Interim / Quarterly Report • Aug 3, 2023
Interim / Quarterly Report
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DATALOGIC GROUP 1
| GROUP STRUCTURE | pg. 3 |
|---|---|
| COMPOSITION OF CORPORATE BODIES | pg. 4 |
| DIRECTORS' REPORT ON OPERATIONS | pg. 5 |
| CONSOLIDATED FINANCIAL STATEMENTS | pg. 20 |
| Consolidated Statement of Financial Position | |
| Consolidated Income Statement | |
| Consolidated Statement of Comprehensive Income | |
| Consolidated Statement of Cash Flows | |
| Consolidated Statement of Changes in Equity |
Information on the Statementof Financial Position
Information on the Income Statement
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.
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 Maria Grazia Filippini Independent Director Pietro Todescato Executive Director
Diana Rizzo Chair Elena Lancellotti Standing Auditor Roberto Santagostino Standing Auditor
Giulia De Martino Alternate Auditor Eugenio Burani Alternate Auditor
Patrizia Cornale Alternate Auditor
Angelo Manaresi Chairman Chiara Giovannucci Orlandi Independent Director Vera Negri Zamagni Independent Director
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, 2023.
(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.
DATALOGIC GROUP 5
This Consolidated Half-Year Financial Report at June 30, 2023 was prepared in accordance with Article 154-ter of the TUF (Consolidated Law on Finance) and was drawn up in compliance with the International Accounting Standards (IAS/IFRS) adopted by the European Union.
The amounts shown in the tables of the Directors' Report on Operations are expressed in Euro thousands, while the explanatory notes are expressed in Euro millions.
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.
The following table summarises the Datalogic Group's key income and financial results at June 30, 2023 versus the same period of the prior year.
| 30.06.2023 | % on | 30.06.2022 | % on | Change | % chg. | % chg. | |
|---|---|---|---|---|---|---|---|
| Revenue | Restated | Revenue | net FX | ||||
| Revenue | 297,975 | 100.0% | 314,599 | 100.0% | (16,624) | -5.3% | -5.0% |
| Adjusted EBITDA | 33,011 | 11.1% | 34,256 | 10.9% | (1,245) | -3.6% | -0.5% |
| Adjusted EBIT | 16,954 | 5.7% | 19,218 | 6.1% | (2,264) | -11.8% | -6.2% |
| EBIT | 12,630 | 4.2% | 15,311 | 4.9% | (2,681) | -17.5% | -10.5% |
| Profit/(Loss) for the period | 12,121 | 4.1% | 8,842 | 2.8% | 3,279 | 37.1% | 49.3% |
| Net financial position (NFP) | (25,101) | (71,883) | 46,782 |
The Group closed first half 2023 with sales Revenue of €298.0 million, down by 5.3% versus €314.6 million in first half 2022 (-5.0% at constant exchange rates).
Adjusted EBITDA came to €33.0 million (€34.3 million in first half 2022). As a percentage of sales, it grew from 10.9% to 11.1%.
Adjusted EBIT stood at 5.7% of revenue and amounted to €17.0 million (€19.2 million at June 30, 2022).
Net profit for the period amounted to €12.1 million, up in absolute terms and as a percentage of revenue versus the same period of the prior year.
Sales from new products (Vitality Index) in first half 2023 accounted for 6.5% of revenue (6.7% in the second quarter, down from 16.5% in first half 2022.
Net Financial Debt at June 30, 2023 stood at €25.1 million, an improvement of €16.9 million versus December 31, 2022 and of €46.8 million versus June 30, 2022.
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 of the period related to this Consolidated Half-Year Financial 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.
The following table shows the main items of the income statement for the period versus the prior period, the results of which were restated as required by IAS 1 following certain reclassifications of cost items from operating costs to cost of goods sold and among the different uses of operating costs, as well as the effects of the purchase price allocation (PPA) of Pekat S.r.o., for details of which reference is made to Annex 4 of this document:
| 30.06.2023 | 30.06.2022 | Change | % chg. | |||
|---|---|---|---|---|---|---|
| Restated | ||||||
| Revenue | 297,975 | 100.0% | 314,599 | 100.0% | (16,624) | -5.3% |
| Cost of goods sold | (171,565) | -57.6% | (190,019) | -60.4% | 18,454 | -9.7% |
| Gross OperatingMargin | 126,410 | 42.4% | 124,580 | 39.6% | 1,830 | 1.5% |
| Research and Development expense | (30,844) | -10.4% | (29,926) | -9.5% | (918) | 3.1% |
| Distribution expense | (52,211) | -17.5% | (47,730) | -15.2% | (4,481) | 9.4% |
| Administrative and General expense | (26,152) | -8.8% | (27,342) | -8.7% | 1,190 | -4.4% |
| Other (expense) income | (249) | -0.1% | (364) | -0.1% | 115 | -31.6% |
| Total operating costs and other expense | (109,456) | -36.7% | (105,362) | -33.5% | (4,094) | 3.9% |
| Adjusted EBIT | 16,954 | 5.7% | 19,218 | 6.1% | (2,264) | -11.8% |
| Special Items-Other (Expense) and Income | (1,947) | -0.7% | (1,112) | -0.4% | (835) | 75.1% |
| Special Items- D&A from acquisitions | (2,377) | -0.8% | (2,795) | -0.9% | 418 | -15.0% |
| EBIT | 12,630 | 4.2% | 15,311 | 4.9% | (2,681) | -17.5% |
| Financials | 2,125 | 0.7% | (1,238) | -0.4% | 3,363 | n.a. |
| Foreign exchange gains/(losses) | (152) | -0.1% | (3,294) | -1.0% | 3,142 | -95.4% |
| EBT | 14,603 | 4.9% | 10,779 | 3.4% | 3,824 | 35.5% |
| Tax | (2,482) | -0.8% | (1,937) | -0.6% | (545) | 28.1% |
| Profit/(Loss) for the period | 12,121 | 4.1% | 8,842 | 2.8% | 3,279 | 37.1% |
| EBIT | 12,630 | 4.2% | 15,311 | 4.9% | (2,681) | -17.5% |
| Special Items -Other (Expense) and Income | 1,947 | 0.7% | 1,112 | 0.4% | 835 | 75.1% |
| Special Items - D&A from acquisitions | 2,377 | 0.8% | 2,795 | 0.9% | (418) | -15.0% |
| Depreciation Tang. Fixed Assets and Rights of Use | 8,175 | 2.7% | 8,939 | 2.8% | (764) | -8.5% |
| Amortisation Intang. Fixed Assets | 7,882 | 2.6% | 6,099 | 1.9% | 1,783 | 29.2% |
| Adjusted EBITDA | 33,011 | 11.1% | 34,256 | 10.9% | (1,245) | -3.6% |
Consolidated revenue amounted to €298.0 million at June 30, 2023, down by 5.3% versus €314.6 million in first half 2022, with declines affecting all geographical areas. At constant exchange rates, the sales performance decreased by 5.0%.
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:
| 30.06.2023 | % | 30.06.2022 | % | Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Italy | 30,670 | 10.3% | 31,727 | 10.1% | (1,058) | -3.3% | -3.3% |
| EMEAI (excluding Italy) | 133,337 | 44.7% | 138,619 | 44.1% | (5,282) | -3.8% | -3.9% |
| Total EMEAI | 164,007 | 55.0% | 170,347 | 54.1% | (6,340) | -3.7% | -3.8% |
| Americas | 91,642 | 30.8% | 96,177 | 30.6% | (4,534) | -4.7% | -5.4% |
| APAC | 42,326 | 14.2% | 48,075 | 15.3% | (5,750) | -12.0% | -8.7% |
| Total revenue | 297,975 | 100.0% | 314,599 | 100.0% | (16,624) | -5.3% | -5.0% |
EMEAI was down by 3.7% in first half 2023, with Italy down by 3.3%. Americas fell by 4.7%. APAC dropped by 12.0% versus the same period of 2022 (-8.7% at constant exchange rates).
Gross OperatingMargin amounted to €126.4 million (42.4% of sales) versus €124.6 million at June 30, 2022 (39.6% of sales), improving by 2.8% as a percentage of sales versus first half 2022, thanks mainly to the positive effects of price, mix, and productivity, offsetting the decline in sales volumes.
Operating costs and other expense amounted to €109.5 million (€105.4 million at June 30, 2022), increasing as a percentage of sales by 3.2% from 33.5% to 36.7%, especially on research and development and distribution expense.
Research and Development expense, amounting to €30.8 million, increased by 3.1% versus June 30, 2022, with the percentage of revenue of 10.4% versus 9.5% in the same period of the prior year. Total monetary costs in R&D,before capitalisation of internal costs and without amortisation and depreciation (R&D Cash Out), amounted to €32.0 million (€30.9 million in the same period of the prior year), with a percentage of sales of 10.7% (9.8% in first half 2022).
Distribution expense amounted to €52.2 million and was up by 9.4% versus first half 2022 (€47.7 million in first half 2022), with the percentage of revenue increasing from 15.2% to 17.5%. The change from the same period of the prior year is related mainly to increased personnel expense and increased sales and marketing initiatives and participation in trade fairs and events as well as customer visits.
Administrative and General Expense amounted to €26.2 million at June 30, 2023, down by 4.4% versus first half 2022, basically unchanged as a percentage of sales(+0.1%) from 8.7% to 8.8%. Specifically, the costs of utilities and consulting services decreased.
Adjusted EBITDA came to €33.0 million, with an Adjusted EBITDA margin accounting for 11.1% of sales, up by 0.2% from 10.9% recorded in first half 2022, thanks to improved industrial margins and despite higher operating expense.
Adjusted EBIT stood at 5.7% of revenue and amounted to €17.0 million (€19.2 million at June 30, 2022).
