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    PRT   IT0003850929

ESPRINET S.P.A.

(PRT)
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Delayed Borsa Italiana  -  11:35 2022-07-01 am EDT
6.945 EUR   +1.61%
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Esprinet closes the best year in its history: Group net profit at Euro 44.1 million (+39%). Proposed dividend of Euro 0.54 per share. The ordinary and extraordinary Shareholders' Meeting called.

03/08/2022 | 07:23am EDT

ESPRINET CLOSES THE BEST YEAR IN ITS HISTORY:

GROUP NET PROFIT AT EURO 44.1 MILLION (+39%)

PROPOSED DIVIDEND OF EURO 0.54 PER SHARE

THE ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING CALLED

  • SALES FROM CONTRACTS WITH CUSTOMERS: Euro 4,691 million, +4% (2020: Euro 4,492 million)
  • ADJUSTED EBITDA: Euro 86.1 million, +25% (2020: Euro 69.1 million)
  • EBIT: Euro 68.4 million, +44% (2020: Euro 47.6 million)
  • NET INCOME: Euro 44.1 million, +39% (2020: Euro 31.8 million)
  • ROCE: 20.5% (2020: 25.1%);
  • CASH CONVERSION CYCLE: 13 days (2020: 8 days)
  • NFP: positive for Euro 227.2 million (2020: positive for Euro 302.8 million)

Vimercate (Monza Brianza), 8 March 2022 - The Board of Directors of ESPRINET, group leader in Southern Europe in advisory services, sale and rental of technological products and cybersecurity, which met under the chairmanship of Maurizio Rota, approved the Consolidated financial statements and the Draft separate financial statements as at 31 December 2021, drafted in compliance with the international accounting standards (IFRS).

Alessandro Cattani, Chief Executive Officer of ESPRINET: "We have closed an exceptional year in which we exceeded our targets, setting an all-time record not just in terms of sales but also, in particular, of net profit.

It is with great satisfaction that we can announce - consistently with its growth strategy focused on high profit margin business lines - that the Group posted sales in the Advanced Solutions segment that topped Euro 870 million, marking an increase of +46% over the previous year.

The growth we registered in the Cloud segment was even more remarkable, sitting at +183%, almost reaching Euro 141 million in sales.

We also recorded growth of +12% in the Business Customer segment, where ESPRINET consolidated its market share, thanks to the constant focus on customer satisfaction indexes.

The Cash Conversion Cycle stood at 13 days, in line with our objective of keeping it below 18 days, hence ensuring optimal financial flexibility to support our generous dividend policy and the hoped- for search for attractive external growth opportunities, also in other areas of Western Europe, in addition to the countries in which the Group is already operating.

We believe that, in 2022, in the absence of external shocks and assuming that the ongoing war in Ukraine quickly comes to an end or, nonetheless, does not have too much of an impact on the macroeconomic scenario, the Group can record further growth in the reference market in Southern Europe.

In view of the performance of the first two months of this year which confirm the effectiveness of the business model adopted, we estimate for the current fiscal year to be able to obtain a further increase in profitability in line with the growth path underpinning the business plan announced in November 2021. All this despite the backdrop of a market that for the first part of the year will continue to be rather challenging and then is expected to recover".

MAIN CONSOLIDATED RESULTS AS AT 31 DECEMBER 2021

Sales from contracts with customers amounted to Euro 4,690.9 million, +4% compared to Euro 4,491.6 million euro in 2020.

Contributions to this result were provided by both organic growth (+1%) and the Euro 153.6 million deriving from the activities of Gruppo GTI acquired in Spain in Q4 2020 and Dacom S.p.A. and idMAINT S.r.l. in Italy, acquired at the start of Q1 2021.

(€/millions)

FY 2021

FY 2020 Change %

Italy

2,722.0

Spain

1,665.6

Portugal

67.4

Other EU countries

26.5

Other countries outside of the EU

10.1

Sales from contracts with customers

4,491.6

ESPRINET recorded sales of Euro 2,854.7 million in Italy, +5% compared to 2020 and in line with the market which, according to Context data, increased by 5%, reaching turnover of Euro 9.5 billion. In Spain, the Group posted sales of Euro 1,686.7 million, +1% compared to 2020, underperforming the market which increased by 5% (Euro 6.6 billion). Portugal was worth Euro 107.5 million, +59% compared to 2020 and further consolidated its share of a market that rose by 10%, reaching sales of more than Euro 1.6 billion.

