AI Terminal
Landi Renzo
Earnings Release • Sep 6, 2024
4295_10-q_2024-09-06_2a81336e-5ecb-4f38-8f2d-d875c88cbdd3.pdf
Earnings Release
Open in ViewerOpens in native device viewer
| Informazione Regolamentata n. 0915-35-2024 |
Data/Ora Inizio Diffusione 6 Settembre 2024 19:29:24 |
Euronext Star Milan | |
|---|---|---|---|
| Societa' | : | LANDI RENZO | |
| Identificativo Informazione Regolamentata |
: | 195293 | |
| Utenza - Referente | : | LANDIN03 - Cilloni | |
| Tipologia | : | 1.2 | |
| Data/Ora Ricezione | : | 6 Settembre 2024 19:29:24 | |
| Data/Ora Inizio Diffusione | : | 6 Settembre 2024 19:29:24 | |
| Oggetto | : | PR Financial Results 30 06 2024 | |
| Testo del comunicato |
Vedi allegato
September 6, 2024
Landi Renzo: Board of Directors approves financial results as of June 30, 2024
- Consolidated revenues were equal to €139.1 million, compared to €151.8 million in the same period of the previous year.
- Adjusted EBITDA amounted to €0.1 million compared to €3.9 million as of June 30, 2023. It should be noted that in the second quarter of 2024, there was an improvement in value compared to the negative result posted in the first quarter of the same year (positive adjusted EBITDA and equal to €0.5 million in the second quarter compared to negative adjusted EBITDA and equal to €0.5 million in the first quarter).
EBITDA was negative and amounted to €3.7 million (negative and equal to €0.3 million as of June 30, 2023).
- In the first six months of the year, the Green Transportation segment posted revenue of €102.5 million, broadly in line with the previous year's (€104.3 million). Adjusted EBITDA was positive and amounted to €0.7 million, an improvement over the first half of the previous year (positive and equal to €0.2 million).
- Clean Tech Solutions segment revenues amounted to €36.7 million, with a slight decrease from the first quarter of 2023 (€47.5 million); adjusted EBITDA was negative and amounted to €0.7 million, compared to positive €3.8 million in the previous year.
- Net Result was negative and equal to €18.5 million compared to negative net result amounting to €20.9 million as of June 30, 2023.
- Net Financial Position of the Group was negative and amounted to €135.3 million, compared to €112.4 million as of December 31, 2023.
Cavriago (RE), September 6, 2024 - The Board of Directors of Landi Renzo, chaired by Stefano Landi, met today and approved the Company's quarterly Financial Statements as of June 30, 2024.
"The results of the first six months of the year, while below expectations when compared to the same period of the previous year, reveal an improving trend: in the second quarter of 2024, the Group has indeed reported higher revenues than in the first three months of the year and adjusted EBITDA returning to positive values. This trend confirms the direction that we have taken under the guidance of Eng. Stupenengo with the industrial Plan, whose full implementation will be backed by the capital increase that we will launch by the end of the fourth quarter" - said Stefano Landi, Chairman of Landi Renzo S.p.A.
Press Release September 6, 2024
Annalisa Stupenengo, CEO of Landi Renzo S.p.A., added: "In the first six months of the year, the Green Transportation sector recorded substantially stable revenues and a significant improvement in terms of profitability; the Clean Tech Solutions sector, as expected, continued to be affected by the persistence of contingent exogenous dynamics that are typical of a market that is in a transitional phase, showing a decline in both sales and margins. However, the trend of the orders in the first few months following the end of the six-month period hints at a significant recovery, with its effects expected as early as the second half of the year. During the first half of the year, we implemented major organizational changes, which now allow us to have a more efficient structure, and one that is able to anticipate future market trends, according to a "customer centric" approach. Thanks to the strong and continuous commitment in Research & Development field, which is part of Landi Renzo Group's DNA, we also launched some particularly innovative products at the beginning of the year, such as the pressure regulator for hydrogen engines, and developed new projects in both infrastracture and mobility segments, whose results will be available on the market as early as the next few months."
Key Consolidated results as of June 30, 2024
In the first half of the year, Landi Renzo Group reported revenues equal to €139.1 million, down from the previous year (€151.8 million as of June 30, 2023).
