Informazione Regolamentata n. 20078-20-2024		Data/Ora Inizio Diffusione 12 Settembre 2024 18:21:48
Societa'	:	ORSERO

Identificativo Informazione Regolamentata	:	195509
Utenza - Referente	:	ORSERON04 - Colombini
Tipologia	:	1.2
Data/Ora Ricezione	:	12 Settembre 2024 18:21:48
Data/Ora Inizio Diffusione	:	12 Settembre 2024 18:21:48
Oggetto	:	Orsero S.p.A. - PR H1 2024 Results
Testo del comunicato

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Press Release

THE BOARD OF DIRECTORS APPROVES THE CONSOLIDATED RESULTS AS AT 30 JUNE 2024

H1 2024 MARGINALITY IN LINE WITH ESTIMATES AND WITH EXPECTED MARKET CONTEXT, WITH AN EBITDA MARGIN EQUAL TO 5.5%

BRILLIANT DISTRIBUTION BU PERFORMANCE IN Q2 2024, EBITDA MARGIN EQUAL TO 5.2% THANKS TO CONTINUED IMPROVEMENT IN MARKETED PRODUCT MIX AND IMPACT OF EXOTIC PRODUCT LINES

CONSOLIDATED REVENUES SLIGHTLY DECREASING MAINLY DUE TO THE EFFECT OF THE NORMALISATION OF THE FREIGHT RATES AND OF THE PLANNED REDUCTION IN MARKETED BANANA PRODUCT VOLUMES

SOLID AND ADEQUATE FINANCIAL AND CAPITAL STRUCTURE TO FACE UPCOMING STRATEGIC GROWTH INVESTMENTS

KEY CONSOLIDATED FINANCIAL DATA H1 2024:

NET SALES EQUAL TO € 744.1 MILLION
ADJUSTED EBITDA EQUAL TO € 40.9 MILLION WITH AN EBITDA MARGIN OF 5.5%
ADJUSTED NET PROFIT OF € 16.0 MILLION
NET FINANCIAL POSITION OF € 129.9 MILLION

Milan, 12 September 2024 – The Board of Directors of Orsero S.p.A. (Euronext STAR Milan, ORS:IM), held today's date, approved the Consolidated Results as at 30 June 2024.

***

Raffaella Orsero, CEO of Orsero, and Matteo Colombini, Co-CEO and CFO of Orsero commented: "In the first half of 2024, the Group achieved a satisfying result in terms of profitability, positioning itself in line with the expectations and the annual trend, especially thanks to the favourable contribution of the second quarter, which is physiologically more profitable. In the second part of the semester, in fact, the exotic product lines and kiwifruit, among others, had a positive performance, offsetting the underwhelming trend of some winter campaigns and the expected reduction in banana product volumes with regard to thirdparty brand sales. On the Shipping BU side, we are satisfied with the resilience of the reefer volumes, although in a fully normalised market context compared to the two-year period 2022-2023. Another important highlight was the cash generation, which, particularly in the last quarter, was characterised by the positive contribution of the operating margin combined with the improvement in working capital compared to end-March 2024. This contribution allowed to meet the expenditures related to capex and to the payment of the highest dividend in Orsero's history. The Group's first-half results confirm its solidity and resilience".

			Changes
€ Million	H1 2024	H1 2023	€	%
Net sales	744.1	763.4	(19.3)	-2.5%
Adjusted EBITDA	40.9	59.2	(18.3)	-30.9%
Adjusted EBITDA Margin	5.5%	7.8%	-226 bps	-
Adjusted EBIT	24.2	42.8	(18.6)	-43.4%
EBIT	23.1	41.1	(18.0)	-43.8%
Adjusted Net Profit	16.0	33.4	(17.4)	-52.1%
Non-recurring profit/loss and Top Management Incentives	(0.9)	(1.0)	ns	ns
Net Profit	15.1	32.4	(17.3)	-53.5%

CONSOLIDATED ECONOMIC SUMMARY DATA AS AT 30 JUNE 2024

Net Sales, equal to € 744.1 million, are slightly down compared with € 763.4 million recorded in H1 2023, with a decrease of both the Distribution BU (-1.3% vs H1 2023), due to the reduction in marketed volumes of banana product, to the static performance of some winter campaigns – which mainly affected the first quarter -, and to a decrease in avocado volumes in Mexico, as well as of the Shipping BU (-16.1% vs H1 2023), marked by the full normalisation of freight rates on reefer and dry cargo volumes.

