(Alliance News) - Emak Spa announced Monday that its board of directors approved the results for the first three months of 2023, reporting a profit of EUR11.4 million down from EUR16.9 million in the first quarter of 2022.

The result, the company explained in a note, was affected by higher financial expenses due to higher market interest rates and higher gross debt levels.

Revenues amounted to EUR171.8 million from EUR190.2 million in the same period of 2022. This change stems from an organic decline in sales of about 16 percent, partially offset by the positive effects of the 5.6 percent change in the scope of consolidation and the 0.5 percent change in translation. "The economic dynamics related to inflation and rising rates, the gradual change in consumption patterns related to the removal of pandemic-related restrictions, combined with the delayed start of the season negatively affected sales," the company explains.

Adjsuted Ebitda was EUR18.2 million from EUR21.1 million in the first quarter of 2022. The result benefited EUR1.4 million from the change in the area, while it was affected by the decrease in sales. Compared to the same period last year, operating costs related to travel expenses and utilities were up, while there was a general decrease in transportation rates.

Ebit as of March 31, 2023 is EUR18.2 million from EUR21.1 million in 2022.

Net financial position liabilities stood at EUR227.2 million compared to EUR192.9 million as of March 31, 2022 and EUR177.3 million as of December 31, 2022. The increase compared to December 31, 2022 was affected by the increase in net working capital, consistent with the seasonality of the business, and the effect related to the Bestway acquisition made in February in the amount of EUR20.1 million.

CEO Luigi Bartoli commented, "The results for the first quarter of the year are to be considered positive. The group has shown good responsiveness, maintaining planned margins despite the unfavorable sales environment since the second half of last year. For our part, we are focused on the future and on strategic initiatives that - I am sure - will enable us to increasingly strengthen our Group's position."

Emak's stock trades in the red by 0.2 percent at EUR1.13 per share.

By Chiara Bruschi, Alliance News reporter

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