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    ELC   IT0003404214

ELICA S.P.A.

(ELC)
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ELICA S.p.A. 9M 2021 Consolidated Results

10/27/2021 | 08:28am EST

PRESS RELEASE

ELICA S.p.A. BoD APPROVES 9M 2021 CONSOLIDATED RESULTS

THE POSITIVE MARKET PERFORMANCE CONTINUES IN Q3:

REVENUE OF EURO 406.9 MILLION (+31.7% VS 9M 2020;

+34.1% AT LIKE-FOR-LIKE EXCHANGE RATES)

ADJUSTED EBIT OF EURO 24.9 MILLION (6.1% MARGIN)

COMPARED WITH EURO 7.0 MILLION IN 9M 2020

NET FINANCIAL POSITION OF EURO 32 MILLION, IMPROVING ON EURO 67 MILLION IN

9M 2020 (EURO 51 MILLION IN Q4 2020)

EURO 22 MILLION OF CASH AVAILABLE FROM SALE OF 19%

OF ELICA PB INDIA TO SUPPORT GROWTH

9M 2021 Key Financial Highlights:

  • Revenue: Euro 406.9 million, +31.7% on the same period of the previous year (+34.1% net of the currency effect), thanks to improved volumes and positive price-mix effect. Double-digit Q3 growth (+17%) even over Q3 2019 (pre-COVID)
  • Cooking segment overall up 29.6%, making significant progress both for own brand sales and on the OEM segment (+30.0% and +29.2% respectively). This improvement is mainly due to growth in the EMEA region and of the NikolaTesla hob extractor range, which now represents approx. 12% of Cooking revenue, following also the launch of the NikolaTesla Fit model which drove third quarter high-end segment revenue compared with the same period of 2020 and of 2019.
  • The Motors segment also continued to expand in the first nine months (+44.6% over the same period of 2020, +28% organic), driven mainly by the "heating" and "ventilation" areas and the consolidation of EMC and CPS, acquired on July 2, 2021 and contributing approx. Euro 6.9 million.

1

  • Adjusted EBITDA1: Euro 43.3 million, significantly up on Euro 25.0 million in 9M 2020, due to the higher revenue driven by volumes and a positive price mix and the control of SG&A costs, offsetting the rise in raw material costs. EBITDA margin on revenues of 10.6% (8.1% in 9M 2020).
  • Adjusted EBIT 2 of Euro 24.9 million (Euro 7.0 million in 9M 2020). EBIT margin on revenues of 6.1%, substantially stable on the first half of the year and significantly up on the same period of the previous year (2.3% of revenues).
  • The Adjusted Net Profit of Euro 16.9 million compared to Euro 2.3 million in the first nine months of 2020. The Adjusted Group Net Profit was Euro 12.1 million, compared to a loss of Euro 1.1 million in the same period of 2020. The Minorities profit of Euro 4.8 million, improving on Euro 3.5 million in 9M 2020, reflects the performance of Elica in India (Euro 3.4 million) and the strong growth of Ariafina (Japan) and Airforce (Italy) over 9M 2020 (Euro 3.5 million). From Q4 2021, following the sale of the India stake, the Minorities profit, mainly related to this area, will significantly contract.
  • Net Financial Position3 : Euro -32.1 million (excluding the IFRS effect for Euro -11.5 million), decreasing significantly on Euro -51.4 million at December 31, 2020 (Euro -67.2 million at September 30, 2020), thanks in particular to higher EBITDA, the improved working capital, the rationalization of investments and the cash in of Euro 22 million from the sale of 19% of Elica PB India, despite the payment of the initial portion related to the acquisition of the companies E.M.C. S.r.l. and CPS S.r.l. for Euro 13.0 million.
  • FY revenue forecast to rise 17%-18% vs 2020, alongside a stronger adjusted EBIT margin of 5.8%-6% and a continually improving net financial position.

***

Fabriano, October 27, 2021 - The Board of Directors of Elica S.p.A., the parent company of a Group that is the leading manufacturer of kitchen range hoods, today met by video-conference and approved the consolidated results at September 30, 2021, prepared in accordance with IFRS.

