Press release | Ospitaletto (BS), 10 November 2020 |
SABAF: THIRD-QUARTER 2020 RESULTS APPROVED
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In the third quarter, revenue was €47.3 million (+17% compared to the third quarter of 2019; +9.3% on a like-for-like consolidation scope)
EBITDA was €9.6 million, equivalent to 20.3% of turnover (+27%) EBIT was €5.4 million (+54.6%)
Net profit was €1.8 million - In the first nine months of 2020, revenue was €125.4 million (+8.8% compared to the first nine months of 2019; -4.9% on a like-for-like consolidation scope, strong recovery compared to -12.5% at 30 June 2020)
EBITDA was €22.9 million, equivalent to 18.2% of turnover (+11.9%) EBIT was €10.2 million (+4.9%)
Net profit was €4.2 million - Revenue estimates for the whole of 2020 revised upwards to €180-183 million, an increase between 15% and 17% with respect to €155.9 million of 2019 and between 5% and 7% on a like- for-like consolidation scope (from the previous estimate of €170 to €175 million)
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The Board of Directors of Sabaf S.p.A. met today in Ospitaletto (BS) to approve the Interim Management Statement at 30 September 2020.
Consolidated results for Q3 2020
In Q3 2020, the Sabaf Group reported revenue of €47.3 million, an increase of 17% versus the figure of €40.4 million in the third quarter of 2019 (+9.3% on a like-for-like consolidation scope).
The increase in sales during the period is attributable to both specific elements related to Sabaf's business development and macroeconomic factors.
With reference to endogenous elements, the start of supplies of burners on a global scale to strategic customers and the first benefits deriving from cross-selling between the gas and electronics divisions contributed to the growth in sales.
Moreover, starting in July, all the main reference markets showed a marked recovery in demand, which had been heavily affected in the first half of the year by the impact of the Covid pandemic on production and commercial activities. Nevertheless, the Group believes that the increased consumer focus on household goods, including household appliances, is likely to lead to strong demand in the near future.
During the period, the increase in sales was greater in Italy, Eastern Europe and North America, all markets where organic growth rates of over 10% were recorded.
The significant increase in production and sales volumes allowed a more than proportional improvement in profitability: the EBITDA for the third quarter of 2020 reached €9.6 million (20.3% of sales), up by 27% compared to the €7.6 million (18.7% of sales) of the third quarter of 2019. EBIT was €5.4 million (11.4% of turnover), 54.6% higher than the €3.5 million recorded in the same quarter of 2019 (8.7% of sales).
Due mainly to the devaluation of the Turkish lira, during the third quarter the Group recorded net foreign exchange losses of €3 million; these losses did not result in financial outflows and were originated by the debt in euro of Sabaf Turkey.
The change in exchange rates affected the profit before taxes of the third quarter of 2020, which amounted to €2 million (€4 million in the third quarter of 2019) and the net profit for the period, amounting to €1.8 million, compared to €3.3 million in the third quarter of 2019 (-44.5%).
Consolidated results in January-September 2020
In the first nine months of 2020, sales revenue totalled €125.4 million, up by 8.8% over the same period of 2019 (-4.9% on a like-for-like consolidation scope, a clear recovery compared to -12.5% at 30 June last year). EBITDA was
€22.9 million (18.2% of turnover), up 11.9% compared to €20.4 million in 2019 (17.7% of turnover), EBIT was €10.2 million (8.2% of turnover) with a 4.9% increase. The net profit attributable to the Group, affected by net non-monetary foreign exchange losses, was €4.2 million, down 37.5% compared to the first nine months of 2019.
Investments and financial position
Other investments in the third quarter amounted to €4 million, bringing total investments of the first nine months of 2020 to €12.4 million (€7.1 million in the same period of 2019). Investments in the period include the acquisition for €1.6 million of a property in Hosur (Tamil Nadu, India), where the Group intends to start production of gas components for the Indian market in 2021.
At 30 September 2020, net financial debt was €63.6 million (€71.9 million at 30 September 2019 and €60.6 million at 30 June 2020), against a shareholders' equity of €107.6 million. The financial debt includes the debt to Shareholders amounting to €3.9 million, related to the dividends approved by the Shareholders' meeting of 29 September and paid last 14 October.
Outlook
The increase in orders and sales shows a further generalised acceleration in the last quarter of 2020, with all Group plants operating with saturation of production capacity at the highest levels. The new restrictive measures adopted in Italy and other Countries due to the recurrence of the pandemic are currently not significantly affecting operations.
