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Datalogic

Interim / Quarterly Report May 15, 2024

4452_10-q_2024-05-15_39357824-0765-4315-8717-e4ddc6911cc3.pdf

Interim / Quarterly Report

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Consolidated Interim Report at March 31, 2024

TABLE OF CONTENTS

GROUP STRUCTURE 3
COMPOSITION OF CORPORATE BODIES 4
REPORT ON OPERATIONS 5
CONSOLIDATED FINANCIAL STATEMENTS 15
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Changes in Equity

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22

Information on the Statement of Financial Position

Information on the Income Statement

ANNEXES

  • ⋅ Certification by the Manager responsible for the preparation of the Company's financial reports
  • ⋅ Consolidation scope
  • ⋅ Reconciliation of Alternative Performance Measures
  • ⋅ Restatement 2023

DISCLAIMER

This document contains forward-looking statements relating to future events and operating, income and financial results of the Group. These forecasts have by nature an element of risk and uncertainty, as they depend on the materialisation of future events and developments. Actual results may differ even significantly from those disclosed due to a variety of factors, most of which beyond the Group's control.

COMPOSITION OF CORPORATE BODIES

Board of Directors (1)

Romano Volta Executive Chairman (2) Valentina Volta Chief Executive Officer (2) Angelo Manaresi Independent Director Chiara Giovannucci Orlandi Independent Director Filippo Maria Volta Non-Executive Director Vera Negri Zamagni Independent Director Valentina Beatrice Manfredi Independent Director

Board of Statutory Auditors (3)

Diana Rizzo Chair Elena Lancellotti Standing Auditor Roberto Santagostino Standing Auditor

Giulia De Martino Alternate Auditor Eugenio Burani Alternate Auditor Patrizia Cornale Alternate Auditor

Control, Risks, Remuneration and Appointments Committee

Angelo Manaresi Chairman Chiara Giovannucci Orlandi Independent Director Vera Negri Zamagni Independent Director

Independent Auditors (4)

Deloitte & Touche S.p.A.

(1) The Board of Directors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2026.

(2) Legal representative before third parties.

  • (3) The Board of Statutory Auditors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2024.
  • (4) Deloitte & Touche S.p.A. were appointed Independent Auditors for the nine-year period from 2019 to 2027 by the Shareholders' Meeting held on April 30, 2019 and will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2027.

Report on Operations

REPORT ON OPERATIONS

INTRODUCTION

This Interim Report at March 31, 2024 was prepared in accordance with Article 154 ter of the T.U.F. and is drawn up in accordance with the International Financial Reporting Standards (IAS/IFRS) adopted by the European Union.

The amounts shown in the tables of the Report on Operations are expressed in Euro thousands, while the explanatory notes are expressed in Euro millions.

GROUP PROFILE

Datalogic S.p.A. and its subsidiaries ("Group" or "Datalogic Group") is a global technological leader in the automatic data capture and process automation markets. The Group is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID. Its pioneering solutions help increase the efficiency and quality of processes along the entire value chain in the Retail, Manufacturing, Transportation & Logistics and Healthcare segments.

PERIOD HIGHLIGHTS

The following table summarises the Datalogic Group's key income and financial results at March 31, 2024 versus the same period of the prior year.

The income statement figures at March 31, 2023 have been restated, under IFRS 5, following the transfer of control of Informatics Holdings, Inc. and the resulting reclassification of its operating results as results from discontinued operations and, under IAS 1, following the reclassification of certain commercial costs as a reduction of revenue (details are found in Annex 4 of this document):

31.03.2024 % on
Revenue
31.03.2023
Restated
% on
Revenue
Change % chg. % chg.
net FX
Revenue 111,320 100.0% 145,486 100.0% (34,166) -23.5% -22.8%
Adjusted EBITDA 2,126 1.9% 12,936 8.9% (10,810) -83.6% -84.8%
Adjusted EBIT (5,461) -4.9% 4,882 3.4% (10,343) n.a. n.a.
EBIT (7,192) -6.5% 3,431 2.4% (10,623) n.a. n.a.
Profit/(Loss) for the period 6,046 5.4% 3,182 2.2% 2,864 90.0% 83.7%
Net financial position (NFP) (22,699) (31,673) 8,974

The Group ended first quarter 2024 with Revenue from sales of €111.3 million, down 22.8% net FX (-23.5% at current exchange rates) versus €145.5 million in first quarter 2023.

Sales from new products (Vitality Index) grew in first quarter 2024 and accounted for 11.2% of revenue (9.5% in fourth quarter 2023; 6.3% in first quarter 2023).

Adjusted EBITDA amounted to €2.1 million, down versus €12.9 million in the same period of the prior year, accounting for 1.9% of sales (8.9% in first quarter 2023), negatively impacted by the decrease in sales volumes, only partly offset by improved productivity and structural cost containment.

Adjusted EBIT stood at a negative €5.5 million (a positive €4.9 million in first quarter 2023).

Net profit for the period amounted to €6.0 million, accounting for 5.4% of revenue (€3.2 million at March 31, 2023 or 2.2% of revenue), thanks to the proceeds from the sale of Informatics Holdings, Inc.

Net Financial Debt at March 31, 2024 stood at €22.7 million, an improvement of €12.6 million versus December 31, 2023.

REVENUE PERFORMANCE

The breakdown by geographical area of Group revenue for the period, versus the same period of the prior year, is shown in the table below:

31.03.2024 % 31.03.2023 % Change % chg. % chg.
Restated net FX
Italy 13,519 12.1% 15,374 10.6% (1,855) -12.1% -12.1%
EMEAI (excluding Italy) 54,132 48.6% 71,008 48.8% (16,876) -23.8% -23.8%
Total EMEAI 67,651 60.8% 86,383 59.4% (18,731) -21.7% -21.7%
Americas 31,958 28.7% 37,832 26.0% (5,874) -15.5% -14.6%
APAC 11,711 10.5% 21,272 14.6% (9,561) -44.9% -41.9%
Total revenue 111,320 100.0% 145,486 100.0% (34,166) -23.5% -22.8%

EMEAI was down 21.7% in the first quarter of the year, with Italy dropping 12.1%. Americas fell less with a 15.5% drop, while APAC declined more (-44.9%, -41.9% net FX) versus the same period of the prior year.

To better align with its strategic goals and prioritise product and solution offerings, the Group identifies two Market Segments, which feature distinct sales models, customers with varying purchasing needs, and different stakeholders: Data Capture and Industrial Automation.

The following is a breakdown of Group revenue split up by these market segments:

31.03.2024 % 31.03.2023
Restated
% Change % chg. % chg. net
FX
Data Capture 67,821 60.9% 90,943 62.5% (23,122) -25.4% -24.7%
Industrial Automation 43,499 39.1% 54,543 37.5% (11,044) -20.2% -19.6%
Total revenue 111,320 100.0% 145,486 100.0% (34,166) -23.5% -22.8%

The Data Capture segment, with 60.9% of divisional sales (62.5% at March 31, 2023), fell 25.4% versus the same period of the prior year, a decline seen across all geographical areas.

The Industrial Automation segment dropped 20.2%, also declining across all geographies, in APAC in particular.

ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)

Management uses certain performance measures, not identified as accounting measures under IFRS (NON-GAAP measures), to provide a clearer picture of the Group's performance. The measurement criterion applied by the Group might not be the same as the one adopted by other Groups and the measures might not be comparable with theirs. These performance measures, determined according to provisions set out by the Guidelines on performance measures, issued by ESMA/2015/1415 and adopted by CONSOB with Communication no. 92543 of December 3, 2015, refer only to the performance in the period related to this Consolidated Interim Report and the comparison periods. The performance measures must be considered as supplementary and do not supersede the information provided under the IFRS standards. The main measures adopted are described below.

  • Special Items (or Non-Recurring Costs): income items arising from non-recurring events or transactions, restructuring activities, business reorganisation, write-downs of fixed assets, ancillary expense from acquisitions of businesses or companies or their disposals, including amortisation resulting from the recognition of purchase price allocation, and any other event deemed by Management not to represent current business activity.
  • EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): profit/(loss) for the period from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense) and income tax.
  • Adjusted EBITDA: profit/(loss) for the period from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense), income tax and Special Items, as defined above.
  • EBIT (Earnings Before Interest, Taxes) or Operating Result: profit/(loss) for the period from continuing operations before financials (including foreign exchange income and expense) and income tax.
  • Adjusted EBIT or Operating Result: profit/(loss) for the period from continuing operations before financials (including foreign exchange income and expense), income tax and Special Items, as defined above.
  • Net Trade Working Capital: the sum of Inventory and Trade Receivables, less Trade Payables.
  • Net Working Capital: the sum of Net Trade Working Capital and Other Current Assets and Liabilities including Provisions for Current Risks and Charges.
  • Net Invested Capital: the total of Current and Non-Current Assets, excluding financial assets, less Current and Non-Current Liabilities, excluding financial liabilities.
  • NFP (Net Financial Position or Net Financial Debt): calculated in accordance with the provisions of "Warning Notice no. 5/21" of April 29, 2021 issued by CONSOB and referring to ESMA guideline 32-382-1138 of March 4, 2021.
  • Cash Flow from Operations: the sum of Adjusted EBITDA, changes in Net Trade Working Capital, expenditure in tangible and intangible fixed assets (excluding fixed assets under right of use recognised during the period according to IFRS 16), tax paid, financial expense/income, changes in Other Current Assets and Liabilities, and Special Items, as defined above, while excluding any other changes related to equity (such as dividend distributions and/or the purchase of treasury shares), to transactions of an extraordinary nature, the repayment and/or taking out of bank loans and/or other financial items in the NFP, and any other transaction that cannot be directly attributed to the company's business operations.

