AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Biesse

Earnings Release Oct 29, 2021

4501_10-q_2021-10-29_2461fe6e-7bc0-4b4e-a88d-748d24965fcd.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Approved the consolidated quarterly report at 30 September 2021

o Order intake:+74% vs 2020 and +31.6% vs 2019

o Backlog: 291 Euro mln, +37.1% vs Dec. 2020 and +48% vs Dic.2019

Consolidated sales of the 9 months increased vs 2020 (+32.9%) and vs 2019 (+3.1%)

Strong increase for the marginality (EBITDA & EBIT) vs 2020 and vs 2019

Net profit 35.4 Euro mln. (6.7% of the net sales) - 2.4 x 2019 net result

Acquition of the 100% Forvet Costruzione Macchine Speciali S.p.A. (glassentr)

(EURO mln amount) IIIQ 2021 9 months 2021
Consolidated Net Sales 172.9 527.0
EBITDA 20.9 61.9
Incidence on sales 12.1% 11.7%
EBIT* 12.0 31.7
Incidence on sales 6.9% 6.0%
Net Profit 7.0 35.4
Incidence on sales 4.0% 6.7%
Net Financial Position 113.9
Euro mln.
positive

*before non recurring items

Pesaro, 29 October 2021 - The Board of Directors of Biesse S.p.A. -a mid cap company listed in the STAR segment of the Italian Stock Exchange – today approved the Report for the 3rd Quarter 2021, also examining the YTD consolidated results as at 30 September 2021.

Operating Results

The results for the period 1/7/21 – 30/9/21 were as follows:

  • Consolidated net revenues of 172.9 million euros (+23.7% compared to the same period in 2020)
  • Added value of 74.1 million euros (+21.1% compared to the same period in 2020), 42.9% of revenues
  • EBITDA of 20.9 million euros (+39.8% compared to the same period in 2020), 12.1% of revenues
  • EBIT, before non-recurring events, of 12 million euros (+106.5% compared to the same period in 2020), 6.9% of revenues
  • Profit before taxes of 9.4 million euros (+146.5% than in the same period in 2020), 5.4% of revenues
  • Net profit of 7.0 million euros, 4.0% of revenues (1.8% in Q3 2020)

Consequently, the YTD figure as at 30 September 2021 is as follows:

  • Consolidated net revenues of 527 million euros (+32.9% compared to the same period in 2020)
  • Added value of 232.3 million euros (+33.8% compared to the same period in 2020), 44.1% of revenues
  • EBITDA of 61.9 million euros (+65.2% compared to the same period in 2020), 11.7% of revenues
  • EBIT, before non-recurring events, of 31.7 million euros, 6.0% of revenues (2.6% of revenues first 9 months of 2020)
  • Profit before taxes of 41.1 million euros, 7.8% of revenues (1.5% first 9 months of 2020)
  • Net profit of 35.4 million euros, 6.7% of revenues, YTD tax rate of 14% (35.7% tax rate as at September 2020)

Net Financial Position & Equity Data

The net financial of the Group as at 30 September 2021 was positive at 113.9 million euros, a marked improvement over the same period of 2020 (+117 million euros) and of 2019 (+156.5 million euros). The negative impacts of IFRS16 within the NFP as at 30 September 2021 amounted to 20.5 million euros and therefore – net of these impacts – the operating NFP would have been positive at 134.4 million euros. Since the beginning of the year, the NFP delta is positive at 64.4 million euros.

Net Invested Capital: 136.6 million euros Shareholders' Equity: 250.5 million euros Operating N.W.C.: 28.2 million euros. Operating Net Working Capital as a percentage of revenues was 5.4% (17.2% as at September 2020).

