Cork giant Amorim tumbles on stock market over disappointing financial results

Corticeira Amorim shares tumbled 7.3% on Lisbon’s stock market on Tuesday in the biggest daily plunge since March 16, 2020 during the pandemic.

The shares from the company led by António Amorim are currently trading below the psychological barrier of €7 per share for the first time since May 2016 with shares trading at €6.81.

Since the start of the year, Amorim shares have clocked up devaluations of 11.7% with dividends.

But what lies behind the falls? According to the company’s financial results for the first nine months of the year, all of the company’s factories at Santa Maria da Feira posted reductions in sales.

The results, published on Monday, revealed an across-the-board deterioration in operational performance, with consolidated profits falling 4.5% to €45.7 million while sales tumbled by 6.8% to €676.5 million.

It led the CEO of the company, Antonio Rios de Amorim to state: “The activities of Corticeira Amorim over these nine months were naturally affected within this context of high uncertainty and reduced predictability, with impact on levels of consumption and leading our clients to adopt more prudent purchasing policies.”

António Rios de Amorim described the market as “more challenging than initially anticipated,” noting that geopolitical tensions and changes in international trade have negatively impacted the market, “in a scenario of changing alcohol consumption habits that imposes increased pressures on the wine sector.”

Amorim Cork Solutions, which focuses its business on non wine cork stopper products such as flooring, composites, and insulation, was particularly hammered.

Excluding the result from selling Timberman Denmark in December, 2024, the reduction in sales from this part of the business would have been 11.2%.

Consolidated numbers reveal that sales in the first nine months of the year stood at €676.5 million, a fall of 6.8% like-for-like. With the impact of selling Timberman, sales would have fallen only 3.6%, which nevertheless is a significant contraction.

Taking the third quarter on its own, the fall in sales was even more pronounced at -9.8% to €203.4 million.