(Alliance News) - Valtecne Spa reported Thursday that it ended 2023 with a profit of EUR3.2 million, up 28 percent from EUR2.5 million in the previous year.

Sales revenues rose to EUR30.7 million from EUR24.1 million pro forma in 2022 and showed a 28 percent increase. "This increase reflects the convergence of distinct development paths between the two divisions, in harmony with both the specific trends in their markets and the company's overall strategic orientation," the company points out in a note.

Ebitda amounted to EUR5.8 million from EUR4.6 million in 2022, up 28 percent, with the margin over production value rising to about 19 percent from 17 percent. Adjusted Ebitda is EUR7.2 million from EUR5.5 million in 2022, an increase of 30%.

Ebit is EUR4.3 million from EUR3.4 million in 2022, an increase of 28%.

Net financial debt is EUR2.4 million - cash positive - compared to EUR5.0 million in 2022. "A large part of this improvement thus can be attributed to the resources raised in the capital increase at the IPO on the Euronext Growth Milan market."

Shareholders' equity was EUR19.7 million compared to EUR11.0 million as of December 31, 2022.

"After a period of substantial volume stability that lasted since the post-Covid recovery that began in the last months of 2020," the company points out, "in the second half of 2023 the Industrial line of business began to show some signs of contraction, moreover consistent with the trend of the macroeconomic scenario.

As far as the future is concerned, however, "the company's management believes that the positive outlook of the Medical Devices business line can to a good extent counterbalance the less bright economic situation of the Industrial business line, keeping the top line for the current year at levels comparable to those of the recent past."

On the cost front, "inflationary effects pose a tough challenge, but it is believed that the increased weight of the medical business and the performance improvement actions under way will allow an appreciable level of profitability to be maintained."

Valtecne's stock trades in the red by 0.7 percent at EUR6.06 per share.

By Chiara Bruschi, Alliance News reporter

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