Quarterly Report • Oct 28, 2022
Quarterly Report
Open in ViewerOpens in native device viewer
THINKFORWARD
INTERIM REPORT ON OPERATIONS AT 30/09/2022
| THE BIESSE GROUP 3 | |
|---|---|
| GROUP STRUCTURE 3 GROUP PROFILE 4 |
|
| INTRODUCTION 4 | |
| ALTERNATIVE PERFORMANCE INDICATORS 4 | |
| FINANCIAL HIGHLIGHTS 5 COMPOSITION OF CORPORATE BODIES 8 |
|
| DIRECTORS' REPORT ON OPERATIONS 9 | |
| GENERAL ECONOMIC OVERVIEW 9 OUTLOOK 10 MAIN EVENTS 11 INCOME STATEMENT HIGHLIGHTS 13 STATEMENT OF FINANCIAL POSITION HIGHLIGHTS 15 SEGMENT REPORTING 17 |
|
| CERTIFICATION PURSUANT TO ARTICLE 154-BIS, PARAGRAPH 2 OF THE CONSOLIDATED LAW ON FINANCE (TUF) 18 |
The following companies belong to the Biesse Group and are included in the scope of consolidation:
Note: The different colours represent the subgroups of the control chain
The Biesse Group is a leading multinational in the processing of wood, glass, stone, plastic and metal. It designs, makes and distributes machinery, integrated systems and software for manufacturers of furnishings, windows and doors, building components, boats and planes. It invests around 3% of its annual turnover in research and development and has filed over 250 patents. It operates through 14 industrial plants and 34 branches and exports 80% of its production. Among its customers are the most prestigious brands in Italian and international design. It was founded in Pesaro in 1969 by Giancarlo Selci, and since June 2001, it has been listed in the Euronext Star segment managed by Borsa Italiana. It now has more than 4,300 employees distributed across the main production and distribution sites located in Pesaro, Gradara, Padua, Villafranca (province of Verona), Thiene (province of Vicenza), Alzate Brianza (province of Como), Volvera (TO), Bangalore and the branches/representative offices in Europe, North America, Latin America, Middle and Far East Asia, and Oceania.
The Biesse Group's consolidated quarterly report as at 30 September 2022, unaudited, has been prepared pursuant to Article 154-ter, paragraph 2 of the Consolidated Law on Finance and in accordance with the recognition and measurement criteria established by the International Financial Reporting Standards (IFRS).
Accounting standards and recognition criteria are consistent with those of the Financial Statements as at 31 December 2021, to which reference should be made. Furthermore, it should be noted that:
Compared to the consolidated financial statements for the year ended 31 December 2021, the scope of consolidation has changed following the merger of the subsidiary Bre.Ma. Brenna Macchine S.r.l., previously 98% owned, into the Parent Company Biesse S.p.A. (effective as of 01/01/2022) and the purchase of an additional shareholding in Montresor S.r.l. (through which its controlling interest increased from 60% to 100%) which took place in February 2022. For further details on these transactions, please refer to the section "Scope of Consolidation" in the Notes to the Financial Statements.
Please also note that the purchase of the remaining 40% of the equity investment in Movetro S.r.l. was finalised in May 2022. This transaction did not entail a change in the scope of consolidation as the Company was still consolidated at 100% because it was considered possible to exercise the put/call option on the aforementioned minority interest.
Management uses some performance indicators, which are not identified as accounting measures under the IFRS (non-GAAP measures), to better assess the Group's performance. The criterion applied by the Group to set these indicators might not be the same as that adopted by other groups, and the indicators might not be comparable with those set by the latter. These performance indicators, which were set in compliance with the Guidelines on performance indicators issued by ESMA/2015/1415 and adopted by CONSOB with its communication No. 92543 of 3 December 2015, refer to performance in the accounting period covered by this Annual Report on Operations and the year used for comparison.
The performance indicators must be complementary and not replacing the information prepared under the IFRS. Hereafter is a description of the main indicators adopted.