(€/millions)

FY 2021

FY 2020 Change %

PCs (notebook, tablet, desktop, monitor)

1,711.5

Printing devices and supplies

407.0

Other products

319.7

Total IT Clients

2,438.2

Smartphones

1,263.6

White goods

64.1

Gaming (hardware and software)

39.3

Other products

164.3

Total Consumer Electronics

1,531.3

Hardware (networking, storage, server and other)

384.9

Software, Services, Cloud

212.6

Total Advanced Solutions

597.5

Reconciliation adjustments

(75.4)

Sales from contracts with customers

4,491.6

An analysis of the details of the product categories shows an increase of 2% in sales in the Consumer Electronics segment, where the growth in White goods (+27%), Gaming (+27%) and Other products (+6%), whose perimeter also incorporates televisions, more than offset the decrease in Smartphones (-1%). Despite the growth of 15% in Accessories and Components (Other products), the IT Clients segment recorded a drop of 1% due to the performance of PCs (-4%) and Printing devices and supplies (-3%). According to Context data, in 2021, the IT Clients market recorded growth of 3%, where PCs and Printing posted growth of 2%. In the Consumer Electronics market (+8%), the drivers of growth were Smartphones (+4%) and Other products (+17%), in which, it should be pointed out, televisions are classified.

In the Advanced Solutions segment, the Group registered sales of Euro 873.9 million, +46% compared to Euro 597.5 million in 2020, with growth of 63% in Software, Services and Cloud, and an increase of 37% in Hardware (networking, storage, servers and other). Also thanks to the strategic acquisitions signed in 2020 (GTI Group in the Cloud domain) and January 2021 (Dacom and idMAINT in the Automatic Identification and Data Capture area), the Group significantly boosted its position in the Advanced Solutions segment, whose market grew by 6% according to Context data.

(€/millions)

FY 2021

FY 2020 Change %

Retailer, E-tailer (Consumer Segment)

IT Reseller (Business Segment)

Reconciliation adjustments

Sales from contracts with customers

A glance at the customer segments shows that, in 2021, the market recorded growth of 5% in the Business Segment (IT Reseller) and 6% in the Consumer Segment (Retailer, E-tailer). Group sales declined in the Consumer Segment (Euro 2,190.2 million, -1%), and increased in the Business Segment (Euro 2,648.2 million, +12%), where ESPRINET, thanks to the constant focus on customer satisfaction indexes, consolidated its market share.

Gross profit totaled Euro 232.9 million, +20% compared to 2020 (Euro 194.5 million) due to both greater sales and the significant increase in the percentage margin (4.96% in 2021 compared to 4.33% in 2020), in turn a result of the greater incidence of high profit margin product categories that, in line with the Group's strategy, accounted for 41% of sales, up from 35% in 2020. It should also be noted that profit margins improved on all business lines.

Adjusted EBITDA amounted to Euro 86.1 million, up by 25% compared to Euro 69.1 million in 2020. The incidence on sales increased to 1.84% compared to 1.54% in 2020, despite the increase in the weight of operating costs (from 2.79% in 2020 to 3.13% in 2021), mainly as a result of the acquisitions of Gruppo GTI, Dacom S.p.A. and idMAINT S.r.l..

Adjusted EBIT, gross of Euro 1.4 million in non-recurring costs1, amounted to Euro 69.8 million, +27% compared to Euro 54.8 million in 20202; the incidence on sales increased to 1.49% from 1.22% in 2020.

EBIT amounted to Euro 68.4 million, +44% compared to Euro 47.6 million in 2020.

Profit before income taxes amounted to Euro 60.8 million, up by 43% compared to Euro 42.5 million in 2020.

Net income amounted to Euro 44.1 million, +39% compared to Euro 31.8 million in 2020.

Group net income amounted to Euro 44.2 million, +41% compared to Euro 31.4 million in 2020.

Basic earnings per ordinary share, equal to Euro 0.89, showed an increase of 41% compared with the value in 2020 (Euro 0.63).