Net Financials closed with a positive €2.0 million, improving by €6.5 million versus June 30, 2022, as a result of the gain earned from the transfer of the 15% minority interest still held in Solution Net Systems LLC (SNS), and of favourable foreign exchange differences in the current six-month period.
Net profit for the period amounted to €12.1 million, or 4.1% of revenue (€8.8 million at June 30, 2022, or 2.8% of revenue).
Operating segments are identified based on operating reports used at the highest decision-making level to allocate resources and assess results. The operating segments are shown below:
The tables below show the comparison of Revenue and Adjusted EBITDA by Division in the period versus the same period of the prior year:
| 30.06.2023 | % | 30.06.2022 | % | Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Datalogic | 289,942 | 97.3% | 306,655 | 97.5% | (16,713) | -5.5% | -5.2% |
| Informatics | 8,249 | 2.8% | 8,513 | 2.7% | (264) | -3.1% | -3.7% |
| Intersegment adjustments | (216) | -0.1% | (569) | -0.2% | 353 | ||
| Total revenue | 297,975 100.0% | 314,599 | 100.0% | (16,624) | -5.3% | -5.0% |
| 30.06.2023 | % on | 30.06.2022 | % on | Change | % chg. | |
|---|---|---|---|---|---|---|
| Revenue | Revenue | |||||
| Datalogic | 31,483 | 10.9% | 32,893 | 10.7% | (1,410) | -4.3% |
| Informatics | 1,411 | 17.1% | 1,423 | 16.7% | (12) | -0.8% |
| Intersegment adjustments | 117 | (60) | 177 | |||
| Total Adjusted EBITDA | 33,011 | 11.1% | 34,256 | 10.9% | (1,245) | -3.6% |
At June 30, 2023, the Datalogic division reported sales revenue of €289.9 million, down by 5.5% (-5.2% at constant exchange rates) versusfirst half 2022. The geographical area that most affected the decline was APAC, down by 12.0%.
The division's adjusted EBITDA amounted to €31.5 million, equal to 10.9% of sales (10.7% at June 30, 2022).
To better align with its strategic goals and prioritize product and solution offerings, starting from the first quarter of the current year, Datalogic reviewed its operating model and introduced two new Market Segments, which feature distinct sales models, customers with varying purchasing needs, and different stakeholders: Data Capture and Industrial Automation.
Reflecting the new operating model, the revenue breakdown for the Datalogic Division is now presented by the new segments, in place of the previous breakdown by Industries:
| 30.06.2023 | % | 30.06.2022 | % | Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Data Capture | 178,873 | 61.7% | 190,677 | 62.2% | (11,804) | -6.2% | -6.1% |
| Industrial Automation | 111,069 | 38.3% | 115,977 | 37.8% | (4,909) | -4.2% | -3.6% |
| Total revenue | 289,942 | 100.0% | 306,655 | 100.0% | (16,713) | -5.5% | -5.2% |
The Data Capture segment, with 61.7% of divisional sales (62.2% at June 30, 2022), recorded a 6.2% decrease versus first half 2022, affecting all geographical areas: -14.0% APAC (-10.9% at constant exchange rates), -8.7% Americas, and -3.0% EMEAI.
The Industrial Automation segment declined by 4.2% in first half 2023 (-3.6% at constant exchange rates): up in the Americas (+3.5%), down in APAC andEMEAI.
The Informatics Division achieved sales of €8.2 million in first half 2023, down slightly from first half 2022.
The adjusted EBITDA margin in the first half of the year stood at 17.1%, improving by 0.4% versus 16.7% in the first half of the prior year.
The following statement summarises the Datalogic Group's key income and financial results of second quarter 2023 versus the same quarter of the prior year:
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 30.06.2023 | % on | 30.06.2022 | % on | Change | % chg. | % chg. | |
| Revenue | Restated | Revenue | net FX | ||||
| Revenue | 148,308 | 100.0% | 176,671 | 100.0% | (28,363) | -16.1% | -14.6% |
| Adjusted EBITDA | 19,534 | 13.2% | 22,504 | 12.7% | (2,970) | -13.2% | -11.9% |
| Adjusted EBIT | 11,581 | 7.8% | 14,744 | 8.3% | (3,163) | -21.5% | -19.8% |
| EBIT | 8,708 | 5.9% | 13,033 | 7.4% | (4,325) | -33.2% | -31.3% |
| Profit/(Loss) for the period | 8,939 | 6.0% | 7,513 | 4.3% | 1,426 | 19.0% | 22.2% |
In second quarter 2023, revenue dropped by €28.4 million, or by 16.1% (-14.6% at constant exchange rates), to reach €148.3 million.
The breakdown of Group revenue by geographical area in second quarter 2023 versus the same quarter of 2022 is shown below:
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 30.06.2023 | % | 30.06.2022 | % | Change | % chg. | % chg. net | ||
| FX | ||||||||
| Italy | 15,295 | 10.3% | 17,317 | 9.8% | (2,022) | -11.7% | -11.7% | |
| EMEAI (excluding Italy) | 62,246 | 42.0% | 77,409 | 43.8% | (15,163) | -19.6% | -19.3% | |
| Total EMEAI | 77,541 | 52.3% | 94,726 | 53.6% | (17,184) | -18.1% | -17.9% | |
| Americas | 49,714 | 33.5% | 55,549 | 31.4% | (5,835) | -10.5% | -8.6% | |
| APAC | 21,052 | 14.2% | 26,396 | 14.9% | (5,344) | -20.2% | -15.3% | |
| Total revenue | 148,308 | 100.0% | 176,671 | 100.0% | (28,363) | -16.1% | -14.6% |
Sales in the second quarter dropped across all geographical areas, especially in APAC (-20.2%, -15.3% at constant exchange rates) and EMEAI (-18.1%).
Adjusted EBITDA in the quarter came to €19.5 million (13.2% on revenue), up versus 12.7% recorded in second quarter 2022.
Net profit in the quarter stood at €8.9 million (6.0% of sales); €7.5 million in second quarter 2022 (4.3% of sales), improving as a percentage of sales versus the same period of the prior year.
The tables below show the trend in Revenue and Adjusted EBITDA by division in second quarter 2023 versus the same quarter of 2022:
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 30.06.2023 | % | 30.06.2022 | % | Change | % | % chg. | ||
| Restated | net FX | |||||||
| Datalogic | 144,224 | 97.2% | 172,610 | 97.7% | (28,386) | -16.4% | -15.0% | |
| Informatics | 4,151 | 2.8% | 4,404 | 2.5% | (253) | -5.7% | -3.6% | |
| Intersegment adjustments | (67) | (343) | 276 | |||||
| Total revenue | 148,308 100.0% | 176,671 | 100.0% | (28,363) | -16.1% | -14.6% |
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 30.06.2023 | % on | 30.06.2022 | % on | Change | % chg. | |||
| Revenue | Revenue | |||||||
| Datalogic | 18,547 | 12.9% | 21,891 | 12.7% | (3,344) | -15.3% | ||
| Informatics | 954 | 23.0% | 621 | 14.1% | 333 | 53.6% | ||
| Adjustments | 33 | (8) | 41 | |||||
| Total Adjusted EBITDA | 19,534 | 13.2% | 22,504 | 12.7% | (2,970) | -13.2% |
In second quarter 2023, the Datalogic division reported sales of €144.2 million, down by 16.4% (-15.0% at constant exchange rates) versus the same quarter of 2022. Specifically, APAC (-20.2%) and EMEAI (-18.2%) geographical areas both declined.
The division's Adjusted EBITDA came to €18.5 million or 12.9% of sales, an improvement over both second quarter 2022 (12.7%) and first quarter 2023 (8.9% of sales).
The breakdown of Datalogic Division revenue by the new segments is shown below:
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 30.06.2023 | % | 30.06.2022 | % | Change | % | % chg. net FX |
|
| Data Capture | 87,610 | 60.7% | 107,215 | 62.1% | (19,605) | -18.3% | -16.9% |
| Industrial Automation | 56,613 | 39.3% | 65,394 | 37.9% | (8,781) | -13.4% | -11.9% |
| Total revenue | 144,224 | 100.0% | 172,610 | 100.0% | (28,386) | -16.4% | -15.0% |
The Data Capture segment, with 60.7% of divisional sales (62.1% in second quarter 2022), recorded an 18.3% decline versus second quarter 2022, affecting all geographical areas: -21.4% EMEAI (-21.1% at constant exchange rates), - 14.7% Americas (-12.8% at constant exchange rates), and -13.9% APAC (-8.6% at constant exchange rates).
The Industrial Automation segment fell by 13.4% (-11.9% at constant exchange rates) in second quarter 2023, affected by all the geographical areas, APAC in particular (-25.5%).
In second quarter 2023, the Informatics Division's revenue dropped by 5.7% (-3.6% at constant exchange rates). EBITDA came to €1.0 million, accounting for 23.0% of revenue (€0.6 million in second quarter 2022, 14.1% of revenue).
| 30.06.2023 | 31.12.2022 | Change | % chg. | |
|---|---|---|---|---|
| Intangible fixed assets | 91,347 | 91,971 | (624) | -0.7% |
| Goodwill | 208,662 | 212,043 | (3,381) | -1.6% |
| Tangible fixed assets | 108,213 | 114,557 | (6,344) | -5.5% |
| Financial assets and investments in associates | 8,645 | 8,679 | (34) | -0.4% |
| Other fixed assets | 55,414 | 56,975 | (1,561) | -2.7% |
| Fixed Assets | 472,281 | 484,225 | (11,944) | -2.5% |
| Trade receivables | 66,009 | 91,299 | (25,290) | -27.7% |
| Trade payables | (108,589) | (112,054) | 3,465 | -3.1% |
| Inventory | 124,459 | 129,824 | (5,365) | -4.1% |
| Net Trade Working Capital | 81,879 | 109,069 | (27,190) | -24.9% |
| Other current assets | 34,777 | 32,681 | 2,096 | 6.4% |
| Other liabilities and provisions for current risks | (66,596) | (71,605) | 5,009 | -7.0% |
| Net Working Capital | 50,060 | 70,145 | (20,085) | -28.6% |
| Other non-current liabilities | (49,357) | (49,440) | 83 | -0.2% |
| Post-employment benefits | (5,925) | (6,163) | 238 | -3.9% |
| Provisions for non-current risks | (5,472) | (5,193) | (279) | 5.4% |
| Net Invested Capital | 461,587 | 493,574 | (31,987) | -6.5% |
| Equity | (436,486) | (451,567) | 15,081 | -3.3% |
| Net financial position (NFP) | (25,101) | (42,007) | 16,906 | -40.2% |
The following table shows the main financial and equity items at June 30, 2023 versus December 31, 2022.