▪ Value Added: this indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges,
costs and revenues arising from transactions that Management considers as non-recurring relative to the Group's ordinary operations, as well as personnel expense.
| 30 September | % on | 30 September | % on | ||
|---|---|---|---|---|---|
| 2022 | sales | 2021 | sales | Change % | |
| Euro 000's | |||||
| Revenue from sales and services | 613,371 | 100.0% | 526,993 | 100.0% | 16.4% |
| Normalised EBITDA (Normalised gross operating profit) (1) | 70,788 | 11.5% | 61,895 | 11.7% | 14.4% |
| Normalised EBIT (Normalised operating profit) (1) | 42,591 | 6.9% | 31,731 | 6.0% | 34.2% |
| EBIT (Operating profit) (1) | 44,158 | 7.2% | 44,551 | 8.5% | (0.9)% |
| Result for the period | 24,801 | 4.0% | 35,384 | 6.7% | (29.9)% |
(1) Amounts referring to interim results and to aggregate equity and financial figures. The relevant calculation criteria are provided in the Directors' Report
| 30 September | 31 December | |
|---|---|---|
| 2022 | 2021 | |
| Euro 000's | ||
| Net invested capital (1) | 181,862 | 124,614 |
| Equity | 261,439 | 249,217 |
| Net financial position (1) | 79,577 | 124,603 |
| Net operating working capital (1) | 44,552 | (8,375) |
| Fixed asset/standing capital ratio | 1.25 | 1.16 |
| Order in take | 371,865 | 378,213 |
(1) Amounts referring to interim results and to aggregate equity and financial figures. The relevant calculation criteria are provided in the Directors' Report
* the figure includes temporary staff.
| Chairman | Giancarlo Selci |
|---|---|
| Chief Executive Officer | Roberto Selci |
| Co-Chief Executive Officer | Massimo Potenza |
| Non-executive director | Alessandra Baronciani |
| Lead Independent Director | Rossella Schiavini |
| Independent Director | Ferruccio Borsani |
| Independent Director | Federica Ricceri |
| Chairman | Paolo De Mitri |
|---|---|
| Standing Statutory Auditor | Giovanni Ciurlo |
| Standing Statutory Auditor | Enrica Perusia |
| Alternate Statutory Auditor | Silvia Muzi |
| Alternate Statutory Auditor | Maurizio Gennari |
Federica Ricceri Rossella Schiavini
Ferruccio Borsani Rossella Schiavini
Deloitte & Touche S.p.A.
The global economy is slowing in an environment where high inflation, tighter financial conditions and persistent supply-side bottlenecks are negatively affecting business. The war in Ukraine has driven up energy commodity prices and caused disruptions along global food supply chains, intensifying international inflationary pressures and raising fears about the security of global food supplies. In China, the economic recovery has recently come to a standstill after spring shutdowns across the main provinces. This is due to the weakening of demand brought about by the strict containment measures introduced to deal with smallscale outbreaks of coronavirus, production cuts in some more energy-intensive sectors, and the deepening recession in the residential construction sector. The prolonged easing of pandemic-related restrictions in the major advanced economies since last spring has helped support spending in the travel and accommodation sector. However, exceptionally strong inflationary pressures, which have forced central banks to tighten monetary policy, are weighing on disposable income and savings accumulated during the pandemic. Manufacturing output in advanced and emerging economies deteriorated further in August 2022. Similar trends can also be seen in the service sector, especially in advanced economies. The activity index for world GDP in real terms (excluding the Eurozone), based on a broad range of indicators, confirms the evidence from surveys and points to a continued loss of momentum in economic activity during August. These trends are in line with the estimated contraction in the second quarter of 2022, with world GDP growth in real terms (excluding the euro area) at -0.6 per cent. Compared to the June projections, this more negative result reflects weaker growth than previously expected in China, Japan, the UK and the US. Overall, the global economy is expected to expand at a pace slightly below its long-term average this year and next, amid a slowdown in activity in both advanced and emerging economies.