The Cash Conversion Cycle3 closed at 13 days (+5 days compared to Q4 20 and unchanged with respect to Q3 21). In particular, the following trends were recorded:

  1. Non-recurringcosts in 2021 related to the expansion of the warehouses in Italy and the fitting out of the new headquarters in Madrid, in which the personnel taken on as a result of the various acquisitions and located in several areas of the city were concentrated.
  2. Non-recurringcosts in 2020, amounting to Euro 7.2 million, include Euro 0.9 million connected with the transaction aimed at the acquisition of the Spanish distributor of cloud software and solutions, GTI Software y Networking S.A., Euro 1.2 million incurred as a result of the termination of the contract of former Group director and CFO, Euro 2.6 million relating to the write-off of the residual balance of the receivables due to the parent company from the importing supplier of the 'Sport Technology' product line, following the settlement of the legal dispute, Euro 0.2 million incurred to deal with the Covid-19 pandemic and Euro 2.3 million for impairment of goodwill relating to the CGU attributable to the distribution of mobile telephone accessories, which are handled by the subsidiary Celly.
  3. Equal to the average of the last 4 quarters of days of turnover of Operating Net Working Capital calculated as the sum of trade receivables, inventories and trade payables.

Days sales of inventory (DSI): +3 days vs Q4 20 (+2 days vs Q3 21);

Days sales outstanding (DSO): +2 days vs Q4 20 and unchanged vs Q3 21;

Days payable outstanding (DPO): unchanged vs Q4 20 (+2 days vs Q3 21).

The Net Financial Position, amounted to a positive Euro 227.2 million, compared with a positive Euro

302.8 million as at 31 December 2020. The value of the exact net financial position as at 31 December is influenced by technical factors like the seasonality of the business, the trend in 'non-recourse' factoring of trade receivables (factoring, confirming and securitisation) and the trend in the behavioural models of customers and suppliers in the different periods of the year. Therefore, it is not representative of the average levels of net financial indebtedness noted during the period. The aforementioned factoring and securitisation programmes, which define the complete transfer of risks and benefits to the assignees and therefore involve the derecognition of receivables from the statement of financial position assets in compliance with IFRS 9, determine an overall effect on the level of consolidated net financial payables as at 31 December of Euro 561.0 million (Euro 536.6 million euro as at 31 December 2020).

Net Equity totaled Euro 386.1 million, a slight reduction compared with Euro 389.0 million as at 31 December 2020.

The ROCE stood at 20.5%, compared to 25.1% in 2020. The main changes related to this trend can be summarised as follows:

  • the "NOPAT - Net Operating Profit Less Adjusted Taxes" grew compared to 2020;
  • the Average Net Invested Capital, measured before the effects of the introduction of IFRS 16, increased (+53%) due to the increase in the Average Net Working Capital.

(€/millions)

FY 2021

FY 2020

LTM operating profit (Adj. EBIT)4

68.5

52.9

NOPAT5

49.7

39.7

Average net invested capital6

242.4

158.1

ROCE7

20.5%

25.1%

MAIN RESULTS OF ESPRINET SPA AS AT 31 DECEMBER 2021

Sales from contracts with customers amounted to Euro 2,830.1 million, up by 3% compared to Euro 2,744.4 million euro in 2020.

The Gross profit amounted to Euro 139.4 million, marking an increase of 14% compared to 2020 (Euro

122.5 million) due to higher revenues and an improvement in the percentage margin, which went from 4.46% in 2020 to 4.93% in 2021.

Adjusted EBITDA, calculated gross of one-off costs8 of Euro 1.1 million, totaled Euro 42.9 million, up by 10% compared to Euro 39.2 million in 2020, calculated gross of one-off costs of Euro 4.9 million.9

  1. Equal to the sum of EBITs - excluding the effects of IFRS 16 - in the last 4 quarters.
  2. LTM operating profit (Adj. EBIT), as defined above, net of taxes calculated at the actual tax rate of the last set of annual consolidated financial statements published.
  3. Equal to the average of "Loans" at the closing date of the period and at the four previous quarterly closing dates (excluding the equity effects of IFRS 16).
  4. Equal to the ratio between (a) NOPAT, as defined above, and (b) the average net invested capital as defined above.
  5. The one-off costs relate to the expansion of the warehouses in Italy.
  6. The one-off costs include: Euro 0.9 million connected with the transaction aimed at the acquisition of the Spanish distributor of cloud software and solutions, GTI Software y Networking S.A., Euro 1.2 million incurred as a result of the termination of the contract of former