The Sabaf Group now believes that it can close the year 2020 with sales ranging from €180 to €183 million (15-17% higher than €155.9 million of 2019 and 5% - 7% higher on a like-for-like consolidation scope) and a gross operating profitability (EBITDA %) improving further compared to the result for the first nine months of the year (18.2%). Previous forecasts indicated sales ranging from €170 to €175 million.
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Today at 4.00 p.m. CET there will be a conference call to illustrate the results of the third quarter of 2020 to financial analysts and institutional investors (please call the number 02 805 88 11 a few minutes before it begins).
The Interim Management Statement for Q3 2020, which has not been independently audited, is available in the Investor Relations section of the website www.sabaf.it. Pursuant to article 154-bis, paragraph 2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), the Company's Financial Reporting Officer Gianluca Beschi declares that the financial disclosure contained in this press release corresponds to the Company's records, books and accounting entries.
Attachments include the statement of financial position, income statement, statement of cash flows and net financial position.
For further information:
Investor Relations | Media relations |
Gianluca Beschi | Maria Giardini +39 340 5104775 |
tel. +39 030 6843236 | mgiardini@twistergroup.it |
gianluca.beschi@sabaf.it | Arnaldo Ragozzino - + 39 335 6978581 |
www.sabaf.it | aragozzino@twistergroup.it |
Founded in the early fifties, SABAF has grown consistently over the years to become the key manufacturer in Italy - and one of the leading producers in the world - of components for household appliances. The production is broken down into three main lines: gas cooking components (valves and burners), hinges and electronic components. Technological expertise, manufacturing flexibility, and the ability to offer a vast range of components - tailor-made to meet the requirements of individual manufacturers of cookers and built-in hobs and ovens and in line with the specific characteristics of its core markets
- are Sabaf's key strengths in a sector featuring major specialisation, constantly evolving demand and an ever-increasing orientation towards products assuring total reliability and safety. The Sabaf Group has more than 1,200 employees. It operates through its parent company SABAF S.p.A. and the subsidiaries Sabaf do Brasil, Sabaf Turkey and Sabaf China, active in the production of domestic burners, A.R.C., which produces burners for professional cooking, and Faringosi Hinges and C.M.I., leader in the production of oven and dishwasher hinges, and Okida, operating in the field of electronic components for household appliances.
Consolidated statement of financial position
30/09/2020 | 31/12/2019 | 30/09/2019 | |
(€/000) | |||
ASSETS | |||
NON-CURRENT ASSETS | |||
Property, plant and equipment | 74,482 | 75,885 | 75,139 |
Investment property | 3,458 | 3,976 | 4,083 |
Intangible assets | 43,817 | 51,668 | 48,391 |
Equity investments | 161 | 115 | 375 |
Financial assets | 0 | 60 | 60 |
Non-current receivables | 444 | 297 | 453 |
Deferred tax assets | 7,079 | 6,505 | 4,440 |
Total non-current assets | 129,441 | 138,506 | 132,941 |
CURRENT ASSETS | |||
Inventories | 36,585 | 35,343 | 37,641 |
Trade receivables | 54,431 | 46,929 | 55,349 |
Tax receivables | 2,095 | 4,458 | 4,218 |
Other current receivables | 2,258 | 1,459 | 2,309 |
Financial assets | 1,337 | 1,266 | 60 |
Cash and cash equivalents | 9,144 | 18,687 | 11,002 |
Total current assets | 105,850 | 108,142 | 110,579 |
ASSETS HELD FOR SALE | 0 | 0 | 0 |
TOTAL ASSETS | 235,291 | 246,648 | 243,520 |
SHAREHOLDERS' EQUITY AND LIABILITIES | |||
SHAREHOLDERS' EQUITY | |||
Share capital | 11,533 | 11,533 | 11,533 |
Retained earnings, Other reserves | 87,220 | 92,580 | 92,897 |