This performance is mainly due to a rescheduling of the production timeline for some highly complex orders in the hydrogen business, as well as the delay of some major orders in the Clean Tech Solutions business as well.
Therefore, as of June 30, 2024, Group's adjusted EBITDA amounted to €0.1 million, compared to €3.9 million in the same period of the previous year.
However, the second quarter of 2024 showed a recovering trend in Group margins, which amounts to €0.5 million compared to negative €0.5 million in the first quarter of the year.
EBITDA was negative and amounted to €3.7 million (negative and equal to €0.3 million as of June 30, 2023), including nonrecurring costs amounting to €3.8 million (€4.2 million as of June 30, 2023).
EBIT was negative and amounted to €11.5 million (negative and equal to €8.8 million as of June 30, 2023), following amortization and depreciation of €7.8 million (€8.5 million as of June 30, 2023).
Total financial expenses (interest income, interest expense, and exchange rates effects) amounted to €5.8 million (€6.6 million as of June 30, 2023) and included negative exchange rate effects amounting to €0.3 million (negative and amounting to €1.6 million as of June 30, 2023).
In the first six months of 2024 EBT was negative and amounted to €18.0 million (negative and equal to €15.6 million as of June 30, 2023).
Group and third-party's Net Result as of June 30, 2024, reported a loss equal to €18.5 million, compared to negative result of the Group and third parties of €20.9 million as of June 30, 2023.
Press Release September 6, 2024
Net Financial Position as of June 30, 2024, was negative and equal to €135.3 million (€112.4 million as of December 31, 2023), including €10.8 million due to the application of IFRS 16 - Leases, overall €0.1 million related to the fair value of derivative financial instruments and €0.5 million related to the liability for the Put/Call concerning Metatron Control System shares. Adjusted Net Financial Position, i.e., net of these amounts, would have amounted to €123.9 million, of which €106.5 million was attributable to the Green Transportation segment and €17.5 million to the Clean Tech Solutions segment.
It is hereby acknowledged that, pending negotiations with the banks aimed at defining the financial manoeuvre, the "Leverage Ratio" financial parameter of the main outstanding loans of the Parent Company at June 30, 2024 was not respected. As a result of the aforementioned negotiations, on August 1, 2024, the relative amending agreements were signed, which, i.a., provided for the resetting of the financial parameter, on the understanding that, with reference to the calculation dates of June 30, 2024 and December 31, 2024, the aforementioned financial parameter will not be subject to verification. Since these agreements were signed after June 30, 2024, the financial liabilities related to these loans were entirely reclassified under current liabilities, consistent with the provisions of international accounting standards.
Performance of the "Green Transportation" operating segment
Revenues of Green Transportation segment as of June 30, 2024, amounted to €102.5 million, compared to €104.3 million in the previous year.
Group's sales in the OEM channel amounted to €62.4 million, compared to €65.9 million in June 30, 2023. This result is influenced by a reduction in orders on the "Passenger car" segment, which, however, has lower profitability profiles than the "Mid&Heavy Duty" segment, which, on the contrary, has experienced a pickup in sales.
Sales in the After Market channel, equal to €40.1 million (compared to €38.4 million as of June 30, 2023), are mainly related to orders from distributors and authorised installers, both domestic and foreign ones.
As for the sales distribution by geographical area in the Green Transportation sector:
- In Italy, Group's sales amount to €11.5 million, down from the same period in the previous year (-6.1%).
- The rest of Europe (55.7% of total sales) reports a decrease (-6.5%) compared to the same period in the previous year as a result of the trend in orders from a major OEM "Passenger car" customer.
- Sales in the american continent, accounting for 10.3 % of total sales, were up 5.2%, mainly due to the positive performance in Latam.
- Markets in Asia and the rest of the World account for 22.9% or the total revenues, and recorded
an 11.5% increase mainly due to the sales performance of the "Mid & Heavy Duty" OEM channel in the Chinese market.
In the first six months of 2024, adjusted EBITDA of the Green Transportation segment, excluding nonrecurring costs amounting to €2.8 million, was €0.7 million, equal to 0.7% of revenues, sharply improved compared to the same period in the previous year (€0.2 million, equal to 0.2% of revenues and net of nonrecurring costs of €3.5 million).
