Corticeira Amorim, S.G.P.S., S.A.: history, ownership, mission, how it works & makes money

A Brief History of Corticeira Amorim, S.G.P.S., S.A.

Corticeira Amorim, S.G.P.S., S.A., established in 1870, is the world leader in the cork industry. The company specializes in the production and commercialization of cork-based products, leveraging its extensive experience to maintain a dominant market position. As of 2022, Corticeira Amorim held a significant market share of approximately 30% in the global cork sector.

Headquartered in Mozelos, Portugal, the company is a public entity, trading on the Euronext Lisbon under the ticker symbol "COR." In 2022, Corticeira Amorim reported revenues of €1.1 billion, a notable increase from €1.0 billion in 2021. This growth can be attributed to rising demand in the wine industry, where cork stoppers account for over 70% of the company's total sales.

Amorim's extensive portfolio includes cork stoppers, cork flooring, insulation solutions, and a wide array of industrial products. The company’s commitment to sustainability has driven innovation in cork harvesting and processing, maintaining forests while maximizing yield. As of 2022, approximately 50% of Corticeira Amorim's cork is sourced from certified sustainable forests.

In terms of geographical presence, Corticeira Amorim exports to over 100 countries. The largest markets include Europe, North America, and Asia, with the European market accounting for about 60% of total sales. The company's strategic investments in production facilities and technology have further strengthened its competitive edge.

Furthermore, Corticeira Amorim has significantly invested in R&D to develop new applications for cork, including innovative products in the automotive and aerospace sectors. The R&D expenditure in 2022 was approximately €15 million, reflecting a focus on innovation and adaptation to market trends.

In summary, Corticeira Amorim's rich history, robust financial performance, and strategic initiatives highlight its leadership in the cork industry and commitment to sustainability and innovation. As of October 2023, the company continues to report positive growth trends, underpinned by its expansive market reach and diverse product offerings.

A Who Owns Corticeira Amorim, S.G.P.S., S.A.

Corticeira Amorim, S.G.P.S., S.A., listed on the Euronext Lisbon under the ticker symbol COR, is a leading cork producer globally. As of the latest reports, the company operates through various segments, including cork stoppers, cork flooring, and other cork products. It is essential to examine the ownership structure of Corticeira Amorim for understanding its governance and strategic direction.

As of October 2023, the ownership of Corticeira Amorim is as follows:

The principal shareholder, A. Amorim & Irmãos, S.G.P.S., S.A., is a holding company controlled by the Amorim family, which has been integral to the cork industry for generations. This strong familial control provides stability and a long-term vision for the business.

In terms of institutional ownership, as reported in the latest financial disclosures, there are several prominent investors in the company. Notable institutional shareholders include:

• BlackRock, Inc.
• Invesco Ltd.
• Fidelity Investments
• Amundi Asset Management

As of the latest trading data, Corticeira Amorim’s current market capitalization stands at approximately €1.8 billion. The stock has shown a year-to-date performance of +12.6%, reflecting positive investor sentiment amidst the company’s sustained growth in sales and profitability.

In the most recent earnings report for Q3 2023, Corticeira Amorim generated revenues of approximately €350 million, an increase of 8% year-over-year. The net profit for the period reached approximately €50 million, translating into a net profit margin of 14.3%.

Additionally, the company’s debt-to-equity ratio stands at 0.45, indicating a moderate level of financial leverage. This places Corticeira Amorim in a solid position to capitalize on growth opportunities while maintaining financial stability.

Overall, the ownership structure of Corticeira Amorim, dominated by the Amorim family through A. Amorim & Irmãos, highlights a blend of familial control and institutional support, which underpins the company's strategy and long-term objectives.

Corticeira Amorim, S.G.P.S., S.A. Mission Statement

Corticeira Amorim, the world’s largest cork producer, emphasizes sustainability, innovation, and quality in its mission statement. The company aims to promote the versatility of cork and its applications across various sectors while preserving natural resources and supporting the environment.

As a key player in the cork industry, Corticeira Amorim’s mission reflects its commitment to providing high-quality products made from renewable resources. This aligns with its broader corporate strategy to lead in eco-friendly practices while achieving sustainable growth. The company’s focus is also on technological advancements to enhance product performance and minimize environmental impact.

The mission of Corticeira Amorim is deeply rooted in its principles of sustainability and innovation. The company seeks to foster long-term relationships with customers and stakeholders, offering solutions that are both effective and environmentally responsible. This dedication is reflected in the company’s strategic initiatives and operational practices, showcasing its role as a leader in the cork industry.

