CEMBRE S.P.A. 2024 FIRST QUARTER
I N T E R I M R E P O R T
Cembre S.p.A.
Head Office: Via Serenissima 9, Brescia, Italy
Share Capital: EUR 8,840,000 (fully paid-up).
Registration no: 00541390175 (Commercial Register of Brescia)
This document contains translations of the Interim Report drawn up in the Italian language
Cembre Group
Contents
Consolidated Financial Statements at March 31, 2024 | 9 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Statement of Financial Position - Assets | 10 |
Consolidated Statement of Financial Position - Liabilities and Shareholders' Equity.. | 11 |
Consolidated Cash Flow Statement | 12 |
Statement of Changes in the Consolidated Shareholders' Equity | 14 |
Notes to the accounts | 15 |
Accounting principles, form and content of the Financial Statements, estimates | 15 |
Translation of financial statements expressed in currencies other than the euro | 16 |
Interim Report on Operations as at March 31, 2024 | Page 1 |
Cembre Group
Corporate Boards and Independent Auditors
Board of Directors | |
Giovanni Rosani | Chairman and Managing Director |
Aldo Bottini Bongrani | Deputy Chairman |
Anna Maria Onofri | Director |
Sara Rosani | Director |
Felice Albertazzi | Director |
Franco Celli | Director |
Paola Carrara | Independent Director |
Elisabetta Ceretti | Independent Director |
Board of Statutory Auditors | |
Stefano Colpani | Chairman |
Riccardo Astori | Auditor |
Rosanna Angela Pilenga | Auditor |
Maria Grazia Lizzini | Substitute Auditor |
Alessandra Biggi | Substitute Auditor |
Independent Auditors | |
EY S.p.A. |
Interim Report on Operations as at March 31, 2024 | Page 2 |
Cembre Group
Group Structure
Cembre S.p.A.
(Italy)
100%
100%
100%
100%
100%
Cembre Ltd
(UK)
Cembre Sarl
(France)
Cembre España SLU
(Spain)
Cembre GmbH
(Germany)
Cembre Inc.
(US)
Manufacturing and
Distribution
Companies
Distribution Companies
Interim Report on Operations as at March 31, 2024 | Page 3 |
Cembre Group
Interim Report on Operations
In the first quarter of 2024, consolidated revenues stood at €58,654 thousand, marking an increase of 1.5% compared to €57,789 thousand recorded in the first three months of 2023. Consolidated sales by geographical area show growth in the Italian market of 9.1% compared to the first quarter of 2023, and amount €27.0 million; revenues in other European markets amount to €26.4 million and declined by 2.6% compared to the first quarter of 2023; finally, non-European sales amounted to €5.2 million, marking a decrease of 11.5%. In the 1st Quarter of 2024, 46.1% of Group sales were represented by Italy (as compared with 42.9% in the first three months of 2023), 45.0% by the rest of Europe (46.9% in the first three months of 2023), and the remaining 8.9% by the rest of the World (10.2% in the 1st Quarter of 2023).
The summary table of sales by geographical area is reported below:
(euro '000) | 1st Quarter | 1st Quarter | Change | 1st Quarter | 1st Quarter | 1st Quarter | ||||||||
2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||
Italy | 27,038 | 24,777 | 9.1% | 21,433 | 15,697 | 14,341 | ||||||||
Rest of Europe | 26,381 | 27,098 | -2.6% | 22,240 | 18,812 | 17,432 | ||||||||
Rest of the World | 5,235 | 5,914 | -11.5% | 4,974 | 3,758 | 4,686 | ||||||||
Total | 58,654 | 57,789 | 1.5% | 48,647 | 38,267 | 36,459 | ||||||||
Revenues from sales and services in the first three months of 2024 by Group company (net of intragroup sales):
(euro '000) | 1st Quarter | 1st Quarter | Change | 1st Quarter | 1st Quarter | 1st Quarter | ||||||||
2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||
Parent Company | 32,972 | 30,402 | 8.5% | 27,187 | 20,194 | 18,464 | ||||||||
Cembre Ltd. (UK) | 6,755 | 6,735 | 0.3% | 6,130 | 5,162 | 4,976 | ||||||||
Cembre S.a.r.l. (F) | 4,151 | 3,765 | 10.3% | 2,796 | 2,907 | 2,405 | ||||||||
Cembre España S.L.U. (E) | 5,485 | 5,699 | -3.8% | 3,985 | 3,234 | 3,042 | ||||||||
Cembre GmbH (D) | 5,855 | 7,195 | -18.6% | 5,407 | 4,498 | 4,236 | ||||||||
Cembre Inc. (USA) | 3,436 | 3,993 | -14.0% | 3,142 | 2,272 | 3,336 | ||||||||
Total | 58,654 | 57,789 | 1.5% | 48,647 | 38,267 | 36,459 | ||||||||
