Fine Foods & Pharmaceuticals N T M S p A : Interim Financial Report as of 31 March 2024

Fine Foods Group - Interim Financial Report as of 31 March 2024

FINE FOODS & PHARMACEUTICALS N.T.M. S.p.A.

Registered office: VIA BERLINO 39 VERDELLINO (BG)

Registered in the BERGAMO Companies Register

Tax code and company reference number: 09320600969

Registered in the BERGAMO REA no. 454184

Subscribed share capital € 22,770,445.02 Fully paid up

VAT number: 09320600969

Interim Financial Report

as of 31 March 2024

15 May 2024 Board of Directors

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Fine Foods Group - Interim Financial Report as of 31 March 2024

Table of contents

Corporate positions	page	3
Consolidated income statement	"	5
Consolidated statement of financial position	"	6
Consolidated cash flow statement	"	7
Consolidated Shareholders' equity changes	"	8
Explanatory Notes	"	9
Declaration of the Manager in charge under Article 154-bis of Legislative Decree no. 58/98	"	14

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Fine Foods Group - Interim Financial Report as of 31 March 2024

CORPORATE POSITIONS

Board of Directors

Chairman and CEO

Marco Francesco Eigenmann

CEO

Giorgio Ferraris

Directors

Ada Imperadore

Adriano Pala Ciurlo

Chiara Medioli

Marco Costaguta

Susanna Pedretti

Board of Statutory Auditors

Chairperson

Laura Soifer

Statutory Auditors

Luca Manzoni

Mario Tagliaferri

Auditing Company

EY S.p.A.

Manager responsible for preparing the Company's Financial Reports

Pietro Bassani

Appointed by the Board of Directors on 21 April 2021 under Article 27-bis of the Articles of Association.

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Fine Foods Group - Interim Financial Report as of 31 March 2024

Committees

Control and Risk Committee

Ada Imperadore

Susanna Pedretti

Supervisory Body

Cristiana Renna

Paolo Villa

Susanna Pedretti

Remuneration Committee

Ada Imperadore

Susanna Pedretti

Related Party Committee

Ada Imperadore

Susanna Pedretti

Environmental, Social and Governance (ESG) Committee

Ada Imperadore

Chiara Medioli

Giorgio Ferraris

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Fine Foods Group - Interim Financial Report as of 31 March 2024

Consolidated income statement

	3 months			3 months
(amounts in € units)	31 March			31 March
	2024			2023
Revenues and income
Revenues from contracts with customers	65,564,696			65,560,388
Other revenue and income	264,086			228,337
Total revenues	65,828,782			65,788,725
Operating costs
38,426,273			39,416,667
Costs for consumption of raw materials, change in inventories of finished goods and work in progress.
Personnel costs	11,634,821			11,161,688
Costs for services	6,337,369			6,781,231
Other operating costs	565,724			480,458
Amortisation, depreciation, and impairment losses	3,796,105			3,748,501
Total operating costs	60,760,292			61,588,546
Operating result	5,068,490			4,200,180
Changes in fair value of financial assets and liabilities	(19,496)			1,101,887
Financial income	8,336			20,086
Financial charges	(1,083,042)			(1,054,022)
Income before taxes	3,974,288			4,268,131
Income taxes	1,156,496			1,361,792
Profit/(loss) for the financial year	2,817,791			2,906,338

Consolidated comprehensive income statement

	(amounts in € units)			3 months			3 months
			31 March 2024			31 March 2023
	Profit /(loss) for the financial year (A)	2,817,791			2,906,338
Components that will not be subsequently reclassified to profit/(loss) for the financial year
Revaluation of net employee benefit liabilities/assets	-		-
Tax effect	-		-
Other comprehensive income (B) components	-		-
	Comprehensive profit/(loss) (A+B)	2,817,791			2,906,338

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Fine Foods Group - Interim Financial Report as of 31 March 2024

Consolidated statement of financial position

		As of 31	As of 31
		March	December
(amounts in € units)		2024	2023
Assets
Non-current assets
Property, plant and machinery	108,684,299	106,919,123
Goodwill	11,507,954	11,507,954
Other intangible fixed assets	1,676,951	1,634,888
Rights of use	3,088,138	3,165,607
Other non-current assets	626,614	688,139
Deferred tax assets	5,496,079	6,234,232