GROUP RECLASSIFIED INCOME RESULTS

The following table shows the main items of the income statement for the period versus the same period of the prior year, the results of which have been restated under IFRS 5 and IAS 1, for details of which reference is made to Annex 4 of this document:

31.03.2024 31.03.02023 Change % chg.
Restated
Revenue 111,320 100.0% 145,486 100.0% (34,166) -23.5%
Cost of goods sold (68,554) -61.6% (86,055) -59.2% 17,501 -20.3%
Gross Operating Margin 42,766 38.4% 59,431 40.9% (16,665) -28.0%
Research and Development expense (14,816) -13.3% (16,191) -11.1% 1,375 -8.5%
Distribution expense (21,926) -19.7% (24,986) -17.2% 3,060 -12.2%
Administrative and General expense (11,813) -10.6% (13,458) -9.3% 1,645 -12.2%
Other (expense) income 328 0.3% 86 0.1% 242 281.4%
Total operating costs and other expense (48,227) -43.3% (54,549) -37.5% 6,322 -11.6%
Adjusted EBIT (5,461) -4.9% 4,882 3.4% (10,343) n.a.
Special Items - Other (Expense) and Income (563) -0.5% (260) -0.2% (303) 116.4%
Special Items - D&A from acquisitions (1,168) -1.0% (1,191) -0.8% 23 -1.9%
EBIT (7,192) -6.5% 3,431 2.4% (10,623) n.a.
Financials 17,170 15.4% (840) -0.6% 18,010 n.a.
Foreign exchange gains/(losses) (2,261) -2.0% 658 0.5% (2,919) n.a.
EBT 7,717 6.9% 3,249 2.2% 4,468 137.5%
Tax (439) -0.4% (471) -0.3% 32 -6.7%
Profit/(Loss) for the period from continuing
operations
7,278 6.5% 2,778 1.9% 4,500 162.0%
Profit/(Loss) for the period from discontinued
operations
(1,232) -1.1% 404 0.3% (1,636) n.a.
Profit/(Loss) for the period 6,046 5.4% 3,182 2.2% 2,864 90.0%
EBIT (7,192) -6.5% 3,431 2.4% (10,623) n.a.
Special Items - Other (Expense) and Income 563 0.5% 260 0.2% 303 116.4%
Special Items - D&A from acquisitions 1,168 1.0% 1,191 0.8% (23) -1.9%
Depreciation Tang. Fixed Assets and Rights of Use 3,649 3.3% 4,082 2.8% (433) -10.6%
Amortisation Intang. Fixed Assets 3,938 3.5% 3,972 2.7% (34) -0.9%
Adjusted EBITDA 2,126 1.9% 12,936 8.9% (10,810) -83.6%

The Gross Operating Margin reached €42.8 million versus €59.4 million at March 31, 2023, deteriorating as a percentage of sales, standing at 38.4% versus 40.9% in the same period in 2023, due to lower sales volumes and lower absorption of fixed costs, only partly offset by improved productivity.

Operating costs and other expense amounted to €48.2 million (€54.5 million at March 31, 2023), and while decreasing in absolute value, increased as a percentage of sales from 37.5% to 43.3%.

Research and Development expense, amounting to €14.8 million, decreased by 8.5% at March 31, 2023. Total monetary costs in R&D, i.e., before capitalisation and net of amortisation and depreciation (R&D Cash Out), amounted to €15.1 million (€15.4 million in the first quarter of the prior year), with a percentage of sales of 13.6% (10.6% in the same period of 2023).

Distribution expense amounted to €21.9 million and was down from €25.0 million in the same period of 2023, while the percentage of revenue increased to 19.7% from 17.2% in the first quarter of the prior year.

Administrative and General Expense, amounting to €11.8 million at March 31, 2024, decreased by 12.2% versus the same period of 2023; as a percentage of sales, the item increased from 9.3% to 10.6%.

Financials closed at a positive €14.9 million, although affected by the adverse trend in FX differences, and improved by €15.1 million versus March 31, 2023, thanks mainly to the proceeds from the sale of Informatics Holdings, Inc.

GROUP RECLASSIFIED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD

The following table shows the main financial and equity items at March 31, 2024 versus December 31, 2023.

31.03.2024 31.12.2023 Change % chg.
Intangible fixed assets 87,062 88,845 (1,783) -2.0%
Goodwill 195,210 205,352 (10,142) -4.9%
Tangible fixed assets 103,735 105,486 (1,751) -1.7%
Financial assets and investments in associates 3,432 5,418 (1,986) -36.7%
Other fixed assets 59,633 58,103 1,530 2.6%
Fixed Assets 449,072 463,204 (14,132) -3.1%
Trade receivables 56,203 52,093 4,110 7.9%
Trade payables (78,517) (83,515) 4,998 -6.0%
Inventory 100,082 102,462 (2,380) -2.3%
Net Trade Working Capital 77,768 71,040 6,728 9.5%
Other current assets 31,279 31,115 164 0.5%
Other liabilities and provisions for current risks (59,262) (61,624) 2,362 -3.8%
Net Working Capital 49,785 40,531 9,254 22.8%
Other non-current liabilities (45,602) (46,327) 725 -1.6%
Post-employment benefits (5,769) (5,759) (10) 0.2%
Provisions for non-current risks (5,295) (5,197) (98) 1.9%
Net Invested Capital 442,191 446,452 (4,261) -1.0%
Equity (419,492) (411,131) (8,361) 2.0%
Net financial position (NFP) (22,699) (35,321) 12,622 -35.7%

Net Invested Capital, at €442.2 million (€446.5 million at December 31, 2023), decreased by €4.3 million.

Fixed Assets, amounting to €449.1 million (€463.2 million at December 31, 2023), decreased by €14.1 million, attributable mainly to a reduction in Goodwill following the sale of Informatics Holdings, Inc. as well as amortisation and depreciation for the period of Intangible and Tangible Fixed Assets.

Net Trade Working Capital at March 31, 2024 amounted to €77.8 million and increased by €6.7 million versus December 31, 2023. As a percentage of sales, it increased from 13.2% at December 31, 2023 to 16.1% at March 31, 2024.

The Net Financial Position at March 31, 2024 stood at a negative €22.7 million (a negative €31.7 million at March 31, 2023 and at €35.3 million at December 31, 2023). The cash flows that led to the change in the consolidated Net Financial Position from the beginning of the period are detailed below, versus the same period of the prior year.

31.03.2024 31.03.2023 Change
Net financial position (Financial debt) beginning of period (35,321) (42,007) 6,686
Adjusted EBITDA 2,126 13,478 (11,352)
Change in net trade working capital (6,728) 4,557 (11,285)
Other changes in net working capital and special items (2,253) (4,791) 2,538
Net expenditure (4,189) (5,259) 1,070
Tax paid (827) (829) 2
Net financial income (expense) (2,912) (179) (2,733)
Cash Flow from Operations (14,783) 6,977 (21,760)
Dividend distribution - - -
Sale (Purchase) of treasury shares - - -
Disinvestments (investments) of financial assets - - -
Acquisitions - - -
Other changes 27,405 3,357 24,048
Change in Net Financial Position 12,622 10,334 2,288
Net financial position (financial debt) end of period (22,699) (31,673) 8,974

Cash Flow from Operations at March 31, 2024 stood at a negative €14.8 million. The negative change is due primarily to the typical cash absorption of Net Working Capital in the early part of the year and a decrease in Adjusted EBITDA. However, financial debt, at €22.7 million, improved by €9.0 million thanks to the proceeds from the sale of Informatics Holdings, Inc. shown under "Other changes".

At March 31, 2024, the Net Financial Debt is shown below:

31.03.2024 31.12.2023
A. Cash funds 53,497 70,629
B. Cash equivalents 30,000 -
C. Other current financial assets - -
D. Liquid assets (A) + (B) + (C) 83,497 70,629
E. Current financial debt 5,516 5,421
E1. of which lease payables 3,889 3,863
F. Current portion of non-current financial debt 14,667 14,428
G. Current Financial Debt (E) + (F) 20,183 19,849
H. Current Net Financial Debt (Financial Position) (G) - (D) (63,314) (50,780)
I. Non-current financial debt 86,013 86,101
I1. of which lease payables 7,670 7,767
J. Debt instruments - -
K. Trade and other non-current payables - -
L. Non-Current Financial Debt (I) + (J) + (K) 86,013 86,101
M. Total Net Financial Debt/(Net Financial Position) (H) + (L) 22,699 35,321

At March 31, 2024, the Group had outstanding financial credit lines of approximately €281.0 million, of which approximately €193.0 million committed. Undrawn and readily available financial lines amounted to €188.0 million. Indirect and conditional debt at March 31, 2024 is represented exclusively by the Group's provision for postemployment benefits of €5.8 million.

SIGNIFICANT EVENTS IN THE PERIOD

On March 7, 2024 Datalogic S.p.A. completed the disposal of 100% of its non-strategic stake in Informatics Holdings, Inc. (Informatics), a company active in the marketing and distribution of software products and solutions tailored to small and medium-sized companies, headquartered in Plano (Texas, USA). The transaction involved the sale by Datalogic S.p.A. of its stake to a company controlled by the U.S. private equity fund Renovo Capital LLC.