***

  • The 9M 2021 figure was adjusted in view of the extraordinary effects from the execution of the 2021/2023 plan involving the industrial reorganisation of the Cooking area, for Euro 15 million, of the non-competition agreement signed with the previous Chief Executive Officer and the extraordinary restructuring charges totalling Euro 2.1 million and an additional Euro 0.8 million for an M&A.
    2 The 9M 2021 figure was adjusted in view of, in addition to the above effects on EBITDA, the extraordinary restructuring charges totalling Euro 1.6 million for the reorganisation of the business model in China.
    3 The amount indicated is net of the IFRS 16 effect, as outlined in the reconciliation tables.

2

"In Q3 we once again proved our ability to create value, even in the face of a critical raw materials situation - both in terms of inflation and availability. We grew across all business segments, continuing to work on the price-mix so as to offset cost increases, while taking highly innovative choices to deliver upon our medium-term objectives". Elica's Chief Executive Officer Giulio Cocci stated. "in this scenario, a significant improvement in the net financial position and the Euro 22 million cash from the Indian transaction will allow us to accelerate our growth projects on key markets for the Group's future development".

***

Elica Group Operating Performance

Elica returned Consolidated revenue of Euro 406.9 million in 9M 2021, +31.7% on 9M 2020

(+34.1% at like-for-like exchange rate). The growth in sales was driven both by higher volumes and a positive price-mix effect.

The global economy continued to recover in the third quarter of 2021, although at a slower pace. The growth emerging in the first half of the year in fact - supported by concerted political support, the continued roll-out of vaccines and the gradual recovery of output - was curtailed in subsequent quarters by supply constraints and rising inflation.

9M 2021 global range hood demand growth was estimated at 10.9%4, with divergent situations emerging across the various regions and in particular: the Eurozone economic recovery weakened during the summer as a result of supply disruptions and rising raw material and transport costs. Regional growth in Central and Eastern Europe remained stable, while Western Europe regained pre-pandemic levels after a strong rebound in the first half of the year. Consumer spending rose in North America and Latin America, although local COVID waves and rising inflation caused difficulties on a number of major markets and may dampen growth.

Finally, the strength of the recovery across Asia is very uneven. Chinese growth has been shaped by the real estate slowdown which is weighing on domestic demand, together with strict COVID- 19 measures and energy shortages. The Chinese real estate market issues are the main risk for the remainder of the year. The Indian retail sector has begun to show signs of recovery, with businesses indicating sales close to pre-pandemic levels.

Own brand sales were up 30.0% (+32.8% at like-for-like exchange rates) compared to 9M 2020. The NikolaTesla range, with the new NikolaTesla Fit product, drove sales also in the high-end

  • Source: Elica Group, internal estimates

3

segment and accounted for approx. 12% of Cooking revenue. Own brand sales in the Cooking segment accounted for 54% in 9M 2021.

OEM revenue also saw significant growth, up 29.2% (+31.9% at like-for-like exchange rates) on the same period of the previous year, thanks in particular to accelerating volumes which in H1 2020 were impacted by the closure of the Mexican facility for two months.

The Motors segment, accounting for 15.0% of total revenue, was up 44.6% (+44.8% at like-for- like exchange rates), also thanks to the consolidation of E.M.C. and CPS, acquired at the beginning of July 2021, which contributed Euro 6.9 million for the entire quarter.

Adjusted EBITDA was Euro 43.3 million, significantly up on 9M 2020 (Euro 25.0 million), with a margin on revenues of 10.6%, compared to 8.1% in the same period of 2020, thanks to revenue growth driven by volumes, a positive price mix and the control of SG&A costs which offset higher raw material costs.

Adjusted EBIT was Euro 24.9 million (Euro 7.0 million in 9M 2020), with an increase also in margins.

Net financial expense was Euro 1.5 million, reducing on Euro 2.7 million in 9M 2020.

The capital gain recorded from the sale of the 19% stake in Elica PB India was € 15.5 million and positively impacted the Group's Net Profit in the first nine months of 2021.

