(Alliance News) - GEL Spa announced Friday that it has approved its results as of Dec. 31, 2022, reporting a net profit of EUR700,000 down from the EUR2.0 million recorded in 2021. The board will also propose to the shareholders' meeting to allocate the entire amount to an extraordinary reserve.

Revenues amounted to EUR17.2 million, down 8.0 percent from EUR18.6 million in the previous year. High inflation, driven by trends in energy commodity prices, and the restrictive stance of monetary policy in major countries, the company explains, characterize the international scenario jointly with high uncertainty about the evolution of the war between Russia and Ukraine. "The strategies implemented by the company to contain costs have allowed it to maintain stable sales in the main sector namely residential," the note reads.

Sales in Italy amounted to EUR14.8 million from EUR14.6 million as of Dec. 31, 2021, and foreign sales were EUR2.3 million down from EUR4.0 million as of Dec. 31, 2021. The countries with the largest decline include Eastern Europe, particularly Russia.

Ebitda, on the other hand, fell to EUR2.2 million from EUR3.1 million in 2021. A decrease that the company explains was due to a slight contraction in sales and an increase in raw material costs.

Ebit amounted to EUR1.2 million from EUR2.0 million as of December 31, 2021.

Net financial position is EUR5.2 million compared to EUR3.7 million as of December 31, 2021, up EUR1.5 million from December 31, 2021. It should be noted that during 2022 the company made investments of approximately EUR2.0 million related to the inventory procurement policy that became necessary to contain inflationary effects.

Regarding the future, the company points out that, "to the problems already manifested during the year ended Dec. 31, 2022 - caused by the Russian-Ukrainian war, inflation and the energy crisis, ed. - is added the recent government decision to put an abrupt brake on the scheme of incentives for building renovations."

"This factor will surely lead to uncertain situations that will be reflected in the market causing a discontinuity in the receipt of orders. In spite of this, the company has sufficient financial resources to cover its commitments for the next fiscal year, and from an equity point of view, its solidity is adequate to carry out its business activities. As of today, there are no significant delays on collection and payment activities."

GEL's stock on Friday closed 1.3 percent in the red at EUR1.50 per share.

By Chiara Bruschi, Alliance News reporter

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