Net Invested Capital, at €461.6 million (€493.6 million at December 31, 2022), shows an overall decrease of €32.0 million, of which €20.1 million in Net Working Capital and €11.9 million in Fixed Capital.
Fixed Assets, amounting to €472.3 million (€484.2 million at December 31, 2022), decreased by €11.9 million, attributable mainly to a decrease in Tangible Fixed Assets, due to depreciation for the period (€6.1 million), as well as translation differences of €3.5 million (€3.4 million of which recognized on goodwill).
Net Trade Working Capital at June 30, 2023 amounted to €81.9 million and decreased by €27.2 million versus December 31, 2022, with the percentage of sales decreasing from 16.7% at December 31, 2022 to 12.8% at June 30, 2023. The change in the period is affected by a decrease in trade receivables of €25.3 million and a decrease in inventory of €5.4 million, partly offset by a decrease in trade payables of €3.5 million.
30.06.2023 30.06.2022 Change Net financial position (Financial debt) beginning of period (42,007) (26,060) (15,947) Adjusted EBITDA 33,011 34,256 (1,245) Change in net trade working capital 27,190 (31,887) 59,077 Other changes in net working capital and special items (9,016) 1,356 (10,372) Net expenditure (12,971) (10,310) (2,661) Tax paid (4,605) (2,368) (2,237) Net financial income (expense) (1,850) (4,532) 2,682 Cash Flow from Operations 31,760 (13,484) 45,244 Dividend distribution (17,034) (16,934) (100) Sale (Purchase) of treasury shares (5,314) - (5,314) Disinvestments (investments) of financial assets 3,823 - 3,823 Acquisitions - (15,994) 15,994 Other changes 3,672 588 3,084 Change in Net Financial Position 16,906 (45,823) 62,730 Net financial position (financial debt) end of period (25,101) (71,883) 46,783
The Net Financial Position at June 30, 2023 stood at a negative €25.1 million. The cash flows that led to the change in the consolidated Net Financial Position versus December 31, 2022 are detailed below.
Cash Flow from Operations at June 30, 2023 closed at a positive €31.8 million, improving by €45.2 million versus a negative €13.5 million in first half 2022. The positive change is basically attributable to the cash generation of Net Working Capital, which typically absorbs cash flows in the first half of the year, and it wasstill affected in 2022 by supply chain challenges and delays in order fulfilment that had negatively impacted inventory and trade payables. At €25.1 million, the Net Financial Position is at its lowest level ever in the past two years and since the beginning of the components crisis.
At June 30, 2023, the Net Financial Debt is shown below:
| 30.06.2023 | 31.12.2022 | |
|---|---|---|
| A. Cash | 88,069 | 107,469 |
| B. Cash equivalents | - | 13 |
| C. Other current financial assets | - | - |
| D. Liquid assets (A) + (B) + (C) | 88,069 | 107,482 |
| E. Current financial debt | 4,768 | 36,612 |
| E1. of which lease payables | 3,866 | 4,164 |
| F. Current portion of non-current financial debt | 14,406 | 33,810 |
| G. Current Financial Debt (E) + (F) | 19,174 | 70,422 |
| H. Net Current (F) Financial Debt (G)-(D) | (68,895) | (37,060) |
| I. Non-current financial debt | 93,996 | 79,067 |
| I1. of which lease payables | 8,586 | 11,962 |
| J. Debt instruments | - | - |
| K. Trade and other non-current payables | - | - |
| L. Non-Current Financial Debt (I) + (J) + (K) | 93,996 | 79,067 |
| M. Total Net Financial Debt/(Net Financial Position) (H) + (L) | 25,101 | 42,007 |
At June 30, 2023, the Group had outstanding financial credit lines of approximately €290.0 million, of which approximately €200.0 million committed. Undrawn and readily available financial lines amounted to €190.0 million.
Indirect and conditional debt at June 30, 2023 is represented exclusively by the Group's provision for post-employment benefits of €5.9 million.
On April 3, 2023, a transaction was finalized to transfer the 15% minority interest still held in Solution Net Systems LLC (SNS) by the subsidiary Datalogic USA Inc..
Starting from the first quarter of the current year, to provide a clearer picture of Group performance, certain costs related mainly to installations, previously shown in distribution expense, have been classified in cost of goods sold; additionally, certain quality-related expense has been itemized and allocated based on the intended purpose. Comparative figures have been consistently restated; reference is made to the table in Annex 4 of this document for details of the amounts.
On April 27, 2023, the Shareholders' Meeting approved the Financial Statements at December 31, 2022, and reviewed the Group's Consolidated Financial Statements at December 31, 2022, and resolved to distribute an ordinary unit dividend, gross of tax, of 30 Euro cents per share, for a maximum total amount of €17.0 million.
The same Meeting also resolved to:
The socio-political tensions that escalated into a conflict between Russia and Ukraine on February 24, 2022, the developments of which are unpredictable to date, have led Western countries to impose economic sanctions on Russia. The Group has no offices in the countries currently directly affected by the conflict, nor do they represent significant outlet or supply markets for it. The ongoing conflict has triggered inflationary pressure, which has persisted since last year and into 2023, impacting mainly energy and certain commodity prices, and contributing to market volatility, leading to an increase in interest rates.
The potential effects of this situation on the Group's income and financial results are 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 ninth 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.
On July 1, 2023, Pietro Todescato, a key management personnel, left the Group due to age limit. Mr. Todescato will continue to serve as a director of Datalogic S.p.A..
Our sincere appreciation goes to Mr. Todescato for his innovative contributions to the Group's development and growth.
The macroeconomic outlook for 2023 is anticipated to be marked by ongoing uncertainty, as persistent inflationary pressure, restrictive monetary policies, and continued geopolitical tensions are expected to hinder both investment and consumption.
Due to the continued uncertainty surrounding the timing of demand recovery in the Group's main markets of operation, the Group's expectations for the second half of the year indicate lower sales compared to the prior year.
Notwithstanding the prolonged and uncertain scenario on the demand side, which has exceeded initial expectations, the company remains committed to sustaining solid levels of investment in research and development as well as in commercial facilities, thanks to improved industrial margins and reduced debt.
The Parent Company has no secondary locations.