Revenue breakdown

The breakdown of the net sales between the Mechatronics and the Machinery and Systems segment shows 9,1% and 90,9% respectively. Geographically, Italy increases to 17.8% (13% in September 2020 and 16.7% in June of this year), while with regard to macro–areas:

Western Europe 50.3% (including Italy) Asia-Oceania 13.1% Eastern Europe 16.6% North America 17.3% Rest of World 2.8%

Orders

Group order intake YTD in the 9 months shows an increase of 74% compared to the same period in 2020, while compared to 2019 the positive delta is 31.6%. In the third quarter of this year alone, order intake amounted to 157.3 million euros (up 35.4% on the same period of 2020).

Very positive production backlog at the end of September (291 million euros), 6% higher than at the end of June 2021.

Compared to year-end 2020, the backlog has increased by 37.1%, while compared to December 2019, the current backlog is 48% higher

Acquisition

As mentioned on 11 October last, Biesse will acquire 100% of the company Forvet Costruzione Macchine Speciali S.p.A. The synergies between the company, operating in special automated machines for glass processing (Forvet S.p.A.), and Biesse are evident; with this operation, Biesse (Intermac) completes and increases its product portfolio in the glass sector, expanding its presence in the high end of the market.

Policy for the management of dialogue with the shareholders and other stakeholders

Approved today by the B.o.D. the Policy for the management of dialogue with the shareholders and the other stakeholders. The document will be available in our website Investor relations area.

Forecast 2021

Considering the obtained results and the situation of the backlog and order intake, this year is likely to replicate what the Group did at the end of 2019, with an higher cashflow vs the year before net of the Forvet acquisition disbursement.

Conference Call

At 4 p.m. today, Biesse will hold a conference call to comment on the Group's achievements during the first 9 months of 2021. On the corporate website www.biessegroup.com investor relations area, the supporting company presentation will be available. The same presentation will also be made available on the official storage website

"Although evident factors of instability and uncertainty remain at the international level, - said the Group CFO Pierre La Tour on the sidelines of the Board meeting – the Group's achievements in these first 9 months undoubtedly paint a positive picture.

What we are going through, albeit requiring a prudent and cautious attitude, seems to be a phase of generalised and consistent recovery, providing us with a bright outlook, at least for the immediate future. That being said, the recovery of the demand beyond expectations is generating tensions, in the distribution chain, from which the Biesse Group is not exempt. In particular the evolution of transport dynamics remain under close monitoring by our side.

The order intake certifies that demand remained sustained even during the third quarter of this year; the Group's production backlog increased with respect to last June, confirming levels never reached in Biesse's history. Despite this record level, the average production visibility is still not very high, also due to our desire to not over-extend delivery lead times.

Following the directives contained in the Three-Year Business Plan approved 30 July last, we have decided an important acquisition, strategic for us in the glass sector, in order to complete and expand the product range in the high end of the market. As far as Research and Development investments are concerned, we can confirm that these will always remain at the core of the Group's projects and will not be reduced in any way; the cornerstone of our strategy is to develop the digital paradigm and all the technological innovations that can impact our target sectors".

"The manager responsible for preparing the company's accounting reports (Dr. Pierre Giorgio Sallier de La Tour) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records"

Biesse Group is multinational leader in technology for processing wood, glass, stone, metal, plastic and composited materials. It designs, manufactures and distributes machines, integrated systems and software for manufacturers of furniture, door/window frames and components for the constructions, ship-building and aerospace industries. The Group realizes the 85% of the total turnover outside Italy, using 13 premises, 39 subsidiaries, 300 selected dealers. Its customers include some of the most prestigious names in Italian and international design. Founded in Pesaro in 1969 by Giancarlo Selci, Biesse has been listed in the STAR segment of the Italian Stock Exchange since June 2001. It actually has almost 4,300 employees distributed all over the world.