The Adjusted EBITDA, equal to € 40.9 million, compared with € 59.2 million in H1 2023, with an Adjusted EBITDA Margin of 5.5%. The Adjusted EBIT is equal to € 24.2 million, compared with € 42.8 million achieved in H1 2023.

The Adjusted Net Profit1 reports a result of € 16.0 million compared with a profit of € 33.4 million recorded in H1 2023, as a consequence of the lower operating margin and the slight increase in D&A and provisions, partially offset by the lower financial costs and taxes.

The Net profit stands at € 15.1 million, compared with a profit of € 32.4 million registered in H1 2023.

***

CONSOLIDATED BALANCE SHEET SUMMARY DATA AS AT 30 JUNE 2024

€ Million	30.06.2024	31.12.2023
Net Equity	243.4	238.5
Net Financial Position	129.9	127.8
NFP/Net Equity	0.53	0.54
NFP/Adjusted EBITDA	1.46	1.19
Net Financial Position excl. IFRS 16	69.8	67.1

¹ The result is calculated net of non-recurring items (equal to a loss of approximately € -0.9 million in H1 2024 and a loss of approximately € -0.7 million in H1 2023) and costs relating to the Top Management rewarding (equal to approximately € 0.0 million in H1 2024 and € -0.3 million in H1 2023), including the related estimated tax effects.

The Total Shareholders' Equity is equal to € 243.4 million, with an increase of about € 4.9 million compared to the Total Shareholders' Equity as at 31December, 2023, equal to € 238.5 million.

The Net Financial Position2 is equal to € 129.9 million as at 30 June 2024 compared € 127.8 million as at 31 December 2023, of which the IFRS 16 liabilities are equal to € 60.1 million (€ 60.8 million in 2023), characterised by operating investments of the period equal to approximately € 8.0 million and dividends payment to the shareholders of the Parent company for approximately € 10.2 million (0.60 € per share).

***

Net sales - Thousands of €	H1 2024	H1 2023
"Distribution" BU	707,094	716,365
"Shipping" BU	57,949	69,029
"Holding & Services" BU	5,314	5,384
Adjustment intra-segment	(26,234)	(27,331)
Net Sales	744,123	763,447

Adjusted EBITDA - Thousands of €	H1 2024	H1 2023
"Distribution" BU	31,917	38,669
"Shipping" BU	12,883	25,061
"Holding & Services" BU	(3,899)	(4,513)
Adjusted EBITDA	40,901	59,217

CONSOLIDATED ECONOMIC DATA AS AT 30 JUNE 2024 BY BUSINESS UNIT

The Distribution BU achieved net sales of € 707.1 million, slightly down by approximately € 9.3 million compared with H1 2023 (-1.3 % vs H1 2023) and an Adjusted EBITDA equal to € 31.9 million, decreasing from € 38.7 million registered in H1 2023, as a result of an uncertain macroeconomic context and falling consumption phenomena in certain geographical areas, as well as the normalisation of the Banana product, the marketing of which, among other things, in Italy has been strategically reduced with regard to third-party brands. The achieved result is, however, in line with the historical trend of the first semester. Energy costs are still significant, although decreasing compared to H1 2023.