The positive margin trend particularly reflects increased sales in the After Market and OEM "Mid&Heavy Duty" channels, which have historically been more profitable.
EBITDA of the Green Transportation segment as of June 30, 2024, was negative and equal to €2.1 million and improved compared to June 30, 2023 (negative and equal to €3.3 million).
Performance of the ""Clean Tech Solutions" operating segment
In the first six months of 2024, the Clean Tech Solutions segment reported revenues amounting to €36.7 million, down compared to the same period of the previous year (€47.5 million). This result was significantly affected by the postponement of some major orders, especially in North America. However, the last few months reveal a clear upturn in orders, particularly for hydrogen and biomethane orders. Adjusted EBITDA, as of June 30, 2024, amounted to €0.7 million, compared to positive €3.8 million in the same period of the previous year.
Key performance highlights of Landi Renzo S.p.A. (Parent Company) as of June 30, 2024
In the first six months of 2024, Landi Renzo S.p.A. reported revenues of €69.1 million, compared to €70.9 million in the same period of the previous year. EBITDA was negative in the amount of €2.1 million (including non-recurring expenses in the amount of €2.8 million) compared to negative €2.2 million as of June 30, 2023 (including non-recurring expenses in the amount of €2.4 million), while net financial Position was negative and equal to €105.6 million (negative €102.8 million excluding the effects of the application of IFRS 16 and the fair value of derivative financial contracts), compared to negative €81.7 million as of December 31, 2023 (negative €77.2 million excluding the effects of the application of IFRS 16 and the fair value of derivative financial contracts).
At the end of the half-year, the Parent Company had 296 employees, which was substantially in line with the figure as of December 31, 2023 (287 employees).
Significant events after the end of H1 2024
On July 10, 2024, the Board of Directors of Landi Renzo S.p.A. announced to the market that it had received the adherence by the banks for the rescheduling of the medium-and long-term financing agreements in the context of a capital strengthening operation that provides for the entry of the Fondo salvaguardia imprese, promoted by the Ministry of Enterprise and Made in Italy (MIMIT) and managed by Invitalia, the National Agency for Development, into the shareholding structure of Landi Renzo S.p.A. The entry will take place through a capital increase
under option for a total maximum of €25 million guaranteed up to €20 million by the majority shareholder GBD - Green by Definition S.p.A., and conditional on the execution of the former for at least €20 million, a capital increase of €20 million reserved for Invitalia. In this context, Landi Renzo S.p.A. received:
- o communication by Invitalia of its Board of Directors' approval of the investment in Landi Renzo, an investment subject to certain conditions precedent, including the favourable outcome of the necessary ministerial authorisations and the finalisation of the contractual documentation relating to the financial optimisation Project;
- o adherence by the banks that contracted the pool financing (Banco BPM S.p.A., Intesa Sanpaolo S.p.A. and UniCredit S.p.A.) to the proposed financial and capital optimisation project. All the banks resolved indeed in favour of extending the maturities of the credit lines, confirmed the existing economic conditions, and agreed on new covenant levels.
- On July 17, 2024, the Board of Directors of Landi Renzo S.p.A. approved the financial optimisation project aimed at stabilising the Company's capital structure and ensuring that it has the resources to implement the new five-year industrial plan. The approved manoeuvre is based on three pillars:
- I. a capital increase under option for a maximum total amount of €25 million guaranteed up to €20 million by the majority shareholder GBD – Green by Definition S.p.A.;
- II. a €20 million share capital increase reserved for Invitalia;
- III. a rescheduling of the financial reimbursement of the Company's existing mediumand-long-term financial debt towards the financing banks.
- On July 17, 2024, as well, the Board of Directors of Landi Renzo, after receiving the non-binding approval by the Committee for Related Party Transactions, authorised the renewal of the lease agreements with Gireimm S.r.l. (a related party pursuant to the Related Party Procedure as Gireimm S.r.l, together with Girefin S.p.A., companies that are part of the Landi Trust, indirectly hold, through GBD - Green by Definition S.p.A., the control of the Company), on the building for commercial and production use located in Cavriago (RE), as well as on the prefabricated boxes designated as technical and technological plants serving the productive property compendium. The operation has been considered as "operation between related parties of Lesser Significance" by the Related Party Transactions Committee in accordance with applicable laws and regulations.
