MUNICATOTAMPA
PRESS RELEASE
SERI INDUSTRIAL S.p.A.
BOARD OF DIRECTORS APPROVES RESULTS AT 30 JUNE 2022
REVENUES EQUAL TO EURO 101,477 THOUSAND, WITH AN INCREASE OF 20% COMPARED TO 30
JUNE 2021
- Consolidated Revenues at 30 June 2022: euro 101,477 thousand with an increase of 20% compared to 30 June 2021
- Ebitda adjusted at 30 June 2022: euro 9,071 thousand with an increase of 11% compared to 30 June 2021
- Adjusted Net Debt: euro 97,178 thousand, with an increase of euro 22,131 thousand compared to 31 December 2021
As follows the key highlights as of 30 June 2022:
Highlights
Economic and financial result
Euro / 000 | 30/06/2022 | 30/06/2021 | Variation | Variation % |
Revenues, income and internal works | 101.477 | 84.433 | 17.044 | 20% |
Gross Operating Income - Ebitda | 8.855 | 8.391 | 464 | 6% |
Adjusted Gross Operating Income - Adjusted Ebitda | 9.071 | 8.193 | 878 | 11% |
Net Operating Income - EBIT | (1.932) | (1.376) | (556) | 40% |
Adjusted Net Operating Income - EBIT | (1.716) | (885) | (831) | 94% |
Net Result | (5.194) | (4.136) | (1.058) | 26% |
Adjusted Net Result | (4.286) | (3.609) | (677) | 19% |
Cash flow from operating activities | (8.662) | 7.947 | (16.609) | (209%) |
Adjusted Investments activities | 6.402 | 7.465 | (1.063) | (14%) |
Balance sheet results
Euro / 000 | 30/06/2022 | 31/12/2021 | Variation | Variation % |
Net Invested Capital | 236.816 | 218.951 | 17.865 | 8% |
Consolidated Net equity | 116.950 | 120.934 | (3.984) | (3%) |
Net financial debt | 119.866 | 98.018 | 21.848 | 22% |
Adjusted Net financial debt | 97.178 | 75.047 | 22.131 | 29% |
Personnel
Number of employees | 30/06/2022 | 30/06/2021 | Variation | Variation % |
FIB Division - Batteries | 361 | 351 | 10 | 3% |
Seri Plast Division - Plastic materials | 307 | 309 | (2) | (1%) |
Corporate and other activities | 52 | 50 | 2 | 4% |
Group | 720 | 710 | 10 | 1% |
S. Potito Sannitico, 15 September 2022 - The Board of Directors of SERI Industrial S.p.A. (the "Company" and, together with its subsidiaries, the "Group") has examined and approved the consolidated half-yearlyreport as of June 30, 2022.
During the first half of 2022, there was an increase in revenues of 20% compared to the first half of 2021, due to both the increase in sales volumes and the increase in average selling prices.
Despite the current macroeconomic scenario characterized by a significant increase in the cost of energy, the Group has recorded a profitability (Adjusted Gross Operating Income/Revenues) of 9% in the first half of 2022, slightly down from the 9.7% achieved in the first half of 2021.
Economic and financial results
Consolidated economic trend
As follows the Group's Income Statement as of 30 June 2022 compared to the same period of the previous year:
Euro / 000 | 30/06/2022 | 30/06/2021 | Variation | Variation % | |
Revenues from contract with customers | 89.811 | 75.876 | 13.935 | 18% | |
Other operating revenues | 7.751 | 5.039 | 2.712 | 54% | |
Internal works | 3.915 | 3.518 | 397 | 11% | |
Total revenues, income and internal works | 101.477 | 84.433 | 17.044 | 20% | |
Operating costs | 92.622 | 76.042 | 16.580 | 22% | |
Gross Operating Income - EBITDA | 8.855 | 8.391 | 464 | 6% | |
Amortization and Depreciation | 10.826 | 9.614 | 1.212 | 13% | |
Write-downs/write-backs | (39) | 153 | (192) | (125%) | |
Net Operating Income - EBIT | (1.932) | (1.376) | (556) | 40% | |
Financial management | (2.401) | (1.760) | (641) | 36% | |
Net result before tax | (4.333) | (3.136) | (1.197) | 38% | |
Taxes | 861 | 1.000 | (139) | (14%) | |
Consolidated Net Result | (5.194) | (4.136) | (1.058) | 26% |
The Net Operating income (EBIT) is equal to negative euro 1,932 thousand, after depreciation and amortization of euro 10,787 thousand. It should be noted that depreciation and amortization are related for euro 5,410 thousand to the completed and on-going investment in Teverola 1 and 2, of which euro 4,212 thousand is related to the amortization on realized investments and euro 1,198 thousand related to the rights of use concerning the lease of the Teverola 1 (euro 515 thousand) and Teverola 2 (euro 683 thousand) building.