In the first three months of 2024, Group companies reported the following pre-
consolidated sales revenues and results:
Interim Report on Operations as at March 31, 2024 | Page 4 |
Cembre Group | |||||||||||||||
Sales revenues (pre-consolidation) | |||||||||||||||
1st | 1st | 1st | 1st | 1st | |||||||||||
(euro '000) | Quarter | Quarter | Change | Quarter | Quarter | Quarter | |||||||||
2024 | 2023 | 2022 | 2021 | 2020 | |||||||||||
Cembre S.p.A. | 47,802 | 44,487 | 7.5% | 37,543 | 28,662 | 27,692 | |||||||||
Cembre Ltd. (UK) | 7,399 | 7,211 | 2.6% | 6,745 | 5,453 | 5,345 | |||||||||
Cembre S.a.r.l. (F) | 4,177 | 3,789 | 10.2% | 2,894 | 2,965 | 2,450 | |||||||||
Cembre España S.L.U. (E) | 5,490 | 5,710 | -3.9% | 3,987 | 3,241 | 3,043 | |||||||||
Cembre GmbH (D) | 5,883 | 7,256 | -18.9% | 5,429 | 4,537 | 4,254 | |||||||||
Cembre Inc. (USA) | 3,437 | 3,999 | -14.1% | 3,144 | 2,281 | 3,338 | |||||||||
Pre-tax result (pre-consolidation) | |||||||||||||||
1st | 1st | 1st | 1st | 1st | |||||||||||
(euro '000) | Quarter | Quarter | Change | Quarter | Quarter | Quarter | |||||||||
2024 | 2023 | 2022 | 2021 | 2020 | |||||||||||
Cembre S.p.A. | 14,177 | 15,523 | -8.7% | 12,427 | 8,439 | 7,506 | |||||||||
Cembre Ltd. (UK) | 502 | 811 | -38.1% | 801 | 727 | 576 | |||||||||
Cembre S.a.r.l. (F) | 145 | 151 | -4.0% | 93 | 169 | 81 | |||||||||
Cembre España S.L.U. (E) | 698 | 855 | -18.4% | 611 | 270 | 136 | |||||||||
Cembre GmbH (D) | (99) | 771 | n.a. | 442 | 182 | 165 | |||||||||
Cembre Inc. (USA) | (130) | 358 | n.a. | 317 | 88 | 267 | |||||||||
For a more direct evaluation of the effect of foreign exchange translations, we include below sales figures and pre-tax result figures of the companies operating outside the euro area in the respective currency.
Currency | Sales revenues (pre-consolidation) | |||||||||||||
1st Quarter | 1st Quarter | Change | 1st | 1st Quarter | 1st Quarter | |||||||||
(euro '000) | Quarter | |||||||||||||
2024 | 2023 | 2021 | 2020 | |||||||||||
2022 | ||||||||||||||
Cembre Ltd. (UK) | Gbp | 6,335 | 6,368 | -0.5% | 5,641 | 4,766 | 4,609 | |||||||
Cembre Inc. (USA) | US$ | 3,732 | 4,291 | -13.0% | 3,526 | 2,478 | 3,681 | |||||||
Currency | Pre-tax result (pre-consolidation) | |||||||||||||
(euro '000) | 2024 | 2023 | Change | 1st | 2021 | 2020 | ||||||||
2022 | ||||||||||||||
1st Quarter | 1st Quarter | Quarter | 1st Quarter | 1st Quarter | ||||||||||
Cembre Ltd. (UK) | Gbp | 430 | 716 | -40% | 670 | 635 | 497 | |||||||
Cembre Inc. (USA) | US$ | (141) | 385 | n.a. | 356 | 106 | 296 |
To provide a better understanding of the Company's financial performance for the first three months of 2024, a Reclassified Consolidated Income Statement for the same period and the corresponding period in 2023 showing percentage changes is enclosed as Attachment 1.
Interim Report on Operations as at March 31, 2024 | Page 5 |
Cembre Group
Consolidated gross operating profit for the first quarter of 2024 amounted to €16,521 thousand, corresponding to a 28.2% margin on sales, down by 7.0% on €17,770 thousand reported in the first three months of 2023 (30.7% margin on sales). The incidence of the cost of goods sold rose while the weight of the cost for services declined during the period. Personnel costs in absolute terms increased by 9.0% compared to the first quarter of 2023, mainly as a result of the increase in the average number of Group workers from 834 in the first quarter of 2023 to 885 in the first quarter of 2024. Personnel costs as a percentage of turnover increased from 24.3% to 26.1%.
The consolidated operating profit for the first quarter of 2024 amounted to €13,299 thousand, corresponding to a 22.7% margin on sales, down by 9.4% on €14,678 thousand reported in the first three months of 2023 (25.4% margin on sales).
Consolidated profit before taxes for the first three months of 2024 amounted to €13,462 thousand, representing a 23.0% margin on sales, down by 8.7% on the profit before taxes reported in the first quarter of 2023, amounting to €14,742 thousand and corresponding to a 25.5% margin on sales.
