Q2 2024 Navigator Company SA Earnings Call Transcript
Key Points
- The Navigator Co SA (POELF) reported a 9% year-on-year increase in total turnover, reaching EUR1,066 million for the first half of 2024.
- EBITDA rose by 18% year-on-year to EUR299 million, with a strong EBITDA margin of 28%.
- The company successfully completed the acquisition of Accrol, enhancing its position in the UK tissue market.
- Navigator achieved a significant reduction in cash costs across all segments, ranging from 6% to 14%.
- The company was ranked as the number one in the world for ESG risk by Sustainalytics among 85 global paper and forest companies, highlighting its strong sustainability practices.
- Net debt increased to EUR665 million, impacted by the acquisition of Accrol, dividend distribution, and higher CapEx.
- Pulp sales volumes were down 35% quarter-over-quarter and 43% compared to Q2 2023.
- The company anticipates a seasonal slowdown in demand and increased pulp supply in Q3 2024, which could negatively impact prices.
- Fixed costs increased due to the inclusion of new tissue units, employee profit sharing, and nonrecurring costs related to the Accrol acquisition.
- The geopolitical tensions and market volatility present challenges for maintaining cost reductions and price stability.
Good afternoon. We welcome you to The Navigator Company first-half results 2024 presentation. (Operator Instructions) I now hand the conference over to Ana Canha. Please go ahead.
Ladies and gentlemen, welcome to Navigator's company conference call and webcast for the second-quarter and first-half results. Joining us today are the following directors Antonio Redondo, Fernando Araujo, Nuno Santos, Joao Le, Dorival Almeida and Antonio Quirino Soares. As usual, we will start with a brief presentation, and we will have the Q&A session at the end. The presentation can be accessed through the links available on the website, and questions may be addressed also through the webcast platform. Antonio will start commenting on the main highlights for the quarter. I will now hand over to Antonio.
Thank you, Ana. Good afternoon, and thank you all for joining us today.
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