Release Date: June 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Accsys Technologies PLC (ACSYF, Financial) reported a 125% year-on-year improvement in EBITDA, driven by strong volume growth and cost discipline.
- Accoya demand was solid, with global volumes growing by 13%, including a 16% increase in North America.
- The company successfully commissioned Accoya USA, marking a significant milestone in international expansion and reducing exposure to large-scale CapEx commitments.
- Operational cost savings of EUR4.6 million were achieved, exceeding the target of EUR3 million.
- The leverage ratio improved from 4.4x to 2.5x, highlighting good progression in deleveraging the business.
Negative Points
- Group revenues remained flat at EUR136.6 million, despite the growth in volumes.
- Net debt increased to EUR42.6 million, reflecting higher investments in joint ventures and inventories.
- The share of EBITDA loss for the joint venture was EUR6 million, indicating challenges in the ramp-up phase.
- The company faced macroeconomic challenges, impacting the building materials market.
- The liquidation of the Hull plant resulted in non-exceptional operating costs of EUR2.1 million.
Q & A Highlights
Q: In terms of North America, how quickly can a salesperson get up and running, and what level of stock investment should we anticipate over the coming year?
A: Jelena Van Os, CEO: We can have a salesperson productive within a couple of months due to our diverse and focused sales team. Our distributors, experienced with our products, help scale faster. Sameet Vohra, CFO: We target holding about 3.5 months of raw wood and 1.5 months of finished goods to meet customer demands.
Q: Could you discuss customer behavior and inventory levels after the fiscal year-end, especially with new distributors?
A: Jelena Van Os, CEO: We see a healthy order book for Q1 and a step-up in demand in North America due to more distributors. Distributors aim to keep minimal stock levels due to local production reducing supply chain time.
Q: How do you view resilient premium pricing, especially in the US, and what are your plans for Europe considering wage inflation?
A: Jelena Van Os, CEO: We aim to maintain a 30% gross margin, using pricing as a key lever. We announced a price increase in the US starting July 1 and are seeing sustainable order book growth. We adjust pricing as necessary to manage our mix and portfolio.
Q: Regarding the US joint venture, when do you expect it to reach break-even?
A: Sameet Vohra, CFO: The JV incurred a EUR6 million loss due to pre-revenue phase costs. We expect it to break even and show profit in FY26.
Q: Can you provide more details on the new Finnish decking product and its distribution?
A: Jelena Van Os, CEO: The finished decking product will be distributed through our channels. It involves ready-to-use planks produced in Barry. After successful testing in France, we plan to launch it in Switzerland, the Netherlands, and the US.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