Chairman of the Board of Directors (Romano Volta)
DATALOGIC GROUP 20
| ASSETS (Euro/000) | Notes | 30.06.2023 | 31.12.2022 |
|---|---|---|---|
| A) Non-current assets (1+2+3+4+5+6+7) | 472,281 | 484,225 | |
| 1) Tangible fixed assets | 96,052 | 98,799 | |
| Land | 1 | 12,704 | 12,740 |
| Buildings | 1 | 52,007 | 52,449 |
| Other assets | 1 | 26,867 | 29,825 |
| Fixed assets under construction and advances | 1 | 4,474 | 3,785 |
| 2) Intangible fixed assets | 300,009 | 304,014 | |
| Goodwill | 2 | 208,662 | 212,043 |
| Development costs | 2 | 35,855 | 27,209 |
| Other | 2 | 39,940 | 43,206 |
| Fixed assets under construction and advances | 2 | 15,552 | 21,556 |
| 3) Right of use fixed assets | 3 | 12,161 | 15,758 |
| 4) Investments in associates | 4 | 560 | 560 |
| 5) Non-current financial assets | 6 | 8,085 | 8,119 |
| 6) Trade and other receivables | 7 | 809 | 768 |
| 7) Deferred tax assets | 12 | 54,605 | 56,207 |
| B) Current assets (8+9+10+11+12) | 313,314 | 361,286 | |
| 8) Inventory | 124,459 | 129,824 | |
| Raw and ancillary materials and consumables | 8 | 59,800 | 62,503 |
| Work in progress and semi-finished products | 8 | 22,899 | 25,864 |
| Finished products and goods | 8 | 41,760 | 41,457 |
| 9) Trade and other receivables | 87,837 | 109,845 | |
| Trade receivables | 7 | 66,009 | 91,299 |
| of which associates | 7 | 1,551 | 2,861 |
| of which related parties | 7 | 11 | 11 |
| Other receivables, accrued income and prepaid expense | 7 | 21,828 | 18,546 |
| 10) Tax receivables | 9 | 12,949 | 14,135 |
| of which Parent Company | 1,807 | 1,807 | |
| 11) Current financial receivables | - | - | |
| 12) Cash and cash equivalents | 5 | 88,069 | 107,482 |
| Total Assets (A+B) | 785,595 | 845,511 |
| LIABILITIES (Euro/000) | Notes | 30.06.2023 | 31.12.2022 |
|---|---|---|---|
| A) Total Equity (1+2+3+4+5+6) | 10 | 436,486 | 451,567 |
| 1) Share capital | 10 | 30,392 | 30,392 |
| 2) Reserves | 10 | 122,914 | 132,266 |
| 3) Retained earnings (losses) | 10 | 267,779 | 255,840 |
| 4) Profit (loss) for the period | 10 | 12,111 | 29,550 |
| 5) Group Equity | 10 | 433,196 | 448,048 |
| Profit (loss) for the period attributable to non-controlling interests | 10 | 10 | 576 |
| Share capital attributable to non-controlling interests | 10 | 3,280 | 2,943 |
| 6) Equity attributable to non-controlling interests | 3,290 | 3,519 | |
| B) Non-current liabilities (7+8+9+10+11+12) | 154,750 | 139,863 | |
| 7) Non-current financial payables | 11 | 93,996 | 79,067 |
| 8) Tax payables | - | - | |
| 9) Deferred tax liabilities | 12 | 28,925 | 28,680 |
| 10) Provisions for post-employment and retirement benefits | 13 | 5,925 | 6,163 |
| 11) Provisions for non-current risks and charges | 14 | 5,472 | 5,193 |
| 12) Other liabilities | 15 | 20,432 | 20,760 |
| C) Current liabilities (13+14+15+16) | 194,359 | 254,081 | |
| 13) Trade and other payables | 163,569 | 166,713 | |
| Trade payables | 15 | 108,589 | 112,054 |
| of which associates | 15 | 121 | 101 |
| of which related parties | 0 | 24 | |
| Other payables, accrued expense and deferred income | 15 | 54,980 | 54,659 |
| 14) Tax payables | 9 | 8,650 | 13,478 |
| of which Parent Company | 2,013 | 2,013 | |
| 15) Provisions for current risks and charges | 14 | 2,966 | 3,468 |
| 16) Current financial payables | 11 | 19,174 | 70,422 |
| Total Liabilities (A+B+C) | 785,595 | 845,511 |
| 30.06.2023 | 30.06.2022 | ||
|---|---|---|---|
| (Euro/000) | Notes | Restated | |
| 1) Revenue | 16 | 297,975 | 314,599 |
| Revenue from sale of products | 275,519 | 292,971 | |
| Revenue from services | 22,456 | 21,628 | |
| of which related parties and associates | 3,709 | 6,058 | |
| 2) Cost of goods sold | 17 | 171,668 | 190,056 |
| of which related parties and associates | 157 | 146 | |
| Gross contribution margin (1-2) | 126,307 | 124,543 | |
| 3) Other revenue | 18 | 1,063 | 719 |
| 4) Research and development expense | 17 | 31,872 | 30,547 |
| of which related parties and associates | 361 | 275 | |
| 5) Distribution expense | 17 | 53,042 | 48,632 |
| of which related parties and associates | 93 | 91 | |
| 6) Administrative and general expense | 17 | 28,514 | 29,690 |
| of which related parties and associates | 98 | 98 | |
| 7) Other operating expense | 17 | 1,312 | 1,083 |
| Total operating costs | 114,740 | 109,951 | |
| EBIT | 12,630 | 15,311 | |
| 8) Financial income | 19 | 16,616 | 20,160 |
| 9) Financial expense | 19 | 14,643 | 24,692 |
| Financials (8-9) | 1,973 | (4,532) | |
| Profit/(Loss) before tax from continuing operations | 14,603 | 10,779 | |
| Income tax | 20 | 2,482 | 1,937 |
| Profit/(Loss) for the period | 12,121 | 8,842 | |
| Basic earnings/(loss) per share (€) | 22 | 0.21 | 0.15 |
| Diluted earnings/(loss) per share (€) | 22 | 0.21 | 0.15 |
| Attributable to: | |||
| Shareholders of the Parent Company | 12,111 | 8,588 | |
| Non-controlling interests | 10 | 254 |
| 30.06.2023 | 30.06.2022 | ||
|---|---|---|---|
| (Euro/000) | Notes | Restated | |
| Profit/(Loss) for the period | 12,121 | 8,842 | |
| 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 | 41 | 48 |
| Profit (loss) from the translation of financial statements of foreign companies | 10 | (5,437) | 25,950 |
| Total other items of the statement of comprehensive income that will later be reclassified to Profit/(Loss) for the period |
(5,396) | 25,998 | |
| 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 | 29 | (762) |
| of which tax effect | (1) | 9 | |
| Total other items of the statement of comprehensive income that will not later be reclassified to Profit/(Loss) for the period |
29 | (762) | |
| Total profit/(loss) of the statement of comprehensive income | (5,367) | 25,236 | |
| Comprehensive profit/(loss) for the period | 6,754 | 34,078 | |
| Attributable to: | |||
| Shareholders of the Parent Company | 6,982 | 33,720 | |
| Non-controlling interests | (228) | 358 |
| (Euro/000) | Notes | 30.06.2023 | 30.06.2022 Restated |
|---|---|---|---|
| Profit/(Loss) before tax Depreciation of tangible fixed assets and write-downs |
1 | 14,603 6,105 |
10,779 6,725 |
| Amortisation of intangible fixed assets and write-downs | 2 | 10,229 | 8,894 |
| Depreciation of ROU fixed assets | 3 | 2,097 | 2,215 |
| Losses (Gains) from sale of fixed assets | 17, 18 | (88) | 6 |
| Change in provisions for risks and charges | 14 | (228) | (32) |
| Change in provision for obsolescence | 8 | 832 | 1,463 |
| Financials | 19 | (1,973) | 4,532 |
| Monetary effect foreign exchange gains/(losses) | (689) | 122 | |
| Other non-monetary changes | 31 | 515 | |
| Cash flow generated (absorbed) from operations before changes in working capital |
30,919 | 35,219 | |
| Change in trade receivables | 7 | 24,272 | (12,291) |
| Change in final inventory | 8 | 4,299 | (13,407) |
| Change in trade payables | 15 | (2,999) | (6,591) |
| Change in other current assets | 7 | (3,401) | (2,035) |
| Change in other current liabilities | 15 | 707 | 3,506 |
| Change in other non-current assets | 6 | (55) | 106 |
| Change in other non-current liabilities | 5 | (160) | 1,393 |
| Cash flow generated (absorbed) from operations after changes in working capital |
53,582 | 5,901 | |
| Change in tax assets and liabilities | (4,142) | (6,272) | |
| Interest paid | (1,723) | (1,380) | |
| Interest collected | 197 | 218 | |
| Cash flow generated (absorbed) from operations (A) | 47,914 | (1,533) | |
| Increase in intangible fixed assets | 2 | (9,612) | (7,076) |
| Decrease in intangible fixed assets | 2 | - | 13 |
| Increase in tangible fixed assets | 1 | (3,584) | (3,857) |
| Decrease in tangible fixed assets | 1 | 225 | 22 |
| Cash flow from business combinations, net of cash acquired | - | (15,994) | |
| Change in investments and current and non-current financial assets | 5 | 3,823 | (293) |
| Cash flow generated (absorbed) from investments (B) | (9,148) | (27,185) | |
| Payment of financial payables | 11 | (56,189) | (26,603) |
| New financial payables | 11 | 25,000 | 70,000 |
| Other changes in financial payables | 11 | (1,452) | (2,868) |
| Payments of financial liabilities from leases | (2,248) | (2,285) | |
| (Purchase) sale of treasury shares | 10 | (5,314) | - |
| Dividend payment | 10 | (17,034) | (16,934) |
| Effect of change in cash and cash funds | (942) | 1,692 | |
| Other changes | 0 | (4) | |
| Cash flow generated (absorbed) from financing activities (C) | (58,179) | 22,998 | |
| Net increase (decrease) in cash (A+B+C) Net cash and cash equivalents at beginning of period |
(19,414) 107,482 |
(5,719) 106,080 |
|
| Net cash and cash equivalents at end of period | 88,069 | 100,361 | |
| Description | Share capital |
Share premium res. |
Treasury shares |
Translation reserve |
Other Reserves |
Retained earnings |
Group Profit (Loss) |
Group Equity |
Profit (Loss) of non controlling interests |
Share capital and reserves attributable to non controlling interests |
Equity attributable to non controlling interests |
Profit (Loss) |
Equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01.01.2023 | 30,392 | 111,779 | (22,191) | 39,331 | 3,347 | 255,840 | 29,550 | 448,048 | 576 | 2,943 | 3,519 | 30,126 | 451,567 |
| Allocation of profit | - | - | - | - | - | 29,550 | (29,550) | - | (576) | 576 | - | (30,126) | - |
| Dividends | - | - | - | - | - | (17,034) | - | (17,034) | - | - | - - |
(17,034) | |
| Treasury shares | - | - | (5,314) | - | - | - | - | (5,314) | - | - | - - |
(5,314) | |
| Share-based incentive plan | - | - | - | - | 420 | - | - | 420 | - | - | - - |
420 | |
| Other changes | - | - | - | - | 671 | (577) | - | 94 | - | - | - - |
94 | |
| Profit/(Loss) for the period | - | - | - | - | - | - | 12,111 | 12,111 | 10 | - | 10 | 12,121 | 12,121 |
| Other items of the statement of comprehensive income |
- | - | - | (5,199) | 70 | - | - | (5,129) | (238) | (238) | - | (5,367) | |
| Total comprehensive Profit (Loss) | - | - | - | (5,199) | 70 | - | 12,111 | 6,982 | 10 | (238) | (228) | 12,121 | 6,754 |
| 30.06.2023 | 30,392 | 111,779 | (27,505) | 34,132 | 4,508 | 267,779 | 12,111 | 433,196 | 10 | 3,280 | 3,290 | 12,121 | 436,486 |
| Description | Share capital |
Share premium res. |
Treasury shares |
Translation reserve |
Other Reserves |
Retained earnings |
Group Profit (Loss) |
Group Equity |
Profit (Loss) of non controlling interests |
Share capital and reserves attributable to non controlling interests |
Equity attributable to non controlling interests |
Profit (Loss) |
Equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01.01.2022 | 30,392 | 111,779 | (26,096) | 22,746 | 11,239 | 229,692 | 38,913 | 418,665 | 627 | 2,432 | 3,060 | 39,540 | 421,724 |
| Allocation of profit | - | - | - | - | - | 38,913 | (38,913) | - | (627) | 627 | - | (39,540) | - |
| Dividends | - | - | - | - | - | (16,934) | - | (16,934) | - | - | - - |
(16,934) | |
| Treasury shares | - | - | - | - | - | - | - | - | - | - | - - |
- | |
| Share-based incentive plan | - | - | 4,698 | - | (4,933) | 235 | - | - | - | - | - - |
- | |
| Other changes | - | - | - | - | 233 | (291) | - | (58) | - | (28) | (28) | - | (86) |
| Profit/(Loss) for the period | - | - | - | - | - | - | 8,588 | 8,588 | 254 | - | 254 | 8,842 | 8,842 |
| Other items of the statement of comprehensive income |
- | - | - | 25,846 | (714) | - | - | 25,132 | 104 | 104 | - | 25,236 | |
| Total comprehensive Profit (Loss) | - | - | - | 25,846 | (714) | - | 8,588 | 33,720 | 254 | 104 | 358 | 8,842 | 34,078 |
| 30.6.2022 Restated | 30,392 | 111,779 | (21,398) | 48,592 | 5,825 | 251,613 | 8,588 | 435,391 | 254 | 3,135 | 3,389 | 8,842 | 438,780 |
DATALOGIC GROUP 27
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 Half-Year Financial Report for June 30, 2023 includes the figures of the Parent Company and its subsidiaries (defined hereinafter as "Group") and the relevant shares in associates.