Consolidated net profit for the period fell by 10.6% compared to 2023 from €10,864 thousand, representing 18.8% of sales, to €9,715 thousand, representing 16.6% of sales. The net financial position as at March 31, 2024 is composed as follows:
(euro '000) | 03/31/2024 | 12/31/2023 | 03/31/2023 | |
A | Cash | 9 | 5 | 8 |
B | Bank deposits | 12,815 | 20,877 | 11,991 |
C | Other financial assets | 8,000 | 4,000 | 6,000 |
D | Cash and cash equivalents (A+B+C) | 20,824 | 24,882 | 17,999 |
E | Current bank payables | (102) | (128) | (1) |
F | Current financial leasing liabilities | (1,848) | (1,840) | (1,841) |
G | Current financial indebtedness (E+F) | (1,950) | (1,968) | (1,842) |
H | Net current financial position (G+D) | 18,874 | 22,914 | 16,157 |
I | Non-current bank payables | - | - | - |
J | Non-current financial leasing liabilities | (4,493) | (4,693) | (5,475) |
Interim Report on Operations as at March 31, 2024 | Page 6 |
Cembre Group | |||||
K | Non-current financial debt (I+J) | (4,493) | (4,693) | (5,475) | |
L | Net financial position (H+K) | 14,381 | 18,221 | 10,682 | |
The net financial position as at March 31, 2024, amounting to a positive €14.4 million, was down compared to December 31, 2023, when it amounted to €18.2 million.
The net financial position at March 31, 2023 was a positive €10.7 million.
Investments made by the Group in the first quarter of the current year totalled €6.1 million in property, plant and equipment (€3.6 million in the first three months of 2023) and €0.3 million in intangible fixed assets (€0.3 million in the first three months of 2023).
Subsequent events
No event having significant effects on the Group's operations and results occurred after the close of the period.
Outlook
In the initial months of 2024, the monetary policy implemented by the various banking institutions continues to remain restrictive in order to restore price stability; this, combined with the continuing conflicts in Ukraine and Gaza, makes the macro-economic situation extremely uncertain.
It is extremely complicated for companies to make reliable forecasts. Nevertheless, in light of the positive results achieved in the first quarter, it is estimated that the Cembre Group's consolidated revenues will grow and the consolidated economic result will be positive in 2024.
Interim Report on Operations as at March 31, 2024 | Page 7 |
Cembre Group
Attachment 1 to the Interim Report on Operations
Comparative Consolidated Income Statement
1st Quarter | % | 1st Quarter | % | Change | |||||
2024 | 2023 | ||||||||
(euro '000) | |||||||||
Revenue from contracts with customers | 58,654 | 100% | 57,789 | 100.0% | 1.5% | ||||
Other revenues | 152 | 187 | -18.7% | ||||||
Total Revenues | 58,806 | 57,976 | 1.4% | ||||||
Cost of goods and merchandise | (20,420) | -34,8% | (19,167) | -33.2% | 6.5% | ||||
Change in inventories | 962 | 1,6% | 315 | 0.5% | |||||
Cost of goods sold | (19,458) | -33,2% | (18,852) | -32.6% | 3.2% | ||||
Cost for services received | (7,090) | -12,1% | (7,207) | -12.5% | -1.6% | ||||
Lease and rental costs | (135) | -0,2% | (80) | -0.1% | 68.8% | ||||
Personnel costs | (15,317) | -26,1% | (14,058) | -24.3% | 9.0% | ||||
Other operating costs | (420) | -0,7% | (407) | -0.7% | 3.2% | ||||
Increase in assets due to internal | 248 | 0,4% | 486 | 0.8% | -49.0% | ||||
construction | |||||||||
Write-down of receivables | (106) | -0.2% | (57) | -0.1% | 86.0% | ||||
Accruals to provisions for risks and charges | (7) | 0,0% | (31) | -0.1% | -77.4% | ||||
Gross operating profit | 16,521 | 28,2% | 17,770 | 30.7% | -7.0% | ||||
Property, plant and equipment depreciation | (2,426) | -4,1% | (2,329) | -4.0% | 4.2% | ||||
Intangible asset amortization | (281) | -0.5% | (248) | -0.4% | 13.3% | ||||
Depreciation of right of use assets | (515) | -0.9% | (515) | -0.9% | 0.0% | ||||
Operating profit | 13,299 | 22,7% | 14,678 | 25.4% | -9.4% | ||||
Financial income | 150 | 0,3% | 61 | 0.1% | |||||
Financial charges | (51) | -0,1% | (41) | -0.1% | 24.4% | ||||
Foreign exchange gains (losses) | 64 | 0,1% | 44 | 0.1% | 45.5% | ||||
Profit before taxes | 13,462 | 23,0% | 14,742 | 25.5% | -8.7% | ||||
Income taxes | (3,747) | -6,4% | (3,878) | -6.7% | -3.4% | ||||
Net profit | 9,715 | 16,6% | 10,864 | 18.8% | -10.6% |
Interim Report on Operations as at March 31, 2024 | Page 8 |
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Disclaimer
Cembre S.p.A. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 10:39:12 UTC.