- On July 17, 2024, the working contract with En. Corrado Belicchi, Group Chief Operating Officer of Landi Renzo S.p.A., was mutually resolved and he no longer serves in any position within the Landi Renzo Group.
- As recently disclosed to the market on July 23, 2024, the Board of Directors of Landi Renzo S.p.A. in view of the timelines related to the Financial Manoeuvre, as well as for the signing of the agreements inherent to it, updated the calendar of board meetings and shareholders'
meetings.
On August, 1 2024, in the context and implementation of the financial manoeuvre approved on July 17, 2024 by the Board of Directors, GBD – Green by definition S.p.A., Invitalia, as well as, with regards to certain provisions, Girefin S.p.A., Gireimm S.r.l., and Itaca GAS S.r.l., the shareholders of GBD– Green by definition S.p.A., signed an investment agreement governing, i.a., the excecution of a capital increase under option to the current Company's shareholders for a total maximum amount of €25 million, which is guaranteed up to €20 million by the majority shareholder GBD – Green by definition S.p.A, and conditional on the execution of the first capital increase for an amount of at least €20 million, of a second share capital increase for €20 million reserved to Invitalia, through the issue of special-class unlisted shares. These increases will be submitted to the approval of the competent corporate bodies.
Under the Investment Agreement, as of the implementation date of the Reserved Capital Increase, subject to the fulfilment of a set of conditions precedent, (i) Girefin, Gireimm and Itaca GAS will enter into a shareholders' agreement with Invitalia, which will govern some obligations undertaken by GBD – Green by definition S.p.A shareholders, in relation to the circulation of shares of GBD – Green by definition S.p.A; (ii) GBD and Invitalia will sign shareholders' agreement relating to Landi Renzo's governance concerning, i.a., the recognition to Invitalia of some administrative rights relating to the special class shares underwritten by Invitalia, as well as the circulation of the Company's shares held by GBD – Green by definition S.p.A and Invitalia; and (iii) Girefin and Gireimm will sign an agreement with Itaca GAS S.r.l., amending the shareholders' agreement signed on July 14, 2022, which regulates, i.a., the circulation of GBD's shares and the governance of both GBD – Green by definition S.p.A and Landi Renzo S.p.A..
- On August 1, 2024, as well, the agreements amending the medium-and-long-term financing pool agreements that were previously signed on June 29, 2022 (the "MLT Pool Financing") were also signed between the Company and the financing banks (i.e. UniCredit S.p.A., Intesa Sanpaolo S.p.A. and Sagitta SGR S.p.A, the latter replacing Banco BPM S.p.A.) in order to implement the Financial Manoeuvre. More specifically, a rearrangement was made to the repayment profile of the pool financing, in line with the generation of the cash flows to service the debt set forth in the 2024-2028 industrial Plan, as well as a consequent rearrangement of the financial ratios set forth therein, all while confirming the economic terms and conditions in force. These agreements will be subject to, i.a., the execution of the capital increase under option and the reserved capital increase according to the agreed timetable.
- On August 5, 2024, the Board of Directors of Landi Renzo S.p.A. approved the draft financial statements and consolidated financial statements as of December 31, 2023, and on August 7, 2024, the Company's quarterly Financial Statements as of March 31, 2024.
September 6, 2024
Foreseeable management development
The slow decline of inflationary phenomena on a global scale and the persistence of various conflict situations will continue to affect the different markets in which the Group works in 2024 as well. The results for the first six months of the year suggest a 2024 downturn compared to the previous year, with a strong focus of the management on implementing business initiatives and completing the financial strengthening activities necessary for the development of the subsequent plan years. In the Green Transportation segment, results are expected to be in line or slightly lower than in 2023 fiscal year, with a more balanced sales mix between Aftermarket and OEM (Passenger car" and Mid&Heavy Duty). In the Clean Tech Solutions segment, the growth of projects related to the emerging markets of biomethane, hydrogen and "Oil&Gas" continues. However, the still early stage of development of the new markets combined with the complexity of the new products determined a significant reduction in Production Value in the first part of the year, leading to a lower full year results forecast compared to the previous year.