Additionally, effective January 1, 2024, the Board of Directors approved the transfer of the subsidiary Datalogic S.r.l.'s R&D division business unit to the subsidiary Datalogic IP Tech S.r.l.. As a result, the ownership structure of Datalogic IP Tech S.r.l. changed as follows: Datalogic S.r.l.'s stake increased from 50% to 67.16%, whereas the parent company Datalogic S.p.A.'s stake decreased from 50% to 32.84%.

RECLASSIFICATION OF INCOME STATEMENT ITEMS

Starting from the first quarter of the current year, to provide a clearer picture of Group performance, certain costs shown in distribution expense have been classified as a reduction in revenue.

Comparative figures have been consistently restated; reference is made to the table in Annex 4 of this document for details of the amounts.

GOVERNANCE

On April 30, 2024, the Shareholders' Meeting approved the Financial Statements at December 31, 2023, and reviewed the Group's Consolidated Financial Statements at December 31, 2023, and resolved to distribute an ordinary unit dividend, gross of tax, of 12 Euro cents per share, for a maximum total amount of €6.4 million.

The same Meeting also resolved to:

  • appoint the Board of Directors for the years 2024-2026, with the election of 6 members from "List No. 1" submitted by the shareholder Hydra S.p.A., which holds a 64.85% stake in the Company's share capital and a 78.65% stake in the Company's voting share capital (37,900,000 ordinary shares), and the election of 1 member from "List No. 2" submitted by a grouping of shareholders holding a total 2.64% stake in the share capital;
  • appoint Romano Volta as Chairman of the Board of Directors, until the date of the Shareholders' Meeting convened to approve the financial statements for the year ending December 31, 2026;
  • set, pursuant to and for the purposes of Article 20 of the Bylaws, in the amount of €2,500,000.00, the maximum global annual compensation to be granted to all the members of the Board of Directors, including those holding strategic responsibilities for the current year (2024) and for the portion of the following year (2025), until the date of approval of the Company's 2024 financial statements, leaving to the discretion of the Board itself any decision regarding the allocation of the above maximum global amount among the different Directors;
  • in implementation of the provisions of Article 123-ter, Legislative Decree No. 58/1998 and 84-quater of CONSOB Regulation No. 11971 of May 14, 1999, approve the 2024 remuneration policy set out in section one of the Report on Remuneration Policy and on Compensation Paid and to vote in favour of compensation paid in 2023 set out in section two of the Report;
  • revoke, for the unexecuted portion at the date of the Shareholders' Meeting, the authorisation to the Board of Directors to purchase treasury shares resolved by the Shareholders' Meeting on April 27, 2023, and authorise the Board of Directors, pursuant to and in accordance with Article 2357 et seq. of the Italian Civil Code and Article 132 of Legislative Decree No. 58 of February 24, 1998, to carry out transactions to purchase the Company's treasury shares, on one or more occasions, for a period not exceeding 18 months from the date of this resolution.

MACROECONOMIC AND GEOPOLITICAL RISKS

The socio-political tensions that escalated into conflict between Russia and Ukraine starting from February 2022, the developments of which remain unpredictable, have prompted Western countries to implement economic sanctions against Russia. The Group has no offices in the countries currently affected by the conflict, nor do they represent significant outlet or supply markets for it. The potential effects of this situation on the Company and Group's income and financial results are however constantly monitored.

Since the outbreak of the conflict and the adoption of sanctions by the EU against Russia, a cross-functional working group has been established to assess and ascertain (including monitoring of "Denied Parties"), from a technical point of view, which Datalogic products and which business partner relationships could potentially be subject to sanctions. Following entry into force of the IX European sanctions package, the Group companies have suspended all sales and post-sales activities with Russia (trade with Belarus had already been blocked) and have implemented control systems in order to prevent business transactions with sanctioned countries. Additionally, in response to the enactment of the XII package at end 2023, Datalogic has adjusted its contractual framework to align with the regulations. Moreover, starting from October 2023, tensions between Israel and Hamas have escalated into a conflict. While the Group lacks a sphere of influence or operational headquarters in Israel, it remains vigilant regarding potential negative effects stemming from heightened instability in this region.

EVENTS AFTER THE END OF THE PERIOD

Nothing to report.

BUSINESS OUTLOOK

To date, the outlook for the full year 2024 remains unchanged. Overall, we anticipate a gradual quarter-by-quarter improvement in both sales and profitability. The first half of 2024 is expected to experience declining sales versus the same period last year, offset however by growth in the second half of the year.

Despite uncertainty, the Group remains confident in a gradual recovery and continues to pursue its innovation strategy. This ensures readiness to offer increasingly innovative solutions to customers as markets normalise. Additionally, to mitigate the short-term impacts of declining volumes on profitability, it remains focused on implementing continuous efficiency and cost optimisation measures.

SECONDARY LOCATIONS

The Parent Company has no secondary locations.

Chairman of the Board of Directors (Romano Volta)

Consolidated Financial Statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS (Euro/000) Notes 31.03.2024 31.12.2023
A) Non-current assets (1+2+3+4+5+6+7) 449,072 463,204
1) Tangible fixed assets 92,455 94,040
Land 1 12,718 12,597
Buildings 1 51,343 51,520
Other assets 1 25,641 26,892
Fixed assets under construction and advances 1 2,753 3,031
2) Intangible fixed assets 282,272 294,197
Goodwill 2 195,210 205,352
Development costs 2 39,224 42,034
Other 2 34,033 36,075
Fixed assets under construction and advances 2 13,805 10,736
3) Right of use fixed assets 3 11,280 11,446
4) Investments in associates 4 640 640
5) Non-current financial assets 6 2,792 4,778
6) Trade and other receivables 7 1,564 784
7) Deferred tax assets 12 58,069 57,319
B) Current assets (8+9+10+11+11) 271,061 256,299
8) Inventory 100,082 102,462
Raw and ancillary materials and consumables 8 52,349 51,002
Work in progress and semi-finished products 8 20,484 18,690
Finished products and goods 8 27,249 32,770
9) Trade and other receivables 75,965 70,546
Trade receivables 7 56,203 52,093
of which associates 7 1,588 1,346
of which related parties 7 8 8
Other receivables, accrued income and deferred expense 7 19,762 18,453
10) Tax receivables 9 11,517 12,662
11) Cash and cash equivalents 5 83,497 70,629
Total Assets (A+B) 720,133 719,503

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

LIABILITIES (Euro/000) Notes 31.03.2024 31.12.2023
A) Total Equity (1+2+3+4+5+6) 10 419,492 411,131
1) Share capital 10 30,392 30,392
2) Reserves 10 100,570 98,212
3) Retained earnings (losses) 10 279,531 269,731
4) Profit (loss) for the period 10 5,745 9,859
5) Group Equity 10 416,238 408,194
Profit (loss) for the period attributable to non-controlling interests 10 301 (373)
Share capital attributable to non-controlling interests 10 2,953 3,310
6) Equity attributable to non-controlling interests 3,254 2,937
B) Non-current liabilities (7+8+9+10+11) 142,679 143,384
7) Non-current financial payables 11 86,013 86,101
8) Deferred tax liabilities 12 26,320 26,334
9) Provisions for post-employment and retirement benefits 13 5,769 5,759
10) Provisions for non-current risks and charges 14 5,295 5,197
11) Other liabilities 15 19,282 19,993
C) Current liabilities (12+13+14+15) 157,962 164,988
12) Trade and other payables 127,446 133,030
Trade payables 15 78,517 83,515
of which associates 15 58 92
of which related parties 24 21
Other payables, accrued expense and deferred income 15 48,929 49,515
13) Tax payables 9 7,796 9,388
14) Provisions for current risks and charges 14 2,537 2,721
15) Current financial payables 11 20,183 19,849
Total Liabilities (A+B+C) 720,133 719,503

CONSOLIDATED INCOME STATEMENT

(Euro/000) Notes 31.03.2024 31.03.2023
Restated
1) Revenue 16 111,320 145,486
Revenue from sale of products 101,849 136,805
Revenue from services 9,471 8,681
of which related parties and associates 1,693 2,720
2) Cost of goods sold 17 68,608 86,062
of which related parties and associates 81 78
Gross Operating Margin (1-2) 42,712 59,424
3) Other revenue 18 923 635
4) Research and development expense 17 15,408 16,736
of which related parties and associates 152 148
5) Distribution expense 17 22,519 25,390
of which related parties and associates 61 54
6) Administrative and general expense 17 12,305 13,953
of which related parties and associates 49 41
of which Parent Company - 6
7) Other operating expense 17 595 549
Total operating costs 50,827 56,628
EBIT (7,192) 3,431
8) Financial income 19 25,949 9,656
9) Financial expense 19 11,040 9,838
Financials (8-9) 14,909 (182)
Profit/(Loss) before tax from continuing operations 7,717 3,249
Income tax 20 439 471
Profit/(Loss) for the period from continuing operations 7,278 2,778
Net Profit/(Loss) from discontinued operations (1,232) 404
Net Profit/(Loss) for the period 6,046 3,182
Basic earnings/(loss) per share (€) 21 0.10 0.06
Diluted earnings/(loss) per share (€) 21 0.10 0.06
Attributable to:
Shareholders of the Parent 5,745 3,326
Non-controlling interests 301 (144)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Euro/000) Notes 31.03.2024 31.03.2023
Profit/(Loss) for the period 6,046 3,182
Other items of the statement of comprehensive income:
Other items of the statement of comprehensive income that will later be
reclassified to Profit/(Loss) for the period
Profit/(Loss) on cash flow hedges (CFH) 10 15 25
Profit (Loss) from the translation of financial statements of foreign companies 10 2,347 (6,378)
Total other items of the statement of comprehensive income that will later
be reclassified to Profit/(Loss) for the period
2,362 (6,353)
Other items of the statement of comprehensive income that will not later be
reclassified to Profit/(Loss) for the period
Actuarial gains (losses) on defined-benefit plans - -
of which tax effect - -
Profit/(Loss) from financial assets at FVOCI 10 - 1,695
of which tax effect (0) (21)
Total other items of the statement of comprehensive income that will not
later be reclassified to Profit/(Loss) for the period
1,695
Total profit/(loss) of the statement of comprehensive income 2,362 (4,658)
Net Profit/(Loss) for the period 8,408 (1,476)
Attributable to:
Shareholders of the Parent Company 8,091 (1,281)
Non-controlling interests 317 (195)