The Adjusted EBITDA Margin in H1 2024 is 4.5% (vs. 5.4% in H1 2023), thanks to the positive performance in Q2 2024, which achieved an EBITDA Margin of 5.2% (vs. 5.9% in Q2 2023), partially closing the profitability gap created in Q1 2024, which had recorded an EBITDA Margin of 3.7% (vs 4.8% in Q1 2023)

The Shipping BU generated net sales of € 57.9 million, registering a decrease of approximately € 11.1 million (-16.1% vs H1 2023) compared to the outstanding results recorded in H1 2023, driven by the full normalisation of the freight rates, both on the dry cargo and reefer routes, the latter however marked by stable freight rates and a satisfying profitability considering the changed market context.

The Adjusted EBITDA, equal to about € 12.9 million, compared with € 25.1 million of H1 2023, achieving an Adjusted EBITDA Margin of 22.2 % of net sales, in consideration of the above.

The Holding & Services BU achieved net sales of € 5.3 million and a negative Adjusted EBITDA of € 3.9 million, reducing by € 0.6 million due to lower personnel costs and higher intercompany rebilling. Please note that

² The NFP data already includes the effects of IFRS 16.

the result of the segment is physiologically negative at the level of Adjusted EBITDA since it includes the activities of the Parent Company, whose result is linked to the extent of the dividends received by the companies of the Group.

***

MAIN SIGNIFICANT EVENTS OCCURRED DURING H1 2024

On 29 April 2024, the Shareholders' Meeting resolved, among other things: (i) the approval of the financial statements as at 31 December 2023; (ii) the distribution of an ordinary dividend of € 0.60 per share for a total amount of approximately € 10.2 million, to be paid on May 15, 2024; (iii) the approval with a binding vote of the Remuneration Policy (Section I) pursuant to Art. 123-ter, paragraphs 3-bis and 3-ter, TUF and with an advisory vote pursuant to Art. 123-ter, paragraph 6, TUF the Remuneration Report (Section II) on the remuneration paid in 2023.

On 17 June 2024, Orsero announced the launch of a treasury shares buyback program, pursuant to the authorization of the Shareholders' Meeting of 20 December 2023.

***

MAIN SIGNIFICANT EVENTS OCCURRED AFTER THE END OF H1 2024

On 11 July 2024 the treasury shares buyback program launched on 17 June 2024 came to an end, with the total purchase of 80,720 treasury shares, at an average price of € 12.5349 and for total consideration of abt. € 1,011,813 (including commissions).

On the date of this release, Orsero holds 833,857 treasury shares, or 4.72% of the share capital.

At the date of the Half-Year Financial Report of the Orsero Group, no events of particular relevance have occurred at the operating level.

With reference to the latest evolutions in the international geopolitical situation, the Group's Management continues to monitor developments with the aim of keeping its import and distribution logistics chain efficient, preserving its cost-effectiveness and efficiency.

***

FILING OF DOCUMENTS

A brief presentation of the consolidated Results of H1 2024, in English, will be made available to the public on the institutional website www.orserogroup.it, section "Investors/Financial Documents".

Copy of Interim Consolidated Financial Report as at 30 June 2024 will be made available to the public on today's date on the institutional website www.orserogroup.it, section "Investors/Financial Documents", on the authorized storage system eMarket Storage () other than at the registered office in Milan, via Vezza d'Oglio 7.

The Manager in charge of preparing the corporate accounting documents of Orsero S.p.A., Mr. Edoardo Dupanloup certifies, pursuant to art. 154-bis. paragraph 2. of Legislative Decree 58/98 that the accounting information contained in this press release corresponds to the documentary results, books and accounting records.

***

The Group's results for H1 2024 will be presented to the financial community on 13 September 2024 during a conference call at 9.30 CEST (UTC +02:00).

For information, please contact the references at the bottom of this press release.

