Massimo Zanetti Beverage Group S.p.A. Announces Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Announces Impairment Charges for the Quarter Ended March 31, 2018; Confirms Earnings Guidance for the Year 2018
May 10, 2018 at 11:45 am EDT
Massimo Zanetti Beverage Group S.p.A. announced consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported revenue was 211,202,000 against 233,640,000 a year ago. EBITDA was 15,213,000 against 13,912,000 a year ago. Operating profit was 6,361,000 against 4,833,000 a year ago. Profit before tax was 4,238,000 against 3,809,000 a year ago. Profit for the period was 2,797,000 against 2,319,000 a year ago. Basic and diluted earnings per share were 0.08 against 0.07 a year ago. Net cash generated from operating activities was 6,882,000 against net cash used in operating activities of 4,263,000 a year ago. Purchase of property, plant and equipment was 5,740,000 against 7,808,000 a year ago. Purchase of intangible assets was 380,000 against 439,000 a year ago. The revenues were negatively affected by the FX fluctuation for 15.7 million, minus 6.7%. The free cash flow is positive 2.9 million. This compares with a negative figure of 10.1 million in first quarter 2017. The improvement of 13 million year-on-year is driven by lower cost absorption by the net working capital of 9.8 million and lower capex by 2.9 million. The reduction in CapEx of 2.1 million versus first quarter, 2017 is evenly split between the commercial CapEx, the industrial CapEx and asset under construction. Net debt amounting to 190.5 million is stable compared to 191.0 million at December 31, 2017.
For the quarter ended March 31, 2018, the company reported Impairment of 396,000 against 1,116,000 a year ago.
Confirming the 2018 outlook, in view of the results achieved in the first quarter and considering current trends, as well as assuming a substantial stability of exchange rates and the absence of extraordinary transactions in M&A, expectations relating to the group's performance for 2018 are as follows: An increase in revenues of approximately 2% to 4% as a consequence of the further improvement in the product and channel mix, which is one of key strategic objectives. An increase in EBITDA adjusted of approximately 5% to 8%, mainly driven by the positive impact on profits of the above channel product mix and a substantial stability of the group's ability to absorb its fixed costs, and a reduction in the net debt to below 180 million through the generation of cash flows from operating activities.