The Vista Alegre group recorded a profit of 3.9 million euros in the first half of this year, a 15% drop compared to the same period in 2023, the company announced today.
In a statement sent to the Portuguese Securities Market Commission (CMVM), Vista Alegre reports that turnover reached 64 million euros up to June, a “slight decrease” of 0.4% year-on-year “due to the decrease in production and sales of ‘private label’ products”.
According to the group, the growth of Vista Alegre porcelain and crystal brand products and Bordallo Pinheiro artistic faience “maintained the favorable evolution in the sales mix, contributing to the improvement in EBITDA [earnings before taxes, interest, depreciation and amortization] compared to the same period last year.”
In the period, this indicator reached 14.8 million euros, an increase of 0.5% compared to the same period last year, with the EBITDA margin standing at 23.1%, an improvement of 0.2 percentage points compared to the first half of 2023.
From January to June, operating income fell by 4.6% compared to the same period last year, standing at 8.1 million euros.
“Due to the recent investments made by Vista Alegre companies, depreciation increased by 0.6 million euros, which had a negative impact on the operating result,” he explains.
Vista Alegre Atlantis (VAA) reports a “favorable evolution in retail (physical and online), both nationally and internationally”, of Vista Alegre and Bordallo Pinheiro branded products, which grew by 2.0%, also highlighting “private label growth in the stoneware segment of 8.7% compared to the first half of the previous year”.
As a result, and “in line with the group’s strategy”, the position in markets such as the USA was consolidated, with growth of 38.9%, and the brand expanded into new markets such as the Czech Republic, Norway and the United Arab Emirates.
By market segment, VAA highlights the 15.9% year-on-year growth in faience revenues, while in porcelain and complementary products there was a reduction in the sale of ‘private label’ products and in the horeca channel (hotels and restaurants), which resulted in an 11.7% year-on-year drop in sales volume in this segment.
In the first half of the year, the foreign market accounted for 74.1% of Vista Alegre’s turnover, with sales of 47.2 million euros, with Germany, France, Spain and Italy, in Europe, and the USA and Brazil standing out.
In the period, Vista Alegre made an investment of 7.2 million euros, “mostly directed towards decarbonization”, in order to “achieve greater sustainability in production processes and reduce the carbon footprint of the group’s factories”.
Consolidated net debt increased by 1.956 million euros compared to the end of 2023, to 73.77 million euros, due to the “more demanding semester in terms of working capital requirements”. However, the company notes that the ratio of net debt to EBITDA “remained stable”.
In May 2024, VAA placed $60 million in five-year bond debt with more than 2,000 private national retail investors, the company’s first operation aimed at this type of investor.
“With the proceeds of this bond issue, VAA will repay (in October 2024) the bond issue launched in 2019 – VAA Fixed Rate Guaranteed Senior Secured Notes 2019-2024 Class A (placed with institutional investors) – as well as making it possible to finance the investments planned for its activity,” he says.
To “optimize these additional resources”, he adds, “some financial investments” have also been made.
