Corticeira Amorim profits fall almost 10% in 2023

 In Companies, Cork, News

Portugal’s cork giant Corticeira Amorim saw sales fall below the €1Bn benchmark in 2023 because of a “significant reduction” in business activity and an unfavourable exchange effect.

Corticeira Amorim closed 2023 with a net result of €88.9 million, representing a reduction of 9.7% on 2022.
In a note sent to the Portuguese stock market regulator CMVM, the company led by António Rios Amorim, suggested a meeting of the general assembly for 22 April, a gross dividend of €0.20 per share, the same as in 2022.
After exceeding the €1Bn benchmark for the very first time in 2022, sales fell 3.5% last year to €985.5 million.
The fall was explained by a fall in turnover levels at Amorim Cork Flooring (-30.1%) and Amorim Cork Composites (-3.8%) “despite a mix of more favourable product and an increase in prices”.
Despite the negative impacts from the increase in prices of cork and operation deleveraging, the consolidated EBITDA increased to €177 million, a growth of 7.9% that was essentially down to a improvement in the sales mix and “significant savings at the level of operational costs, namely those arising from a reduction in the prices of electricity and transport. The EBITDA margin stood at 18%.