COMUNICATO STAMPA

THE BOARD OF DIRECTORS APPROVES THE INTERIM REPORT ON OPERATIONS

FOR THE FIRST HALF OF 2020

PERFORMANCE IN THE FIRST HALF OF 2020 IN SIGNIFICANT GROWTH COMPARED TO THE DATA OF THE

FIRST HALF OF 2019:

  • SALES REVENUES EQUAL TO € 43.4 MILLION + 17.2% (of which: Export + 43.9%)
  • EBITDA EQUAL TO € 7.6 MILLION + 41.1%
  • PROFIT FOR THE PERIOD € 4.6 MILLION + 52.7%

POSITIVE NET FINANCIAL POSITION OF € 25.8 MILLION

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Bologna September 14, 2020 ‐ The Board of Directors of Valsoia S.p.A. met today. (MTA: VLS) which

approved the interim management report as at 30 June 2020.

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The Chairman Lorenzo Sassoli de Bianchi commented: "I express satisfaction, as well as for the results achieved, for how the Company has managed to safeguard the safety and health of its collaborators, stakeholders and consumers in a phase of health emergency without previous, ensuring business continuity. The growth in sales on international markets and the innovative effort continued also during the lockdown period with the launch of the supplement line was particularly satisfactory".

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The company, operating in the food sector and, in this area, mainly in the GD / DO channel, with regard to sales orders, has not suffered negative effects from the restrictive measures on the activities implemented by the Government in the period to manage the health emergency . At the same time, all stages of the supply chain unfolded without significant disruption or inefficiency.

MAIN ECONOMIC INDICATORS AT 30 JUNE 2020

Income Statement Ratios

June 30, 2020

June 30, 2019

Change

(Euro 000)

Euro

%

Euro

%

Euro

%

Sales Revenues (Total)

43,447

100.0

37,071

100.0

6,376

17.2

Total Value of Production

44,548

102.5

38,651

104.3

5,897

15.3

Ebitda (*)

7,557

17.4

5,355

14.4

2,202

41.1

Ebit

6,417

14.8

4,183

11.3

2,234

53.4

Net Profit

4,584

10.6

3,002

8.1

1,582

52.7

  1. Intermediate result not defined as an accounting measure under the IFRS accounting standards and therefore the criteria for defining this parameter may not be homogeneous with those adopted by other companies. This result is influenced (positively) by the application of IFRS 16 "Leases" for a value of 287 thousand euros with reference to the value of Ebitda at 30/06/20 and 287 thousand euros with

COMUNICATO STAMPA

reference to that at 30/06/20 2019

GENERAL ECONOMIC TREND

Revenues at 30 June 2020 amounted to +43.4 million euros compared to 37.1 million euros in the same period, showing a growth of 17.2%. The increase in sales is attributable to all product lines, both in the "Healthy" division and in the "Food" division.

Already during the first two months of the current year, revenues from sales showed a positive trend, which continued with a further acceleration during the following months of March and April, marked by the health emergency due to the COVID 19 pandemic.

Even in the months of the so‐called "Phase two" (May and June), sales maintained a positive trend, albeit more contained, both in Italy and in foreign markets.

Equally significant was also the growth in market shares relating to all the brands of the Company substantially in all the market segments covered.

There was also strong growth in sales abroad, which in the half year 2020 recorded revenues up + 43.9% compared to the same period of the previous year.

The increase in food stocks in households during the months of the lockdown had a positive effect on the trend in sales revenues in the months of March and April 2020.

EBITDA at 30 June 2020 was equal to 7.6 million euros, a significant increase, equal to + 41.1% compared to 30 June 2019, recording, consequently, an improvement in the percentage index of the Ebitda margin of 17.4% compared to 14.4% at 30 June 2019.

Net profit for the period amounted to € 4.6 million, up on the same period of 2019 by € 1.6 million (+ 52.7%) with an improvement in the percentage index which went from 8.1% in 2019 to 10.6% in the 2020 semester.

PERFORMANCE OF PRODUCT FAMILIES AT 30 JUNE 2020

Description (Euro 000)

June 30, 2020

June 30, 2019

Change

Euro

%

Euro

%

%

Healt division (a)

23,687

54.6%

21,867

59.0%

+8.3%

Food Division (b)

13,523

31.1%

10,445

28.2%

+29.4%

Other (c )

2,700

6.2%

2,301

6.2%

+17.3%

TOTAL REVENUES ITALY

39,910

91.9%

34,616

93.4%

+15.3%

Exports

3,537

8.1%

2,458

6.6%

+43.9%

TOTAL REVENUES

43,447

100%

37,071

100%

+17.2%

The performance of the "Santa Rosa" and "Dietetic" brands, which recorded, respectively, in the half year, a trend of + 34.5% and + 17.9%, having benefited particularly from the increase in domestic consumption during the lockdown period.