The publication of this Consolidated Half-Year Financial Report at June 30, 2023 of the Datalogic Group was authorised by resolution of the Board of Directors dated August 2, 2023.
This Consolidated Half-Year Financial Report was prepared pursuant to Article 154-ter of 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 Half-Year Financial Report should therefore be read in conjunction with the Consolidated Annual Financial Report at December 31, 2022, prepared in accordance with IFRS accounting standards adopted by the European Union, approved by the Board of Directors on March 9, 2023, and available in the Investor Relations section of the Group's website (www.datalogic.com).
This Consolidated Half-Year Financial Report is drawn up in thousands of euro, which is the Group's "functional" and "presentation" currency.
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, 2022, in particular:
to be realized, sold or consumed in 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 period;
The following IFRS international accounting standards, amendments and interpretations have been applied for the first time by the Group as of January 1, 2023:
• On May 18, 2017, the IASB published IFRS 17 – Insurance Contracts, intended to supersede IFRS 4 - Insurance Contracts. The standard was applied as of January 1, 2023. The aim of the new standard is to ensure that an entity provides relevant information that faithfully represents the rights and obligations deriving from insurance contracts issued. The IASB developed the standard to eliminate the inconsistencies and weaknesses of the existing accounting standards, providing a single principle-based framework to take account of all types of insurance contracts, including reinsurance contracts that an insurer holds.
The new standard also sets out reporting and disclosure requirements in order to improve comparability between entities from the same sector.
The new standard measures an insurance contract based on a General Model or a simplified version, called the Premium Allocation Approach ("PAA").
Additionally, on December 9, 2021, the IASB published "Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information". The amendment is a transition option related to comparative information on financial assets presented at the date of initial application of IFRS 17. The amendment was applied as of January 1, 2023, together with the application of IFRS 17, to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and to improve the usefulness of comparative information for financial statement readers.
The adoption of this standard and its amendment had no effects on the Group's consolidated financial statements.
• On May 7, 2021, the IASB published "Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction". The document clarifies how entities should account for deferred tax on certain transactions that can generate assets and liabilities of equal amounts, such as leases and decommissioning provisions. The amendments were applied as of January 1, 2023.
The adoption of this amendment had no effects on the Group's consolidated financial statements.
• On February 12, 2021, the IASB published "Disclosure of Accounting Policies-Amendments to IAS 1 and IFRS Practice Statement 2" and "Definition of Accounting Estimates-Amendments to IAS 8". The amendments are intended to improve accounting policy disclosures so that they provide more useful information to investors and other primary users of financial statements, as well as to help entities distinguish changes in accounting estimates from changes in accounting policies. The amendments were applied as of January 1, 2023. The adoption of these amendments had no effects on the Group's consolidated financial statements.
At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below.
On May 23, 2023, the IASB published "Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules". The document provides temporary relief from the recognition and disclosure requirements for deferred tax assets and liabilities related to the Pillar Two Model Rules and envisages specific disclosure requirements for entities affected by the related International Tax Reform. The document envisages the immediate application of temporary relief, while the disclosure requirements will
apply only to annual financial statements that began on or after January 1, 2023, but not to interim financial statements with a closing date prior to December 31, 2023. The Directors do not expect the Group's consolidated financial statements to be materially affected by the adoption of this amendment.
• On May 25, 2023, the IASB published "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional information on reverse factoring arrangements that will enable financial statement users to assess how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of such arrangements on the entity's exposure to liquidity risk. The amendments will apply as of January 1, 2024, but early application is permitted. The Directors do not expect the Group's consolidated financial statements to be materially affected by the adoption of this amendment.
The preparation of the Consolidated Half-Year Financial Report requires the Directors to apply accounting standards and methods that, in certain cases, are based on valuations and estimates based on historical experience and assumptions that are evaluated from time to time according to the specific cases. 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.
This Consolidated Half-Year Financial Report at June 30, 2023 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 scope appears in Annex 2 of the Explanatory Notes, with an indication of the methodology used.
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 | |||
|---|---|---|---|---|
| June 2023 | June 2023 | December 2022 | June 2022 | |
| Final exchange | Average | Final exchange | Average | |
| rate | exchange rate | rate | exchange rate | |
| for the period | for the period | |||
| US Dollar (USD) | 1.09 | 1.08 | 1.07 | 1.09 |
| British Pound Sterling (GBP) | 0.86 | 0.88 | 0.89 | 0.84 |
| Swedish Krona (SEK) | 11.81 | 11.33 | 11.12 | 10.48 |
| Singapore Dollar (SGD) | 1.47 | 1.44 | 1.43 | 1.49 |
| Japanese Yen (JPY) | 157.16 | 145.76 | 140.66 | 134.31 |
| Australian Dollar (AUD) | 1.64 | 1.60 | 1.57 | 1.52 |
| Hong Kong Dollar (HKD) | 8.52 | 8.47 | 8.32 | 8.56 |
| Chinese Renminbi (CNY) | 7.90 | 7.49 | 7.36 | 7.08 |
| Brazilian Real (BRL) | 5.28 | 5.48 | 5.64 | 5.56 |
| Mexican Peso (MXN) | 18.56 | 19.65 | 20.86 | 22.17 |
| Hungarian Forint (HUF) | 371.93 | 380.85 | 400.87 | 375.13 |
| Czech Crown (CZK) | 23.74 | 23.69 | 24.12 | 24.65 |
Operating segments are identified based on operating reports used at the highest decision-making level to allocate resources and assess results. Transfers amongst the operating segments indicated hereunder are executed at arm's length conditions, based on the Group transfer pricing policies. For first half 2023, the operating segments are identified as follows:
The income information related to operating segments at June 30, 2023 and June 30, 2022 is the following:
| Datalogic | Informatics | Adjustments | Total Group | |
|---|---|---|---|---|
| Divisional income position | Business | 30.06.2023 | ||
| Revenue | 289,942 | 8,249 | (216) | 297,975 |
| Adjusted EBITDA | 31,483 | 1,411 | 117 | 33,011 |
| % Revenue | 10.86% | 17.11% | 11.08% | |
| EBIT | 11,201 | 1,311 | 116 | 12,628 |
| Divisional income position | Datalogic Business |
Informatics | Adjustments | Total Group 30.06.2022 Restated |
|---|---|---|---|---|
| Revenue | 306,655 | 8,513 | (569) | 314,599 |
| Adjusted EBITDA | 32,893 | 1,423 | (60) | 34,256 |
| % Revenue | 10.73% | 16.72% | 10.89% | |
| EBIT | 14,151 | 1,220 | (60) | 15,311 |
The equity information related to operating segments at June 30, 2023 and at December 31, 2022 is the following.
| Datalogic | Informatics | Adjustments | Total Group |
|---|---|---|---|
| Business | 30.06.2023 | ||
| 789,265 | 27,423 | (31,093) | 785,595 |
| 350,249 | 7,076 | (8,216) | 349,109 |
| 439,016 | 20,347 | (22,877) | 436,486 |
| Divisional financial position | Datalogic Business |
Informatics | Adjustments | Total Group 31.12.2022 |
|---|---|---|---|---|
| Total Assets | 848,979 | 28,416 | (31,884) | 845,511 |
| Total Liabilities | 392,016 | 8,666 | (6,738) | 393,944 |
| Equity | 456,963 | 19,750 | (25,146) | 451,567 |
Tangible fixed assets at June 30, 2023 amounted to €96,052 thousand. During the period, net expenditure of €3,442 thousand and depreciation of €6,105 thousand was recognised, while exchange rate effects closed with a negative €89 thousand. The breakdown of the item at June 30, 2023 and at December 31, 2022 is shown below.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Land | 12,704 | 12,740 | (36) |
| Buildings | 52,007 | 52,449 | (442) |
| Other assets | 26,867 | 29,825 | (2,958) |
| Fixed assets under construction and advances | 4,474 | 3,785 | 689 |
| Total | 96,052 | 98,799 | (2,747) |
The "Other assets" item at June 30, 2023 includes the following categories: industrial equipment and moulds (€11,617 thousand), plant and machinery (€6,205 thousand), office furniture and machines (€5,341 thousand), generic plant related to buildings (€2,411 thousand), lightweight constructions (€240 thousand), commercial equipment and demo rooms (€582 thousand), leasehold improvements (€369 thousand), and motor vehicles (€102 thousand).
The balance of "Fixed assets under construction and advances", equal to €4,474 thousand, is composed primarily of moulds under construction and equipment and production lines built in house, and of improvements to owned buildings.
