(Alliance News) - Jonix Spa on Tuesday approved its draft operating budget as of Dec. 31, 2022 reporting a sharp decline in profit to EUR8,000 from EUR960,000.

Also down was revenue for the period, which amounted to EUR4.4 million in 2022 from EUR6.8 million in 2021. "2022 sees a market no longer driven by the pandemic effect, in which sensitivity to environmental issues and awareness of the importance of using sanitization and air quality improvement systems have not yet permeated society. Added to this is an international environment hurt by geopolitical and economic events such as the Russian-Ukrainian conflict and rising interest rates and inflation," the company explains in a note.

Ebitda increased to EUR384,000 from EUR1.41 million as of Dec. 31, 2021. The change, the company explains, was impacted by a decrease in revenues, investment in useful raw materials to counteract the shortage in the period, and an increase in logistics, raw materials, and personnel costs.

Ebit is EUR31,000 compared to EUR1.12 million in 2021, after depreciation and amortization of EUR338,000 up from EUR290,000 in 2021 mainly due to the amortization of plant costs related to listing costs, the company explained in a note.

Net financial position is EUR450,000, down from December 31, 2021 when it was cash positive by EUR3.41 million due to the repayment of the loan to third parties and the bank loan at Unicredit bank, the payment of the dividend on May 23, 2022, the investment in raw materials useful to counter the shortage in the period, in finished products mainly to equip the warehouse for the new products presented at the Sales Meeting 2022. The company also reported that a new loan was taken out with Credem in the amount of EUR500,000, duration 36 months and variable amortization rate 0.50 percent, to support the company's business.

Regarding the future, "2022 saw a shift in revenues from the Consumer area to the Business area, confirming - albeit in a market context made difficult by the attenuation of attention to the pandemic, the expensive energy and the Russia-Ukraine war - that the future of the business will have to focus, as planned, on the professional sector. The company therefore aims to diversify its offerings by including training activities on sanitation and environmental wellness issues, which in 2023 will materialize in some contracts signed with RSAs, a very demanding sector in this respect."

"The dimensionally suitable device for water sanitization in the indoor cultivation market, a sector that is expected to give interesting prospects, has been developed and IOT technology has been included on the first range of devices. Four invention patents were filed to protect the technology in applications such as water treatment, treatment of pollutant emissions, and to protect some innovative ideas on the operation and regulation of the machines themselves. The organization of the company has been revised, in light of both market trends and the sudden death of Mauro Mantovan, making it more streamlined and flexible to adapt to contingent needs," reads the company note.

Antonio Cecchi, president and CEO of Jonix commented, "We close 2022 with revenues of EUR4.4 million above the closing estimates communicated on September 28: a satisfactory result as it was achieved in a particularly complex financial year. We quickly reacted to the market trend by intervening on the organization and structure, making it leaner and adaptable to the needs of the period without losing the essential and characteristic elements of our company: Made in Italy and continuous innovation in "Non Thermal Plasma" technology, with the filing of 4 patents and the integration of IOT technology in our devices."

"We have continued the certification process by giving scientific evidence of both the beneficial effects and the absolute safety of our technology and integrated the business model with the value proposition of the consulting aspects, which has given the first feedback in the health sector: Jonix Academy allows us to approach the corporate and public world through the provision of training and consulting services aimed at generating awareness and expertise on the issues of air quality in confined environments and related side effects, conveying the supply of Jonix devices. We are continuing our awareness and education activities at both national and regional levels aimed at the adoption of legislative and regulatory interventions related to indoor air quality."

Jonix trades in the green by 3.1 percent at EUR0.89 per share.

By Chiara Bruschi, Alliance News reporter

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