PRESS RELEASE
In accordance with Consob Resolution 11971/99 and subsequent
amendments and supplements
ZIGNAGO VETRO S.P.A.
Board of Directors of Zignago Vetro S.p.A. approves
2021 First Quarter Report
Revenues up and earnings accelerate, despite the impacts of the ongoing COVID-19 pandemic.
Decrease in net financial debt compared to 31.12.2020 (-Euro 7.7 million).
- Zignago Vetro Group revenues of Euro 110.2 million (+1.1% on 2020); export revenues of Euro 32.2 million (-10.6%), 29.2% of total revenues.
- EBITDA of Euro 28.4 million (25.8% margin, +6.9%).
- EBIT of Euro 14.7 million (13.4% margin, + 17.7%).
- Profit of Euro 11.5 million (10.4% margin, +53.2%).
Cash generation, before investments, of Euro 16.6 million (Euro 24.5 million in Q1 2020).
Net debt of Euro 249.4 million (Euro 257.2 million at 31 December 2020, -3,0%).
Zignago Vetro Group Key Financial Highlights (*) | |||
First | First | Cge.% | |
Quarter | Quarter | ||
2021 | 2020 | ||
(in Euro millions) | (in Euro millions) | ||
Revenues | 110.2 | 109.0 | + 1.1% |
EBITDA | 28.4 | 26.5 | + 6.9% |
EBIT | 14.7 | 12.5 | + 17.7% |
Operating Profit | 15.0 | 12.5 | + 19.3% |
Profit before taxes | 14.5 | 9.5 | + 52.7% |
Group Profit | 11.5 | 7.5 | + 53.2% |
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31.03.2021 | 31.03.2020 | 31.12.2020 | ||
(in Euro millions) | (in Euro millions) | (in Euro millions) | ||
Net capital expenditure | 7.0 | 4.7 | 42.7 | |
Free cash flow | ||||
∙ | after investments | 8.0 | 15.0 | 49.8 |
∙ | before investments | 16.6 | 24.5 | 93.2 |
(further details on page 3) | ||||
Financial debt | (304.6) | (287.9) | (308.7) | |
Liquidity | 55.2 | 50.0 | 51.5 | |
Net financial debt | (249.4) | (237.9) | (257.2) |
- The figures (and the subsequent comments concerning the consolidated figures) were based on the management view of the Group business, which provides for the proportional consolidation of the joint venture, in continuity with the accounting policies adopted until 31 December 2013, exclusively to fulfil additional disclosure requirements. Following the entry into force of the new "IFRS 11 - Joint Arrangements" and "IAS 28 - Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA, held 50%, and Vetreco Srl, held 50%, may not be consolidated under the proportional method and should be recognised in the consolidated financial statements at equity.
The income statement, the statement of comprehensive income, the statement of financial position and the statement of cash flows of the Zignago Vetro Group at 31 March 2021 and 2020 and at 31 December 2020, prepared according to international accounting standards in force from 1 January 2014, are reported respectively at attachments 3, 4, 5, 6 and 7 of this press release.
Fossalta di Portogruaro, 27 April 2021 - The Board of Directors of Zignago Vetro S.p.A - a company listed on the STAR segment of the Italian Stock Exchange - in a meeting held today chaired by Paolo Giacobbo approved the 2021 First Quarter Report.
Company profile
The Zignago Vetro Group companies produce high quality glass containers for the Food and Beverage, Cosmetics and Perfumery industries and Speciality Glass bottles for wines and spirits, for the domestic and international markets.
Zignago Vetro Group operating performance
In the first quarter of the year, the markets continued on the path to recovery initiated in the second half of 2020, following the dramatic impact that the COVID- 19 pandemic had in 2020 on global markets - and even more so on people's lifestyles.
This trend is however still uneven among the various market sectors in which the Group operates. In fact, while demand linked to the food and beverages markets generally grew, particularly for products linked to large-scale retail distribution, recovery on those segments most directly affected by continued reduced mobility is still uncertain. Signs have also emerged however of growing confidence in the forthcoming reopening of these product segments - particularly perfumery and cosmetics - and the gradual recovery of normal conditions, with a consequent reawakening of demand.
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In this environment, thanks above all to its tenacity and flexibility, the Group posted a strong increase in business volumes in the first quarter compared to the last quarter of 2020.
Glass continues to prove to be an ever-more appreciated material among the customers and consumers for its features of healthiness, sturdiness, conservability and recyclability.
Again in Q1 2021, all Group companies continued to operate as normal, with results improving.
All appropriate prevention and protection measures against the ongoing emergency remain in place. Furthermore, in the first quarter there were no significant impacts from the COVID-19 outbreak.
Consolidated revenues in the first quarter of 2021 amounted to Euro 110.2 million, compared to Euro 109.0 million in the same period of the previous year (+1.1%). Export revenue totalled Euro 32.2 million (Euro 36.0 million in Q1 2020; -10.6%), comprising 29.2% of revenues (33.1% in Q1 2020).
Consolidated EBITDA in the first quarter of 2021 amounted to Euro 28.4 million, up 6.9% on Q1 2020 (Euro 26.5 million), with a 25.7% revenue margin (24.4% in Q1 2020).
The consolidated EBIT was Euro 14.7 million (up 17.7% compared to Euro 12.5 million in Q1 2020), with a margin of 13.4% (11.5% in Q1 2020).
The consolidated Operating profit was Euro 15.0 million in Q1 2021, compared to Euro 12.5 million in Q1 2020 (+19.3%), with a 13.6% revenue margin (compared to 11.5%).