** *** **

ORSERO is the holding company of the Italian and international group with the same name, a leader in Mediterranean Europe for the import and distribution of fresh fruit and vegetables. The Orsero Group was created more than 50 years ago at the initiative of the Orsero family, which had been operating since the 1940s in the fruit and vegetable sector, in partnership with other entrepreneurs. Over the decades, the Orsero Group has expanded its business both in terms of area covered, which today includes Italy, France, Spain, Portugal, Greece, Mexico, Costa Rica and Colombia, and in terms of product categories and sectors, according to a model known as vertical integration. Along with the distribution of fresh produce, the Orsero Group's business model also includes the import of bananas and pineapples using its owned ships. In 2012, the Orsero Group launched the brand "F.lli Orsero" for bananas and pineapples. The name intends to convey a sense of tradition and the passion of a large Italian family-run company for high-end produce.

ORSERO ordinary shares are listed on the Euronext STAR Milan segment of the Market Euronext Milan: ISIN - IT0005138703; Bloomberg Ticker "ORS.IM"; Thomson Reuters Ticker "ORSO.MI".

For more information:

Orsero S.p.A.

Investor Relations:

Media Relations:

CDR Communication Angelo Brunello | M. +39 329 211 7752 | [email protected] Martina Zuccherini | [email protected]

Specialist

Intesa Sanpaolo S.p.A. –IMI CIB Division Largo Mattioli 3 - 20121 – Milano

ANNEXES

ORSERO GROUP - CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

Thousands of euro	30.06.2024	31.12.2023
ASSETS
Goodwill	127,447	127,447
Intangible assets other than Goodwill	10,749	10,433
Property, plant and equipment	183,564	184,804
Investments accounted for using the equity method	21,159	20,581
Non-current financial assets	6,248	5,291
Deferred tax assets	7,124	7,540
NON-CURRENT ASSETS	356,291	356,096
Inventories	55,112	53,118
Trade receivables	160,829	144,237
Current tax assets	14,373	12,435
Other receivables and other current assets	18,388	14,582
Cash and cash equivalents	88,374	90,062
CURRENT ASSETS	337,076	314,434
Non-current assets held for sale	-	-
TOTAL ASSETS	693,367	670,530

EQUITY
Share Capital	69,163	69,163
Other Reserves and Retained Earnings	158,106	120,360
Profit/loss attributable to Owners of Parent	14,617	47,276
Equity attributable to Owners of Parent Company	241,886	236,800
Non-controlling interests	1,541	1,724
TOTAL EQUITY	243,427	238,523

LIABILITIES
Financial liabilities	162,638	166,090
Other non-current liabilities	470	548
Deferred tax liabilities	4,415	4,215
Provisions	4,993	4,948
Employees benefits liabilities	9,240	8,963
NON-CURRENT LIABILITIES	181,755	184,764
Financial liabilities	57,550	52,576
Trade payables	179,373	159,973
Current tax liabilities	6,403	6,815
Other current liabilities	24,858	27,879
CURRENT LIABILITIES	268,184	247,243
Liabilities directly associated with non-current assets held for
sale	-	-
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	693,367	670,530

ORSERO GROUP - CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2024

Thousands of euro	1st Semester	1st Semester
	2024	2023
Net sales	744,123	763,447
Cost of sales	(672,191)	(673,586)
Gross profit	71,932	89,861
General and administrative expense	(48,816)	(48,764)
Other operating income/expense	(37)	(44)
Operating result	23,080	41,052
Financial income	1,033	502
Financial expense and exchange rate differences	(5,974)	(5,636)
Other investment income/expense	10	4
Share of profit/loss of associates and joint ventures accounted for using equity method	942	1,076
Profit/loss before tax	19,092	36,998
Income tax expense	(4,030)	(4,612)
Profit/loss from continuing operations	15,062	32,386
Profit/loss from discontinued operations	-	-
Profit/loss for the period	15,062	32,386
Profit/loss attributable to non controlling interests	445	539
Profit/loss attributable to Owners of Parent	14,617	31,847

