Aquafil Group (ECNL.MI) reported a robust fourth quarter in 2024, highlighting resilience and strategic adaptation in a complex market environment. Despite facing revenue challenges, the company showcased significant operational improvements, particularly in profitability and sustainable product contributions.
The company’s financial performance revealed key strategic developments. Revenues were €128.4 million, with adjusted EBITDA increasing 36.0% year-over-year. The most notable achievement was the continued expansion of ECONYL®, the company’s regenerated nylon product line, which contributed 57.2% of fiber revenues in the fourth quarter, representing a 50-basis-point increase from the previous quarter.
Geographically, Aquafil observed mixed market conditions. While North American markets experienced volume declines, the EMEA and Asia Pacific regions demonstrated growth and met budget forecasts. Management remains optimistic about recovery, particularly in the North American fiber segment, with early signs of increasing orders in fiscal year 2025.
The company’s financial strategy also showed marked improvement. The net financial position-to-EBITDA ratio decreased from 5.11x at the end of fiscal year 2023 to 3.42x by the end of the fourth quarter of 2024. This improvement reflects the company’s focused approach to debt management and operational efficiency.
Analysts from Stonegate Capital Partners have valued Aquafil using discounted cash flow and enterprise value-to-EBITDA methodologies. Their valuation ranges from €3.97 to €5.02 per share, with a midpoint of €4.51, suggesting potential positive market perception.
Looking forward, Aquafil aims to continue its ECONYL® expansion, with a strategic goal of reaching 60% revenue contribution by the end of fiscal year 2025. The company is implementing cost-cutting measures and benefits from a covenant holiday from lenders, positioning itself for potential growth and improved financial performance.
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