VAA Vista Alegre Atlantis SGPS : 1st Quarter Report 2022

INTERIM FINANCIAL REPORTING
1ST QUARTER OF 2022 (IFRS)	(UNAUDITED)

Interim Financial Report (January to March 2022)

31st of May 2022

	TABLE OF CONTENTS
INTERIM FINANCIAL REPORTING ....................................................................................................................................................	3
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ........................................................................................................................	6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................................................................................	11
1.	SEASONALITY OF OPERATIONS ...................................................................................................................................................	11
2.	CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN COMPANIES .....................................................................................................	11
3.	SEGMENT REPORTING..............................................................................................................................................................	11
4.	FINANCIAL INSTRUMENTS BY CLASS .............................................................................................................................................	17
5.	TANGIBLE FIXED ASSETS ...........................................................................................................................................................	18
6.	INTANGIBLE ASSETS.................................................................................................................................................................	19
7.	INVESTMENT PROPERTIES .........................................................................................................................................................	20
8.	FINANCIAL INVESTMENTS .........................................................................................................................................................	20
9.	USE RIGHTS ASSETS AND LEASE LIABILITIES ....................................................................................................................................	21
10.	INCOME TAX .........................................................................................................................................................................	23
11.	INVENTORIES.........................................................................................................................................................................	24
12.	ACCOUNTS RECEIVABLE AND OTHERS...........................................................................................................................................	26
13.	SHARE CAPITAL, TREASURY SHARES, ISSUE PREMIUMS AND OTHER EQUITY ............................................................................................	26
14.	RESERVES AND RETAINED EARNINGS............................................................................................................................................	27
15.	LOANS OBTAINED ...................................................................................................................................................................	27
16.	ACCOUNTS PAYABLE AND OTHER DEBTS .......................................................................................................................................	28
17.	PROVISIONS ..........................................................................................................................................................................	30
18.	STATE AND OTHER PUBLIC ENTITIES .............................................................................................................................................	31
19.	SUBSIDIES.............................................................................................................................................................................	31
20.	REVENUE .............................................................................................................................................................................	31
21.	EMPLOYEE COSTS ...................................................................................................................................................................	32
22.	EXTERNAL SUPPLIES AND SERVICES..............................................................................................................................................	32
23.	OTHER OPERATING INCOME AND EXPENSES ..................................................................................................................................	33
24.	FINANCIAL RESULTS.................................................................................................................................................................	33
25.	COMMITMENTS .....................................................................................................................................................................	34
26.	BALANCES AND TRANSACTIONS WITH RELATED PARTIES ...................................................................................................................	34
27.	SUBSEQUENT EVENTS ..............................................................................................................................................................	36
28.	COMPANIES INCLUDED IN THE CONSOLIDATION..............................................................................................................................	36

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Interim Financial Report (January to March 2022)

31st of May 2022

Interim Financial Reporting

VAA - Vista Alegre Atlantis SGPS, S.A., hereby presents its accounts for the period from January to March 2022, pursuant to regulation nº 5/2008, in accordance with IAS 34.

These interim financial statements were prepared based on the same accounting policies and calculation methods used in the preparation of the last annual financial statements (2021 financial year).

In this interim financial report, we only release notes which allow us to understand the changes in the financial position and performance of the company since the last annual report.

1. Activity Evolution

The first quarter of 2022 was marked not merely by the ongoing impact of the Covid-19 pandemic, but also by an environment of great geopolitical uncertainty, with the invasion of Ukraine by the military forces of the Russian Federation in February. This exacerbated escalating prices in energy (mainly the cost of natural gas), fuel and raw materials.

In the first quarter, Grupo Vista Alegre achieved a turnover of 30.3 million euros and an EBITDA of

4.2 million euros. Foreign market represented 77.3% of Vista Alegre's turnover, with 23.4 million euros of sales.

The growth of revenues in the earthenware and stoneware segments are worth highlighting, representing an increase of 69% and 77%, respectively, in relation to the sales of the same period of the previous year.

Sales of porcelain reached 10.3 million euros, representing an increase of 44% compared to the previous year.

		T €
	Jan to Mar	Jan to Mar	Variation (%)
	2022	2021
Segments
	Total	Total	Total
Porcelain and related products	10,256	7,136	44%
Earthenware	3,314	2,282	45%
Stoneware Oven	13,402	7,590	77%
Crystal and Glass	3,288	1,962	68%
Total	30,260	18,970	60%

Internationally, the markets of France, the Netherlands and Germany were the biggest contributors to the sales of own-brand products, with a growth of 42% in comparison to the same period the previous year.

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Interim Financial Report (January to March 2022)

31st of May 2022

2. Results

Grupo Vista Alegre consolidated results for the first quarter of 2022 showed positive performance in terms of turnover, reaching 30.3 million euros (59.6% above the same period of 2021) and EBITDA reaching 4.2 million euros.

The recent energy crisis, aggravated by the conflict between Russia and Ukraine, caused a sharp rise in natural gas prices and a strong impact on the cost structure of Vista Alegre, in the order of 485%, compared to 2021, leading to a negative net result in the first quarter.

Despite this adverse context, Vista Alegre has managed to mitigate some of this impact, thanks to investments over the last few years to improve efficiency in its processes and through more efficient management of the means of production and resource utilization. In addition, urgent government measures are expected to support the ceramics and glass industries, among the largest consumers of natural gas.

Consolidated Results
				M€
Headings	31-03-202231-03-2021	Variation
Amount	%
Turnover	30.3	19.0	11.3	59.5%
E B I T D A	4.2	1.2	3.0	255.9%
EBITDA Margin	13.8%	6.2%
Operating Income	0.9	-2.1	3.0	145.5%
Operating Margin	3.1%	-10.9%
Income before taxes	-0.3	-3.4	3.1	92%
Income tax	0.0	1.1	-1.1
Net income	-0.3	-2.3	2.0	88%

The Grupo recorded a positive operating result of 934 thousand euros and a negative net result of 268 thousand euros.

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Interim Financial Report (January to March 2022)

31st of May 2022

3. Investments

In the first quarter of 2022, the investments made in the amount of 759 thousand euros were essentially investments in equipment replacement and maintenance.

Ílhavo, 31st of May 2022

The Board of Directors

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