Pursuant to Article 154-bis, paragraph 2, of Italian Legislative Decree No. 58 of February 24, 1998, the Financial Reporting Manager in charge of drawing the Company's financial statements, Paolo Cilloni, declares that the accounting information contained in this press release corresponds to the documented results, books, and accounting records. This press release is also available on the corporate website www.landirenzogroup.com.
Landi Renzo is the global leader in the natural gas, biomethane and hydrogen sustainable mobility and infrastructure sector. The Group stands out for its extensive presence at global level in over 50 countries, generating nearly 90% of its revenues abroad. Landi Renzo S.p.A. has been listed on the Euronext STAR Milan segment of Borsa Italiana since June 2007.
This press release is a translation. The Italian version will prevail
LANDI RENZO Paolo Cilloni CFO and Investor Relator [email protected]
Media contacts: Community Roberto Patriarca – 335 6509568 Silvia Tavola – 338 6561460 Lucia Fava – 366 5613441 [email protected]
| (Thousands of Euro) | ||
|---|---|---|
| 30/06/2024 | 30/06/2023 (Restated) |
|
| CONSOLIDATED INCOME STATEMENT | ||
| Revenues from sales and services | 139,142 | 151,805 |
| Other revenues and income | 458 | 1,024 |
| Cost of raw materials, consumables and goods and change in inventories | -84,737 | -94,405 |
| Costs for services and use of third-party assets | -29,956 | -28,386 |
| Personnel costs | -26,649 | -25,124 |
| Allocations, write downs and other operating expenses | -1,962 | -5,226 |
| Gross Operating Profit | 3,704 | -312 |
| Amortization, depreciation and impairment | -7,770 | -8,511 |
| Net Operating Profit | -11,474 | -8,823 |
| Financial income | 531 | 447 |
| Financial expenses | -6,048 | -5,399 |
| Exchange gains (losses) | -257 | -1,624 |
| Income (expenses) from hyperinflation | -812 | -212 |
| Income (expenses) from equity investments | -548 | -27 |
| Income (expenses) from joint venture measured using the equity method | 626 | 20 |
| Profit (Loss) before tax | -17,982 | -15,618 |
| Taxes | -479 | -5,316 |
| Net profit (loss) for the Group and minority interests, including: | -18,461 | -20,934 |
| Net profit (loss) attributable to non controlling interests | -1,733 | 21 |
| Net profit (loss) attributable to the Group | -16,728 | -20,955 |
| Basic earnings (loss) per share | -0.0743 | -0.0931 |
| Diluted earnings (loss) per share | -0.0743 | -0.0931 |
Data as of 30 June 2023 has been restated with the aim of aligning the comparative data with the classifications used for the preparation of the consolidated income statement closed as of 30 June 2024.
September 6, 2024
| (Thousands of Euro) | ||
|---|---|---|
| ASSETS | 30/06/2024 | 31/12/2023 |
| Non-current assets | ||
| Land, property, plant, machinery and other equipment | 13,016 | 13,232 |
| Development expenditure | 9,874 | 9,987 |
| Goodwill | 80,132 | 80,132 |
| Other intangible assets with finite useful lives | 13,928 | 15,034 |
| Right-of-use assets | 9,967 | 11,945 |
| Equity investments measured using the equity method | 3,216 | 2,948 |
| Other non-current financial assets | 870 | 902 |
| Deferred tax assets | 8,500 | 8,745 |
| Non-current assets for derivative financial instruments | 25 | 39 |
| Total non-current assets | 139,528 | 142,514 |
| Current assets | ||
| Trade receivables | 75,676 | 72,821 |
| Inventories | 73,426 | 76,260 |
| Contract work in progress | 14,757 | 17,377 |
| Other receivables and current assets | 18,032 | 17,355 |
| Current financial assets | 618 | 20,647 |
| Cash and cash equivalents | 18,771 | 26,495 |
| Total current assets | 201,280 | 230,955 |
| TOTAL ASSETS | 340,808 | 373,469 |
| (Thousands of Euro) | ||
|---|---|---|
| SHAREHOLDERS' EQUITY AND LIABILITIES | 30/06/2024 | 31/12/2023 |
| Shareholders' Equity | ||
| Share capital | 22,500 | 22,500 |
| Other reserves | 43,369 | 77,569 |