Income Statement at 30 September 2021

30 September 30 Septmber CHANGE %
2021 % on sales 2020 % on sales
Euro 000's
Revenue from sales and services 526,993 100.0% 396,430 100.0% 32.9%
Change in inventories, wip, semi-finished products and finished
products
24,126 4.6% (1,766) $(0.4)\%$
Other Revenues 3,924 0.7% 6,038 1.5% $(35.0)\%$
Revenue 555,044 105.3% 400,702 101.1% 38.5%
Raw materials, consumables, supplies and goods (238,906) $(45.3)\%$ (162, 585) $(41.0)\%$ 46.9%
Other operating costs (83,809) (15.9)% (64, 478) $(16.3)\%$ 30.0%
Personnel expense (170, 434) $(32.3)\%$ (136, 162) $(34.3)\%$ 25.2%
Gross operating profit 61,895 11.7% 37,478 9.5% 65.1%
Depreciation and amortisation (25,006) (4.7)% (25, 310) $(6.4)\%$ $(1.2)\%$
Provisions (5, 157) $(1.0)\%$ (1,995) $(0.5)\%$
Operating profit before non recurring items 31,731 6.0% 10,173 2.6%
Impairment losses and non recurring-items 12,820 2.4% (1,928) (0.5)%
Operating profit 44,551 8.5% 8,245 2.1%
Financial income 306 0.1% 726 0.2% $(57.8)\%$
Financial expense (2,365) $(0.4)\%$ (1,992) (0.5)% 18.7%
Exchange rate income and expenses (net) (1, 359) (0.3)% (1, 180) (0.3)% 15.2%
Pre-tax profit 41,133 7.8% 5,799 1.5%
Income taxes (5,749) (1.1)% (2,069) (0.5)%
Profit/Loss for the period 35,384 6.7% 3,730 0.9%

Statement of Financial Position at 30 September 2021

30 September 31 December
2021 2020
Euro 000's
Intangible assets 64,787 73,354
Property, plant and equipment 113,778 125,130
Financial assets 3,457 3,277
Non-current assets 182,020 201,761
Inventories 171,904 129,848
Trade receivables and contract assets 105,659 102,875
Trade payables (158, 430) (132,790)
Contract liabilities (90, 883) (72, 189)
Net operating working capital 28,250 27,744
Post-employment benefits (11,714) (12, 775)
Provision for risk and charges (26, 273) (19,988)
Other net payables (52, 419) (45,979)
Net deferred tax assets 16,758 14,508
Other net liabilities (73, 647)
Net invested capital 136,624 165,270
Share capital 27,393 27,393
Profit for the previous year and other reserves 187,046 184,099
Profit for the year 35,228 2.531
Non-controlling interests 837 790
Equity 250,504 214,812
Bank loans and borrowings and loans and borrowings from other financial backers 29,629 141,989
Other financial assets (27, 867) (28, 107)
Cash and cash equivalents (115,641) (163, 425)
Net financial indebtedness (113,880) (49, 543)
Total sources of funding 136,624 165,270

Net Financial Position at 30 September 2021

Euro 000's 30th Septemper 30th June 31st March 31st December 30th Septemper
2021 2021 2021 2020 2020
Financial assets: 143,509 178,143 171,946 191,532 159,097
Current financial assets 27,867 27,682 27,589 28,107 24,111
Cash and cash equivalents 115,641 150,461 144,357 163,425 134,986
Short term lease liabilities (6,628) (7, 876) (6,929) (6,746) (6,699)
Short-term bank loans and borrowings and loans from other financial backers (5,539) (34,996) (41, 101) (68, 763) (37,077)
Short-term net financial position 131,343 135,271 123,916 116,023 115,322
Medium/Long-term lease liabilities (16, 546) (21, 303) (22,939) (23, 526) (23,914)
Medium/Long-term bank loans and borrowings (916) (915) (40, 838) (42,954) (94, 560)
Medium/Long-term net financial position (17, 462) (22, 218) (63, 777) (66, 480) (118, 473)
Total net financial position 113,880 113,053 60,139 49,543 (3, 152)

Talk to a Data Expert

Have a question? We'll get back to you promptly.