months of the year, compared to the same period in 2021, to €48 million, the company announced.
In a statement sent to the Portuguese Securities Market Commission (CMVM), Corticeira Amorim pointed out that, “after results attributable to non-controlling interests, net profit was €48 million at the end of the first half, an increase of 20.6% compared to the same period in 2021”.
Already excluding “the changes in the consolidation perimeter, net profit grew 14.1%”.
In the period under review, Corticeira Amorim’s sales grew year on year to €546 million.
“The consolidation, since January 1, of the activity of the SACI group companies (SACI) contributed significantly to Corticeira Amorim’s consolidated sales – excluding this effect, sales growth would have been 12.7%,” the company adds.
The company pointed out that, “despite some signs of a slowdown in the second quarter, all business units recorded a sales growth”.
This evolution “reflects the improvement in the product mix, the increase in prices and the growth in volume,” and the exchange rate also had “a positive impact on sales”, and, “excluding this effect, sales would have increased 24.2% (11.0% excluding the changes in the consolidation perimeter)”.
Consolidated earnings before tax, interest, depreciation and amortisation (EBITDA) grew 26.9% to €98 million in the half year.
“Excluding SACI’s contribution, EBITDA growth was 13.2%, in line with sales evolution in the period” and “although inflationary pressures, particularly in energy, raw materials and transport, continued to penalise results, the higher levels of activity and the improved product mix were decisive in protecting profitability”, it adds.
The company highlights the “positive contribution of the SACI group, contributing with 5€7 million in sales and €3 million in net results”.
At the end of June, the net interest-bearing debt was €71 million, compared with €53 million a year earlier.
“The first payment related to the acquisition of the 50% stake in Saci (€25 million), the acquisition of the remaining 50% in Cold River’s Homestead (€15 million), the increase in working capital requirements (€41 million), the increase in investment in fixed assets (€34 million) and the payment of dividends (€27 million) contributed to the growth in net interest-bearing debt compared to year-end 2021,” explains Corticeira Amorim.
By business unit, sales of cork stoppers totalled €402 million, an increase of 29% (10.7% excluding changes in the consolidation perimeter).
Corticeira Amorim said that “all cork stopper segments registered a positive evolution in sales, as well as most cork stopper categories – with Neutrocork stoppers standing out, which continue to show strong growth”.
The sales of the coverings unit registered an increase of 21.7% to €77 million, and those of composite agglomerates rose to €62 million (+7.1% year-on-year).
“The Aerospace, Multi-purposes Seals & Gaskets and Mobility segments continue to perform best, supporting a significant improvement in product mix. The Amorim Sports, Corkeen and, more recently, Korko, joint venture maintained a great dynamism, remaining an important growth driver”, the company said.
The insulation business unit “reversed the contraction in sales seen in the first three months of the year, ending the half-year with a growth of 10.6%”.
Corticeira Amorim stressed that “higher operating costs (namely due to the increase in energy prices) and the increase in the price of cork consumption penalised operating results”.