Altri Group recorded a net profit of €42.8 million in 2023, an atypical year in the cellulosic fiber market, marked by one of the most sudden cycle changes in more than a decade.

Given the slowdown in growth in global demand as a result of the destocking process in Europe and North America, followed, in the second half of the year, by an improvement in prospects as a result of the strong recovery in the Asian market, profits showed a year-on-year decrease of 71.9%.

“In 2023, through the implementation of a strict cost containment policy, enhanced by the commitment of our people, we’ve managed to reduce the negative impact on profitability”, says José Soares de Pina, CEO of Altri.

EBITDA amounted to €137.3 million, while the EBITDA margin was 17.4%, but an improvement in profitability is expected at the start of 2024 as a result of the recovery in demand, higher prices and the cost reduction strategy.

More than one million tons of cellulosic fibers

“In light of this challenging context, the Altri Group managed to maintain a high level of production at its three units in Portugal, Biotek, Caima and Celbi, exceeding one million tons of cellulosic fibers”, adds the CEO of Altri. The production of cellulosic fibers reached 1,061 thousand tons in 2023.

In terms of sales, essentially abroad, they “were practically in line with those recorded in the previous year, but carried out at lower prices, reflecting a rapid negative evolution in fiber prices”, he highlights. Sales amounted to 1,081 thousand tons, with revenues amounting to €788.2 million.

More sustainable investment

The Altri Group continued with its sustainable growth strategy. In this sense, the investment exceeded €60 million, with €31.7 million invested in the new biomass boiler, which allowed Caima to become the first cellulosic fiber industrial unit in the Iberian Peninsula, and one of the firsts in Europe, to operate 100% fossil fuel free.

It also continues to work to meet all the conditions to make the final investment decision regarding the Gama project, in Galicia, and has several diversification projects underway in the various production units in Portugal.