(Alliance News) - Beghelli Spa announced Friday that its board of directors approved the draft financial statements as of December 31, 2022, reporting consolidated sales at EUR145.9 million down from EUR148.0 million in 2021.

The company reported a net loss of EUR10.2 million versus a profit of EUR3.1 million in 2021. Also contributing to the deterioration was the recognition of nonrecurring tax items with a negative impact of EUR1.4 million mainly attributable to the write-down of taxes on tax losses in fiscal year 2022.

Ebitda amounted to EUR3.0 million from EUR15.1 million in 2021. Net of nonrecurring items attributable to the extraordinary write-down of inventories, negative EUR2.3 million, Ebitda would be positive EUR5.4, the company explains.

"The dynamics of Ebitda compared to the previous year can be attributed, in particular, to the different mix of revenues, which reduced the incidence of gross margins as a percentage of revenues, and to the increase in costs

for raw materials, industrial, energy, general, and personnel costs."

In addition, Ebitda for fiscal year 2021 included nonrecurring income of EUR1.7 million of which approximately EUR1.3 million was a gain from the sale, part of the plan to divest non-strategic assets, of the factory owned by Beghelli North America, USA.

Ebit is negative EUR5.9 million from a positive EUR6.8 million in 2021.

Net financial debt is EUR61.9 million up from EUR42.8 million as of December 31, 2021, mainly due to the increase in net working capital and investments for the year.

The directors anticipate for fiscal year 2023, "in the absence of extraordinary elements, including those related to the current Russia-Ukraine conflict, an increase in consolidated revenues compared to fiscal year 2022, accompanied by an improvement in recurring Ebitda, with financial debt decreasing, within an overall framework of sustainability of its business," the company note reads.

"It has been a very challenging year declares Chairman Gian Pietro Beghelli-with extraordinary macroeconomic events determined by the sharp increase in costs only partly absorbed by the markets where we operate. Raw materials, transportation, energy and difficulties in sourcing microcontrollers have impacted contribution margins and working capital, factors that will be significantly reduced during 2023. The group is also engaged in industrial and management optimization projects and operates in areas of great relevance and perspective, also in view of European and nationalim objectives and directives, such as the PNRR: energy efficiency, safety, silver economy and renewables."

Beghelli's stock on Friday closed 2.4 percent in the red at EUR0.30 per share.

By Chiara Bruschi, Alliance News reporter

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