Similarly, the "Valsoia Bontà e Salute" brand, after having seen its market shares grow since 2019, consolidated this trend, also improving revenues for the period under review by + 8.3%.

COMUNICATO STAMPA

The company successfully implemented a number of innovative and strategic product launches during the half year:

  • the "Gran Cono" gluten‐free ice cream, a new recipe with natural ingredients;
  • the "Super Burger" innovative product of the highest quality with a few simple ingredients, for the most demanding consumers who are attentive to sustainability issues

Finally, the results of presence and sales abroad are significant, exceeding 8% of the company's total revenues with an increase of + 43.9% compared to the same period of the previous year.

The Company decided to continue with determination in the half‐year to support all its brands through strong media planning, particularly effective given the extraordinary audience of the period. In particular, we note the interesting growth in the number of "Treating Families" for each of the product lines of the "Valsoia Bontà e Salute" brand as well as of the "Santa Rosa" and "Dietetic" brands.

Very important, and in perspective, is the presentation to the market and retailers, starting from May and June, of the innovative line of "Food supplements" branded "Valsoia": a line of natural and 100% vegetable products dedicated to large‐scale distribution . The presentation to the Retailers and the consequent insertions are currently in progress. The launch will be supported by a significant communication plan starting next fall.

NET FINANCIAL POSITION AT 30 JUNE 2020

Description (Euro 000)

June 30, 2020

December 31,

June 30, 2019

2019

Cash

3

3

2

C/C and bank deposits

35,397

36.245

28,477

Short‐term financial assets

0

0

3,000

Total liquidity

35,400

36.248

31,479

Current financial payables

(2,597)

(2.592)

(2,587)

Short‐term payables for operating leases (IFRS 16)

(523)

(537)

(535)

Short‐term net financial position

32,280

33.119

28,357

Medium long‐term financial payables

(4,906)

(6.154)

(7,503)

Medium long‐term payables for operating leases (IFRS 16)

(1,554)

(1.561)

(421)

NET FINANCIAL POSITION

25,820

25,404

20,433

The Net Financial Position, on 30 June 2020, was positive for € 25.8 million, in line with the figure as at 31 December 2019 and significantly increased (+ 26.4%) compared to the corresponding period of the previous year (€ 20.4 million at June 30, 2019) essentially attributable to the net cash flows generated by the company management in the previous 12 months, net of investments and dividend distribution.

COMUNICATO STAMPA

COVID 19

The health of its employees and all stakeholders and business continuity characterize the Company's operational approach to the context related to the COVID‐19 health emergency. Therefore, as early as the end of February, the Company took action, pursuing the safety protocols issued by the competent authorities.

In particular, Valsoia has set up an internal crisis committee active from the first day of the emergency. This committee still meets at short intervals of time following the evolution of the situation and acting accordingly. In general, immediately, the recommendations provided and still in application, were:

  • give maximum priority to the use of smart working, where possible;
  • increase stock levels for all the company's products in order to prevent stock outages;
  • implement and intensify all the prevention and protection measures for the functions not in smart working, including the sanitization of the workplace and the provision of individual protection tools.

We also remind you that:

  • supplementary health coverage has been activated for all employees in the event of hospitalization from COVID 19 infection;
  • an economic recognition was decided on the plant workers who, unable to take advantage of smart working, with responsibility and in compliance with safety protocols, guaranteed the presence and operation of the production departments.

The Company has also joined Solidalitaly, with the donation of products within 20,000 food packages distributed free of charge to families most in difficulty. Furthermore, the Company has decided to support the Sant'Orsola Hospital in Bologna with a donation aimed at the purchase of ultrasound scanners functional to the rapid diagnosis of COVID 19 and also the Sant'Anna Institute in Bologna with a cash donation.

MAIN EVENTS SUBSEQUENT TO THE CLOSURE OF THE 1ST HALF OF 2020 AND OUTLOOK

In the period subsequent to June 30, the distribution of the novelty relating to the Gelato line continued, which recorded results of rotation on the shelves and consequent consumption.

Similarly, the results of the "Super Burger" in preparation for the autumn‐winter peak season.

The growth of beverages in Italy and abroad both in distribution and in terms of sales revenues was positive. Sales abroad remain positive even in the months of July and August. The Presentations of the innovative "Supplements" line continues successfully.

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The Manager Responsible for Preparing the Company's Financial Reports, Mr. Nicola Mastacchi, hereby declares, pursuant to Article 154 bis, paragraph 2 of the Consolidated Law on Finance, that the accounting information contained in this press release matches the documentary results, books and accounting records.

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The Interim Management Report at June 30, 2020 will be made available to the public at the Company's registered office and the 1Info storage mechanism (www.1info.it) within the terms and in the manner prescribed by current legislation. The aforementioned documents will also be available for consultation in the Investor Relations section of the website (www.valsoiaspa.com).

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Valsoia S.p.A. published this content on 14 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2020 14:49:02 UTC