Economic and management results

Business evolution

Year of record volume growth

In 2025, the global casing market estimated volume growth was 4%. This performance was driven by increased demand from population growth and evolving dietary habits, the market has been fuelled by the growing demand for collagen casings as animal guts are gradually being replaced. The pursuit of greater efficiency, supply stability, and higher food safety standards continues to expand across multiple regions, reinforcing the long-term growth prospects for this product family.

In this context, Viscofan has expanded its market share thanks to a historic increase in casing volumes, with growth in all technologies and reporting regions, while the price mix was slightly below the previous year.

Viscofan's growth in cellulose and fibrous casings was enabled by its product availability, the proximity and versatility of its geographical offering, operational and quality reliability, and improvements implemented in previous years, especially in the US, in a context of market rationalization and productive consolidation.

Meanwhile, in collagen casings, Viscofan consolidated its leadership thanks to the progress of specific projects for the replacement of animal guts and the development of new solutions that facilitate the aforementioned technological transition of customers.

The dynamism in the New Business division in 2025 was due to the growth of plastic products, a greater penetration of transfer solutions and the contribution of the companies acquired in 2024 (Brasfibra and Master Couros), as well as Pet Mania, integrated since March 2025.

In contrast, energy sales decreased due to lower remuneration on co-generation electricity, affecting the revenues associated with this business.

Meanwhile, in collagen casings, the progress of specific projects for the replacement of animal casings and the development of new solutions that facilitate the aforementioned technological transition of customers have allowed Viscofan to consolidate its leadership in this family.

Operational activity

2025 has been a year marked by high industrial activity with the aim of meeting increased demand without compromising operational efficiency.

In this context, it is worth highlighting the improvements in the United States, both in cellulose (Danville) and in collagen (New Jersey), following the investments and actions implemented in previous years. In 2024, the installation work of the new cellulose technology at the Danville plant was completed. This investment enabled the plant to achieve in 2025 its best results in recent history in terms of productivity, efficiency, safety, and sustainability. This new technology has simplified the process, resulting in reduced labour needs and other production savings that have materialized this year in improved margins and operating profit. Thus, Viscofan USA Inc. recovered tax credits amounting to €18.0 million.

At the same time, continuous improvement projects were implemented, leading to improved productivity ratios in almost all casing plants.

Furthermore, the Cáseda plant has made progress in its energy diversification and decarbonization plan with the installation of a biomass plant, and an electrolyser for the production of green hydrogen, significant steps in the strategy for emissions reduction and energy efficiency.

Optimizing working capital, and inventory management in particular, has been a key area of action. In this regard, high capacity utilisation and specific working capital management improvement projects have enabled a 2.2 p.p. reduction in inventory-to-sales ratio, to 30.9%, by the end of 2025.

Beyond25 investments in the year

Progress on the projects within last year's Beyond25 Plan was satisfactory, resulting in investments of €84.1 million in 2025. The most relevant of these are:

• Expanding capacity in collagen casings to anticipate the expected growth in this product family.
• The installation of a new production line for plastic bags for meat products at the San Luis Potosí plant (Mexico). This technology allows Viscofan to continue advancing its vision of offering customers value-added products that meet their needs.
• In terms of sustainability, €22.4 million has been allocated to install advanced systems for the treatment and valorisation of polluting substances at the Cáseda plant (Spain), and a water treatment system in Zacapu (Mexico), among others.

Acquisition of Pet Mania International Trade Ltd.

Viscofan acquired Pet Mania Comercio Internacional Ltda. in February 2025 for €5.6 million in cash, purchasing 51% of its share capital. Pet Mania is a Brazil-based company that produces and sells pet treats, animal-based pet snacks, with the United States as its primary market.

With the imposition of a 50% tariff on imports from Brazil to the United States in August 2025, this company's activity and financial results have been significantly reduced. To counteract this impact, diversification measures are being implemented and commercial activity is being strengthened.

The Beyond25 strategic plan concludes with record-high results and shareholder remuneration

Strong organic revenue growth, together with the solid performance of our industrial operations, enabled us to reach all‑time‑high revenue in the 2025 financial year with €1,252.0 million (+4.0% vs. 2024), in EBITDA with €290.0 million (+1.6% vs. 2024), and in net profit with €159.9 million (+1.8% vs. 2024).

Supported by these results, strong cash‑flow generation, and a solid financial position, the Board of Directors is proposing a remuneration of €3.25 per share for approval at the Annual General Meeting, to be paid out of 2025 results, of which €1.00 is an extraordinary payment. This represents a 3.5% increase in total remuneration compared to the previous year and a 76.6% increase compared to €1.84 per share in 2021, the year prior to the start of the Beyond25 strategic plan.