In relation to the increase in electricity costs recorded in the first half of 2022, there is a greater impact on operating costs estimated at approximately euro 4,554 thousand. To compensate for the charges incurred due to the increase in the cost of energy, the Group has obtained grants, following the facilitation introduced by the Decree Sostegni-Ter for energy-intensive companies, amounting to euro 1,499 thousand.
The performance of the Group is also assessed by considering certain alternative performance indicators (Alternative Performance Measures, hereinafter also referred to as "APM"), as provided by the European Securities and Markets Authority (ESMA).
The management considers that APMs allow a better analysis of business performance, ensuring a clearer comparability of results over time, isolating non-recurring events, in order to make reporting consistent with forecasting trends. These indicators should not be considered as substitutes for the conventional ones provided by IFRS. In fact, APMs are not required by IFRS and, although they are derived from the Group's financial statements, they are not subject to audit. Therefore, APMs should be read in combination with the Group's financial information derived from the consolidated financial statements.
In particular, the alternative performance indicators refer to the adjustment of the main balance sheet indicators net of non-recurring and/or non-repeating items, the so-called "special item"1.
1 Income figures are classified as special items when: (i) they relate to non-recurring events or transactions, i.e. transactions that are not repeated frequently in the Group's recurring operations; (ii) they derive from transactions that are not representative of the Group's normal operations, such as extraordinary restructuring costs, environmental costs, costs associated with the disposal and evaluation of an asset, costs associated with extraordinary transactions, even if they occurred in previous years or are likely to occur in subsequent years, costs associated with the start-up of new plants, etc; (iii) any capital gains or losses, write-downs or revaluations of shareholdings and/or assets, value adjustments/reversals and depreciation related to extraordinary transactions.
As follows a description of the main alternative performance measures:
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As follows the adjusted income statement of the Group as of June 30, 2022:
Profit and loss | 30/06/2022 | Special | 30/06/2022 | 30/06/2021 | Special | 30/06/2021 | ||||
items | Adjusted | items | Adjusted | |||||||
Revenues from contract with customers | 89.811 | 89.811 | 75.876 | 75.876 | ||||||
Other operating revenues | 7.751 | (216) | 7.535 | 5.039 | (1.096) | 3.943 | ||||
Internal works | 3.915 | 3.915 | 3.518 | 3.518 | ||||||
Total revenues, income and internal works | 101.477 | (216) | 101.261 | 84.433 | (1.096) | 83.337 | ||||
Raw Materials | 70.880 | (22) | 70.858 | 45.404 | 45.404 | |||||
Change in inventories | (18.759) | (18.759) | (960) | (960) | ||||||
Costs for services | 23.746 | (3) | 23.744 | 15.387 | (271) | 15.116 | ||||
Other operating costs | 1.405 | (408) | 997 | 1.563 | (361) | 1.202 | ||||
Personnel costs | 15.350 | 15.350 | 14.648 | (266) | 14.382 | |||||
Operating costs | 92.622 | (432) | 92.190 | 76.042 | (898) | 75.144 | ||||
Gross Operating Income - EBITDA | 8.855 | 216 | 9.071 | 8.391 | (198) | 8.193 | ||||
Amortization and Depreciation | 10.826 | 0 | 10.826 | 9.614 | (574) | 9.040 | ||||
Write-downs/write-backs | (39) | 0 | (39) | 153 | (115) | 38 | ||||
Net Operating Income - EBIT | (1.932) | 216 | (1.716) | (1.376) | 491 | (885) | ||||
Interest income | 594 | 594 | 305 | 0 | 305 | |||||
Interest expense | 2.988 | 0 | 2.988 | 2.069 | (8) | 2.061 | ||||
Income (expenses) from associated | (7) | (7) | 4 | 0 | 4 | |||||
companies | ||||||||||
Net result before tax | (4.333) | 216 | (4.117) | (3.136) | 499 | (2.637) | ||||
Taxes | 861 | (754) | 107 | 1.000 | 0 | 1.000 | ||||
Theoretical tax effect | 0 | 63 | 63 | 0 | (28) | (28) | ||||
Consolidated Net Result | (5.194) | 908 | (4.286) | (4.136) | 527 | (3.609) |
The impact of special items on Net Result before tax is equal to euro 216 thousand, due to a non recurring income for euro 216 thousand and non recurring operating costs for euro 432 thousand.
