Viscofan cuts its net profit by 4.1% until September, but increases its income by 6.1%

MADRID, 30 Oct.

Viscofan cuts its net profit by 4.1% until September, but increases its income by 6.1%


Viscofan obtained a net profit of 100.8 million euros in the first nine months of the year, a figure 4.1% lower than that of the same period in 2022, the company reported this Monday, which explained that its results have been negatively affected by adjustments in inventories, the evolution of currencies and lower electricity prices.

From January to September, Viscofan's turnover reached 926.2 million euros, with an increase of 6.1% over the same period in 2022. Excluding the impact of exchange rates, revenues increased by 7.1%. 9%.

Viscofan's revenues from its traditional business grew by 6.3% in the first nine months, to 746.6 million euros, driven by the increase in the price mix, compared to a weaker performance of the sales volumes as a consequence of the decrease in demand caused by the global trend of inventory adjustment that is occurring in the meat industry.

In new businesses, Viscofan's revenues increased by 11.4%, to 116.5 million, highlighting the "good performance" of functional solutions and plastic wraps in contrast to the decline in revenues from vegetable wraps, the company has indicated.

On the other hand, energy sales, which totaled 63.1 million euros, were reduced by 5.2% compared to the January-September period of last year due to lower electricity sales prices in the Spanish market and the limitations of sale to the electrical grid from cogeneration engines in specific periods of high electrical production in the Spanish electrical system.

The gross operating profit (Viscofan) amounted to 192.6 million euros, 1.1% more than until September of last year and 8.9% more if the impact of currencies is excluded.

Viscofan closed September with a net bank debt of 108.6 million euros, a figure 24.7% lower than the 144.2 million with which it ended the first half, "thanks to the improvement in cash generation in the quarter , a result of a lower need for investment and the initiatives to reduce working capital," the group explained to the National Securities Market Commission (CNMV).

José Domingo de Ampuero y Osma, president of Viscofan, has stressed that inventory adjustment initiatives by casing customers "is causing worse market performance than expected, particularly in the Asia Pacific area."

"This temporary market situation coincides with an environment of high costs and an unfavorable currency environment that is putting pressure on our margins," explained the group's president.

Despite everything, Viscofan expects to continue achieving "historic results", with growth in the main financial figures of income, Ebitda and net income, although "adapting them to an environment of decreasing market volumes and high inflation in the 'inputs' of production".

"In an environment of longer-lasting inventory adjustments than initially anticipated, short-term cost control measures, investment adequacy and working capital reduction are being prioritized that reinforce operational strength, flexibility to face adverse environments and the capacity of the company's cash generation," the group stated.

In this context, Viscofan expects its revenue to grow between 4% and 5%, its Ebitda to increase between 2% and 4%, and its net profit to increase between 4% and 7%.