INTERPUMP APPROVES THE
CONSOLIDATED RESULTS FOR 1Q2023
Net sales: €592.3 million, +21.2% compared with 1Q2022
(+19.4% at unchanged perimeter and +18.7% with the same exchange rates as well)
EBITDA: €149.6 million, +31.0% compared with 1Q2022,
and an EBITDA margin of 25.3% compared with 23.4% in the same period of 2022
Consolidated net profit: €86.0 million, +30.2% compared with 1Q2022
Net financial position: €533.9 million compared with €541.8 million at 31 December 2022
(in the period: investment of €40.1 million and acquisitions of €7.3 million)
Executive Chairman Fulvio Montipò:
"The results for the first quarter confirm and strengthen our standards of excellence. Despite the continued challenges facing the business environment, all indicators known to us suggest that 2023 will be another good year, quite possibly outperforming the guidance"
Sant'Ilario d'Enza (RE), 15 May 2023 - The Board of Directors of Interpump Group S.p.A., meeting today under the chairmanship of Fulvio Montipò, approved the consolidated Q1 2023 Interim Report.
INTERPUMP GROUP S.p. A. - Via E. FERMI, 25 - 42049 S. ILARIO - REGGIO EMILIA (ITALY) - TEL.+39.0522.904311 FAX. +39.0522.904444 - E- mail info@interpumpgroup.it
SHARE CAPITAL € 56,617,232.88 fully paid -up. - R. E. BUSINESS REGISTER - TAX CODE 11666900151 - CHAMBER OF COMMERCE
ADMINISTRATIVE AND ECONOMIC INDEX (R. E. A.) No. 204185
CONSOLIDATED RESULTS FOR Q1 2023
Net sales
Net sales totaled €592.3 million in Q1 2023, an increase of 21.2% from €488.7 million in the corresponding period of 2022 (+19.4% growth at unchanged perimeter1). At operating sector level within the Group, Hydraulics grew by 22.4% (+20.0% at unchanged perimeter) while Water- Jetting grew by 17.8%.
Turnover by business sector and geographical area were as follows:
Q1 2023 | ||||||
Rest of | North Far East and Rest of the | |||||
(€/000) | Italy | Europe | America Pacific Area | World | Total | |
Hydraulics | 85,432 | 164,380 | 118,873 | 43,659 | 34,140 | 446,484 |
Water-Jetting | 14,108 | 54,596 | 46,281 | 14,674 | 16,202 | 145,861 |
Total | 99,540 | 218,976 | 165,154 | 58,333 | 50,342 | 592,345 |
Q1 2022 | ||||||
Hydraulics | 68,133 | 135,617 | 92,818 | 38,093 | 30,188 | 364,849 |
Water-Jetting | 12,740 | 40,856 | 45,212 | 13,770 | 11,253 | 123,831 |
Total | 80,873 | 176,473 | 138,030 | 51,863 | 41,441 | 488,680 |
2023/2022 percentage changes | ||||||
Hydraulics | +25.4% | +21.2% | +28.1% | +14.6% | +13.1% | +22.4% |
Water-Jetting | +10.7% | +33.6% | +2.4% | +6.6% | +44.0% | +17.8% |
Total | +23.1% | +24.1% | +19.7% | +12.5% | +21.5% | +21.2% |
The Group achieved organic growth2 of 18.7%, with Hydraulics and Water-Jetting up by 19.5% and 16.1% respectively.
Profitability
EBITDA totaled €149.6 million in Q1 2023, up by 31.0% compared with €114.2 million in the corresponding period of 2022 (+28.9% at unchanged perimeter) and representing 25.3% of sales (25.2% at unchanged perimeter), compared with 23.4% in Q1 of the prior year.3
1 Compared with the corresponding period of 2022, the change in perimeter relates to Draintech, Eurofluid and Indoshell Automotive System India: the first two acquisitions were made in the prior year and consolidated from June and November 2022 respectively, while the third was completed this February with an effective acquisition date of 31 March 2023, thus limiting its effects on the quarter to the financial position. All the above companies are consolidated by the Hydraulics division of the Group.
- Same scope of consolidation and exchange rates.
- In March this year, the Group received the balance of the insurance reimbursement - €9 million - due following the fire in May 2022 that seriously damaged one of the plants operated by I.M.M., the Romanian subsidiary. The portion relating to the quarter just ended - €3.6 million - has been recognized as "Other income", while the remainder will be recognized in Q2: at present, reconstruction work by the Group is still in progress, with likely completion during the
2
The following table sets out EBITDA by business sector:
Q1 2023 | % on | Q1 2022 | % on | ||
€/000 | total | €/000 | total | Increase/ | |
sales4 | sales4 | Decrease | |||
Hydraulics | 108,727 | 24.3% | 79,191 | 21.7% | +37.3% |
Water-Jetting | 40,915 | 27.8% | 35,018 | 28.0% | +16.8% |
Total | 149,642 | 25.3% | 114,209 | 23.4% | +31.0% |
The significant improvement, both in absolute terms and as a percentage of sales, reflects the robust increase in turnover and the lasting consequences of the effective countermeasures adopted by the Group in the prior year to counter inflationary pressures, as well as the steady progress made by White Drive in terms of profitability.
EBIT totaled €124.6 million in Q1 2023, up by 34.5% from €92.6 million and representing 21.0% of sales, compared with 19.0% in the corresponding period of the prior year.
