Altri’s profit increased by 144.8% with higher prices and increased demand – Industria

Altri’s profit increased by 144.8% with higher prices and increased demand – Industria

In the first three months of this year, Altri reported a profit of 29.8 million euros, an increase of 144.8% compared to the 12.2 million euros recorded in the first quarter of 2021, without GreenVolt, which is now considered a “parking operation” in terms of reporting financial information.

The group added in a statement that total revenue amounted to 249.2 million euros until March, a growth of 46.5% compared to the same period in 2021, stressing that “the financial performance was strongly affected by the volume of fiber production, but mainly for sales growth in the context of higher prices in international markets.”

EBITDA of 61 million euros, an increase of 85.6% over the first quarter of last year, “Despite the increase in costs for natural gas and chemicals, as well as the high level of timber imports, it imposed a significant increase in production costs per ton ‘, he points out.

He noted that EBITDA margin rose 5.1 percentage points to 24.5%, “reflecting increased efficiency in the context of general inflation.”

In the units of the group – Celbi, Biotek and Caima – the total volume of cellulosic fibers produced in the first quarter amounted to 280.3 thousand tons, which is approximately the same level as in the same period last year.

In terms of cellulosic fiber sales, the volume was about 298.1 thousand tons, down 2.1% year on year, with overseas markets absorbing 86% of the total.

The total net investment made by the group, as of March, was 6.8 million euros.

Net debt at the end of the first quarter was approximately €303.3 million, a decrease from €344 million at the end of 2021. The net debt to EBITDA ratio was 1.2x.

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In the message accompanying the quarterly data release, Altri’s CEO highlights the fact that the group delivered a high level of cellulosic fiber production, “which ended up benefiting from strong demand, but also from continued upward price action in international markets.”

“Demand for cellulosic fibers continues to show a very positive dynamic, in most geographies, with the exception of China,” says Jose de Pena, adding that this context, linked to lower inventories, has led to successive price increases.

The price had risen to $1,200 per ton at the end of the first quarter, he said, “but since then several updates have been announced in the market, totaling $100,” allowing revenue, EBITDA and net group to grow. Revenues.

The official acknowledges that the opposite context will continue, with “a strong increase in the prices of energy and raw materials, especially chemical products and timber,” stressing that “the inflationary pressures we are feeling are a reflection of disruptions in the logistics chains,” now “aggravated by the Russian invasion of Ukraine, which is a reprehensible act.” on all levels”. He adds that it is a reality that “will accompany us in the coming days.”

José de Pena also highlights the progress made in the preparation of the Gamma Project made by the group in Galicia. “We have taken an important step recently, with the election of Palas de Rei, in Lugo, providing the right conditions for the location of the sustainable fiber complex,” he says.

The next steps will include the environmental impact study, the initiation of engineering project details and economic feasibility, as well as defining the financing structure.

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The Galicia project stems from a Memorandum of Understanding signed with Impulsa, a public-private consortium in the Galicia region, to study building an industrial unit from scratch with an annual production capacity of 200,000 tons of soluble fibers and sustainable textiles.

By Andrea Hargraves

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