After having grown in the first half of the year, economic activity in the Eurozone stagnated in the summer months, affected in particular by further sharp rises in energy commodity prices and increased uncertainty related to the protracted war in Ukraine. Consumer inflation rose to 9.9 per cent in September, mainly due to the exceptional increase in energy prices (40.7 per cent). The Governing Council of the European Central Bank began to raise its key interest rates, with two consecutive interventions at its July and September meetings. In July, it approved the new transmission protection instrument to support the effective transmission of monetary policy. Industrial production dropped significantly in July, only to recover partially in August. According to ECB expert forecasts published in September, output will grow by 3.1 per cent this year, 0.9 per cent in 2023 and 1.9 per cent in 2024. Compared to last June, estimates were revised upwards for 2022, against a background of more favourable than expected business momentum in the first half of the year, and downwards for the following two years, mainly due to tensions in energy supplies, continued sustained price pressure and deteriorating confidence. In an unfavourable scenario, given the possibility of a complete interruption of gas flows from Russia, GDP could contract overall in 2023.
In the US, real GDP contracted again in the second quarter of 2022, in an environment where household spending weakened and investment declined. Rising mortgage rates and strong cost pressures have led to a drop in residential construction investment, with new home construction continuing to decline. Private consumption slowed amid deteriorating consumer confidence and a drop in real disposable income due to high inflation. Looking forward, real GDP expansion is expected to turn positive from the third quarter onwards, although remaining modest overall. Overall inflation fell more than expected in July, after accelerating in June. In July, due to lower energy prices, 12-month overall consumer inflation decreased to 8.5 per cent, while core inflation remained unchanged at 5.9 per cent.
The Chinese economy recovered in June 2022, but in July that recovery came to a halt. Economic activity contracted sharply in the second quarter of 2022 due to the strict containment measures implemented as part of China's zero-COVID strategy, in response to outbreaks in the main provinces. The economy is expected to return to growth in the second half of this year, assuming more policy support and limited COVID-19 outbreaks. As a result, compared to the June forecast, the growth outlook for China has been
revised markedly downwards for this year and slightly downwards for the rest of the forecast horizon. Consumer price pressures in China remain moderate, however.
In Japan, there was a renewed recovery of economic activity, supported by the reopening of the economy. After a contraction in the first quarter of 2022, the economic recovery resumed in the second quarter, supported by a rally in domestic demand after the easing of COVID-19 restrictions. The economy is expected to remain on a moderate recovery path. Twelve-month inflation measured by the CPI this year is expected to remain above the 2 per cent target set by the Japanese central bank, and then fall below it thereafter.
In the UK, expansionary momentum is expected to weaken further as the decline in household disposable income weighs on consumer spending. Real GDP growth slowed in the second quarter of 2022 and is expected to decline further in the coming quarters. Given the sharp increase in inflation, which is expected to rise further, economic activity is expected to start contracting at the turn of the year. Conditions in the labour market remain strained, while generalised wage pressures are adding to the persistently high level of domestic inflation. High commodity prices are also likely to continue to push up consumer inflation for the rest of the year.
In Russia, recent figures indicate the beginning of a recession that is likely to be less severe than previously expected. In the second quarter of 2022, real GDP fell by 5.8 per cent compared to the previous quarter, suggesting that this year's projected recession is likely to be less pronounced than in the Eurosystem experts' forecasts in June 2022. Nevertheless, economic activity is expected to decline significantly, as both domestic demand and international trade are increasingly impacted by unprecedented international sanctions. These sanctions have resulted in higher import prices and supply-side issues, which have put upward pressure on inflation. However, some of this pressure has recently been offset by a strengthening rouble and weaker consumer demand.