Total non-current assets	131,080,036	130,149,943
Current assets
Inventories	40,004,751	42,459,682
Trade receivables	43,903,752	38,057,766
Tax receivables	17,967	320,689
Other current assets	8,634,167	7,740,856
Current financial assets	3,466,976	3,832,865
Cash and other liquid assets	13,888,641	19,000,047
Total current assets	109,916,253	111,411,905
Total assets	240,996,289	241,561,848
Shareholders' equity
Share Capital	22,770,445	22,770,445
Other reserves	114,048,701	114,167,028
Employee benefit reserve	181,073	181,073
FTA reserve	(6,669,789)	(6,669,789)
Profits/(losses) carried forward	(3,499,489)	22,610
Profit/(loss) for the financial year	2,817,791	(3,522,098)
Total Shareholders' Equity	129,648,732	126,949,268
Non-current liabilities
Non-current bank borrowings	41,324,409	9,734,877
Employee benefits	2,208,636	2,201,653
Provision for risks and charges	2,105	2,105
Provision for deferred taxes	273,475	263,381
Non-current lease payables	957,221	1,032,604
Total non-current liabilities	44,765,846	13,234,620
Current liabilities
Current bank borrowings	18,309,960	55,269,592
Trade payables	33,200,566	32,369,462
Taxes payable	1,010,761	575,488
Current lease payables	332,581	354,377
Other current liabilities	13,727,843	12,809,041
Total current liabilities	66,581,711	101,377,960
Total Shareholders' equity and Liabilities	240,996,289	241,561,848

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Fine Foods Group - Interim Financial Report as of 31 March 2024

Consolidated cash flow statement

	3 months	3 months
	31 March 2024	31 March 2023
PROFIT FROM OPERATING ACTIVITIES AFTER TAX	2,817,791	2,906,338
Adjustments to reconcile profit after tax with net cash flows:
Depreciation and impairment of property, plant and machinery	3,483,403	3,357,350
Amortisation and impairment of intangible fixed assets	196,420	196,564
Amortisation of rights of use	116,283	194,588
Financial income	107,537	(20,086)
Financial charges	954,028	1,036,765
Changes in fair value of financial assets and liabilities	19,496	(1,101,887)
Financial charges on financial liabilities for leases	13,141	17,257
Income taxes	408,250	1,322,783
Gains on the disposal of property, plant and machinery	(23,926)	15,709
Current assets write-downs	304,524	238,825
Net change in severance indemnity and pension funds	6,982	(122,835)
Net change in deferred tax assets and liabilities	748,246	39,010
Interest paid	(1,074,706)	(1,021,690)
Changes in net working capital:
(Increase)/decrease in inventories	2,398,005	(8,951,249)
(Increase)/decrease in trade receivables	(6,093,584)	(12,438,848)
(Increase)/decrease in other non-financial assets and liabilities	416,762	1,637,920
Increase/(decrease) in trade payables	831,104	8,552,478
NET CASH FLOWS FROM OPERATING ACTIVITIES	5,629,756	(4,141,009)
Investments:
Investments in tangible fixed assets	(5,304,285)	(4,586,163)
Disposal of tangible fixed assets	79,632	5,369
Investments in intangible fixed assets	(238,482)	(256,346)
Net (investments)/disposals in financial assets	195,783	(1,859,409)
NET CASH FLOWS FROM INVESTMENTS	5,267,351	(6,696,550)
Financing:
New financing	162,734	15,348,796
Funding repayment	(5,382,224)	(12,499,411)
Principal payments - lease liabilities	(135,992)	(163,056)
Sale/(purchase) of treasury shares	(118,327)	(87,963)
CASH FLOWS FROM FINANCING	(5,473,809)	2,598,366
NET CHANGE IN CASH AND CASH EQUIVALENTS	(5,111,405)	(8,239,193)
Cash and short-term deposits as of 1 January	19,000,047	10,232,262
Cash and short-term deposits as of 31 March	13,888,641	1,993,070

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Fine Foods Group - Interim Financial Report as of 30 September 2023

Consolidated Shareholders' equity changes

							Negative																		Profit/loss
							reserve for		Merger		Share									Employee			Profits/losses			Total
		Share		Legal							Extraordinary		Other		FTA					for the
					treasury		surplus		premium						benefit			carried			Shareholders'
		Capital		reserve							reserve		reserves		reserve					financial
					shares in		reserve		reserve						reserve			forward			equity
																				year
							the portfolio
Balance as of 1 January 2024	22,770,445		5,000,000		(14,021,029)		29,741,389		86,743,750		2,286,638		4,416,281		(6,669,789)		181,073		22,610		(3,522,098)		126,949,268
Profit/(loss) for the financial year																									2,817,791		2,817,791
Other income statement components
Comprehensive profit/(loss)	-	-	-	-	-	-	-	-	-	-	2,817,791		2,817,791
Dividends																											-
IRS derivatives provision																											-
Purchase of treasury shares						(118,327)																				(118,327)
2023 profit allocation																						(3,522,098)	3,522,098	-
Balance as of 31 March 2024	22,770,445		5,000,000		(14,139,356)		29,741,389		86,743,750		2,286,638		4,416,281		(6,669,789)		181,073		(3,499,488)		2,817,791		129,648,733