CONSOLIDATED STATEMENT OF CASH FLOWS

(Euro/000) Notes 31.03.2024 31.03.2023
Profit/(Loss) before tax 7,717 3,744
Depreciation of tangible fixed assets and write-downs 1 2,638 3,082
Amortisation of intangible fixed assets and write-downs 2 5,088 5,168
Depreciation of right of use fixed assets 3 1,037 1,045
Losses (Gains) from sale of fixed assets 17, 18 (401) (24)
Change in provisions for risks and charges 14 (86) (389)
Change in provision for obsolescence 8 3,070 2,035
Financials 19 (14,909) 203
Monetary effect foreign exchange gains (losses) (4,234) (1,739)
Other non-monetary changes (148) (1,188)
Cash flow generated (absorbed) from operations before changes in working
capital (228) 12,219
Change in trade receivables 7 (3,731) 17,393
Change in final inventory 8 (207) 403
Change in trade payables 15 (5,575) (15,875)
Change in other current assets 7 (1,185) (4,217)
Change in other current liabilities 15 (962) 2,480
Change in other non-current assets 6 (774) (5)
Change in other non-current liabilities 5 (913) (447)
Cash flow generated (absorbed) from operations after changes in working
capital
(13,575) 11,951
Change in tax assets and liabilities (1,521) 425
Interest paid (716) (901)
Interest collected 137 111
Cash flow generated (absorbed) from operations (A) (15,675) 11,586
Increase in intangible fixed assets 2 10,455 (3,613)
Increase in tangible fixed assets 1 (1,021) (1,722)
Decrease in tangible fixed assets 1 993 76
Change in investments and current and non-current financial assets 5 19,810 (97)
Cash flow generated (absorbed) from investments (B) 30,237 (5,356)
Payment of financial payables 11 - (30,103)
Other changes in financial payables 11 713 -
Payments of financial liabilities from leases (1,262) (1,113)
Effect of change in cash and cash funds 135 (375)
Other changes (1,279) 2,030
Cash flow generated (absorbed) from financing activities (C) (1,693) (29,562)
Net increase (decrease) in cash (A+B+C) 12,869 (23,332)
Net cash and cash equivalents at beginning of period 70,628 107,482
Net cash and cash equivalents at end of period 83,497 84,151

Consolidated Interim Report at March 31, 2024

CONSOLIDATED CHANGES IN EQUITY

Description Share
capital
Share
premium
reserve
Treasury
shares
Translation
reserve
Other
Reserves
Retained
earnings
Group
Profit
(Loss)
Group
Equity
Profit (Loss)
of non
controlling
interests
Share capital
and reserves of
non-controlling
interests
Equity
attributable to
non-controlling
interests
Profit
(Loss)
Equity
01.01.2024 30,392 111,779 (41,962) 27,482 913 269,732 9,859 408,195 (373) 3,310 2,937 9,486 411,132
Allocation of profit - - - - - 9,859 (9,859) - 373 (373) - (9,486) -
Dividends - - - - - - - - - - - - -
Treasury shares - - - - - - - - - - - - -
Share-based
incentive plan - - - - - - - - - - - - -
Other changes - - - 12 - (60) - (48) - - - - (48)
Profit/(Loss) for the - - - - - - 5,745 5,745 301 - 301 6,046 6,046
period
Other items of the
statement of - - - 2,331 15 - - 2,346 - 16 16 - 2,362
comprehensive income
Total comprehensive
Profit (Loss) - - - 2,331 15 - 5,745 8,091 301 16 317 6,046 8,048
31.03.2024 30,392 111,779 (41,962) 29,825 928 279,531 5,745 416,238 301 2,953 3,254 5,286 419,492
Description Share
capital
Share
premium
reserve
Treasury
shares
Translation
reserve
Other
Reserves
Retained
earnings
Group
Profit
(Loss)
Group
Equity
Profit (Loss)
of non
controlling
Share capital
and reserves of
non-controlling
Equity
attributable to
non-controlling
Profit
(Loss)
Equity
interests interests interests
01.01.2023 30,392 111,779 (22,191) 39,331 3,347 255,839 29,551 448,048 576 2,942 3,519 30,127 451,569
Allocation of profit
Dividends
-
-
-
-
-
-
-
-
-
-
29,551
-
(29,551)
-
-
-
(576)
-
576
-
-
-
(30,127)
-
-
-
Treasury shares - - - - - - - - - - - - -
Share-based
incentive plan - - - - 216 - - 216 - - - - 216
Other changes - - - - - 119 - 119 - - - - 119
Profit/(Loss) for the
period - - - - - - 3,327 3,327 (144) - (144) 3,182 3,182
Other items of the
statement of
comprehensive income
- - - (6,328) 1,720 - - (4,608) - (51) (51) - (4,658)
Total comprehensive
Profit (Loss) - - - (6,328) 1,720 - 3,327 (1,281) (144) (51) (195) 3,182 (1,476)

Explanatory Notes

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

GENERAL INFORMATION

Datalogic is a global technological leader in the automatic data capture and process automation markets. The Company is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID.

Its pioneering solutions help increase efficiency and quality of processes in the areas of Retail, Manufacturing, Transportation & Logistics, and Healthcare, along the entire value chain.

Datalogic S.p.A. (hereinafter "Datalogic", the "Parent Company" or the "Company") is a joint-stock company listed on Euronext STAR Milan of Borsa Italiana S.p.A. and is headquartered in Italy. The registered office is in Via Candini 2, Lippo di Calderara (BO).

This Consolidated Interim Report for the period ended March 31, 2024 includes the figures of the Parent Company and its subsidiaries (hereinafter referred to as the "Group") and the relevant shares in associates.

The publication of this Consolidated Interim Report for the period ended March 31, 2024 of the Datalogic Group was authorised by resolution of the Board of Directors on May 15, 2024.

BASIS OF PRESENTATION

1) General criteria

This Consolidated Interim Report was prepared pursuant to Article 154-ter D. Legislative Decree no. 58 of February 24, 1998 (TUF) as subsequently amended and supplemented, as well as to the CONSOB Issuer Regulation. The criteria for the preparation of the Statement are in accordance with the requirements of IAS 34 "Interim Financial Reporting", providing the summary information notes required by the above standard, supplemented if the case to provide a greater level of information where deemed necessary.

This Consolidated Interim Report should therefore be read in conjunction with the Consolidated Annual Financial Report at December 31, 2023, prepared in accordance with IFRS accounting standards adopted by the European Union, approved by the Board of Directors on March 14, 2024, and available in the Investor Relations section of the Group's website (www.datalogic.com).

2) Reporting formats

The reporting formats adopted are compliant with those required by IAS 1 and were used in the Consolidated Annual Financial Report for the year ended December 31, 2023, in particular:

  • current and non-current assets, as well as current and non-current liabilities are shown separately in the Statement of Financial Position. Current assets, which include cash and cash equivalents, are those intended to be realised, sold or used during the Group's normal operating cycle; current liabilities are those expected to be settled in the Group's normal operating cycle or in the twelve months following the end of the year;
  • with regard to the Income Statement, cost and revenue items are shown based on grouping by function, as this classification was deemed more explanatory for understanding the Group's results of operations;

  • the Statement of Comprehensive Income presents the items that determine profit/(loss) for the period and the costs and revenue recognised directly under equity;

  • the Statement of Cash Flows is presented using the "indirect method".

This Consolidated Interim Report is prepared in Euro thousands, which is the Group's "functional" and "presentation" currency under IAS 21.

3) Use of estimates and assumptions

The preparation of the IFRS-compliant Consolidated Interim Report requires Directors to apply accounting standards and methodologies that, in some cases, are based on valuations and estimates, which in turn refer to historic experience and assumptions based on specific circumstances at any given time. The application of these estimates and assumptions affects the amounts of revenue, expense, assets and liabilities and their disclosure, as well as the disclosure of contingent liabilities. The results of financial statement items for which the above estimates and assumptions were used may differ from those shown owing to the uncertainty surrounding the assumptions and conditions on which the estimates are based.

4) Consolidation scope

This Consolidated Interim Report at March 31, 2024 includes the income statement and balance sheet data of Datalogic S.p.A. and all the companies that it directly or indirectly controls.

The list of investments included in the consolidation area appears in Annex 2 of the Explanatory Notes, with an indication of the methodology used.