- EBITDA (or Gross Operating Income): it is an indicator of operating performance and is calculated by adding Depreciation, Amortization and Value Adjustments to Net Operating Income;
- EBITDA adjusted (or Adjusted Gross Operating Income): it is an indicator of recurring operating performance and is calculated by adding EBITDA and special items, i.e. operating costs, with a positive sign, that are non-recurring or non-repetitive;
- EBIT adjusted (Adjusted Net Operating Income): it is measured as the sum of the Net Operating Result and special items, i.e. operating costs and depreciation and amortization, and non-recurring or non-repeating adjustments/reversals, with a positive sign;
- Adjusted Consolidated Net Result: it is calculated adding the special items to the Net Result;
- Net financial debt or Net Financial Position: it is an indicator of the financial structure and it is calculated in accordance with the provisions of Guideline No. 39 issued on 4 March 2021, applicable as of 5 May 2021 and in line with the attention notice No. 5/21 issued by Consob on 29 April 2021;
- Adjusted Net Debt: it is measured by deducting the financial debt related to the application of IFRS 16 from net financial debt;
- Cash flow from operating activities: it is measured by adding changes in inventories, trade receivables, trade payables, funds and other assets/liabilities to EBITDA.
- Adjusted Investment Activities: it is measured eliminating the increases from Right of Use related to IFRS 16 from the investment activities.
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Consolidated Balance Sheet
As follows the composition of Net invested capital as of June 30, 2022 compared with that at the end of the previous year:
Euro / 000 | 30/06/2022 | 31/12/2021 | Variation | Variation % | ||
Net fixed assets: | ||||||
Property, plant and equipment, intangible | 112.481 | 114.421 | (1.940) | (2%) | ||
assets and rights of use | ||||||
Goodwill | 55.042 | 55.042 | 0 | 0% | ||
Net financial assets valued using the equity | 665 | 554 | 111 | 20% | ||
method | ||||||
Other assets and non-current liabilities | (23.694) | (25.857) | 2.163 | (8%) | ||
Total net fixed assets | 144.494 | 144.160 | 334 | 0% | ||
Net working capital | ||||||
Trade receivables | 35.884 | 37.015 | (1.131) | (3%) | ||
Inventories | 81.601 | 63.606 | 17.995 | 28% | ||
Trade payables | (49.921) | (47.930) | (1.991) | 4% | ||
Other assets and current liabilities | 11.924 | 9.280 | 2.644 | 28% | ||
Total net working capital | 79.488 | 61.971 | 17.517 | 28% | ||
Gross invested capital | 223.982 | 206.131 | 17.851 | 9% | ||
Other provisions: | ||||||
Employee benefits | (4.334) | (4.676) | 342 | (7%) | ||
Provisions for risks and charges | (934) | (1.261) | 327 | (26%) | ||
Provisions for net deferred taxes | 18.102 | 18.757 | (655) | (3%) | ||
Total other provisions | 12.834 | 12.820 | 14 | 0% | ||
Net Invested Capital | 236.816 | 218.951 | 17.865 | 8% | ||
Equity | (116.950) | (120.934) | 3.984 | (3%) | ||
Net financial position | (119.866) | (98.017) | (21.849) | 22% | ||
Coverage | (236.816) | (218.951) | (17.865) | 8% | ||
The Net invested capital as of June 30, 2022 is equal to euro 236,816 thousand and it is covered by consolidated shareholders' equity for euro 116,950 thousand and Net financial debt for euro 119,866 thousand.
