Viscofan revises guidance downward despite strong organic growth

Investing.com -- Viscofan shares fell 1% after the company reported third-quarter results that aligned with expectations but showed strong organic growth.

The company posted Q3 sales of €318 million, representing a 4.3% year-over-year increase. This growth was primarily driven by robust volume expansion across all regions, with organic growth contributing 8.4 percentage points. Inorganic growth added 0.8 percentage points, while cogeneration had a negative impact of 0.9 percentage points and foreign exchange headwinds reduced growth by 4 percentage points.

EBITDA decreased by approximately 2% year-over-year to €73 million, mainly due to foreign exchange challenges and, to a lesser extent, raw material inflation. On a like-for-like basis, excluding foreign exchange and M&A effects, EBITDA actually increased by 6.5% year-over-year to approximately €80 million.

The company’s net debt declined from €229 million in Q2 2025 to €186 million in Q3, reflecting strong free cash flow generation and reduced working capital needs through improved inventory management.

Despite achieving stronger-than-expected organic growth of 5.5% year-to-date, compared to the 3-4% expected for 2025 and the historical industry growth rate of 2-4%, Viscofan has revised its full-year guidance downward due to weakness in the U.S. dollar. The company had initially assumed an EUR/USD exchange rate of 1.05 for 2025, but current projections indicate a rate of 1.13, with the spot rate around 1.16.

Viscofan now forecasts annual sales of €1,215-1,250 million, down from its previous guidance of €1,265-1,300 million. The company also lowered its EBITDA guidance to €290-302 million from €308-320 million, and adjusted its net income forecast to €154-160 million from €166-172 million.

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