(Alliance News) - Carel Industries Spa reported Tuesday that revenues for the first nine months rose 24 percent year-on-year to EUR497.2 million from EUR401.1 million in the same period last year.

Excluding the change in scope related to acquisitions of EUR52.1 million and the negative foreign exchange effect of EUR6.8 million, the increase would have been 13 percent.

HVAC revenues increased to ERU361.2 million from EUR267.9 million, REF revenues to EUR133.7 million from EUR130.0 million, and No Core revenues decreased to EUR2.3 million from EUR3.3 million.

Consolidated adjusted Ebitda increased to EUR113.0 million from EUR87.7 million. Including nonrecurring costs arising mainly from M&A activity during the period, reported Ebitda stood at EUR110.7 million.

Net income rises 12 percent to EUR59.1 million from EUR52.6 million due to operating results from acquisitions.

Consolidated net financial position was negative EUR265.3 million, including the accounting effect related to the application of IFRS16 of EUR34.1 million and the effect of the acquisition of 82 percent of the share capital of Kiona Holding AS and 100 percent of the share capital of Eurotec of EUR184.1 million. The robust cash generation was also absorbed by capital expenditures of EUR15.0 million, the payment of operating dividends of EUR20.4 million, and the increase in net working capital of approximately EUR38 million.

The dynamics of the latter can be attributed to higher trade receivables against higher revenues and an increase in inventory of about EUR26 million, mainly related to the strategy of containing the effects of the electronics shortage and the desire to increase supply resilience.

The group expects total revenues for 2023 to be around EUR646 million, with a 2% variability on this central figure as a result of the significant volatility in the market today, which could result in some deliveries being postponed to 2024. Full-year profitability, understood as the ratio of adjusted Ebitda to revenues, on the other hand, is expected to be between 20.5 percent and 21.5 percent.

Carel Industries' stock is up 2.0 percent at EUR19.12 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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