4
As follows a breakdown of net invested capital's statement by business unit:
Euro / 000 | Batteries | Plastic | Other | Corporate | Conso. | Consolida | |
Materials | effects | ted | |||||
Net fixed assets: | |||||||
Property, plant and equipment, intangible | 78.558 | 33.449 | 0 | 473 | 0 | 112.481 | |
assets and rights of use | |||||||
Goodwill | 705 | 0 | 0 | 0 | 54.337 | 55.042 | |
Net financial assets valued using the equity | 383 | 0 | 0 | 89.812 | (89.530) | 665 | |
method | |||||||
Other assets and non-current liabilities | (21.296) | (2.401) | 0 | 35.000 | (34.997) | (23.694) | |
Total net fixed assets | 58.350 | 31.048 | 0 | 125.286 | (70.189) | 144.494 | |
Net working capital | |||||||
Trade receivables | 14.964 | 21.198 | 0 | 682 | (959) | 35.884 | |
Inventories | 41.176 | 40.427 | 0 | 0 | 0 | 81.601 | |
Trade payables | (20.113) | (29.518) | (3) | (1.242) | 955 | (49.921) | |
Other assets and current liabilities | 14.428 | (1.688) | 160 | (975) | 0 | 11.924 | |
Total net working capital | 50.454 | 30.419 | 156 | (1.535) | (6) | 79.488 | |
Gross invested capital | 108.804 | 61.466 | 156 | 123.750 | (70.195) | 223.982 | |
Other provisions: | |||||||
Employee benefits | (1.319) | (2.186) | 0 | (830) | 0 | (4.334) | |
Provisions for risks and charges | (672) | (97) | 0 | (165) | 0 | (934) | |
Provisions for net deferred taxes | 2.623 | 2.063 | 0 | 13.416 | 0 | 18.102 | |
Total other provisions | 633 | (220) | 0 | 12.421 | 0 | 12.834 | |
Net Invested Capital | 109.436 | 61.247 | 156 | 136.171 | (70.195) | 236.816 | |
Equity | (17.815) | (22.864) | (273) | (111.193) | 35.195 | (116.950) | |
Net financial position | (91.621) | (38.383) | 117 | (24.979) | 35.000 | (119.866) | |
Coverage | (109.436) | (61.247) | (156) | (136.171) | 70.195 | (236.816) |
As follows the Group's balance sheet as of June 30, 2022, compared to the balance sheet at the end of the previous year:
Euro / 000 | 30/06/2022 | 31/12/2021 | Variation | Variation % |
Current assets | 152.066 | 153.734 | (1.668) | (1%) |
Non-current assets | 189.717 | 192.316 | (2.599) | (1%) |
ASSETS | 341.783 | 346.050 | (4.267) | (1%) |
Current liabilities | 127.134 | 153.733 | (26.599) | (17%) |
Non-Current liabilities | 97.699 | 71.383 | 26.316 | 37% |
Consolidated Net equity | 116.950 | 120.934 | (3.984) | (3%) |
LIABILITIES AND SHAREHOLDERS' EQUITY | 341.783 | 346.050 | (4.267) | (1%) |
Current assets amount to euro 152 million as of June 30, 2022 against current liabilities of euro 127 million, with a current ratio of 1.20, demonstrating the Group's ability to generate liquidity and meet short-term obligations.
The Current liabilities are decreased of euro 26 million compared to 31 December 2021, mainly due to the exposure in non current liabilities of the non current portions of loan agreements backed by financial covenants, which, in accordance with IAS 1, as of 31 December 2021, had been classified as current liabilities.
Non-current assets amount to euro 190 million as of 30 June 2022, compared to non current liabilities of euro 98 million and consolidated shareholders' equity of euro 117 million.
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Seri Industrial S.p.A. published this content on 16 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2022 15:59:11 UTC.