In Italy, GDP momentum strengthened in the second quarter as the pandemic situation improved. In the second quarter, output increased by 1.1 per cent over the period. This was supported by a return to growth for household consumption, thanks in part to the improved pandemic situation, and increased investment. Despite the renewed increase in exports, foreign trade made a slightly negative contribution. On the supply side, value-added rose in all major sectors, with the exception of agriculture. According to the central value derived from Bank of Italy models, GDP is estimated to have shrunk marginally in the third quarter compared to the previous three months, despite the resilience of value added in services. This was influenced by further increases in energy costs, continuing supply difficulties within global value chains, albeit somewhat lessened compared to the spring months, and continuing uncertainty about the development and effects of the war in Ukraine. During the same period, the Ita-coin indicator, which measures output trends net of the most erratic components, also decreased, turning negative for the first time since the end of 2020. According to our most up-to-date forecasts, GDP is set to increase by just over 3% in 2022 as a whole.
As is widely known, since January 2022, the escalation of tensions between Russia and Ukraine, which led to Russia's declaration of war on Ukraine and the invasion of Ukrainian territory by the Russian army on 24 February, is continuing to have major repercussions on international markets, both in terms of financial market trends and commodity prices. For the Biesse Group, which operates in Russia through its commercial subsidiary in Moscow, the Russian market represents around 3% of turnover. The machines are invoiced in Euros, so the Company is protected from the impact of Rouble fluctuations.
Regarding the direct impact of the conflict on the Group, please note that as of 30 September 2022 the credit exposure to the Russian market was € 1.6 million and the cash held in roubles was € 4.9 million. Inventories at the Russian subsidiary amounted to € 2.2 million as at 30 September 2022.
Management believes that the effects of economic sanctions against Russia and Belarus, continuing geopolitical tensions and the impact on energy supplies will continue to impact business development for the remainder of 2022. Company management is continually monitoring the evolution of the armed conflict
and the direct and indirect impact it may have on the Russian subsidiary's economic-financial performance, taking this into account in its assessments of the recoverability of the trade receivables and inventories mentioned above.
Since the outbreak of the armed conflict, the Group has worked to enable the commercial branch to maintain operations and job levels. As at 30 September 2022, the order backlog for the Russian market amounted to € 9 million, in line with the figure as at 31 December 2021.
The reference context is therefore still characterised by significant uncertainties due not only to the spread of COVID-19 variants, which have a substantial impact on the Chinese market but also to the evolution of the international geopolitical context.
At the end of the third quarter of 2022, the Group's order book slowed compared to the third quarter of 2021 (-9.9%), while the portfolio stood at € 371,865 thousand, virtually unchanged from December 2021.
This performance was made possible by both the particularly positive market situation in the first three months of the year and the Group's extensive distribution network.
The positive trend is also reflected in the economic performance (with increasing revenues and margins), while the financial performance is affected by the persistent critical issues in the supply chain. Against this backdrop, in the first nine months of 2022, the Group embarked on a deliberate strategy to minimise the impact of uncertainties in the procurement of materials by providing itself with inventory coverage. Trade payables recorded a slight decrease mainly due to the renegotiation of payment terms with some strategic suppliers. The increase in trade receivables is almost entirely offset by the increase in contract liabilities, in line with the sales trend of 2022.
Based on the scenario described above, for the remainder of 2022, the Group will continue a determined implementation of cost-containing activities, particularly by monitoring the inflationary dynamics impacting both raw materials and energy costs.
On 21 December 2021, by deed of Notary Luisa Rossi, the subsidiary Bre.Ma. Brenna Macchine S.r.l. was merged into Biesse S.p.A. and the accounting and tax effects of this transaction will start on 1 January 2022, without impacting the consolidated financial statements.
On 14 February 2022, by deed of Notary Luisa Rossi, 40% of the share capital of the subsidiary Montresor S.r.l. was purchased, increasing the shareholding to 100%. The consideration for the purchase of this shareholding is € 1,173 thousand.
On 27 April 2022, the Shareholders' Meeting of Biesse S.p.A. approved:
On 19 May 2022, the purchase was finalised of the remaining 40% of the equity investment in Movetro S.r.l.; already fully consolidated Company due to evaluating the possible exercise of the put/call option on the above minority stake. The price of this transaction was substantially in line with the put/call option valuation already recognised in the Group's consolidated financial statements on 31 December 2021.