Summary of Viscofan Group's financial results. (€000)

Revenue breakdown (€000)

By geographic area

¹ Like-for-like growth excludes the impact of exchange rate fluctuations in 2025 and changes in the consolidation perimeter due to acquisitions of companies in Brazil.

Revenue

For the 2025 financial year, revenue reached an all‑time high of €1,252.0 million, 4.0% higher than in the previous year.

For the year as a whole, exchange rate fluctuations reduced consolidated revenue growth by 3.0 p.p., while changes in the consolidation scope following the incorporation of Brazilian companies contributed 0.9 p.p.

As a result, revenue in like-for-like terms grew by 6.1% compared to the same period of the previous year.

Within reported Group revenue in 2025, Traditional Business revenue contributed €1,033.7 million, representing an increase of 3.7% compared to 2024. Meanwhile, New Business revenue contributed €159.7 million (+8.4% vs. 2024), and energy sales reached €58.6 million (-2.5% vs. 2024).

In 2025, the geographical breakdown of revenue was as follows:

• EMEA: Reported revenue reached €512.7 million, an increase of 0.8% compared to 2024 and 1.5% on a like-for-like basis, with co-generation revenues decreasing by 3.0%.
• North America: Revenue amounted to €387.4 million, a growth of 3.6% and of 8.7% on a like-for-like basis.
• APAC: Reported revenue was €170.5 million, 4.6% higher than in 2024, and 8.4% excluding the impact of currency fluctuations.
• South America: Revenue totalled €181.4 million, an increase of 14.3% compared to 2024. On a like-for-like basis, revenue rose 12.7% compared to 2024.

Operating expenses

Cost of consumption reflect the impact of increased raw material costs, particularly bovine hides for collagen. This drove cost of consumption up 4.8% to €409.2 million, resulting in a gross margin at 67.3% (-0.3 percentage points vs. 2024).

Personnel expenses in 2025 amounted to €292.4 million, 6.6% more than in the same period of the previous year.

This growth reflected the 10.8% increase in the average workforce, which reached 5,721 people in 2025, driven by both the integration of staff from the acquired companies in Brazil and the additional staffing required to support higher production levels to meet growing demand.

Other operating expenses in 2025 were €282.8 million, an increase of 5.8% compared to 2024, with energy supply expenses increasing by 1.8% vs. 2024 and transport expenses by 2.7%.

Performance of companies incorporated into the consolidation perimeter

In the evolution of the companies acquired in Brazil, fourth quarter sales were affected by the tariff between Brazil and the US implemented in August 2025 (+50%), which reduced price competitiveness in one of their main markets (US).

As a result, the aggregate revenue from these companies fell to €2.7 million in 4Q25 and €2.4 million in 3Q25 compared to €4.1 million in 2Q25 and €3.0 million in 1Q25.

The decline in revenue negatively impacted operating results, with EBITDA amounting to -€0.9 million in 4Q25 and -€0.9 million for the year, contrasting with the positive €1.2 million contribution recorded in the first half of the year, prior to the implementation of the aforementioned tariff rates.

Operating profit

For the full year, reported EBITDA was €290.0 million, 1.6% above 2024, placing the reported margin at 23.2% (-0.5 p.p. vs. 2024).

During this period, the variation in exchange rates reduced EBITDA growth by 4.6 p.p., with consolidation‑scope changes having no material impact (0.0 p.p.).

It is worth highlighting the 6.2% growth in like-for-like EBITDA versus 2024 and the stability in the like-for-like EBITDA margin at 23.7% in a context of higher inflation in the cost of collagen hides.

Amortization and depreciation expenses in 2025 were €85.2 million (+1.7% vs. 2024).

Thus, the Operating Profit in 2025 amounted to €204.8 million, 1.6% higher than in 2024.

Financial result

The net financial result for 2025 was negative at €28.5 million, with negative exchange rate differences of €20.1 million, primarily due to the depreciation of the US dollar, and financial expenses of €9.9 million. This compares to a positive net financial result of €4.9 million in 2024, a period in which exchange rate differences were positive at €13.0 million and financial expenses amounted to €10.4 million.

Net profit

Profit before tax for 2025 is €176.3 million and income tax expense is €17.8 million, an effective tax rate of 10.1% compared to 23.8% in 2024. This decrease is mainly due to the activation of negative tax bases in the US worth €18.0 million as a result of the improved results of the US subsidiary.