5) Translation criteria of foreign currency financial statements

The exchange rates used to determine the value in Euro of financial statements denominated in foreign currency of subsidiaries (currency for 1 Euro) are shown hereunder:

Currency (ISO Code) Quantity of currency for 1 Euro
March 2024 March 2024 December 2023 March 2023
Actual
exchange rate
Average
exchange rate
for the period
Actual
exchange rate
Average
exchange rate
for the period
US Dollar (USD) 1.08 1.09 1.11 1.07
British Pound Sterling (GBP) 0.86 0.86 0.87 0.88
Swedish Krona (SEK) 11.53 11.28 11.10 11.20
Singapore Dollar (SGD) 1.46 1.46 1.46 1.43
Japanese Yen (JPY) 163.45 161.15 156.33 141.98
Australian Dollar (AUD) 1.66 1.65 1.63 1.57
Hong Kong Dollar (HKD) 8.46 8.49 8.63 8.41
Chinese Renminbi (CNY) 7.81 7.80 7.85 7.34
Brazilian Real (BRL) 5.40 5.38 5.36 5.58
Mexican Peso (MXN) 17.92 18.45 18.72 20.04
Hungarian Forint (HUF) 395.26 388.18 382.80 388.71
Czech Crown (CZK) 25.31 25.07 24.72 23.79

SEGMENT DISCLOSURE

At the date of these consolidated financial statements, the operating segments do not meet all the requirements of IFRS 8 for separate disclosure.

The income information at March 31, 2024 and at March 31, 2023 is the following:

Total Group Total Group
Income statement 31.03.2024 31.03.2023
Restated
Revenue 111,320 145,486
Adjusted EBITDA 2,126 12,936
% Revenue 1.91% 8.89%
EBIT (7,192) 3,431

The equity information related to operating segments at March 31, 2024 and at December 31, 2023 is the following.

Total Group
Statement of financial position 31.03.2024
Total Assets 720,133
Total Liabilities 300,641
Equity 419,492
Datalogic Informatics Adjustments Total Group
Divisional financial position Business 31.12.2023
Total Assets 726,392 29,433 (36,322) 719,503
Total Liabilities 308,764 8,099 (8,491) 308,372
Equity 417,628 21,334 (27,831) 411,131

INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS

Note 1. Tangible fixed assets

Tangible fixed assets at March 31, 2024 amounted to €92,455 thousand. During the period, net expenditure of €345 thousand and depreciation of €2,638 thousand was recognised, while exchange rate effects closed with a positive €624 thousand. The breakdown of the item at March 31, 2024 and at December 31, 2023 is shown below.

31.03.2024 31.12.2023 Change
Land 12,718 12,597 121
Buildings 51,343 51,520 (177)
Other assets 25,641 26,892 (1,251)
Fixed assets under construction and advances 2,753 3,031 (278)
Total 92,455 94,040 (1,585)

The "Other assets" item at March 31, 2024 includes the following categories: industrial equipment and moulds (€11,548 thousand), plant and machinery (€6,406 thousand), office furniture and machines (€4,210 thousand), generic plant related to buildings (€2,261 thousand), lightweight constructions (€230 thousand), commercial equipment and demo rooms (€608 thousand), leasehold improvements (€284 thousand), and motor vehicles (€94 thousand).

The balance of "Fixed assets under construction and advances", equal to €2,753 thousand, is composed primarily of moulds under construction and equipment and production lines built in house, and of improvements to owned buildings.

Note 2. Intangible fixed assets

Intangible fixed assets at March 31, 2024 amounted to €282,272 thousand. During the period, net expenditure of €4,244 thousand and amortisation of €5,088 thousand was recognised, while exchange rate effects closed with a positive €3,618 thousand. The breakdown of the item at March 31, 2024 and at December 31, 2023 is shown below:

31.03.2024 31.12.2023 Change
Goodwill 195,210 205,352 (10,142)
Development costs 39,224 42,034 (2,810)
Other 34,033 36,075 (2,042)
Fixed assets under construction and advances 13,805 10,736 3,069
Total 282,272 294,197 (11,925)

Goodwill

Goodwill amounted to €195,210 thousand and decreased by €10,142 thousand, of which €13,662 thousand due to the deconsolidation of Informatics Holdings Inc., while FX effects came to a positive €3,519 thousand.

31.03.2024 31.12.2023 Change
Datalogic CGU 195,210 191,690 3,520
Informatics CGU - 13,662 (13,662)
Total 195,210 205,352 (10,142)

Goodwill is allocated to the CGUs (Cash Generating Units) represented by the individual companies and/or sub-groups to which they refer.

The estimated recoverable value of each CGU, associated with each Goodwill item measured, consists of its corresponding value in use. Value in use was calculated by discounting at a given discount rate the future cash flows expected to be generated by the CGU, in the production phase and at the time of its disposal, based on the Discounted Cash Flow method.

The cash flows of the individual CGUs are estimated based on forward-looking plans prepared by Management. These plans represent the best estimate of the foreseeable outlook, based on the business strategies and growth indicators of the relevant industry and markets.

The assumptions used for the purposes of impairment were approved by the Board of Directors and the Control, Risks, Remuneration and Appointments Committee of Datalogic S.p.A. on February 13, 2024.

Development costs, Other intangible fixed assets and fixed assets under construction and advances

"Development costs", amounting to €39,224 thousand at March 31, 2024 (€42,034 thousand at December 31, 2023), consists of product development projects. The change results mainly from amortisation for the period and to a lesser extent from the change in the consolidation scope following the sale of Informatics.

"Other", amounting to €34,033 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, and software licences as detailed below:

31.03.2024 31.12.2023 Change
Patents 3,294 3,681 (387)
Know-how 11,823 12,533 (710)
Customer portfolio 10,718 10,943 (225)
Licences 764 880 (115)
Software 7,434 8,038 (605)
Total 34,033 36,075 (2,041)

"Fixed assets under construction and advances", amounting to €13,805 thousand (€10,736 thousand at December 31, 2023), is attributable mainly to the capitalisation of costs for product development projects currently under way.

Note 3. Right of use fixed assets

Net positive changes for €871 thousand and depreciation for €1,037 thousand were recognised during the period. The breakdown of the item at March 31, 2024 and at December 31, 2023 is shown below.

31.03.2024 31.12.2023 Change
Buildings 8,827 9,181 (354)
Vehicles 2,276 2,122 154
Office equipment 177 143 34
Total 11,280 11,446 (166)

Note 4. Investments in associates

Non-controlling investments held by the Group, details of which can be found in Annex 2, amounted to €640 thousand at March 31, 2024 (unchanged from December 31, 2024).

Note 5. Financial assets and liabilities by category

The table below provides a breakdown of "Financial assets and liabilities" under IFRS 9.

Financial assets

Financial
assets at
amortised
cost
Financial assets at
FV through profit
and loss
Financial
assets at FV
through OCI
31.03.2024
Non-current financial assets 1,564 2,693 99 4,356
Non-current financial assets and investments - 2,693 99 2,792
Other receivables 1,564 - - 1,564
Current financial assets 159,462 - - 159,462
Trade receivables 56,203 - - 56,203
Other receivables 19,762 - - 19,762
Cash and cash equivalents 83,497 - - 83,497
Total 161,026 2,693 99 163,818
Financial assets
at amortised cost
Financial assets
at FV through
profit and loss
Financial
assets at FV
through OCI
31.12.2023
Non-current financial assets 2,839 2,624 99 5,562
Non-current financial assets and investments 2,055 2,624 99 4,778
Other receivables 784 - - 784
Current financial assets 141,175 - - 141,175
Trade receivables 52,093 - - 52,093
Other receivables 18,453 - - 18,453
Cash and cash equivalents 70,629 - - 70,629
Total 144,014 2,624 99 146,737

"Cash and cash equivalents" amounted to €83,497 thousand. Details are found in the Net Financial Debt schedule in the Report on Operations.

Financial liabilities

Consolidated Interim Report at March 31, 2024

Derivatives Financial liabilities
at amortised cost
31.03.2024
Non-current financial liabilities - 105,295 105,295
Financial payables - 86,013 86,013
Other payables - 19,282 19,282
Current financial liabilities - 147,629 147,629
Trade payables - 78,517 78,517
Other payables - 48,929 48,929
Current financial payables - 20,183 20,183
Total - 252,924 252,924
Derivatives Financial liabilities at
amortised cost
31.12.2023
Non-current financial liabilities - 106,094 106,094
Financial payables - 86,101 86,101
Other payables - 19,993 19,993
Current financial liabilities - 152,879 152,879
Trade payables - 83,515 83,515
Other payables - 49,515 49,515
Current financial payables - 19,849 19,849
Total - 258,973 258,973

The fair value of financial assets and financial liabilities is determined according to methods classifiable in the various levels of the fair value hierarchy as envisaged by IFRS 13. Specifically, the Group uses internal valuation models generally used in financial practice, based on prices provided by market participants or quotations recorded on active markets.

Fair value - hierarchy

All the financial instruments measured at fair value are classified in the three categories shown below:

Level 1: market prices;

Level 2: valuation techniques (based on observable market data);

Level 3: valuation techniques (not based on observable market data).

Assets measured at fair value Level 1 Level 2 Level 3 31.03.2024
Non-current financial assets and investments 99 - 2,693 2,792
Total 99 - 2,693 2,792

Note 6. Financial assets and current financial receivables

Financial assets include the following:

31.03.2024 31.12.2023 Change
Non-current financial assets 2,792 4,778 (1,986)
Total 2,792 4,778 (1,986)

Non-current financial assets amounted to €2,792 thousand. The main change refers to the write-down of a doubtful financial receivable.

