Consolidated Annual Report 2020

Resilient sales (-5.2%) despite adverse global context

  • EBITDA-sales ratio increases to 16.6%, reflecting the positive evolution of EBITDA compared with the decline in sales;
  • Exchange rate depreciation impacts activity negatively;
  • Net debt decreases €50.4 million to €110.7 million;
  • Net profit falls 4.8% to €64.3 million (excluding non-recurring costs and the positive extraordinary impact of US Floors in 2019).

If 2020 was the year of resilience, 2021 is the year of attitude. Positive, dynamic and ambitious.

Message from the Chairman

The year 2020 was marked by the COVID - 19 pandemic, and its dire immediate onsequences – with many millions of infected people and, at the date of this message, more than 1.7 million lives lost, in a tragic demonstration of the fragility of human life. It has also had very serious economic and social consequences which, unfortunately may become more acute in the future.

In economic terms, despite a moderately positive start to the year, the pandemic dramatically changed the situation. More than in any recent year, uncertainty and restrictions on activity have had a very severe impact on productivity and mobility and, therefore, on growth. Business activity collapsed between the first and second quarters. This evolution was unexpected, challenging and posed different changes in terms of direction and rhythm. The world economy contracted by about 3.5%; the Eurozone, by about 7.2%, a very negative figure, but clearly better than expected; and the United States, by about 3.4%.

Against this background, Corticeira Amorim's essential priorities remained unchanged from the outset: to protect everyone’s health and safety and the determination to continue to serve our customers. Based on a rigorous Contingency Plan implemented across all our industrial units and extensive distribution network, a set of wide-ranging measures was adopted, which have been fundamental in ensuring the permanent wellbeing of our Employees around the world, the secure operation of our various industrial units and continuity of business operations.

Over these months, Corticeira Amorim has fulfilled its major supply chain responsibilities to the wine sector, and has done everything necessary to maintain production and continue to serve the Customers in a timely manner. The response from our People has been exceptional, ensuring, even in the most difficult times, maintenance of normal activities and serving our Customers.

There were many challenges and difficulties that we have faced with determination. Notwithstanding the major challenges, it has been a positive year for our business activity: with resilient sales, reinforced operating profitability and remarkable net results. We have reinforced our sustainability commitments: we joined Act4Nature Portugal, to protect, promote and restore biodiversity; we developed Naturity and Xpür, the world’s most ecological and efficient anti-TCA technologies; we joined the 50 Sustainability & Climate Leaders initiative, showing that it is possible to lead by combining sustainability, technology and innovation; we commissioned life cycle assessments of the most representative products in our portfolio, which conclude, without exception, that they have a negative carbon balance; we have expanded the scientific and technical knowledge that will allow us to disseminate forestry management practices that will be capable of increasing the productivity and profitability of the cork oak forest, promoting the balance of this exceptionally biodiverse ecosystem. Even a substantial part of our financing has this character and this commitment - 40 million euros in green bonds allocated to investments that leverage the sustainability of our operations.

In 2020, we celebrated 150 years of activity. We launched a new corporate identity, renewed and intensified our communication and sought to involve all our stakeholders in special moments of celebration and sharing of our values, our culture and our pride in the success that we have achieved collectively.

In particular, our People who, throughout these 150 years, have always been at the heart of our activity, making an absolutely decisive contribution - with their competence, their capacity, their professionalism and their commitment - to solid growth and Corticeira Amorim Group's sustainable development. Successive generations that share our culture: responsibility, overcoming, pride. This is our most valuable asset: our People. We face 2021 with optimism. The effectiveness of vaccines and the intensification of the vaccination process against COVID - 19 should allow for a positive evolution of the global economy and consumption, with a positive impact on the activity of Corticeira Amorim. And we are prepared, as never before, to maximize it. We have a unique offer of value: our products and solutions have unique credentials - sought after for their superior technical performance and preferred by the values of sustainability they contain and propagate.

If 2020 was the year of resilience, 2021 will be the year of attitude. Positive, dynamic and ambitious.

The future begins every day!

António Rios de Amorim
Chairman and CEO
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