Altri falls after Q1 results

Altri, SGPS

26/05/2023 10:22

** Shares of Altri  ALSS.LS  fall around 3% after the
Portuguese pulp company posted almost 10% drop in the
first-quarter revenues on Thursday 
    ** Altri's Q1 net profit fell 34% year-on-year to 19.6
million euros, while revenues dropped 9.9% to 224.7 million
euros
    ** CaixaBI says the results showed deteriorating operational
performance, with the destocking process impacting sales, while
the scheduled downtime in Celbi mill and the still high level of
costs pushed margin down
    ** ODDO BHF says the results came in line with its
estimates, reflecting the correction in pulp prices and
maintenance downtime at the Celbi plant
    ** The brokerage notes Altri is focused on operational
efficiency and should benefit from additional electricity
generation capacity starting in H2 2023 given the photovoltaic
plants at the mills and surplus capacity from the new Caima
biomass boiler 
    ** Still, it sees the Gama Project, for which final decision
is expected by end of 2023, to put pressure on the group's
future cash generation capacity, and keeps its "underperform"
rating on the stock
    ** The stock is the worst performer on Portuguese blue-chip
index  .PSI20 , which falls 0.4% 

 (Reporting by Marta Serafinko)
 ((Marta.Serafinko@thomsonreuters.com))