Net profit for the period | 4,245 | 9,915 | 6,792 |
Total equity interest of the Parent Company | 102,998 | 114,028 | 111,222 |
Minority interests | 4,620 | 7,077 | 4,284 |
Total shareholders' equity | 107,618 | 121,105 | 115,506 |
NON-CURRENT LIABILITIES | |||
Loans | 37,598 | 44,046 | 51,651 |
Other financial liabilities | 0 | 7,383 | 6,379 |
Post-employment benefit and retirement provisions | 3,581 | 3,698 | 3,461 |
Provisions for risks and charges | 914 | 995 | 614 |
Deferred tax liabilities | 6,269 | 7,273 | 3,101 |
Total non-current liabilities | 48,362 | 63,395 | 65,206 |
CURRENT LIABILITIES | |||
Loans | 24,949 | 19,015 | 19,790 |
Other financial liabilities | 11,535 | 4,637 | 5,097 |
Trade payables | 29,900 | 27,560 | 26,152 |
Tax payables | 2,053 | 1,802 | 2,115 |
Other payables | 10,874 | 9,134 | 9,654 |
Total current liabilities | 79,311 | 62,148 | 62,808 |
LIABILITIES HELD FOR SALE | 0 | 0 | 0 |
TOTAL LIABILITIES AND SHAREHOLDERS' | |||
EQUITY | 235,291 | 246,648 | 243,520 |
Consolidated Income Statement
Q3 2020 | Q3 2019 | 9M 2020 | 9M 2019 | |||||
(€/000) | ||||||||
INCOME STATEMENT COMPONENTS | ||||||||
OPERATING REVENUE AND INCOME | ||||||||
100.0 | 100.0 | 100.0 | 100.0 | |||||
Revenue | 47,281 | % | 40,426 | % | 125,445 | % | 115,252 | % |
Other income | 1,067 | 2.3% | 934 | 2.3% | 3,036 | 2.4% | 2,228 | 1.9% |
Total operating revenue and | 102.3 | 102.3 | 102.4 | 101.9 | ||||
income | 48,348 | % | 41,360 | % | 128,481 | % | 117,480 | % |
OPERATING COSTS | ||||||||
Materials | (21,057) | -44.5% | (14,185) | -35.1% | (56,438) | -45.0% | (42,063) | -36.5% |
Change in inventories | 17 | 0.0% | (2,969) | -7.3% | 3,694 | 2.9% | (6,656) | -5.8% |
Services | (7,207) | -15.2% | (7,282) | -18.0% | (22,721) | -18.1% | (21,702) | -18.8% |
Personnel costs | (10,584) | -22.4% | (8,946) | -22.1% | (30,485) | -24.3% | (26,605) | -23.1% |
Other operating costs | (278) | -0.6% | (932) | -2.3% | (1,086) | -0.9% | (1,511) | -1.3% |
Costs for capitalised in-house work | 349 | 0.7% | 506 | 1.3% | 1,427 | 1.1% | 1,503 | 1.3% |
Total operating costs | (38,760) | -82.0% | (33,808) | -83.6% | (105,609) | -84.2% | (97,034) | -84.2% |
OPERATING PROFIT BEFORE | ||||||||
DEPRECIATION & AMORTISATION, | ||||||||
CAPITAL GAINS/LOSSES AND | 9,588 | 20.3% | 7,552 | 18.7% | 22,872 | 18.2% | 20,446 | 17.7% |
WRITE-DOWNS/WRITE-BACKS OF | ||||||||
NON-CURRENT ASSETS (EBITDA) | ||||||||
Depreciations and amortisation | (4,197) | -8.9% | (4,048) | -10.0% | (12,705) | -10.1% | (10,737) | -9.3% |
Capital gains/(losses) on disposals of | ||||||||
non-current assets | 19 | 0.0% | (4) | 0.0% | 60 | 0.0% | 44 | 0.0% |
Write-downs/write-backs of non- | ||||||||
current assets | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
OPERATING PROFIT (EBIT) | 5,410 | 11.4% | 3,500 | 8.7% | 10,227 | 8.2% | 9,753 | 8.5% |
Financial income | 38 | 0.1% | 46 | 0.1% | 1,601 | 1.3% | 282 | 0.2% |
Financial expenses | (340) | -0.7% | (457) | -1.1% | (1,142) | -0.9% | (1,247) | -1.1% |
Exchange rate gains and losses | (3,004) | -6.4% | 891 | 2.2% | (4,841) | -3.9% | (150) | -0.1% |
Profits and losses from equity | ||||||||
investments | (31) | -0.1% | 0 | 0.0% | (31) | 0.0% | 0 | 0.0% |
PROFIT BEFORE TAXES | 2,073 | 4.4% | 3,980 | 9.8% | 5,814 | 4.6% | 8,638 | 7.5% |
Income taxes | (124) | -0.3% | (606) | -1.5% | (1,349) | -1.1% | (1,630) | -1.4% |
NET PROFIT FOR THE PERIOD | 1,949 | 4.1% | 3,374 | 8.3% | 4,465 | 3.6% | 7,008 | 6.1% |
of which: | ||||||||
Profit attributable to minority | ||||||||
interests | 128 | 0.3% | 95 | 0.2% | 220 | 0.2% | 216 | 0.2% |
PROFIT ATTRIBUTABLE TO THE | ||||||||
GROUP | 1,821 | 3.9% | 3,279 | 8.1% | 4,245 | 3.4% | 6,792 | 5.9% |
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Sabaf S.p.A. published this content on 10 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2020 12:36:02 UTC