Finally, it should be noted that on 7 September 2022, as per deed of Notary Public Giuseppe Muraro, the land located in the municipality of Thiene (VI, Italy) was sold.
Biesse remotely participated in the conference organised by J.P. Morgan-Cazenove for European Mid/Small Cap companies. During the event, the CEO Roberto Selci outlined the main features of the Group, the shortterm industrial objectives and the impact of recent events in the international arena.
Biesse took part, virtually, in the conference organised by Borsa Italiana Euronext Star Conference 2022, reserved for companies in the Star segment. During the event, the Biesse management had the opportunity to share its strategies and activities with Italian and foreign investors and analysts. In particular, concerning the ongoing conflict in Ukraine, the management clarified that the Group has limited exposure to countries involved in the war and/or affected by EU sanctions, namely Ukraine, Russia and Belarus. Together, these three countries make up a tiny percentage of the Group's order book (sales only). Although there are currently no tangible economic or financial impacts, the Company is constantly monitoring any developments that may potentially affect its business.
Biesse took part in the 2022 Italian Excellences - Mid Corporate Conference event held in Paris on 12 October. During the event, the company's management met with the international financial community, sharing their views on the current environment and commenting on the results achieved.
| 30 September 2022 |
% on sales | 30 Septmber 2021 |
% on sales | CHANGE % | |
|---|---|---|---|---|---|
| Euro 000's | |||||
| Revenue from sales and services | 613,371 | 100.0% | 526,993 | 100.0% | 16.4% |
| Change in inventories, wip, semi-finished products and finished products |
39,986 | 6.5% | 24,126 | 4.6% | 65.7% |
| Other Revenues | 5,314 | 0.9% | 3,924 | 0.7% | 35.4% |
| Revenue | 658,670 | 107.4% | 555,044 | 105.3% | 18.7% |
| Raw materials, consumables, supplies and goods | (289,982) | (47.3)% | (238,906) | (45.3)% | 21.4% |
| Other operating costs | (112,946) | (18.4)% | (83,809) | (15.9)% | 34.8% |
| Personnel expense | (184,955) | (30.2)% | (170,434) | (32.3)% | 8.5% |
| Gross operating result | 70,788 | 11.5% | 61,895 | 11.7% | 14.4% |
| Depreciation and amortisation | (24,358) | (4.0)% | (25,006) | (4.7)% | (2.6)% |
| Provisions | (3,839) | (0.6)% | (5,157) | (1.0)% | (25.6)% |
| Operating result before non recurring items | 42,591 | 6.9% | 31,731 | 6.0% | 34.2% |
| Impairment losses and non recurring-items | 1,568 | 0.3% | 12,820 | 2.4% | (87.8)% |
| EBIT Operating result | 44,158 | 7.2% | 44,551 | 8.5% | (0.9)% |
| Financial income | 729 | 0.1% | 306 | 0.1% | 138.1% |
| Financial expense | (1,778) | (0.3)% | (2,365) | (0.4)% | (24.8)% |
| Net exchange rate losses | (7,074) | (1.2)% | (1,359) | (0.3)% | - |
| Pre-tax result | 36,035 | 5.9% | 41,133 | 7.8% | (12.4)% |
| Income taxes | (11,234) | (1.8)% | (5,749) | (1.1)% | 95.4% |
| Result for the period | 24,801 | 4.0% | 35,384 | 6.7% | (29.9)% |
Net revenue from sales and services as at 30 September 2022 amounted to € 613,371 thousand, up 16.4% on the same period of 2021 (€ 526,993 thousand). This increase is attributable to the positive sales trend and the change in the scope of consolidation, which sees, compared to the third quarter of 2021, the entry of the subsidiary Forvet S.p.A., acquired at the end of 2021.
As at 30 September 2022, the value of production amounted to € 658,670 thousand, up 18.7% compared to September 2021, when it amounted to € 555,044 thousand. In addition to the positive sales contribution in the period, there was also an increase in production linked to inventory, which was necessary to deal with the procurement tension experienced during the year.