Intangible fixed assets at June 30, 2023 amounted to €300,009 thousand. During the period, net expenditure of €9,612 thousand and amortisation of €10,229 thousand was recognised, while exchange rate effects closed with a negative €3,388 thousand. The breakdown of the item at June 30, 2023 and at December 31, 2022is shown below:
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Goodwill | 208,662 | 212,043 | (3,381) |
| Development costs | 35,855 | 27,209 | 8,646 |
| Other | 39,940 | 43,206 | (3,266) |
| Fixed assets under construction and advances | 15,552 | 21,556 | (6,004) |
| Total | 300,009 | 304,014 | (4,005) |
"Goodwill", equal to €208,662 thousand, is allocated to the CGUs identified by Management as shown below.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Datalogic CGU | 194,825 | 197,989 | (3,164) |
| Informatics CGU | 13,837 | 14,054 | (217) |
| Total | 208,662 | 212,043 | (3,381) |
The change from the end of the prior year is attributable to translation differences.
Goodwill is allocated to the CGUs (Cash Generating Units)represented by the individual companies and/or sub-groups to which they refer. The recoverable value of each cash generating unit (CGU), associated with each Goodwill item measured, is estimated through its corresponding value in use. In accordance with IAS 36, the Datalogic Group estimates value in use by discounting the discounted cash flows from operations at a rate equal to the weighted average cost of debt and equity (Weighted Average Cost of Capital or "WACC") in order to obtain the value of operating capital (Enterprise Value).
At June 30, 2023, in accordance with IAS 36, it was assessed and confirmed that there were no indicators that could lead to an impairment of the recorded assets, taking account of both internal and external information sources.
"Development costs", amounting to €35,855 thousand at June 30, 2023, consists of product development projects.
"Other", amounting to €39,940 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, and software licences as detailed below:
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Patents | 4,674 | 5,710 | (1,036) |
| Know-how | 13,874 | 14,483 | (609) |
| Customer portfolio | 11,393 | 11,843 | (450) |
| Licences | 1,163 | 1,662 | (499) |
| Software | 8,836 | 9,508 | (672) |
| Total | 39,940 | 43,206 | (3,266) |
"Fixed assets under construction and advances", amounting to €15,552 thousand (€21,556 thousand at December 31, 2022), is attributable mainly to the capitalization of costs for product development projects currently under way.
Net negative changes of €1,393 thousand were recorded during the period and depreciation of €2,097 thousand, while exchange rate effects closed with a negative €107 thousand. The breakdown of the item at June 30, 2023 and at December 31, 2022 is shown below.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Buildings | 10,075 | 13,590 | (3,515) |
| Vehicles | 1,957 | 1,997 | (40) |
| Office equipment | 129 | 171 | (42) |
| Total | 12,161 | 15,758 | (3,597) |
The non-controlling investments held by the Group, details of which are found in Annex 2, at June 30, 2023 amounted to €560 thousand, unchanged versus the prior period.
The table below provides a breakdown of "Financial assets and liabilities" under IFRS 9.
| Financial assets at amortized cost |
Financial assets at FV through profit and loss |
Financial assets at FV through OCI |
30.06.2023 | |
|---|---|---|---|---|
| Non-current financial assets | 809 | 3,793 | 4,292 | 8,894 |
| Non-current financial assets and investments | - | 3,793 | 4,292 | 8,085 |
| Other receivables | 809 | - | - | 809 |
| Current financial assets | 175,906 | - | - | 175,906 |
| Trade receivables | 66,009 | - | - | 66,009 |
| Other receivables | 21,828 | - | 21,828 | |
| Financial assets - Loans | - | - | - | - |
| Cash and cash equivalents | 88,069 | - | - | 88,069 |
| Total | 176,715 | 3,793 | 4,292 | 184,800 |
| Financial assets at amortized cost |
Financial assets at FV through profit and loss |
Financial assets at FV through OCI |
31.12.2022 | |
|---|---|---|---|---|
| Non-current financial assets | 768 | 3,818 | 4,301 | 8,887 |
| Non-current financial assets and investments | - | 3,818 | 4,301 | 8,119 |
| Other receivables | 768 | - | - | 768 |
| Current financial assets | 217,327 | - | - | 217,327 |
| Trade receivables | 91,299 | - | - | 91,299 |
| Other receivables | 18,546 | - | - | 18,546 |
| Financial assets - Loans | - | - | - | - |
| Cash and cash equivalents | 107,482 | - | - | 107,482 |
| Total | 218,095 | 3,818 | 4,301 | 226,214 |
"Cash and cash equivalents" amounted to €88,069 thousand. Details are found in the Net Financial Debt schedule in the Directors' Report on Operations.
| Derivatives | Financial liabilities at amortized cost |
30.06.2023 | |
|---|---|---|---|
| Non-current financial liabilities | - | 114,428 | 114,428 |
| Financial payables | - | 93,996 | 93,996 |
| Other payables | - | 20,432 | 20,432 |
| Current financial liabilities | - | 182,743 | 182,743 |
| Trade payables | - | 108,589 | 108,589 |
| Other payables | - | 54,980 | 54,980 |
| Current financial payables | - | 19,174 | 19,174 |
| Total | - | 297,171 | 297,171 |
| Derivatives | Financial liabilities at amortized cost |
31.12.2022 | |
|---|---|---|---|
| Non-current financial liabilities | - | 99,827 | 99,827 |
| Financial payables | - | 79,067 | 79,067 |
| Other payables | - | 20,760 | 20,760 |
| Current financial liabilities | - | 237,135 | 237,135 |
| Trade payables | - | 112,054 | 112,054 |
| Other payables | - | 54,659 | 54,659 |
| Current financial payables | - | 70,422 | 70,422 |
| Total | - | 336,962 | 336,962 |
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.
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 | 30.06.2023 |
|---|---|---|---|---|
| Non-current financial assets and investments | 4,292 | - | 3,793 | 8,085 |
| Total | 4,292 | - | 3,793 | 8,085 |
Financial assets include the following:
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Non-current financial assets | 8,085 | 8,119 | (34) |
| Current financial assets | - | - | - |
| Total | 8,085 | 8,119 | (34) |
Non-current financial assets amounted to €8,085 thousand and refer for €4,292 thousand to the investment in the share capital of the Japanese company Idec Corporation, €2,207 thousand to the investment in a financial instrument convertible into capital issued by AWM Smart Shelf, and €1,512 thousand to investment funds. The changes during the period include the transfer of the 15% stake still held in Solution Net Systems LLC (SNS) by the subsidiary Datalogic USA Inc..
The breakdown of the item at June 30, 2023 and at December 31, 2022 is shown below:
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Trade receivables | 60,610 | 84,880 | (24,270) |
| Contract assets - Invoices to be issued | 6,395 | 6,385 | 10 |
| Bad debt provisions | (2,593) | (2,838) | 245 |
| Net trade receivables | 64,412 | 88,427 | (24,015) |
| Receivables from associates | 1,551 | 2,861 | (1,310) |
| Receivables from related parties | 11 | 11 | - |
| Sub-total - Trade receivables | 66,009 | 91,299 | (25,290) |
| Other receivables - current accrued income and prepaid expense | 21,828 | 18,546 | 3,282 |
| Other receivables - non-current accrued income and prepaid expense | 809 | 768 | 41 |
| Sub-total -Other receivables - accrued income and prepaid expense | 22,637 | 19,314 | 3,323 |
| Less: non-current portion | 809 | 768 | 41 |
| Trade and other receivables - current | 87,837 | 109,845 | (22,008) |
"Trade receivables" amounted to €66,009 thousand at June 30, 2023, down by €25,290 thousand versus December 31, 2022. At June 30, 2023, trade receivables factored without recourse amounted to €31,306 thousand (€29,877 thousand at December 31, 2022). Trade receivables from associates arise from commercial transactions carried out at normal market conditions.
The details of "Other receivables - accrued income and prepaid expense" are shown below.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Other current receivables | 3,104 | 1,639 | 1,465 |
| Other non-current receivables | 809 | 768 | 41 |
| VAT receivables | 14,913 | 12,972 | 1,941 |
| Accrued income and prepaid expense | 3,811 | 3,935 | (124) |
| Total | 22,637 | 19,314 | 3,323 |
The "VAT receivable" of €14,913 thousand refers to normal commercial transactions. The difference refers to the changed ratio of offsetting tax and social security receivables and payables in the six-month period.
The "Accrued income and prepaid expense" item is composed mainly of the recognition of insurance contracts and hardware and software licenses.
Inventory amounted to €124,459 thousand, down by €5,365 thousand during the period.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Raw and ancillary materials and consumables | 59,800 | 62,503 | (2,703) |
| Work in progress and semi-finished products | 22,899 | 25,864 | (2,965) |
| Finished products and goods | 41,760 | 41,457 | 303 |
| Total | 124,459 | 129,824 | (5,365) |
Inventory is shown net of an obsolescence provision totalling €13,244 thousand at June 30, 2023 (€12,387 thousand at December 31, 2022).
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Tax receivables | 12,949 | 14,135 | (1,186) |
| of which Parent Company | 1,807 | 1,807 | |
| Tax payables | (8,650) | (13,478) | 4,828 |
| of which Parent Company | (2,013) | (2,013) | |
| Total | 4,299 | 657 | 3,642 |
At June 30, 2023, the net balance of "Tax Receivables and Payables" was positive and equal to €4,299 thousand versus a positive 657 thousand at December 31, 2022, marking a positive change of €3,642 thousand.