Adjusted EBIT, gross of Euro 1.1 million in non-recurring costs cited above, amounted to Euro 31.8 million, +10% compared to Euro 28.7 million in 2020, calculated gross of non-recurring costs of Euro 4.9 million cited above; the incidence on sales rose to 1.12% compared to 1.05% in 2020.

EBIT came to Euro 30.6 million, marking an increase of 28% compared to Euro 23.9 million in 2020.

Profit before income taxes amounted to Euro 26.5 million, +79% compared to Euro 14.8 million in 2020.

Net Income amounted to Euro 18.5 million, +97% compared to Euro 9.4 million in 2020.

The Net Financial Position was a positive Euro 126.0 million, compared to a liquidity surplus of Euro

169.8 million as at 31 December 2020. The value of the exact net financial position as at 31 December is influenced by technical factors like the seasonality of the business, the trend in 'non-recourse' factoring of trade receivables (factoring, confirming and securitisation) and the trend in the behavioural models of customers and suppliers in the different periods of the year. Therefore, it is not representative of the average levels of net financial indebtedness noted during the period. The aforementioned programmes for the factoring and securitisation of trade receivables, which define the complete transfer of risks and benefits to assignees and therefore allow the derecognition from statement of financial position assets, determine an overall effect on the level of consolidated net financial payables as at 31 December of Euro 299.2 million (Euro 276.7 million as at 31 December 2020).

Net Equity totaled Euro 277.6 million (Euro 304.3 million as at 31 December 2020).

DIVIDEND PROPOSAL

The Board of Directors resolved to propose that the Shareholders' Meeting distribute a dividend of Euro 0.54 per share, unchanged with respect to the amount paid in 2021.

It should be noted that the dividends relating to the 2019 and 2020 fiscal years were paid in 2021, given that the distribution of the dividend for the 2019 tax year was suspended in 2020.

Said dividend of Euro 0.54 per share implies a pay-out ratio of roughly 60% consistent with the Group's strong growth plans presented to the market in November 2021.

The Board of Directors also proposes that the dividend actually approved by the Shareholders' Meeting be paid starting from 27 April 2022 (coupon payment no. 16 on 25 April 2022 and record date on 26 April 2022).

BUSINESS OUTLOOK

The first few months of 2022 appear to show that the dominance of the Omicron variant, highly contagious but seemingly less lethal, together with the large-scale vaccination campaign implemented by the governments, are finally bringing an end to the acute phase of the COVID-19 pandemic.

The gradual reduction in virus containment measures is an extremely important sign in terms of a progressive return to normality of the economic cycle.

Group director and CFO, Euro 2.6 million relating to the write-off of the residual balance of the receivables due to the parent company from the importing supplier of the "Sport Technology" product line, following the settlement of the legal dispute, and Euro 0.2 million incurred to deal with the Covid-19 pandemic.

Questo è un estratto del contenuto originale. Per continuare a leggere, accedi al documento originale.

Disclaimer

Esprinet S.p.A. published this content on 08 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2022 12:22:09 UTC.


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Sales 2022 4 944 M 5 142 M 5 142 M
Net income 2022 53,8 M 55,9 M 55,9 M
Net cash 2022 249 M 259 M 259 M
P/E ratio 2022 6,53x
Yield 2022 7,88%
Capitalization 340 M 353 M 353 M
EV / Sales 2022 0,02x
EV / Sales 2023 0,01x
Nbr of Employees 1 747
Free-Float 55,2%
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Last Close Price 6,95 €
Average target price 15,90 €
Spread / Average Target 129%
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Alessandro Cattani Executive Director
Maurizio Rota Non-Executive Chairman
Emanuela Prandelli Independent Non-Executive Director
Renata Maria Ricotti Independent Non-Executive Director
Chiara Mauri Independent Non-Executive Director
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