The following table shows a breakdown of costs as a percentage of the value of production.
| 30 September | 30 September | |||
|---|---|---|---|---|
| 2022 | % | 2021 | % | |
| Euro 000's | ||||
| Revenue | 658,670 | 100.0% | 555,044 | 100.0% |
| Raw materials and goods | 289,982 | 44.0% | 238,906 | 43.0% |
| Other operating costs | 112,946 | 17.1% | 83,809 | 15.1% |
| Service costs | 101,105 | 15.3% | 74,173 | 13.4% |
| Use of third party assets | 3,388 | 0.5% | 1,914 | 0.3% |
| Sundry operating expense | 8,453 | 1.3% | 7,722 | 1.4% |
| Added value | 255,743 | 38.8% | 232,329 | 41.9% |
The analysis of consumption and other operating expenses as a proportion of the value of production, rather than of revenue, shows an increased absorption of raw materials (equal to 44.0% against 43.0% at 30 September 2021) due to the increase in raw material costs recorded during 2022. Other operating expenses increased in absolute terms (€ 29,137 thousand), also increasing their percentage weight compared to the same quarter of 2021 (from 15.1% to 17.1%). This phenomenon is mainly attributable to service costs, which rose from € 74,173 thousand to € 101,105 thousand, an increase of 36.3%. The change is mainly due, also taking into account the change in the scope of consolidation that sees, compared to the third quarter of 2021, the entry of the subsidiary Forvet S.p.A. acquired at the end of 2021, to higher costs for production services, including external processing and transport on acquisitions (up by € 6,573 thousand), consultancy expenses (up by € 2,707 thousand), commissions payable and transport on sales (up by € 4,691 thousand), costs related to participation in trade fairs and events (up by € 2,585 thousand). In addition to the abovementioned increases, there were also increases for travel expenses (up by € 3,330 thousand) and utilities (up by € 2,661 thousand) mainly due to the increase in energy and heating costs.
Personnel costs at 30 September 2022 amounted to € 184,955 thousand with an increase in value of € 14,521 thousand compared to the 2021 figure (€ 170,434 thousand, +8.5%). In this regard, it is noted that this is mainly attributable to the combined effect of labour cost inflation and less recourse to social safety nets and state subsidies. This increase is attributable the change in the scope of consolidation, which sees, compared to the third quarter of 2021, the entry of the subsidiary Forvet S.p.A., acquired at the end of 2021.
As at 30 September 2022, adjusted EBITDA was € 70,788 thousand (€ 61,895 thousand as at 30 September 2021), up by 14.4%.
Depreciation and amortisation decreased by 2.6% overall (from € 25,006 thousand at 30 September 2021 to € 24,358 thousand at 30 September 2022): The component relating to tangible fixed assets (including rights of use) increased by € 582 thousand (+4.0%), while that relating to intangible fixed assets fell by € 1,230 thousand (-12.4%).
Provisions and impairment amounted to € 3,839 thousand. They included provisions of € 3,562 thousand (of which, mainly, € 1,856 thousand for adjustments to provisions for future risks and charges and € 618 thousand for the adjustment of the product warranty reserve estimate), while impairment write-downs were equal to € 277 thousand, relating to intangible assets, including development costs.
Non-recurring items showed a net positive value of € 1,568 thousand, consisting of the COVID-19 grant received by the subsidiary Biesse America Inc. for € 3,142 thousand, partially offset by € 1,575 thousand in trademark write-downs as a result of the Group's rebranding project, aimed at a redefinition of the Group's identity.
As regards financial operations, net financial expense amounted to € 1,049 thousand, down compared to the figure for 2021 (€ 2,059 thousand).
Exchange risk management resulted in a net loss of € 7,074 thousand, worsening compared to the € 1,359 thousand loss in the prior-year period.
The pre-tax result was therefore positive at € 36,035 thousand, down from the 2021 figure (€ 41,133 thousand, a result positively affected by € 12,820 thousand of non-recurring items).