The composition of Equity at June 30, 2023 is shown below.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Share capital | 30,392 | 30,392 | - |
| Share premium reserve | 111,779 | 111,779 | - |
| Treasury shares held in portfolio | (27,505) | (22,191) | (5,314) |
| Share capital and reserves | 114,666 | 119,980 | (5,314) |
| Translation reserve | 34,132 | 39,331 | (5,199) |
| Other reserves | 4,508 | 3,347 | 1,161 |
| Retained earnings | 267,779 | 255,840 | 11,939 |
| Profit for the period | 12,111 | 29,550 | (17,439) |
| Total Group equity | 433,196 | 448,048 | (14,852) |
| Profit (loss) for the period attributable to non-controlling interests | 10 | 576 | (566) |
| Share capital attributable to non-controlling interests | 3,280 | 2,943 | 337 |
| Total consolidated equity | 436,486 | 451,567 | (15,081) |
At June 30, 2023, 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 2,431,202 held as treasury shares for a value of €27,505 thousand, therefore the outstanding shares at that date amounted to 56,015,289.
| Number of shares |
Share capital |
Share cancellation reserve |
Treasury shares held in portfolio |
Treasury share reserve |
Share premium reserve |
Total | |
|---|---|---|---|---|---|---|---|
| 01.01.2023 | 56,779,438 | 30,392 | 2,813 | (22,191) | 29,651 | 79,315 | 119,980 |
| Purchase of treasury shares | (764,149) | (5,314) | 5,314 | (5,314) | (5,314) | ||
| 30.06.2023 | 56,015,289 | 30,392 | 2,813 | (27,505) | 34,965 | 74,001 | 114,666 |
At June 30, 2023, the "Reserve for treasury shares held in portfolio" decreased by €5,314 thousand, due to the purchase of treasury shares.
The "Translation reserve" decreased by €5,199 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.
With regard to the change in the "Share-based incentive plan reserve", it should be noted that said change refers to the allocation for the period for the Performance Shares Plan 2022-2024 approved by the Shareholders' Meeting on April 29, 2022.
At June 30, 2023, "Other reserves", including the "Share-based incentive plan reserve", amounted to €4,508 thousand (€3,347 thousand at December 31, 2022).
"Financial payables" at June 30, 2023 amounted to €113,170 thousand, decreasing by €36,319 thousand as detailed below.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Bank loans | 99,816 | 130,915 | (31,099) |
| Financial payables from leases | 12,452 | 16,126 | (3,674) |
| Payables to factoring companies | 655 | 2,229 | (1,574) |
| Other financial payables | 190 | 53 | 137 |
| Bank overdrafts | 57 | 166 | (109) |
| Total | 113,170 | 149,489 | (36,319) |
The change in "Bank loans" for the period is a result of the payment of instalments falling due and the repayment of credit lines totalling €56,189 thousand and the granting of the last portion of the credit line of €25,000 thousand under the long-term loan named "Roller Coaster". The movements are shown below:
| 2023 | 2022 | |
|---|---|---|
| At January 1 | 130,915 | 113,206 |
| Increases | 25,000 | 70,000 |
| Decreases for borrowing repayments | (56,189) | (26,603) |
| Other changes | 90 | 415 |
| At June 30 | 99,816 | 157,018 |
"Financial payables from leases" decreased by €3,674 thousand.
The breakdown of financial payables, divided into current and non-current portions, is shown below:
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Non-current financial payables | 93,996 | 79,067 | 14,929 |
| Current financial payables | 19,174 | 70,422 | (51,248) |
| Total | 113,170 | 149,489 | (36,319) |
At June 30, 2023, the Group had credit lines in place for a total of approximately €290.0 million, of which €190.0 million undrawn, including €100.0 million long-term and €90.0 million short-term.
Certain loan agreements require the Group to comply with financial covenants, measured on a half-year basis at June 30 and December 31, summarized in the following table:
| Company | Covenants | Reference financial statements |
||
|---|---|---|---|---|
| Datalogic S.p.A. | NFP/EBITDA | 2.75 | Half-year | Consolidated |
| Datalogic S.p.A. | NFP/EBITDA | 3.00 | Half-year | Consolidated |
| Frequency |
At June 30, 2023, all covenants were met.
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 economicand 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.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Deferred tax assets | 54,605 | 56,207 | (1,602) |
| Deferred tax liabilities | (28,925) | (28,680) | (245) |
| Net deferred tax | 25,680 | 27,527 | (1,847) |
Deferred tax assets amounted to €54,605 thousand and included foreign tax credits attributable mainly to the subsidiary Datalogic USA Inc.
Deferred tax liabilities at June 30, 2023 amounted to €28,925 thousand and refer mainly to temporary differences related to asset amortisation/depreciation schedules, as well as tax adjustments resulting from the consolidation processes of recent acquisitions made by the Group.
The breakdown of changes in "Provisions for post-employment and retirement benefits" at June 30, 2023 and at June 30, 2022 is shown below:
| 2023 | 2022 | |
|---|---|---|
| At January 1 | 6,163 | 7,088 |
| Amount allocated in the period | 1,292 | 1,789 |
| Utilizations | (1,134) | (1,175) |
| Receivable from INPS | (391) | (766) |
| Other movements | - | 2 |
| Exchange rate adjustments | (5) | - |
| At June 30 | 5,925 | 6,938 |
"Provisions for risks and charges" at June 30, 2023, amounted to €8,438 thousand (€8,661 thousand at December 31, 2022), 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.
| 31.12.2022 | Increases | (Utilizations) | Exchange | 30.06.2023 | |
|---|---|---|---|---|---|
| (Releases) | differences | ||||
| Product warranty provision | 7,169 | - | (471) | (2) | 6,696 |
| Provision for staff incentive and retention plans | 531 | 608 | - | (11) | 1,128 |
| Other provisions | 961 | - | (353) | 6 | 614 |
| Total | 8,661 | 608 | (824) | (7) | 8,438 |
The "Product warranty provision" covers the estimated cost of repairing products sold up to June 30, 2023 and covered by a warranty period; said provision amounted to €6,696 thousand (of which €3,964 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 June 30, 2023.
"Other provisions" at June 30, 2023 amounted to €614 thousand and consisted mainly of provisions for supplementary agent's indemnity and for contingent liabilities of a fiscal and labour law nature.
The breakdown of provisions for risks, divided into current and non-current portions, is shown below:
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Provisions for risks and charges, current portion | 2,966 | 3,468 | (502) |
| Provisions for risks and charges, non-current portion | 5,472 | 5,193 | 279 |
| Total | 8,438 | 8,661 | (223) |
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Trade payables | 105,005 | 108,363 | (3,357) |
| Contractual liabilities - customer advances | 3,463 | 3,566 | (104) |
| Trade payables | 108,468 | 111,929 | (3,461) |
| Payables to associates | 121 | 101 | 20 |
| Payables to related parties | - | 24 | (24) |
| Total trade payables | 108,589 | 112,054 | (3,465) |
| Other current payables | 33,329 | 33,603 | (274) |
| Current accrued expense and deferred income | 21,651 | 21,056 | 595 |
| Non-current accrued expense and deferred income | 20,432 | 20,760 | (328) |
| Total Other payables - accrued expense and deferred income | 75,412 | 75,419 | (7) |
| Less: non-current portion | 20,432 | 20,760 | (328) |
| Current portion | 163,569 | 166,713 | (3,144) |
"Trade payables" amounted to €108,589 thousand, down by €3,465 thousand versus the end of the prior year.
| 30.06.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Payables to employees | 22,351 | 21,078 | 1,273 |
| Payables to welfare and social security entities | 6,708 | 7,130 | (422) |
| Other payables | 2,035 | 2,850 | (815) |
| VAT payables | 2,235 | 2,545 | (310) |
| Total | 33,329 | 33,603 | (274) |
"Other current payables" amounting to €33,329 thousand at June 30, 2023, 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", amounting to €42,083 thousand at June 30, 2023 (€41,816 thousand at December 31, 2022), is composed mainly of deferred revenue related to the Ease of Care long-term maintenance contracts.
Revenue classified by type is shown in the following table:
| 30.06.2023 | 30.06.2022 | Change | |
|---|---|---|---|
| Revenue from sale of products | 275,519 | 292,971 | (17,452) |
| Revenue from services | 22,456 | 21,628 | 828 |
| Total revenue | 297,975 | 314,599 | (16,624) |
At June 30, 2023, consolidated net revenue amounted to €297,975 thousand, down by 5.3% versus €314,599 thousand in the same period of 2022. The Group's revenue, classified by recognition method and business segment, is broken down as follows:
| Revenue broken down by recognition method | Datalogic | Informatics | Adjustments | 30.06.2023 |
|---|---|---|---|---|
| Revenue from sale of goods and services - point in time | 258,637 | 4,484 | (216) | 262,905 |
| Revenue from sale of goods and services - over time | 31,305 | 3,765 | - | 35,070 |
| Total | 289,942 | 8,249 | (216) | 297,975 |
| Revenue broken down by recognition method | Datalogic | Informatics | Adjustments | 30.06.2022 |
| Revenue from sale of goods and services - point in time | 275,958 | 5,142 | (569) | 280,531 |
| Revenue from sale of goods and services - over time | 30,697 | 3,371 | 34,068 |
Total 306,655 8,513 (569) 314,599
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, revenuerecognition 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.
| Informatics | Adjustments | 30.06.2023 | |
|---|---|---|---|
| 271,469 | 4,266 | (216) | 275,519 |
| 18,473 | 3,983 | - | 22,456 |
| 289,942 | 8,249 | (216) | 297,975 |
| Revenue broken down by type | Datalogic | Informatics | Adjustments | 30.06.2022 |
|---|---|---|---|---|
| Sale of goods | 288,720 | 4,820 | (569) | 292,971 |
| Sale of services | 17,935 | 3,693 | - | 21,628 |
| Total | 306,655 | 8,513 | (569) | 314,599 |
The following table shows the trends of cost of goods sold and operating costs at June 30, 2023, versus the same period of the prior year, before special items.
| 30.06.2023 | 30.06.2022 | Change | |
|---|---|---|---|
| Restated | |||
| Cost of goods sold | 171,668 | 190,056 | (18,388) |
| Operating costs | 114,740 | 109,952 | 4,788 |
| Research and development expense | 31,872 | 30,547 | 1,325 |
| Distribution expense | 53,042 | 48,632 | 4,410 |
| Administrative and general expense | 28,514 | 29,690 | (1,176) |
| Other operating expense | 1,312 | 1,083 | 229 |
| Total | 286,408 | 300,007 | (13,599) |
Cost of goods sold at June 30, 2023 was €171,668 thousand. The absolute change is -9.7%; the percentage of sales improved by 2.8% to 57.6% from 60.4% in the first half of last year.