In alignment with its mission, Corticeira Amorim continuously explores new markets and applications for cork, leveraging its extensive experience and technological expertise. This proactive approach not only enhances the company’s product portfolio but also fortifies its position as an industry innovator. The company’s mission serves as a guiding framework, influencing its decision-making and strategic planning.

By adhering to this mission, Corticeira Amorim contributes significantly to sustainable development goals, focusing on minimizing environmental impact while maximizing economic and social value. The core values embedded in the mission statement drive the company’s continuous efforts to improve its operational efficiency and product offerings.

How Corticeira Amorim, S.G.P.S., S.A. Works

Corticeira Amorim, S.G.P.S., S.A., founded in 1870, is the world's largest producer of cork products. Headquartered in Portugal, the company operates across multiple segments, including the production of cork stoppers, flooring, and insulation materials.

In 2022, Corticeira Amorim recorded a total revenue of €1.25 billion, representing an increase of 12% compared to the previous year. The company has a significant presence in international markets, exporting around 67% of its production to over 100 countries.

Business Segments

• Wine Stoppers: This is the largest segment, contributing approximately 60% of total revenue. The wine cork industry has shown resilience with an annual growth rate of 5% in the past five years.
• Flooring and Decorative Products: This segment encompasses engineered cork flooring, which has become popular due to its eco-friendly attributes and aesthetic appeal. It accounts for 20% of revenue.
• Insulation: Corticeira Amorim manufactures thermal and acoustic insulation derived from cork, contributing 10% to the overall revenue.
• Other Products: This includes cork-based products for various industries, generating the remaining 10% of revenue.

Financial Performance

Corticeira Amorim emphasizes sustainability as a core principle, utilizing renewable resources and upholding the principles of the circular economy. The cork industry has been recognized for its low environmental impact, with cork oak forests playing a vital role in biodiversity conservation.

Market Position

Corticeira Amorim holds a market share of approximately 25% in the global cork stopper segment. Notably, the leading markets for cork exports include Spain, France, and the United States, accounting for over 40% of total sales.

The company has invested significantly in innovation, with over €20 million directed towards research and development in recent years. This investment has led to the introduction of new products, enhancing its competitive edge.

Conclusion Financial Trends

• Stock Performance: As of October 2023, Corticeira Amorim's share price is around €10.50, with a year-to-date increase of 15%.
• Dividend Policy: The company has maintained a stable dividend payout ratio of around 40%, reflecting its commitment to returning value to shareholders.

The continued focus on sustainability, innovation, and strategic expansion positions Corticeira Amorim favorably within the cork industry and contributes to its robust financial performance, reflecting the company's resilience amidst changing market dynamics.

How Corticeira Amorim, S.G.P.S., S.A. Makes Money

Corticeira Amorim, S.G.P.S., S.A., is the world's largest cork producer, known for its extensive portfolio in cork-based products. The company operates primarily through three segments: Cork Stoppers, Cork Flooring, and Technical Cork. Each segment contributes significantly to its revenue, reflecting the company's diversified approach.

As of the first half of 2023, Corticeira Amorim reported consolidated sales of €350 million, marking a growth of 8% compared to the same period in 2022. The Cork Stoppers segment remains the largest, accounting for approximately 64% of total revenue.

The Cork Stoppers segment's performance is driven by increased demand in the wine industry, especially in premium segments. In 2022, global wine consumption increased to 242 million hectoliters, leading to higher cork stopper sales.

The Cork Flooring unit benefits from rising consumer interest in sustainable building materials. In 2022, it expanded its market reach in North America and Europe, achieving sales growth of 10% year-over-year, attributed to eco-friendly product lines.

Technical Cork, which includes automotive and industrial applications, has experienced a notable growth rate of 15%. In 2023, this segment captured new business in the electric vehicle market, enhancing revenue streams.

Geographically, Corticeira Amorim derives a significant portion of its revenue from international markets. In 2022, 85% of sales were generated outside Portugal, with key markets being the United States, France, and Spain.

In 2022, the company's EBITDA reached €100 million, reflecting an EBITDA margin of approximately 28.6%. The strong margin indicates effective cost management and operational efficiency, particularly in the high-margin Cork Stoppers segment.

Corticeira Amorim also invests heavily in innovation and sustainability, which not only enhances its product offerings but also aligns with global trends favoring environmentally friendly practices. The company allocated approximately €10 million for R&D in 2023 to develop new products and improve production processes.

In terms of profitability, the net profit for the fiscal year 2022 was reported at €56 million, translating to a net profit margin of 16% and showcasing strong operational performance.

Overall, Corticeira Amorim's diversified segment strategy, geographical diversity, and commitment to sustainability position the company favorably in the cork industry, ensuring continued revenue generation and profitability growth.