Letter from CEO

JOSÉ ANTONIO CANALES
CEO

One of the key takeaways from 2025 has been our ability to meet the increased volume demand across all packaging technologies. This year has seen steady improvement, culminating in double-digit growth in the final quarter.

This growth is not coincidental, but rather the result of continuous work focused on improvement, innovation, technology, and close market proximity over the years. Expanding our presence with new sales offices in new countries, installing new collagen production capacity in Europe, Asia, and the Americas, building a new converting plant in Thailand, and the excellent results being achieved with the new cellulose technology in the United States are clear examples of how we have accelerated the transition from animal casings to collagen casings in the market, providing an alternative to cellulose casings in the face of reduced supply.

In addition to 4% growth in our traditional packaging business, we also achieved 8% growth in new business lines, significantly exceeding the natural market rate. This growth was driven by value-added products such as transfer wraps and barrier bags, where we have installed new production capacity in Mexico. Growth was seen across all regions, with notable increases of 14% in South America, 4% in both North America and Asia Pacific, and 1% in EMEA.

From an operational point of view, the factories have worked with high levels of efficiency, speed and productivity, counteracting the increase in prices of raw materials, especially collagen skins.

Additionally, and framed within our commitment as signatories of the United Nations Global Compact for sustainable development, we have already met the objectives set for 2030 by successfully implementing our 2022-2025 Sustainability Action Plan.

All of this in an unfavorable currency environment; the weakness of the dollar and the strengthening of the Brazilian real and Mexican peso have eroded our growth by about three percentage points in revenue, and five points in EBITDA, in addition to recording more than 20 million euros of negative exchange differences, with their consequent impact on our net result.

Despite these conditions, we have achieved record results in the main financial metrics, with revenues growing by 4% compared to the previous year (6% organic), to 1,252 million euros, EBITDA growing by 1.6% (6% organic), to 290 million euros, and a net profit reaching 160 million euros, 1.8% more than the previous year.

The transformation completed under the Beyond25 strategic plan has demonstrated Viscofan's ability to create sustainable value for its stakeholders. More and more customers are placing their trust in our products and solutions, we have increased our workforce, reduced the number of accidents and their severity, and have a business model that allows us to grow and generate strong cash flows, which have been primarily allocated to shareholder returns.

I take this opportunity to congratulate and thank the more than 5,700 people who work at Viscofan for the results achieved. Together, we have built a company that is ideally positioned to embark on a new strategic plan: Beat’30. This exciting and ambitious plan for the next five years focuses on growing faster than our historical average to become even more of a leader, more profitable, and more sustainable.

Thank you so much.