Aquafil Group Shows Resilience with Improved EBITDA and ECONYL® Growth in Q4 2024

Aquafil Group (ECNL.MI) reported its fourth-quarter 2024 financial results, highlighting strategic improvements in profitability and operational efficiency despite challenging market conditions. The company's performance was characterized by increased ECONYL® sales, cost management, and promising market signals across different regions.

The company's consolidated financials showed a notable 36.0% increase in adjusted EBITDA compared to the previous year, with fourth-quarter EBITDA margins exceeding 11%. ECONYL® sales continued to be a significant revenue driver, accounting for 57.2% of fiber revenues in the quarter, up from 56.7% in the previous quarter.

Geographically, Aquafil observed mixed performance. While North America experienced volume declines of 5.9%, leading to a 6.5% revenue decrease, markets in EMEA and Asia demonstrated growth and met budgetary expectations. The company remains optimistic about potential market recovery, particularly in the North American sector.

Financial discipline was evident in the company's reduced net financial position, with the NFP/EBITDA ratio improving from 5.11x in fiscal year 2023 to 3.42x at the end of the fourth quarter. Management has also secured a covenant holiday from lenders for fiscal year 2024, providing additional financial flexibility.

Looking forward, Aquafil aims to continue its strategic growth, with a goal of increasing ECONYL® revenue contributions to 60% by the end of fiscal year 2025. Valuation analyses by Stonegate Capital Partners suggest a potential share value range between €3.97 and €5.05, indicating market confidence in the company's trajectory.