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Fine Foods Group - Interim Financial Report as of 30 September 2023

Explanatory Notes

Accounting Standards and consolidation area

The Fine Foods Group's Interim Financial Report as of 31 March 2024 has been prepared under the Stock Exchange Regulations, which set the publication of the Interim Financial Reports as a requirement for maintaining a listing on the MTA - STAR segment.

The Interim Financial Report has been prepared under the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretations of the IFRS Interpretations Committee (IFRSIC) and the Standing Interpretations Committee (SIC), recognised in the European Union under (EC) Regulation no. 1606/2002 applicable at the end of the period. The accounting standards and assessment criteria adopted to prepare the Interim Financial Report are consistent with those used in the 31 December 2023 Financial Statements to which reference is made.

The scope of consolidation as of 31 March 2024 includes the Parent Company Fine Foods & Pharmaceuticals N.T.M. S.p.A. and the subsidiary Euro Cosmetic S.p.A..

The Interim Financial Report as of 31 March 2024 is not subject to auditing by the auditing company.

Net Financial Position

The diagram below shows the net financial debt under Consob recommendation of 21 April 2021 and ESMA32-382-1138 guidelines.

Thousands of Euro	31 March 2024	31 December
		2023
A. Liquid assets	13,889	19,000
B. Cash or cash equivalents	-	-
C. Other current financial assets	3,467	3,833
D. Liquidity (A) + (B) + (C)	17,356	22,833
E. Current financial receivables	-	-
E. Current financial debt (including debt instruments, but excluding the current	7,263	7,561
portion of non-current financial debt)
F. Current portion of non-current financial debt	11,380	48,063
G. Current financial debt (E + F)	18,643	55,624
- guaranteed		-
- secured by collateral	2,067	2,169
- not guaranteed	16,576	53,454
H. Net current financial debt (G - D)	1,287	32,791
I. Non-current financial debt (excluding current portion and debt instruments)	42,282	10,767
J. Debt instruments	-	-
K. Trade payables and other non-current payables	-	-
L. Non-current financial debt (I + J + K)	42,282	10,767
- guaranteed	-	-
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Fine Foods Group - Interim Financial Report as of 31 March 2024

- secured by collateral	7,469	7,484
- not guaranteed	34,812	3,284
M. Total Financial Debt (H + L)	43,569	43,559

As of 31 March 2024, current financial assets were € 3,466,976 (compared to € 3,832,865 as of 31 December 2023). This is detailed below:

(Amounts in Euro units)	31 March 2024	31 December 2023
Other securities	-	154,624
Directors' Severance Pay (TFM) receivables	-	211,265
Leakage receivable	3,466,976	3,466,976
Total current financial assets	3,466,976	3,832,865

In January 2019, the Company appointed a leading Credit Institution to perform a discretionary and individualised management service on an investment portfolio that includes financial instruments and liquidity. In February 2024, the company definitively closed the position.

There are no updates for the Leakage Receivable compared to the Financial Statements as of 31 December 2023.

Reclassified Balance Sheet

For a better understanding of the Company's balance sheet and financial position, a reclassified Balance Sheet is provided below.

Working capital	31 March 2024	31 December 2023
Inventories	40,004,751	42,459,682
Trade receivables	43,903,752	38,057,766
Other current assets	8,652,133	8,061,546
Trade payables	(33,200,566)	(32,369,462)
Other current liabilities	(14,738,604)	(13,384,529)
Provisions for risks and charges / deferred taxes	(275,579)	(265,486)
Total working capital (A)	44,345,887	42,559,517
Fixed assets	31 March 2024	31 December 2023
Tangible fixed assets	108,684,299	106,919,123
Intangible assets and rights of use	16,273,042	16,308,450
Other receivables and non-current assets	6,122,694	6,922,371
Severance Indemnity	(2,208,636)	(2,201,653)
Total fixed assets (B)	128,871,400	127,948,289
Net Invested Capital (A) + (B)	173,217,287	170,507,806
Sources	31 March 2024	31 December 2023
Shareholders' equity	129,648,732	126,949,268
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