The balance of tax items was negative to the tune of € 11,234 thousand. This balance is determined as a result of the following factors: IRES (Italian corporate income tax) and other deferred taxes negative for € 4,023 thousand and IRAP (Italian regional business tax) negative for € 1,603 thousand; provisions for income taxes relating to foreign subsidiaries (negative for € 5,435 thousand) and previous-year taxes, negative for € 173 thousand.
There was a sharp increase in the year-on-year tax rate because in 2021, the sale of the equity investment held in Dongguan Korex Machinery Co. Ltd. (Korex), which had generated a capital gain of € 17,814 thousand tax-free.
The Group, therefore, recorded a profit for the year of € 24,801 thousand.
| 30 September | 31 December | |
|---|---|---|
| 2022 | 2021 | |
| Euro 000's | ||
| Intangible assets | 90,686 | 97,989 |
| Property, plant and equipment | 117,731 | 117,203 |
| Financial assets | 4,041 | 4,578 |
| Non-current assets | 212,459 | 219,770 |
| Inventories | 227,639 | 179,417 |
| Trade receivables and contract assets | 139,688 | 125,962 |
| Trade payables | (181,183) | (186,660) |
| Contract liabilities | (141,593) | (127,093) |
| Net operating working capital | 44,552 | (8,375) |
| Post-employment benefits | (11,553) | (13,318) |
| Provision for risk and charges | (24,112) | (24,850) |
| Other net payables | (55,107) | (63,274) |
| Net deferred tax assets | 15,623 | 14,660 |
| Other net liabilities | (75,149) | (86,781) |
| Net invested capital | 181,862 | 124,614 |
| Share capital | 27,403 | 27,393 |
| Result for the previous year and other reserves | 209,034 | 186,957 |
| Result for the year | 24,760 | 34,018 |
| Non-controlling interests | 242 | 849 |
| Equity | 261,439 | 249,217 |
| Bank loans and borrowings and loans and borrowings from other financial backers | 28,484 | 29,594 |
| Other financial assets | (7,157) | (27,098) |
| Cash and cash equivalents | (100,903) | (127,099) |
| Net financial indebtedness | (79,577) | (124,603) |
| Total sources of funding | 181,862 | 124,614 |
Net invested capital amounted to € 181.8 million, up compared to December 2021 (€ 124.6 million).
Compared to December 2021, fixed assets were down, as depreciation and amortisation were higher than new investments for the period.
Net operating working capital increased by € 52.9 million compared to December 2021. The change was mainly due to the increase in inventories (equal to € 48,223 thousand), which is mostly attributable to the strategy aimed at minimising the impact of the persistent critical issues related to the supply chain, while the increase in trade receivables (equal to € 13,727 thousand) was almost entirely offset by the increase in contract liabilities (equal to € 14,500 thousand), factors that confirm the positive sales trend in 2022, with turnover growing by 16.4%.
Trade payables decreased by € 5,477 compared to December 2021, mainly due to a decrease in average payment days.
Equity amounted to € 261.4 million (€ 249.2 million as at 31 December 2021).
| Euro 000's | 30th Septemper 30th June |
31st December 31st March |
30th Septemper | |||
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2022 | 2021 | 2021 | ||
| Financial assets: | 108,061 | 117,201 | 136,539 | 154,197 | 143,509 | |
| Current financial assets | 7.157 | 7.266 | 27,141 | 27,098 | 27,867 | |
| Cash and cash equivalents | 100,903 | 109,935 | 109,398 | 127,099 | 115,641 | |
| Short term lease liabilities | (7,983) | (8,524) | (7, 194) | (7, 384) | (6,628) | |
| Short-term bank loans and borrowings and loans from other financial backers | (4,761) | (7, 493) | (5,826) | (5,998) | (5, 539) | |
| Short-term net financial position | 95,317 | 101,183 | 123,520 | 140,815 | 131,343 | |
| Medium/Long-term lease liabilities | (14,997) | (15,508) | (15, 179) | (15,320) | (16, 546) | |
| Medium/Long-term bank loans and borrowings | (573) | (525) | (395) | (680) | (916) | |
| Trade payables and other medium/long-term payables | (171) | (185) | (285) | (213) | ||
| Medium/Long-term net financial position | (15,740) | (16, 218) | (15, 859) | (16, 212) | (17, 462) | |
| Total net financial position | 79,577 | 84,965 | 107,661 | 124,603 | 113,880 |
In the Net Financial Position (hereinafter also "NFP") statement at 30/09/2022, in application of the new provisions contained in Communication No. 5/21 of 29 April 2021 issued by Consob which refers to the ESMA Recommendations of 4 March 2021, trade payables due beyond one year have been included. For comparative purposes, please note that these payables amounted to € 225,000 as at 30 September 2021, when the provisions mentioned above had not yet been applied.