ORSERO GROUP - CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2024

Thousands of euro	1st Semester 2024	1st Semester 2023
A. Cash flows from operating activities (indirect method)
Profit/loss for the period	15,062	32,386
Adjustments for income tax expense	4,030	4,612
Adjustments for interest income/expense	3,662	3,527
Adjustments for provisions	646	974
Adjustments for depreciation and amortisation expense and impairment loss	8,339	8,164
Other adjustments for non-monetary elements	(635)	16
Change in inventories	(1,994)	(2,947)
Change in trade receivables	(16,983)	(14,022)
Change in trade payables	19,400	18,660
Change in other receivables/assets and in other liabilities	(8,424)	(5,383)
Interest received/(paid)	(3,950)	(3,405)
(Income taxes paid)	(3,401)	(2,284)
Dividends received	490
Cash flow from operating activities (A)	16,240	40,298
B. Cash flows from investing activities
Purchase of property, plant and equipment	(6,887)	(5,271)
Proceeds from sales of property, plant and equipment	139	294
Purchase of intangible assets	(1,088)	(826)
Proceeds from sales of intangible assets	-	3
Purchase of interests in investments accounted for using equity method	-	(1,076)
Proceeds from sales of investments accounted for using equity method	-	520
Purchase of other non-current assets	(849)	-
Proceeds from sales of other non-current assets	416	438
(Acquisitions)/disposal of investments in controlled companies, net of cash	(559)	(49,852)
Cash Flow from investing activities (B)	(8,828)	(55,770)
C. Cash Flow from financing activities
Increase/decrease of financial liabilities	2,287	(5,868)
Drawdown of new long-term loans	13,210	56,244
Pay back of long-term loans	(12,369)	(7,888)
Capital increase and other changes in increase/decrease	-	1,012
Disposal/purchase of treasury shares	(608)	-
Dividends paid	(11,621)	(6,022)
Cash Flow from financing activities (C)	(9,101)	37,479
Increase/decrease in cash and cash equivalents (A ± B ± C)	(1,688)	22,007
Cash and cash equivalents at 1° January 24-23	90,062	68,830
Cash and Cash equivalents at 30 June 24-23	88,374	90,837

GRUPPO ORSERO – NET SALES AND ADJUSTED EBITDA Q1 AND Q2 2024 BY BUSINESS UNIT

Thousands of euro	Distribution	Shipping	Holding & Services	Eliminations	Total
Net sales second quarter 2024	386,805	29,852	2,732	(13,160)	406,229
Net sales first quarter 2024	320,289	28,097	2,583	(13,074)	337,894
Total Net sales first semester 2024	707,094	57,949	5,314	(26,234)	744,123
Adjusted EBITDA second quarter 2024	20,214	5,694	(1,829)	-	24,078
Adjusted EBITDA first quarter 2024	11,703	7,189	(2,070)	-	16,822
Total Adjusted EBITDA first semester 2024	31,917	12,883	(3,899)	-	40,901
EBITDA Margin second quarter 2024	5.2%	19.1%	ns	-	5.9%
EBITDA Margin first quarter 2024	3.7%	25.6%	ns	-	5.0%
EBITDA Margin first semester 2024	4.5%	22.2%	ns	-	5.5%

ORSERO GROUP – NET SALES AND E ADJUSTED EBITDA Q1 AND Q2 2023 BY BUSINESS UNIT

Thousands of euro	Distribution	Shipping	Holding & Services	Eliminations	Total
Net sales second quarter 2023	393,314	34,496	2,558	(14,263)	416,106
Net sales first quarter 2023	323,051	34,533	2,826	(13,069)	347,341
Total Net sales first semester 2023	716,365	69,029	5,384	(27,331)	763,447
Adjusted EBITDA second quarter 2023	23,068	12,142	(2,221)	-	32,989
Adjusted EBITDA first quarter 2023	15,602	12,918	(2,292)	-	26,228
Total Adjusted EBITDA first semester 2023	38,669	25,061	(4,513)	-	59,217
EBITDA Margin second quarter 2023	5.9%	35.2%	ns	-	7.9%
EBITDA Margin first quarter 2023	4.8%	37.4%	ns	-	7.6%
EBITDA Margin first semester 2023	5.4%	36.3%	ns	-	7.8%

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