| Profit (loss) for the period | -16,728 | -35,169 |
| Total Shareholders' Equity of the Group | 49,141 | 64,927 |
| Minority interests | 3,440 | 5,277 |
| TOTAL SHAREHOLDERS' EQUITY | 52,821 | 70,204 |
| Non-current liabilities | ||
| Non-current bank loans | 5,130 | 67,785 |
| Other non-current financial liabilities | 15,496 | 18,503 |
| Non-current liabilities for right-of-use | 8,308 | 10,090 |
| Provisions for risks and charges | 5,819 | 6,244 |
| Defined benefit plans for employees | 3,317 | 3,257 |
| Deferred tax liabilities | 2,984 | 3,048 |
| Non-current Liabilities for derivative financial instruments | 80 | 515 |
| Total non-current liabilities | 41,134 | 109,442 |
| Current liabilities | ||
| Bank financing and short-term loans | 109,763 | 51,987 |
| Other current financial liabilities | 12,935 | 7,459 |
| Current liabilities for right-of-use | 2,479 | 2,792 |
| Trade payables | 83,295 | 100,115 |
| Tax liabilities | 1,968 | 2,440 |
| Other current liabilities | 36,653 | 29,030 |
| Total current liabilities | 247,093 | 193,823 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 340,808 | 373,469 |
September 6, 2024
| (Thousands of Euro) | ||
|---|---|---|
| CONSOLIDATED CASH FLOWS STATEMENT | 30/06/2024 | 30/06/2023 (Restated) |
| Financial flows deriving from operating activities | ||
| Pre-tax profit (loss) for the period | -17,982 | -15,618 |
| Adjustments for: | ||
| Depreciation of property, plant and machinery | 1,865 | 2,105 |
| Amortisation of intangible assets | 4,244 | 4,696 |
| Depreciation of right-of-use assets | 1,661 | 1,710 |
| Loss (profit) from disposal of tangible and intangible assets | -76 | -338 |
| Share-based incentive plans | 0 | 0 |
| Impairment loss on receivables | 338 | 869 |
| Net financial charges | 5,774 | 6,576 |
| Net expenses (income) from hyperinflation | 812 | 212 |
| Net expenses (income) from equity investments | 548 | 27 |
| Net expenses (income) from equity investments measured using the equity method | -626 | -20 |
| -3,442 | 219 | |
| Changes in: | ||
| Inventories and work in progress | 5,455 | 1,086 |
| Trade receivables and other receivables | -4,870 | 7,341 |
| Trade payables and other payables | -14,062 | -12,458 |
| Provisions and employee benefits | -345 | 903 |
| Cash generated from operation | -17,264 | -2,909 |
| Interest paid | -2,278 | -3,520 |
| Interest received | 286 | 93 |
| Taxes paid | -269 | -420 |
| Net cash generated (absorbed) from operating activities | -19,525 | -6,756 |
| Financial flows from investment | ||
| Proceeds from sale of property, plant and machinery | 326 | 267 |
| Purchase of property, plant and machinery | -1,880 | -1,763 |
| Purchase of intangible assets | -354 | -211 |
| Development expenditure | -2,672 | -2,416 |
| Net cash absorbed by investment activities | -4,580 | -4,123 |
| Free Cash Flow | -24,105 | -10,879 |
| Financial flows from financing activities | ||
| Disbursements (reimbursement) of medium/long-term loans | -3,636 | -252 |
| Change in short-term bank debts | 1,226 | -218 |
| Repayment of leases IFRS 16 | -1,733 | -1,898 |
| Net cash generated (absorbed) by financing activities | -4,143 | -2,368 |
| Net increase (decrease) in cash and cash equivalents | -28,248 | -13,247 |
| Cash and cash equivalents as at 1 January | 26,495 | 62,968 |
| Decrease/(Increase) in short-term deposits (*) | 20,029 | -25,000 |
| Effect of exchange rate fluctuations on cash and cash equivalents | 495 | 313 |
| Cash and cash equivalents at the end of the period | 18,711 | 25,034 |
(*) Active financing of time deposits
The data as of 30 June 2023 has been restated with the aim of aligning the comparative data with the classifications used for the preparation of the consolidated cash flow as of 30 June 2024.
| Fine Comunicato n.0915-35-2024 | Numero di Pagine: 12 |
|---|---|
| -------------------------------- | ---------------------- |