Highlights of 2024
The Altri Group achieved total revenues of € 855.3 M in the year 2024, an increase of 8.5% when compared to 2023. This evolution is explained by a higher average pulp price level, the result of favorable global market conditions especially in the first half of the year. The final part of 2024 turned out to be more challenging, with reductions of 0.9% in total revenues in 4Q24 by comparing with the same quarter of the previous year, and of 10.3% vs. 3Q24. The volumes in 4Q24 were lower than the same quarter of last year, but identical to the previous quarter.
The Altri Group recorded an EBITDA of € 218.3 M in 2024, an increase of 59.0% when compared to 2023. The EBITDA margin reached 25.5%, which compares with 17.4% reported in 2023. This improvement is attributable not only to more favorable market conditions, but also to rigorous cost management. Despite a significant improvement in operational profitability of the Altri Group in 2024, we have witnessed a reduction in profitability at the end of the year, with the EBITDA of the 4Q24 recording a decrease of 31.8% vs. 3Q24 and 3.9% lower vs. the same period of the previous year.
After a strong dynamic in the first half of 2024, global pulp demand slowed down during the second semester, with the region of China as the main driver for such reduction. Although Europe and North America showed a positive behavior in 2024, the correction we have seen in China, both in pulp demand and prices, ended up influencing the dynamics in all regions. After stabilization of the market at the end of 2024, the improvement in global demand data and announced price increases for BHKP pulp in the first months of 2025 are positive data for the industry, which should be more visible in the Group's profitability from the second quarter of 2025.
In the area of dissolving pulp (DP), the high capacity utilization rate of viscose and lyocell producers led to a sustained increase in demand of 6.3% during 2024. The same positive trend was seen in the evolution of DP prices in 2024, with an increase of 6.6% vs. 2023.
The Altri Group closed 2024 with a relevant improvement in the net debt level, reaching €213.6 M, a level significantly below the value reached at the end of 2023 (€ 356.7 M) and below the € 249.8 M recorded at the end of the previous quarter. The Net Debt/EBITDA LTM ratio decreased to 1.0x at the end of 2024 from 2.6x at the end of 2023.
The Altri Group continues to develop various growth and diversification projects in line with its strategic plan. Of the projects in the execution phase, we highlight the project for the recovery and valorization of acetic acid and furfural from renewable sources, at Caima, expected to be completed by the end of 2025. In parallel, the project of migration of the total production of Paper Pulp (BHKP) to Dissolving Pulp until the end of 2026 in the industrial unit Biotek continues to evolve according to the previously defined plan. In March of this year, the Xunta de Galicia, through its Environmental Council, published a favorable Environmental Impact Statement (DIA) for the Gama project. Although additional permits are required, the DIA represents an important milestone, as it assesses the project as complying with environmental regulations in force.
At the end of 2024, the Altri Group signed an agreement to acquire Greenalia Forest, one of the main companies in the Galician forestry sector, and Greenalia Logistics, taking an important strategic step in consolidating its presence in Galicia. The completion of this acquisition is subject to the verification of a set of preconditions, which is the usual procedure in transactions of this nature. The operation is expected to be completed in 2025.
Message from the CEO
The year 2024 was marked by some volatility in the international markets, with increasingly rapid cycles, to which Altri is trying to adjust, safeguarding its profitability both through active production and stock management and through the implementation of plans to generate operating efficiency in all our industrial units.
The first half of the year was largely positive, with the price of BHKP pulp reaching its peak in June. In the second half of the year, the trend reversed, with the price registering annual lows at the end of 2024. In the meantime, the market situation has improved, given the announcements of price increases for 2025 in both China and Europe. In dissolving pulp, a base material for the textile industry and one of Altri's strategic bets, the evolution of prices accompanied the good level of demand.
The Group's debt levels have been steadily reduced, with the Net Debt/EBITDA LTM ratio standing at just 1.0x at the end of 2024, compared to 2.6x in the previous year. This very comfortable situation allows Altri to develop growth and diversification projects such as the recovery and valorization of acetic acid and furfural from renewable sources at Caima, which is expected to start up in the 1Q26, as well as the project to completely migrate Biotek's production of pulp fibers (BHKP) to soluble fibers (with various applications, particularly in the textile industry) by the end of 2026.
Among the Group’s projects is also the Gama Project, in Galicia, Spain, which has recently seen a very positive development, with the publication of the Environmental Impact Statement (DIA) favorable to the project by the Xunta de Galicia's Environment Council. The DIA was a necessary and fundamental step in the integrated environmental license process and shows that the environmental regulations in force for the project will be complied with. To reinforce our commitment to the region of Galicia and the region's timber producers, we signed a share purchase agreement in 2024 to acquire Greenalia Forest and Greenalia Logistics, which strengthens the Group's operational capacity in the supply of raw materials.
The Group's results, with growth in sales volume, EBITDA and Net Profit, have been achieved in full accordance with our demanding ESG Commitment 2030. Sustainalytics, one of the most recognized global ESG rating agencies, ranked the Group 1st globally in the Pulp & Paper sub-industry in the ESG Risk Rating 2024. EcoVadis has also renewed its Platinum rating for Altri, which places us in the top 1% of the world industry
Our good performance was the result of continued operational efficiency, a focus on careful investment management, as well as the commitment of our teams, especially to innovation opportunities.
This success, even in uncertain times, gives us the energy to consistently create opportunities in the future.
José Soares de Pina
CEO
Source: Altri