The change in "Non-current financial assets" is detailed below:

2024 2023
At January 1 4,778 8,119
Acquisitions (Disposals) (1,986) 97
Gains (Losses) recognised in OCI - 607
Gains/(Losses) recognised in the income statement - 45
Exchange rate adjustments - (16)
At March 31 2,792 8,852

Note 7. Trade and other receivables

The breakdown of the item at December 31, 2023 and at December 31, 2022 is shown below:

31.03.202 31.12.202
4 3 Change
Trade receivables 50,608 46,065 4,543
Contract assets - Invoices to be issued 5,447 6,145 (698)
Bad debt provisions (1,448) (1,471) 23
Net trade receivables 54,607 50,739 3,868
Receivables from associates 1,588 1,346 242
Receivables from related parties 8 8
-
Sub-total - Trade receivables 56,203 52,093 4,110
Other receivables - current accrued income and deferred expense 19,762 18,453 1,309
Other receivables - non-current accrued income and deferred
expense
1,564 784 780
Sub-total - Other receivables - accrued income and deferred
expense
21,326 19,237 2,089
Less: non-current portion 1,564 784 780
Trade and other receivables - current portion 75,965 70,546 5,419

Trade receivables

"Trade receivables" amounted to €56,203 thousand, increasing by €4,110 thousand versus December 31, 2023. At March 31, 2024, trade receivables factored without recourse amounted to €30,465 thousand (€30,218 thousand at December 31, 2023). Trade receivablesfrom associates arise from commercial transactions carried out at normal market conditions.

Other receivables - accrued income and deferred expense

The details of "Other receivables - accrued income and deferred expense" are shown below.

31.03.2024 31.12.2023 Change
Other current receivables 3,370 3,232 138
Other non-current receivables 1,564 784 780
VAT receivable 12,970 11,889 1,081
Accrued income and deferred expense 3,422 3,332 90
Total 21,326 19,237 2,089

The "VAT receivable" of €12,970 thousand refers to normal commercial transactions.

The "Accrued income and deferred expense" item is composed mainly of the recognition of insurance contracts and hardware and software licenses.

Note 8. Inventory

At March 31, 2024, inventory totalled €99,082 thousand, decreasing by €3,380 thousand during the period, including €1,940 thousand from the deconsolidation of Informatics.

31.03.2024 31.12.2023 Change
Raw and ancillary materials and consumables 52,349 51,002 1,347
Work in progress and semi-finished products 20,484 18,690 1,794
Finished products and goods 27,249 32,770 (5,521)
Total 100,082 102,462 (2,380)

Inventory is shown net of an obsolescence provision totalling €17,523 thousand at March 31, 2024 (€15,482 thousand at December 31, 2023).

Note 9. Tax receivables and payables

31.03.2024 31.12.2023 Change
Tax receivables 11,517 12,662 (1,145)
Tax payables (7,796) (9,388) 1,592
Total 3,721 3,274 447

At March 31, 2024, the net balance of "Tax Receivables and Payables" came to a positive €3,721 thousand versus a positive 3,274 thousand at December 31, 2023, marking a positive change of €447 thousand.

LIABILITIES AND EQUITY

Note 10. Equity

The composition of Equity at March 31, 2024 is shown below.

31.03.2024 31.12.2023 Change
Share capital 30,392 30,392 -
Share premium reserve 111,779 111,779 -
Treasury shares held in portfolio (41,962) (41,962) -
Share capital and reserves 100,209 100,209 -
Translation reserve 29,825 27,482 2,343
Other reserves 928 913 15
Retained earnings 279,531 269,731 9,800
Profit for the period 5,745 9,859 (4,114)
Total Group equity 416,238 408,194 8,044
Profit (loss) for the period attributable to non-controlling interests 301 (373) 674
Share capital attributable to non-controlling interests 2,953 3,310 (357)
Total Group equity 3,254 2,937 317
Total consolidated equity 419,492 411,131 8,361

Share capital

At March 31, 2024, the share capital of €30,392 thousand represents the fully subscribed and paid-up share capital of the Parent Company Datalogic S.p.A.. It comprises ordinary shares for a total of 58,446,491, of which 4,800,000 held as treasury shares for a value of €41,962 thousand, therefore the outstanding shares at that date amounted to 53,646,491.

Other Reserves

At March 31, 2024, there was no change in the "Reserve for treasury shares held in portfolio".

The "Translation reserve" increased by €2,343 thousand, due mainly to the effects of the trend of the U.S. dollar, the functional currency of a number of the Group's main investees; part of the change is attributable to the gains/losses generated by the monetary elements that are an integral part of the net investment in foreign operations, and refers to the effect of period-end foreign exchange valuation related to receivables for loans in U.S. dollars granted by the parent company Datalogic S.p.A. to the Group company Datalogic Hungary; there is no specified settlement or repayment plan, and the repayment is not expected to occur in the foreseeable future.

At March 31, 2024, "Other reserves" amounted to €928 thousand (€913 thousand at December 31, 2023).

Note 11. Financial payables

"Financial payables" at March 31, 2024 amounted to €106,196 thousand, increasing by €246 thousand as detailed below.

31.03.2024 31.12.2023 Change
Bank loans 93,010 92,762 248
Financial payables from leases 11,559 11,630 (71)
Payables to factoring companies 835 592 243
Other financial payables 588 817 (229)
Bank overdrafts 204 149 55
Total 106,196 105,950 246

The change in "Bank loans" for the period is a result of the discounting of long-term financial debt.

The breakdown of financial payables, divided into current and non-current portions, is shown below:

31.03.2024 31.12.2023 Change
Non-current financial payables 86,013 86,101 (88)
Current financial payables 20,183 19,849 334
Total 106,196 105,950 246

At March 31, 2024, the Group had credit lines in place for a total of approximately €281 million, of which approximately €188.0 million undrawn, including €100.0 million long-term and €88.0 million short-term.

Note 12. Net deferred tax

Deferred tax assets and deferred tax liabilities result both from positive items already recognised in the income statement and subject to deferred taxation under current tax regulations and temporary differences between recorded assets and liabilities and their relevant taxable value.

Deferred tax assets are accounted for in accordance with the assumptions of future recoverability of the temporary differences they originated from, i.e., on the basis of strategic economic and tax plans.

Temporary differences generating deferred tax assets consist mainly of tax losses and tax paid abroad, provisions for risks and charges, and foreign exchange adjustments. Deferred tax liabilities are attributable mainly to temporary differences in exchange rate adjustments and statutory and tax differences in the amortisation/depreciation schedules of tangible and intangible fixed assets and fair value measurements of assets as part of business combinations carried out by the Group.

31.03.2024 31.12.2023 Change
Deferred tax assets 58,069 57,319 750
Deferred tax liabilities (26,320) (26,334) 14
Net deferred tax 31,749 30,985 764

Deferred tax assets amounted to €58,069 thousand and included foreign tax credits attributable mainly to the subsidiary Datalogic USA Inc. The increase in deferred tax assets is attributable to tax losses generated during the quarter net of decreases associated with tax effects related to consolidation processes, as well as temporary tax differences of a different nature that are expected to allow benefits in later years.

The Provision for deferred tax liabilities at March 31, 2024 amounted to €26,320 thousand and refers mainly to temporary differences related to asset depreciation/amortisation schedules, as well as tax adjustments resulting from the consolidation processes of recent acquisitions made by the Group.

Note 13. Provisions for post-employment and retirement benefits

The breakdown of changes in "Provisions for post-employment and retirement benefits" at March 31, 2024 and at March 31, 2023 is shown below:

2024 2023
At January 1 5,759 6,163
Amount allocated in the period 502 756
Utilisations (440) (631)
Receivable from INPS (58) (208)
Exchange rate adjustments 6 (6)
At March 31 5,769 6,074

Note 14. Provisions for risks and charges

"Provisions for risks and charges" at March 31, 2024 amounted to €7,832 thousand (€7,918 thousand at December 31, 2023), represented by the best estimate of the contingent liabilities to which the Group is exposed in relation to contractual obligations for product warranties and long-term incentive and retention plans for personnel (middle management and key people), as well as contingent liabilities of a tax, labour law and supplementary agents' indemnity nature, as shown below.

31.12.2023 Increases (Utilisations)
(Releases)
Change in
consolidation
scope
Foreign
exchange
differences
31.03.2024
Product warranty provision 5,845 - (304) (14) - 5,527
Provision for staff incentive
and retention plans
1,510 452 (232) - 12 1,742
Other provisions 563 - - - - 563
Total 7,918 452 (536) (14) 12 7,832

The "Product warranty provision" covers the estimated cost of repairing products sold up to March 31, 2024 and covered by a warranty period; said provision amounted to €5,527 thousand (of which €3,156 thousand long-term).

"Provision for staff incentive and retention plans" refers to the estimated bonuses to be paid to staff based on longterm incentive and retention plans accrued at March 31, 2024.

"Other provisions" at March 31, 2024 amounted to €563 thousand and consisted mainly of provisions for supplementary agent's indemnity and for contingent liabilities of a fiscal and labour law nature. Mention should be made that a tax audit is underway regarding the subsidiary Datalogic S.r.l. concerning the application of the transfer pricing methodology for 2019, which is currently still in a hearing stage with the assessing body.