The Adjusted Net Profit was Euro 16.9 million (compared to Euro 2.3 million in the same period of 2020).

The Adjusted Group Net Profit was Euro 12.1 million, compared to a loss of Euro 1.1 million in 9M 2020. The Minorities profit of Euro 4.8 million increased on Euro 3.5 million in 9M 2020 and mainly reflects Elica's good performance in India and the performances by Ariafina and Airforce, which were substantially in line with the same period of 2020.

4

9M 2021

% revenue

9M 2020

%

21 Vs 20%

revenue

In Euro thousands

Revenue

406,880

308,897

31.7%

Adjusted EBITDA

43,268

10.6%

25,026

8.1%

72.9%

EBITDA

25,355

6.2%

22,927

7.4%

10.6%

Adjusted EBIT

24,921

6.1%

6,976

2.3%

257.2%

EBIT

5,398

1.3%

4,877

1.6%

10.7%

Net financial expenses

(1,509)

(0.4%)

(2,672)

(0.9%)

43.5%

Income from the sale of Subsidiaries

15,531

3.8%

0

0.0%

(100.0%)

Income taxes

(4,179)

(1.0%)

(1,471)

(0.5%)

(184.1%)

Profit from continuing operations

15,241

3.8%

734

0.2%

1,976.4%

Adjusted profit for the period

16,911

4.2%

2,329

0.8%

626.0%

Profit for the period

15,241

3.8%

734

0.2%

1,976.4%

Adjusted profit/(loss) attributable to the owners of the

Parent

12,098

3.0%

(1,131)

(0.4%)

1,169.9%

Profit/(loss) attributable to the owners of the Parent

10,435

2.6%

(2,726)

(0.9%)

482.8%

Basic earnings/(loss) per share on continuing operations and

discontinued operations (Euro/cents)

16.48

(4.30)

483.3%

Diluted earnings/(loss) per share on continuing operations and

discontinued operations (Euro/cents)

16.48

(4.30)

483.3%

Elica Group Equity and Financial Performance

The Net Financial Position at September 30, 2021, net of the IFRS 16 effect of Euro 11.5 million, was Euro -31.1 million, significantly improving on Euro -67.2 million at September 30, 2020 (Euro -51.4 million at December 31, 2020). The reduction in the net financial position on the end of

2020 was mainly due to:

  • the contribution from the growth in EBITDA and the change to working capital on the generation of operating cash flow;
  • a decrease on 2020 of the net cash out on dividends (Ariafina), the cash in of approx. Euro 2.0 million from the sale of a non-strategic asset, following the reorganisation of Elica's business model on the Chinese market;
  • the cash in of Euro 22.0 million from the sale of 19% of Elica PB in India and Euro 1.5 million from the repayment of a loan with the Group.

These positive effects were partially offset by:

  • the negative impact from the payment of the first two tranches for the acquisition of the companies E.M.C. S.r.l. and CPS S.r.l., for Euro 13 million, concluded on July 2;
  • the cash out for the non-competition agreement signed with the preceding Chief Executive Officer.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Elica S.p.A. published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2021 12:27:06 UTC.


© Publicnow 2021
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Financials
Sales 2021 532 M 604 M 604 M
Net income 2021 12,2 M 13,9 M 13,9 M
Net Debt 2021 40,8 M 46,2 M 46,2 M
P/E ratio 2021 20,4x
Yield 2021 2,23%
Capitalization 218 M 248 M 248 M
EV / Sales 2021 0,49x
EV / Sales 2022 0,49x
Nbr of Employees 3 800
Free-Float 27,0%
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Number of Analysts 2
Last Close Price 3,46 €
Average target price 4,60 €
Spread / Average Target 32,9%
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Managers and Directors
Giulio Cocci Chief Executive Officer & Director
Stefania Santarelli Group Chief Financial Officer
Francesco Casoli Executive Chairman & Chief Executive Officer
Elio Cosimo Catania Independent Director
Monica Nicolini Independent Director
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