(Alliance News) - Emak Spa reported Thursday that it achieved consolidated revenues of EUR605.7 million in 2022 compared to EUR588.3 million in the previous year, up 3.0 percent.

As the company explains, the increase stems from a positive effect of translation exchange rates of 2.5 percent and the change in the scope of consolidation of 0.8 percent while being penalized by a negative organic change of 0.3 percent.

Adjusted Ebitda for the year reached EUR76.6 million compared to EUR77.4 million in 2021. The result benefited from higher revenues, mainly driven by the adjustment of sales lists to higher production and energy costs, and the contribution of the change in the scope of consolidation. From a long-term perspective, there was also a planned increase in expenses related to business development during the year.

Ebit was EUR46.8 million compared to the previous year's figure of EUR52.9 million. In addition to higher depreciation and amortization, resulting from the investments made, the company recorded EUR2.9 million loss due to impairment of goodwill.

Consolidated net income was EUR31.2 million compared to EUR33.1 million in 2021. The result benefited from higher financial income from the valuation of interest rate hedging derivatives, which offset higher financial expenses, and positive foreign exchange management.

Net financial position liabilities stood at EUR177.3 million compared to EUR144.3 million as of December 31, 2021. The 2022 figure includes EUR38 million from the application of IFRS 16 accounting standard from EUR38.9 million in 2021 and EUR13.2 million in borrowings for the purchase of the remaining minority interests from EUR12.3 million in 2021. The increase in NFP recorded in 2022 is mainly driven by the increase in working capital, higher dividends distributed, the negative effect of exchange rates, and for the outlay related to the acquisition of Trebol Maquinaria.

"The critical scenario issues that characterized the second half of last year persist in early 2023. Sales in the first quarter will still be at levels between those of the same period in 2021 and 2022, which are certainly a challenging basis for comparison having been the two best years in the group's history. There remains a decline in demand visibility compared to the recent past in all business sectors, determined, first and foremost, by the macroeconomic scenario and the inflationary environment," the company explained.

"The group, as early as the fourth quarter of 2022, has put in place the organizational and management initiatives necessary to cope with the uncertain situation and obtain cash flows from core operations to invest in new product development and external line growth opportunities."

The board proposed a dividend of EUR0.065 per share, to be paid on June 7. Last year, the dividend paid was EUR0.075.

Emak's stock is up 1.1 percent at EUR1.06 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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