The breakdown of provisions for risks, divided into current and non-current portions, is shown below:

31.03.2024 31.12.2023 Change
Provisions for risks and charges, current portion 2,537 2,721 (184)
Provisions for risks and charges, non-current portion 5,295 5,197 98
Total 7,832 7,918 (86)

Note 15. Trade and other payables, accrued expense and deferred income

31.03.2024 31.12.2023 Change
Trade payables 75,027 78,859 (3,832)
Contractual liabilities - customer advances 3,408 4,543 (1,135)
Trade payables 78,435 83,402 (4,967)
Payables to associates 58 92 (34)
Payables to related parties 24 21 3
Total trade payables 78,517 83,515 (4,998)
Other current payables 31,185 28,310 2,875
Current accrued expense and deferred income 17,743 21,204 (3,461)
Non-current accrued expense and deferred income 19,282 19,993 (711)
Total Other payables - accrued expense and deferred income 68,210 69,507 (1,297)
Less: non-current portion 19,282 19,993 (711)
Current portion 127,445 133,029 (5,584)

Trade payables

"Trade payables" amounted to €78,517 thousand, down by €4,998 thousand versus the end of the prior year.

Other current payables

31.03.2024 31.12.2023 Change
Payables to employees 21,382 18,418 2,964
Payables to welfare and social security entities 6,170 6,834 (664)
Other payables 1,624 2,070 (446)
VAT payables 2,009 988 1,021
Total 31,185 28,310 2,875

"Other current payables" amounting to €31,185 thousand at March 31, 2024, consists mainly of "Payables to employees" for the fixed and variable components of salaries and holiday entitlements, as well as the related "Payables to welfare and social security entities".

Accrued expense and deferred income

"Accrued expense and deferred income", amounting to €37,025 thousand at March 31, 2024 (€41,197 thousand at December 31, 2023), is composed mainly of deferred revenue related to the Ease of Care long-term maintenance contracts.

INFORMATION ON THE INCOME STATEMENT

Note 16. Revenue

Revenue classified by type is shown in the following table:

31.03.2024 31.03.2023 Change
Restated
Revenue from sale of products 101,849 136,805 (34,956)
Revenue from services 9,471 8,681 790
Total revenue 111,320 145,486 (34,166)

At March 31, 2024, consolidated net revenue amounted to €111,320 thousand, down by 23.5% versus €145,486 thousand in first quarter 2023. The Group's revenue, classified by recognition method and business segment, is broken down as follows:

Revenue broken down by recognition method 31.03.2024 31.03.2023
Restated
Change
Revenue from sale of goods and services - point in time 93,221 130,378 (37,157)
Revenue from sale of goods and services - over time 18,099 15,108 2,991
Total 111,320 145,486 (34,166)

The Group recognises revenue for the sale of goods and services at a specific point in time when control of the assets has been transferred to the customer, usually at the same time as the delivery of the good or provision of the service. Instead, revenue recognition takes place over time, based on the status of performance of contractual obligations, when the performance does not create an asset that has an alternative use for the Group and the Group has the collectible right to payment for the completed performance up to the date considered.

31.03.2024 31.03.2023 Change
Revenue broken down by type Restated
Sale of goods 101,849 136,805 (34,956)
Sale of services 9,471 8,681 790
Total 111,320 145,486 (34,166)

Note 17. Cost of goods sold and operating costs

The following table shows the trends of cost of goods sold and operating costs at March 31, 2024, versus the same period of the prior year, before special items.

31.03.2024 31.03.2023 Change
Restated
Cost of goods sold 68,608 86,062 (17,454)
Operating costs 50,827 56,628 (5,802)
Research and development expense 15,408 16,736 (1,328)
Distribution expense 22,519 25,390 (2,871)
Administrative and General expense 12,305 13,953 (1,649)
Other operating expense 595 549 46
Total 119,435 142,690 (23,255)

Cost of goods sold

Cost of goods sold at March 31, 2024 was €68,608 thousand. The change is -20.3%, while the percentage of sales deteriorated by 3.4% to 61.6% from 59.2% in the comparison period.

Operating costs

"Operating Costs", totalling €50,827 thousand, decreased by 10.2%; as a percentage of sales, it increased by approximately 6.7% from 38.9% to 45.7%.

"Research and development expense" at March 31, 2024 amounted to €15,408 thousand, decreasing by 7.9% versus the same period of the prior year, accounting for 13.8% of sales (11.5% in the first quarter of the prior year). The detail items showing the largest percentage increase in relation to sales refer to personnel expense.

"Distribution expense" amounted to €22,519 thousand, down versus the comparison period (-11.3%). The percentage of sales increased from 17.5% to 20.2%. The detail items showing the largest percentage increase in relation to sales refer to personnel expense.

"Administrative and general expense" amounted to €12,305 thousand, decreasing by 11.3% versus first quarter 2023, while the percentage of sales increased from 9.6% to 11.1%.

"Other operating expense", amounting to €595 thousand, remained basically unchanged from the comparison period.

Costs by nature

The following table provides the details of total costs (cost of goods sold and total operating costs) by nature:

31.03.2024 31.03.2023 Change
Restated
Purchases 48,250 62,745 (14,495)
Personnel expense 43,717 46,407 (2,690)
Amortisation, depreciation and write-downs 8,755 9,244 (489)
Goods receipt and shipment expense 3,831 5,055 (1,224)
Travel and meetings expense 1,960 3,370 (1,410)
EDP expense 1,799 1,935 (136)
Consumables and R&D material 1,361 2,140 (780)
R&D technical consultancies 1,002 1,191 (189)
Marketing expense 1,001 1,107 (107)
Legal, tax and other consulting 886 843 43
Building expense 793 566 228
Utilities 763 1,143 (380)
Directors' fees 575 584 (9)
Telephone expense 446 430 15
Royalties 416 534 (117)
Sundry service costs 406 424 (18)
Expense for plant and machinery and other assets 373 459 (86)
Fees 327 620 (293)
Vehicle expense 302 305 (3)
Insurance 289 363 (75)
Installations 278 382 (104)
Quality certification expense 277 387 (110)
Non-warranty repairs 244 307 (64)
Audit fees 208 343 (136)
Entertainment expense 184 288 (104)
Repairs and warranty provision accrual 154 199 (45)
Subcontracted work 145 181 (37)
Recruitment fees 33 282 (248)
Other 660 854 (194)
Total cost of goods sold and operating costs 119,435 142,690 (23,255)

Purchasing costs decreased by €14,495 thousand (-23.1%) versus the comparison period, with the percentage of sales basically unchanged.

Personnel expense of €43,717 thousand (€46,407 thousand in first quarter 2023) decreased by €2,690 thousand (- 5.8%), with the percentage of sales increasing from 31.9% to 39.3%.

The detailed breakdown of personnel expense is as follows:

31.03.2024 31.03.2023 Change
Restated
Wages and salaries 32,888 35,376 (2,488)
Social security charges 7,461 7,520 (59)
Post-employment benefits 711 700 11
Retirement benefits and the like 437 502 (65)
Other personnel costs 2,220 2,309 (89)
Total 43,717 46,407 (2,690)

Aligned with the reduction in volumes, costs decreased overall, maintaining mostly the same percentage of sales as in first quarter 2023, except for personnel expense, which increased its percentage of revenue by 7.4%, purchasing (+1.1%), and amortisation, depreciation and write-downs (+1.5%)

"Travel and meetings expense", amounting to €1,960 thousand, decreased by €1,410 thousand versus the same period of the prior year, bringing the percentage of sales to 1.8% versus 2.3% in the comparison period.

Note 18. Other revenue

At March 31, 2024, "Other revenue" amounted to €923 thousand, increasing by 45.4% versus €635 thousand in first quarter 2023. Other revenue is broken down as follows:

31.03.2024 31.03.2023 Change
Restated
Grants to Research and Development expense 420 280 140
Miscellaneous income and revenue 73 224 (151)
Rents 30 10 20
Gains from disposal of fixed assets 399 44 355
Contingent assets 1 1 -
Other - 76 (76)
Total 923 635 288

Note 19. Financials

31.03.2024 31.03.2023 Change
Restated
Financial income/(expense) (289) (590) 301
Foreign exchange differences (2,261) 658 (2,919)
Fair Value investments - 45 (45)
Bank expense (365) (368) 3
Dividends - 91 (91)
Other 17,824 (18) 17,842
Total net financials 14,909 (182) 15,091

Financials ended with a positive €14,909 thousand, an improvement of €15,091 thousand versus the negative €182 thousand recorded in the same period of the prior year, due mainly to the proceeds from the sale of the investment in Informatics Holdings, Inc.

Note 20. Tax

The Group's tax burden at March 31, 2024 is €199 thousand as shown below.

31.03.2024 31.03.2023
Restated
Change
Pre-tax profit/(loss) 7,718 2,703 5,015
Tax income (expense) - for current tax 313 576 (263)
Tax income (expense) - for deferred and prepaid tax 126 (104) 231
Total Tax 439 471 (32)
Tax rate 5.7% 17.4% -11.7%

The tax rate at March 31, 2024 reflects the distribution of the profit of the period among the various geographical areas in which the Group operates.

Note 22. Earnings/loss per share

Earnings/loss per share

As required by IAS 33, information on data used to calculate the earning/loss per share is provided below. Basic EPS is calculated by dividing the result for the period, profit and/or loss, attributable to Shareholders of the Parent Company by the weighted average number of shares outstanding during the reporting period. For the purpose of calculating diluted EPS, the weighted average number of shares outstanding is adjusted by assuming the conversion of all potential shares with dilutive effects (such as the share-based incentive plan), while the Group's net result is adjusted for the after-tax effects of conversion.