The consolidated net profit was Euro 14.5 million in Q1 2021 (Euro 9.5 million in Q1 2020), with a margin of 13.1% (compared to 8.7%).
Consolidated Net Profit in the first quarter of 2021 amounted to Euro 11.5 million, compared to Euro 7.5 million in Q1 2020 (+53.2%) - a margin of 10.4% (6.9% in Q1 2020).
Zignago Vetro Group statement of financial position
Capital expenditure in the first quarter of 2021 by Group companies totalled Euro
7.0 million (Euro 4.7 million in the same period of 2020). Payments on fixed assets amounted to Euro 8.7 million in Q1 2021, compared to Euro 9.5 million in Q1 2020.
The Group generated Free cash flow in Q1 2021, before payments on fixed assets, of Euro 16.6 million (Euro 24.5 million in the first quarter of 2020). After payments on fixed assets, cash of Euro 8.0 million was generated, compared to Euro 15.0 million in Q1 2020.
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The Group net financial debt at 31 March 2021 was Euro 249.4 million, following payments on investments in the quarter of Euro 8.7 million, compared to Euro 257.2 million at 31 December 2020 and Euro 239.9 million at 31 March 2020.
Group liquidity totalled Euro 55.2 million at 31 March 2021, compared to Euro 51.5 million at the end of 2020 and Euro 50.0 million at 31 March 2020.
Outlook
Although the pandemic has not yet concluded and it continues to impact lifestyles, consumption and markets, it is expected that the situation is gradually easing and will continue to do so throughout the year. Consequently, the demand recovery is expected to gain pace across all the sectors in which the Group operates, with a reflection on results.
Subsequent events
There were no significant events after 31 March 2021.
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Declaration
The Executive Responsible for Financial Reporting, Mr. Roberto Celot, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the underlying accounting documents, records and accounting entries.
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2021 First Quarter Report
The 2021 First Quarter Report will be made available to the public as soon as available and in accordance with law at the registered office of the company and on the company website www.zignagovetro.com
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This press release is available on the website: www.zignagovetro.com
For further information:
Roberto Celot
Chief Financial Officer &
Investor Relations Manager
Zignago Vetro S.p.A.
0421-246111 r.celot@zignagovetro.com
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All the figures in the Consolidated Reclassified Income Statement and Statement of Financial Position (attachments 1 and 2) reported below were prepared on the basis of management's view which considers the proportional consolidation of joint ventures appropriate, in line with the approach taken until December 31, 2013. Following the entry into force of the new "IFRS 11 - Joint Arrangements" and "IAS 28 - Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA and Vetreco Srl may not be consolidated under the proportional method and should be recognised in the consolidated financial statements at equity.
The statement of financial position, the income statement, the statement of comprehensive income and the statement of cash flows of the Zignago Vetro Group at 31 March 2021 and 31 December and 31 March 2020 and the statement of changes in Equity, prepared in accordance with the accounting standards in force from 1 January 2014, are reported respectively in the subsequent attachments 3, 4, 5, 6 and 7.
ATTACHMENT 1
Zignago Vetro Group
Reclassified Consolidated Income Statement (unaudited)
(management point of view, based on accounting standards in force at 31 December 2013)
Q1 2021 | Q1 2020 | Changes | |||||||||
Euro thou. | % | Euro thou. | % | % | |||||||
Revenues | 110,193 | 100.0% | 108,965 | 100.0% | 1.1% | ||||||
Changes in finished and semi-finished | |||||||||||
products and work in progress | 601 | 0.5% | (2,167) | (2.0%) | n.s | ||||||
Internal production of fixed assets | 181 | 0.2% | 194 | 0.2% | (6.7%) | ||||||
Value of production | 110,975 | 100.7% | 106,992 | 98.2% | 3.7% | ||||||
Cost of goods and services | (59,470) | (54.0%) | (56,862) | (52.2%) | 4.6% | ||||||
Value added | 51,505 | 46.7% | 50,130 | 46.0% | 2.7% | ||||||
Personnel expense | (23,130) | (20.9%) | (23,588) | (21.6%) | (1.9%) | ||||||
EBITDA | 28,375 | 25.8% | 26,542 | 24.4% | 6.9% | ||||||
Amortisation & depreciation | (13,393) | (12.2%) | (13,606) | (12.5%) | (1.6%) | ||||||
Accruals to provisions | (240) | (0.2%) | (407) | (0.4%) | (41.0%) | ||||||
EBIT | 14,742 | 13.4% | 12,529 | 11.5% | 17.7% | ||||||
Net recurring non-operating income | 219 | 0.2% | 12 | --- | n.s. | ||||||
Operating Profit | 14,961 | 13.6% | 12,541 | 11.5% | 19.3% | ||||||
Net financial expense | (259) | (0.3%) | (606) | (0.6%) | (57.3%) | ||||||
Net exchange rate gains/(losses) | (216) | (0.2%) | (2,447) | (2.2%) | n.s. | ||||||
Profit before taxes | 14,486 | 13.1% | 9,488 | 8.7% | 52.7% | ||||||
Income taxes | (3,057) | (2.8%) | (2,076) | (1.9%) | 47.3% | ||||||
(Tax-rate Q1 2021: 21.1%) | |||||||||||
(Tax-rate Q1 2020: 21.9%) | |||||||||||
(Profit) loss non-con. int. | 23 | --- | 65 | 0.1% | (64.6%) | ||||||
Profit for the period | 11,452 | 10.4% | 7,477 | 6.9% | 53.2% |
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Zignago Vetro S.p.A. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 09:28:03 UTC.