However, Viscofan Group's net profit for 2025 sets a new record of €159.9 million, up by 1.8% compared to 2024.

Investment

Investments in 2025 totalled €84.1 million (€71.0 million in 2024). The breakdown by type is as follows:

• €30.9 million (37%) Corresponded to investments aimed at increasing capacity, such as the expansion in collagen casings production in response to the positive growth prospects for this product family, and the installation of production capacity for shrinkable plastic bags at the San Luis Potosí plant in Mexico.
• €22.4 million (27%) Was allocated to environmental and safety projects, notably the €6.0 million investment in a new gas scrubber in Cáseda.
• €19.2 million (22%) In process improvements.
• €11.6 million (14%) In other ordinary investments.

At the close of the 2025 financial year, investment commitments amounted to €52.0 million, compared to €13.5 million at the close of 2024.

Shareholder remuneration

The Board of Directors has agreed to propose to the General Shareholders' Meeting a distribution of results equivalent to a remuneration of €3.25 per share, 3.5% higher than the previous year and 76.6% higher compared to 2021 (the year preceding the start of the Beyond25 plan) driven by a generation of operating cash flows (OpCF = EBITDA - capex) higher than those foreseen in the strategic plan.

Additionally, Viscofan launched a share buyback programme on November 25, 2025, which ended on February 24, 2026. Under this programme, the number of shares to be acquired could not exceed 500,000, representing 1.075% of the company's share capital. As of December 2025, €7.6 million had been allocated and 143,548 shares had been acquired.

Equity

The Group's equity at year-end 2025 stands at €933.1 million, 0.9% lower than at year-end of the previous year due to the increase in negative exchange differences arising from the consolidation of subsidiaries whose currencies have depreciated against the euro in 2025 and the increase in shareholder remuneration.

As at December 31, 2025, the company has 506,601 of its own shares, representing 1.09% of the voting rights.

During this period, the Company has acquired, in the exercise of the powers granted by the General Shareholders' Meeting, a total of 1,599,709 of its own shares.

Under the flexible remuneration program approved by the General Shareholders' Meeting, the Company has received 67,500 treasury shares. Within this program, the total number of shares was delivered through two capital increases totaling 1,693,734 shares, and two capital reductions were executed through the cancellation of 1,693,734 treasury shares in order to avoid dilution for shareholders who did not participate in the capital increase.

Also, during 2025, 157,669 company shares were awarded to Viscofan staff as part of the company's variable remuneration plans.

As at December 31, 2024, the company held a total of 690,795 of its own shares, representing 1.49% of the voting rights.

Financial liabilities

Net bank borrowings at year-end 2025 amounts to €206.1 million, up on the €146.9 million at December 2024 in a year in which Viscofan has increased shareholder remuneration with the payment of €51.1 million in June and December to shareholders who have opted to receive the dividend in cash, and the repurchase of shares for an amount of €94.0 million carried out within the framework of the flexible shareholder remuneration program and the share buyback program.

Also, during the year Viscofan made a payment of €8.9 million under the acquisition agreements for the Brazilian companies in 2025 and 2024.

On the other hand, based on accounting standard IFRS 16, which establishes that most non-cancellable operating leases must be recorded on the balance sheet as a right-of-use asset and a liability for future amounts payable, the breakdown of net financial debt is as follows:

Information on the average payment period to suppliers in Spain

In accordance with Additional Provision Three, “Duty to Inform”, of Law 15/2010 of July 5, Viscofan presents the information corresponding to the average payment period to national suppliers of the Spanish companies included in the Group's consolidation perimeter. The data for the years 2025 and 2024 are as follows:

• Average payment period to suppliers: 33.9 days, 33.6 in 2024

• Ratio of paid operations: 34.5 days, 34.8 in 2024.

• Outstanding payment terms ratio 24.4 days, 22.4 in 2024.

2026 guidance

Viscofan begins a new strategic plan (Beat’30) aimed at accelerating growth, profitability and value creation for its stakeholders.

In this context, in the first year of this plan we expect to continue achieving historic results in the main financial figures with growth of 5% to 7% in revenue, 5% to 8% in EBITDA and 3% to 6% in net profit despite another adverse currency environment, estimated at an average exchange rate of US$/€ at 1.18.

Changes in the consolidation perimeter

Details of the changes in the consolidation scope carried out during the year are available in Note 2 of the Consolidated Financial Statements Report of the Viscofan Group.

Subsequent events

The following events have occurred after the closing date of December 31, 2025:

Proposed dividend distribution:

The Board of Directors, at its meeting of February 26, 2026, agreed to propose to the Shareholders' Meeting a gross amount of the Supplementary Dividend of 1,757 euros per share.