31.03.2024 31.03.2023
Restated
Profit/(Loss) for the period attributable to the shareholders of the parent 5,745 3,326
Average number of shares (thousands) 55,789 56,610
Basic earnings/(loss) per share 0.10 0.06
Profit/(Loss) for the period attributable to the shareholders of the parent 5,745 3,326
Average number of shares (thousands) - Diluted effect 55,789 56,979
Diluted earnings/(loss) per share 0.10 0.06

TRANSACTIONS WITH SUBSIDIARIES THAT ARE NOT CONSOLIDATED LINE BY LINE, ASSOCIATES AND RELATED PARTIES

For the definition of "Related Parties", reference is made not only to IAS 24, approved by EC Regulation no. 1725/2003, but also to the Procedure for Related-Party Transactions approved by the Board of Directors on November 4, 2010 (last amended on June 23, 2021) available on the Company website www.datalogic.com. The parent company of the Datalogic Group is Hydra S.p.A..

Intercompany transactions are carried out as part of the ordinary operations and at normal market conditions. Additionally, there are related-party transactions carried out again in the ordinary course of business and at normal market conditions, of an immaterial amount pursuant to and for the purposes of the "RPT Procedure", attributable mainly to Hydra S.p.A. or to entities subject (with Datalogic S.p.A.) to common control or to persons exercising administrative and management functions at Datalogic S.p.A. (including entities controlled by them and close family members).

Related-party transactions refer mainly to commercial and property transactions (instrumental and non-instrumental premises for the Group leased or rented out), consulting services, and participation in tax consolidation. None of them are of particular economic or strategic importance to the Group, since receivables, payables, revenue, and expense from related parties do not have a material percentage impact on the total amounts of the financial statements.

Pursuant to Article 5, paragraph 8, of the CONSOB Regulations, it should be noted that, over the period 01.01.2024 – 31.03.2024, the Company's Board of Directors did not approve any transaction of greater significance, as set out by Article 3, paragraph 1, letter b) of the CONSOB Regulations, or any related-party transactions of a lesser significance that had a significant impact on the Group's equity position or results.

Parent
Company
Company
controlled by
Chairman of
B.o.D.
Companies not
consolidated on a
line-by-line basis
31.03.2024
Investments - - 640 640
Trade receivables – other receivables
accrued income and deferred expense
- 8 1,588 1,597
Trade payables – other payables
accrued expense and deferred income
- 24 84 109
Commercial and service costs - 315 27 342
Trade revenue - - 1,693 1,693
Other revenue - - 1 1

HEADCOUNT

31.03.2024 31.03.2023 Change
Datalogic 2,772 2,987 (215)
Informatics - 69 (69)
Total 2,772 3,056 (284)

The Chairman of the Board of Directors (Romano Volta)

Annexes

ANNEXES

ANNEX 1

CERTIFICATION PURSUANT TO ARTICLE 154 BIS, PARAGRAPH 2, LEG. DECR. NO. 58/1998

INTERIM REPORT AT MARCH 31, 2024

I, the undersigned Alessandro D'Aniello, as the Manager responsible for the preparation of the financial reports of Datalogic S.p.A., certify that, in accordance with the provisions of the second paragraph of Article 154-bis of Legislative Decree no. 58 of February 24, 1998, the Consolidated Interim Report at March 31, 2024 corresponds to the underlying records, books and accounting entries.

Lippo di Calderara di Reno (BO), May 15, 2024

Manager responsible for the preparation of the Company's financial reports Alessandro D'Aniello

ANNEXES

ANNEX 2

CONSOLIDATION SCOPE

The Consolidated Annual Financial Report includes the interim statements of the Parent Company and of the companies in which it directly and/or indirectly has control or significant influence. The statements of the subsidiaries were duly adjusted, where necessary, to make them consistent with the Parent Company's Accounting Standards. The companies included in the consolidation scope at March 31, 2024, consolidated on a line-by-line basis, are shown hereunder:

Company name Registered office Share capital Total
equity
(Euro/
thousands)
Profit (loss) for
the period
(Euro/
thousands)
%
Ownership
Datalogic S.p.A. Bologna – Italy 30,392,17
5
372,520 32,012
Datalogic Real Estate France Sas Courtabeuf Cedex –
France
2,227,500 4,118 50 100%
Datalogic Real Estate UK Ltd. Redbourn - United
Kingdom of Great Britain
GBP 3,500,000 4,883 70 100%
Datalogic IP Tech S.r.l. Bologna – Italy 100,000 42,898 (5,560) 100%
Datalogic (Shenzhen) Industrial
Automation Co. Ltd.
Shenzhen - China CNY 2,136,696 6,295 (16) 100%
Datalogic Hungary Kft Balatonboglar - Hungary HUF 3,000,000 (633) (2,459) 100%
Datalogic S.r.l. Bologna – Italy 10,000,00
0
120,405 (6,105) 100%
Datalogic Slovakia S.r.o. Trnava - Slovakia 66,388 6,587 35 100%
Datalogic USA Inc. Eugene OR - Usa USD 100 268,210 1,458 100%
Datalogic do Brazil Ltda. Sao Paulo - Brazil BRL 20,257,00
0
885 (9) 100%
Datalogic Technologia de Mexico S. de R. L.
de C.V.
Colonia Cuauhtemoc -
Mexico
MXN 0 (536) (49) 100%
Datalogic Scanning Eastern Europe GmbH Langen - Germany 25,000 3,521 (69) 100%
Datalogic Australia Pty Ltd. Mount Waverley
(Melbourne) - Australia
AUD 3,188,120 1,533 33 100%
Datalogic Vietnam LLC Vietnam USD 3,000,000 30,251 (254) 100%
Datalogic Singapore Asia Pacific Pte Ltd. Singapore SGD 3 4,260 70 100%
Datasensing S.r.l. Modena - Italy 2,500,000 17,502 (706) 100%
Datasensing Electronic Components
(Tianjin) Ltd.
Tianjin - China CNY 13,049,98
2
1,459 87 100%
Datasensing Ibérica, S.A.U. Barcelona - Spain 120,000 1,550 40 100%
Datalogic Japan Co., Ltd. Tokyo - Japan JPY 9,913,000 231 85 100%
Pekat S.r.l. Bologna – Italy 8,583 (1,201) (235) 100%
Suzhou Mobydata Smart System Co. Ltd. Suzhou, JiangSu - China CNY 161,224 6,535 614 51%

Companies consolidated by the equity method at March 31, 2024 are as follows:

Company name Registered office Share capital Total equity
(Euro/thousands)
Profit (loss) for
the period
(Euro/thousands)
%
Ownership
Datasensor Gmbh (*) Otterfing - Germany 150,000 0 2 30%
CAEN RFID S.r.l. (***) Viareggio LU - Italy 150,000 781 25 20%
R4I S.r.l. (***) Benevento - Italy 131,171 238 (40) 20%
DL Industrial Automation AB (**) Malmö, Sweden SEK 100,000 2,018 687 20%

(*) figures at December 31, 2021

(**) figures at June 30, 2022

(***) figures at December 31, 2022

ANNEXES

ANNEX 3

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)

Below is a reconciliation of EBIT and Adjusted EBIT at March 31, 2024 versus March 31, 2023.

31.03.2024 31.03.2023
Restated
Adjusted EBIT (5,461) -4.9% 4,882 3.4%
Special Items - Other Expense and (Income) 563 0.51% 260 0.18%
Special Items - D&A from acquisitions 1,168 1.05% 1,191 0.82%
Total 1,731 1.55% 1,451 1.00%
EBIT (7,192) -6.5% 3,431 2.4%

Below is a reconciliation of EBITDA and Adjusted EBITDA at March 31, 2024 versus March 31, 2023.

31.03.2024 31.03.2023
Restated
Adjusted EBITDA 2,126 1.9% 12,936 8.9%
Cost of goods sold 54 0.05% 7 0.00%
Research and Development expense 129 0.12% 65 0.04%
Distribution expense 368 0.33% 179 0.12%
Administrative and General expense 12 0.01% 9 0.01%
Other (expense) income - 0.00% - 0.00%
Total 563 0.5% 260 0.2%
EBITDA 1,563 1.4% 12,676 8.7%

ANNEXES

ANNEX 4

RESTATEMENT 2023

Comparative results at March 31, 2024, have been restated following reclassifications of certain items to ensure full comparability of 2023 results with 2024 results.

Restatement of Income Statement

(Euro/000) 31.03.2023 Restatement 31.03.23
Restated
1) Revenue 145,718 (232) 145,486
Revenue from sale of products 137,037 (232) 136,805
Revenue from services 8,681 8,681
2) Cost of goods sold 2,720 - 2,720
Gross Operating Margin (1-2) 86,062 - 86,062
3) Other revenue 635 635
4) Research and development expense 16,736 16,736
5) Distribution expense 25,622 (232) 25,390
6) Administrative and general expense 13,953 13,953
7) Other operating expense 549 549
Total operating costs 56,860 (232) 56,628
EBIT 3,431 3,431
8) Financial income 9,649 9,649
9) Financial expense 9,831 9,831
Financials (8-9) (182) (182)
Profit/(Loss) before tax from continuing operations 3,249 3,249
Income tax (471) (471)
Profit/(Loss) for the period from continuing operations 2,778 2,778
Net Profit/(Loss) from discontinued operations 404 404
Profit/(Loss) for the period 3,182 3,182
Basic earnings/(loss) per share (€) 0.06 0.06
Diluted earnings/(loss) per share (€) 0.06 0.06
Attributable to:
Shareholders of the Parent 3,326 3,326
Non-controlling interests (144) (144)

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