To better represent the Net Financial Position, the fair value of outstanding derivatives has been excluded from financial assets. For comparative purposes, please note that the fair value of derivatives at 30 September 2021 was € 643,000.
The Group's Net Financial Position as at 30 September 2022 was positive at € 79,577 thousand, down from the figure for the same period of the previous year (positive at € 113,880 thousand). Compared to year-end 2021, the indicator decreased by € 45,026 thousand, mainly influenced by the dynamics of net working capital, despite the promising results at operating level and the distribution of dividends during the first half of 2022.
For the sake of completeness, please note that, since this case is not specifically regulated, the estimated earn-out liability of € 3 million related to the acquisition of Forvet S.p.A. and due within 12 months does not appear in the Net Financial Position.
At this report's approval date, Biesse S.p.A. has credit lines of € 210.5 million, of which € 85.5 million is revocable and € 125 million committed with duration beyond 12 months. All undrawn cash credit lines are unsecured, free of collateral and/or other constraints.
| 30 September 2022 |
% | 30 September 2021 |
% | CHANGE % 2022/2021 |
|
|---|---|---|---|---|---|
| Euro 000's | |||||
| Machines and Systems Division | 556,824 | 90.8% | 478,806 | 90.9% | 16.3% |
| Mechatronics Division | 80,977 | 13.2% | 70,732 | 13.4% | 14.5% |
| Inter-segment eliminations | (24,430) | (4.0)% | (22,545) | (4.3)% | 8.4% |
| Total | 613,371 | 100.0% | 526,993 | 100.0% | 16.4% |
| 30 September | 30 September | CHANGE % | |||
|---|---|---|---|---|---|
| 2022 | % | 2021 | % | 2022/2021 | |
| Euro 000's | |||||
| Western Europe | 325,079 | 53.0% | 264,859 | 50.3% | 22.7% |
| Asia-Pacific | 74,864 | 12.2% | 69,069 | 13.1% | 8.4% |
| Eastern Europe | 82,261 | 13.4% | 87,458 | 16.6% | (5.9)% |
| North America | 114,577 | 18.7% | 90,950 | 17.3% | 26.0% |
| Rest of the World | 16,590 | 2.7% | 14,658 | 2.8% | 13.2% |
| Total | 613,371 | 100.0% | 526,994 | 100.0% | 16.4% |
The breakdown of revenues by operating segment shows a significant increase in both segments. Machinery-Systems (which accounts for 90.8% of the group's turnover) and Mechatronics increased by 16.3% and 14.5% respectively, compared to the third quarter of 2021.
Looking at the turnover by geographical area, the increase concerned all the following geographical areas of reference: Western Europe (22.7%), Asia-Oceania (8.4%), North America (26.0%) and the Rest of the World (13.2%). Eastern Europe, on the other hand, recorded a slight decrease (-5.9%),
Pesaro, 28 October 2022 The Chairman of the Board of Directors Giancarlo Selci
Pursuant to Article 154-bis, paragraph 2 of the Consolidated Law on Finance (TUF), the Manager in charge of corporate financial reporting declares that the accounting information contained herein corresponds to the Company's documentary evidence and accounting books and records.
The Manager in charge of financial reporting Pierre Giorgio Sallier de La Tour
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.