Q1 closed with a consolidated net profit of €86.0 million compared with €66.1 million in the corresponding period of 2022, reflecting growth of 30.2%. Basic earnings per share were €0.796 compared with €0.616 in Q1 of the prior year.
Capital employed at 30 March 2023 amounts to €2,241.8 million, compared with €2,170.7 million at 31 December 2022. There are two main reasons for this phenomenon: the significant rise in turnover, which has naturally changed the level of trade receivables and inventories, and the steady progress of the investment program launched at the end of 2021 to expand the productive capacity of the Group.
Financial situation
The net liquidity generated from operations was €131.3 million (€108.8 million in Q1 2022) and the free cash flow of €14.1 million was more than double the €5.8 million generated in the corresponding period of the prior year5. This confirms the constant efforts made by the Group to
summer leading to the restart of production. For completeness, the overall accounting impact of this 2022 event was €2.3 million in non-recurring costs.
- Total sales include those made to other Group companies, while the sales analyzed previously comprised solely those external to the Group; accordingly, for consistency, the percentage has been calculated on total sales rather than on those reported previously.
- "Liquidity generated from operations" includes the final insurance reimbursement of €9 million collected during the period that, by the end of Q1, had already been fully absorbed by work linked to the restart of productive activities.
3
balance appropriately the support provided to grow turnover and increase medium/long-term productive capacity, while also assuring cash generation.
The net financial position at 31 March 2023 was €533.9 million, compared with €541.8 million at 31 December 2022. The resources of the Group were mostly dedicated to development work during the period, with expenditure of €47.4 million: investment of €40.1 million and acquisitions6 of €7.3 million.7 At 31 March, the Group had commitments for the acquisition of stakes in subsidiaries totaling €65.0 million, compared with €62.8 million at 31 December 2022.
With regard to the above-mentioned acquisition of stakes in subsidiaries, on 20 February 2023 the Group announced the acquisition of 85% of the capital of Indoshell Automotive System India P.L., an Indian company specialized in the casting of ferrous and non-ferrous metals. The ability of Interpump to procure castings - a fundamental raw material for the "valves" sector and important for many other sectors within the Group - is strengthened by this operation.
At 31 March 2023 Interpump Group S.p.A. held 1,972,363 treasury shares, representing 1.812% of share capital, acquired at an average unit cost of EUR 38.7871.
EVENTS OCCURRING AFTER THE END OF Q1 2023
On 20 April 2023, the Group announced the acquisition of 70% of I.Mec S.r.l., company specialized in the production of mechanical sifters, being vibrating devices for the granulometric selection of materials. The company closed 2022 with a turnover of about €17 million and an EBITDA margin of around 23%. The value of this operation has been fixed at approximately €14 million.8 This operation enables the Group to continue its diversification and development in the area of flow handling.
On 28 April 2023 the new Board of Directors granted operational powers to Chairman Fulvio Montipò, appointed Fabio Marasi as the Chief Executive Officer of the Group and defined and established the various Board committees, including the newly-formed Sustainability Committee.
- Acquisition of equity investments, including the net debt received and excluding the treasury shares assigned.
- During the period, the Group also paid dividends to shareholders and third parties totaling €0.4 million and collected €0.4 million from the sale of treasury shares to the beneficiaries of stock option plans.
- Equity value of the investment in 70% of the company. The "put & call" mechanisms have already been established, so that the counterparties can purchase and sell the residual equity interest from April 2026.
4
UPDATE ON IMPLEMENTATION OF THE ESG PLAN FOR 2023-2025
In relation to the ESG Plan approved on 5 October 2022, a number of actions envisaged for the current year have already been taken. These seek to embed the fundamental ESG principles within the Group's strategies and create, during the period 2023-24, an organizational framework that recognizes the underlying core values:
- G.1, revision of the Code of Ethics: the principles of sustainability defined in the ESG Plan have been incorporated and the new version has been adopted by all Interpump Group companies;
- G.2, established of a Board Sustainability Committee: this committee comprises the Chief Executive Officer of the Group and two independent directors
ESG PLAN 2023-25 | |||
ACTIONS 2023 | Notes | ||
E.1 | Definition of a carbon neutrality strategy | ||
E.4 | Pilot project in the circular economy field | ||
S.5 | Preparation of supplier rating model, applying | ||
environmental and social criteria | |||
G.1 | Establishment of a Board Sustainability | Shareholders' Meeting, 28 April 2023 | |
Committee | |||
G.2 | Revision of the Code of Ethics | Board of Directors, 10 November 2022 | |
Shareholders' Meeting, 28 April 2023: | |||
G.3 | Succession plan formalization | • Separation of Chairman and CEO roles | |
• Appointment of Chief Executive Director | |||
G.59 | Annual update of information required GRI 207- | ||
4 on Country-by-Country Reporting | |||
G.69 | Communication of ESG Plan implementation | ||
BUSINESS OUTLOOK
The results for Q1 were particularly good and, considering the other data available to the Group, it is possible to foresee - adopting a responsible prudential approach - results for 2023 that exceed expectations.
S. Ilario d'Enza (RE), 15 May 2023 | For the Board of Directors |
The Chairman | |
Fulvio Montipò |
9 This objective is addressed annually during the Plan period. 5
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Interpump Group S.p.A. published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 10:28:01 UTC.