Consequently, taking into account the 2025 Interim Dividend of €1.483 per share and the attendance bonus for the Annual General Meeting of €0.01 per share, the total shareholder remuneration will be €3.25 per share. Of this estimated amount of €3.25 per share, €2.25 corresponds to the increasing ordinary remuneration that the Board of Directors has been proposing to the Annual General Meeting in recent years (€2.135 per share for 2024), while the additional €1 per share to reach the total estimated amount would be considered extraordinary due to current market conditions and the Company's situation.

The payment of the Supplementary Dividend is expected to be made in June 2026.

Capital reduction:

Furthermore, at the same meeting of February 26, 2026, the Board of Directors agreed to propose to the Shareholders' Meeting a capital reduction of up to €350,000 corresponding to 500,000 shares acquired under the share buyback program initiated on November 25, 2025. This reduction will be implemented following its approval, presumably during May 2026. The treasury shares being cancelled were all acquired under the share buyback program, which began on November 25, 2025, was announced in a Inside Information notice dated November 24, 2025, published on the website of the Spanish National Securities Market Commission (CNMV), and concluded on February 24, 2026.

Share buyback program:

On February 26, 2026, the Board of Directors of Viscofan, S.A. agreed to launch a share buyback program (the “Buyback Program”) aimed at reducing share capital by redeeming treasury shares acquired under the “Viscofan Flexible Dividend” programs that the Company may approve for 2026. This reduction in share capital is intended to avoid dilution for those shareholders who choose to receive their remuneration through the delivery of new fully paid-up shares.

The Buyback Program will last for 1 year, starting on March 2, 2026 and remaining in effect until March 1, 2027 (both included).

The maximum total amount of the Share Buyback Program will be up to €150 million. Under no circumstances may the number of shares to be acquired exceed 2,700,000, approximately 5.8% of the Company's share capital as at today.

There are no noteworthy events other than those mentioned above, from the close of the year to the date of preparation of these financial statements.

Alternative performance measures

The Viscofan Group includes several Alternative Performance Measures (APMs) in this report, as set out in the Guidelines on APMs published by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415es), and adopted by the CNMV.

These are a series of measures developed from the financial information of Viscofan S.A. and its subsidiaries, and are complementary to the financial information prepared in accordance with International Financial Reporting Standards (IFRS). They should not be evaluated separately under any circumstances, nor should they be considered a substitute for IFRS.

These are measures used internally for decision-making and which the Board of Directors decides to report externally, considering that they provide additional information useful for analyzing and assessing the results of the Viscofan Group and its financial situation.

The APMs included in this report are the following:

EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is calculated by excluding depreciation expense from operating profit. EBITDA is a commonly reported and widely used metric among analysts, investors, and other stakeholders in the casing industry. The Viscofan Group uses this metric to track business performance and set operational and strategic objectives for its companies. However, it is not a defined IFRS indicator and may therefore not be directly comparable with similar indicators used by other companies in their reports.

Consumption Expenses: This is calculated as the net amount of supplies and the change in finished goods and work in progress. Management monitors consumption expenses as one of Viscofan's main cost components. The weight of net income from this cost component on revenue or gross margin is also analyzed to study the evolution of the operating margin. However, it is not an indicator defined in IFRS, and consumption expenses should not be considered a substitute for the various items in the statement of profit and loss that comprise it. Furthermore, it may not be comparable with other similar indicators used by other companies in their reports.

Net bank borrowings: This is calculated as non-current debt to credit institutions plus current debt to credit institutions, net of cash and other cash equivalents. Management considers net bank debt relevant to shareholders and other stakeholders because it provides an analysis of the Group's solvency. However, net bank debt should not be considered a substitute for gross bank debt in the consolidated balance sheet, nor for other liability and asset items that may affect the Group's solvency.

Comparable Revenue and EBITDA: This measure excludes the impact of exchange rate fluctuations compared to the previous comparable period, changes in the consolidation scope due to acquisitions, and non-recurring business results to present a homogeneous comparison of the Viscofan Group's performance. However, comparable revenue and EBITDA are not indicators defined in IFRS and may therefore not be comparable with similar indicators used by other companies in their reports, nor should they be considered a substitute for the business performance indicators defined in IFRS.

OpCF: This is calculated as the difference between EBITDA and the addition of intangible assets other than goodwill and property, plant and equipment. It is a measure used to easily calculate and analyze whether operating profits are sufficient to meet investment needs.

Capex: It is calculated as the sum of the additions of intangible fixed assets and property, plant and equipment.