"Operating Costs", amounting to €114,740 thousand, rose by €4,788 thousand (+4.4%) in first half 2023 versus the same period of 2022, deteriorating the percentage of sales by 3.6% from 34.9% to 38.5%, as a result mainly of the increase in distribution expense.
"Research and development expense" at June 30, 2023 amounted to €31,872 thousand, increasing by 4.3% versus the same period of the prior year, accounting for 10.7% of sales (9.7% in the first half of the prior year). The detail items showing the largest increase are related to external consulting in connection with ongoing product development projects, and to higher amortisation and depreciation.
"Distribution expense" amounted to €53,042 thousand, up versus the same period of 2022 (+9.1%). The percentage of sales increased from 15.5% to 17.8%; the change is related mainly to increased personnel expense, increased sales and marketing initiatives and participation in trade fairs and events as well as customer visits.
"Administrative and general expense" amounted to €28,514 thousand at June 30, 2023, falling by 4.0% versus the comparison period, while the percentage on sales was basically in line, rising from 9.4% to 9.6%.
"Other operating expense", amounting to €1,312 thousand, increased versus the first half of the prior year and consisted mainly of non-income tax and duties and other operating costs.
The following table provides the details of total costs (cost of goods sold and total operating expense) by type:
| 30.06.2023 | 30.06.2023 Restated |
Change | |
|---|---|---|---|
| Purchases | 124,829 | 137,620 | (12,791) |
| Personnel expense | 94,071 | 90,923 | 3,148 |
| Amortisation, depreciation and write-downs | 18,435 | 17,838 | 597 |
| Goods receipt and shipment expense | 10,691 | 17,488 | (6,797) |
| Travel and meetings expense | 6,247 | 3,541 | 2,706 |
| EDP expense | 3,861 | 3,323 | 538 |
| Consumables and R&D material | 3,771 | 3,732 | 39 |
| Marketing expense | 3,460 | 2,224 | 1,236 |
| R&D technical consultancies | 2,972 | 2,027 | 945 |
| Legal, tax and other consulting | 2,010 | 2,632 | (622) |
| Utilities | 1,859 | 1,933 | (74) |
| Building expense | 1,339 | 1,125 | 214 |
| Royalties | 1,161 | 1,555 | (394) |
| Fees | 1,094 | 887 | 207 |
| Expense for plant and machinery and other assets | 960 | 879 | 81 |
| Telephone expense | 946 | 946 | (0) |
| Sundry service costs | 815 | 840 | (25) |
| Directors' fees | 785 | 1,173 | (388) |
| Quality certification expense | 708 | 664 | 44 |
| Vehicle expense | 646 | 586 | 60 |
| Repairs and warranty provision accrual | 628 | 999 | (371) |
| Insurance | 623 | 569 | 54 |
| Installations | 608 | 1,008 | (400) |
| Recruitment fees | 581 | 857 | (276) |
| Non-warranty repairs | 530 | 716 | (186) |
| Entertainment expense | 525 | 297 | 228 |
| Audit fees | 410 | 548 | (138) |
| Subcontracted work | 378 | 403 | (25) |
| Other | 1,464 | 2,674 | (1,210) |
| Total cost of goods sold and operating costs | 286,408 | 300,007 | (13,599) |
Purchases decreased by €12,791 thousand (-9.3%) versus the same period of 2022, improving the percentage of sales by 1.9%.
Personnel expense of €94,071 thousand (€90,923 thousand in first half 2022) increased by €3,148 thousand versus the prior period (+3.5%), with the percentage of sales deteriorating versus the same period of 2022, from 28.9% to 31.6%.
The detailed breakdown of personnel expense is as follows:
| Wages and salaries | 70,794 | 70,454 | 340 |
|---|---|---|---|
| Social security charges | 14,784 | 14,433 | 351 |
| Post-employment benefits | 1,290 | 1,375 | (85) |
| Retirement benefits and the like | 969 | 1,003 | (34) |
| Other personnel costs | 6,234 | 3,658 | 2,576 |
| Total | 94,071 | 90,923 | 3,148 |
"Travel and meetings expense" and "Marketing expense", amounting to €6,247 thousand and €3,460 thousand, respectively, were up by a total of €3,942 thousand versus the same period of the prior year, as a result of increased business initiatives and participation in trade fairs and events as well as customer visits.
The item "amortisation, depreciation and write-downs", amounting to €18,435 thousand, increased by €597 thousand, due to continued increased expenditure incurred in recent years.
"Goods receipt and shipment expense", amounting to €10,691 thousand, fell sharply by €6,797 thousand versus the same period of the prior year; the percentage of sales was in fact 3.6%.
"Technical consulting R&D", amounting to €2,972 thousand, increased significantly (+46.6%) due to ongoing research projects.
At June 30, 2023, "Other revenue" amounted to €1,063 thousand, increasing by €344 thousand versus €719 thousand in the same period of the prior year, thanks to public grants received for research projects. Other revenue is broken down as follows:
| 30.06.2023 30.06.2022 | Change | ||
|---|---|---|---|
| Grants to Research and Development expense | 372 | 8 | 364 |
| Miscellaneous income and revenue | 484 | 601 | (117) |
| Rents | 60 | 51 | 9 |
| Gains from disposal of fixed assets | 113 | 13 | 100 |
| Contingent assets | 33 | 22 | 11 |
| Other | 0 | 24 | (24) |
| Total | 1,063 | 719 | 344 |
| 30.06.2023 | 30.06.2022 | Change | |
|---|---|---|---|
| Financial income/(expense) | (983) | (857) | (126) |
| Foreign exchange differences | (152) | (3,294) | 3,142 |
| Fair Value investments | 7 | (88) | 95 |
| Bank expense | (871) | (571) | (300) |
| Dividends | 168 | 177 | (9) |
| Other | 3,804 | 101 | 3,703 |
| Total net financials | 1,973 | (4,532) | 6,505 |
Financials ended with a positive €1,973 thousand, improving by €6,505 thousand versus a negative €4,532 thousand in the same period of the prior year, thanks to the favourable trend in exchange rate differences and to the gain earned from the transfer of the minority interest in Solution Net Systems LLC (SNS).
The Group's tax burden at June 30, 2023 is €2,482 thousand as shown below.
| 30.06.2023 | 30.06.2022 | Change | |
|---|---|---|---|
| Restated | |||
| Pre-tax profit/(loss) | 14,603 | 10,779 | 3,824 |
| Tax income (expense) - for current tax | 387 | 1,218 | (831) |
| Tax income (expense) - for deferred and prepaid tax | 2,095 | 719 | 1,376 |
| Total Tax | 2,482 | 1,937 | 545 |
| Tax rate | 17.0% | 18.0% | -1.0% |
The tax rate at June 30, 2023 reflects the distribution of the profit of the period among the various geographical areas in which the Group operates.
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.
| 30.06.2023 | 30.06.2022 | |
|---|---|---|
| Restated | ||
| Profit/(Loss) for the period attributable to the shareholders of the parent | 12,111 | 8,588 |
| Average number of shares (thousands) | 56,683 | 56,451 |
| Basic earnings/(loss) per share | 0.21 | 0.15 |
| Profit/(Loss) for the period attributable to the shareholders of the parent | 12,111 | 8,588 |
| Average number of shares (thousands) - Diluted effect | 57,019 | 56,451 |
| Diluted earnings/(loss) per share | 0.21 | 0.15 |
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 01.01.2023 – 30.06.2023, 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 |
30.06.2023 | |
|---|---|---|---|---|
| Investments | - | - | 560 | 560 |
| Trade receivables - accrued income and prepaid expense |
- | 11 | 1,551 | 1,562 |
| Receivables from tax consolidation | 1,807 | - | - | 1,807 |
| Financial receivables | - | - | - | - |
| Payables from tax consolidation | 2,013 | - | - | 2,013 |
| Trade payables - accrued expense and deferred income |
- | - | 121 | 121 |
| Financial payables | - | - | - | - |
| Commercial and service costs | - | 617 | 89 | 706 |
| Trade revenue | - | - | 3,709 | 3,709 |
| Other revenue | - | - | 5 | 5 |
| 30.06.2023 | 30.06.2022 | Change | |
|---|---|---|---|
| Datalogic | 2,955 | 2,946 | 9 |
| Informatics | 69 | 70 | (1) |
| Total | 3,024 | 3,016 | 8 |
The Chairman of the Board of Directors (Romano Volta)
3.1 The Consolidated Half-Year Financial Report:
Lippo di Calderara di Reno, August 2, 2023
The Chief Executive Officer
Valentina Volta
The Manager responsible for the preparation of the Company's financial reports
Alessandro D'Aniello
The Consolidated Interim Management Statement 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 June 30, 2023, 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 |
% Ownership |
|
|---|---|---|---|---|---|---|
| (Euro/thousands) | ||||||
| Datalogic S.p.A. | Bologna – Italy | € | 30,392,175 | 351,940 | 12,662 | |
| Datalogic Real Estate France Sas | Courtabeuf Cedex – France |
€ | 2,227,500 | 4,015 | 92 | 100% |
| Datalogic Real Estate UK Ltd. | Redbourn - United Kingdom of Great Britain |
GBP | 3,500,000 | 4,938 | 28 | 100% |
| Datalogic IP Tech S.r.l. | Bologna – Italy | € | 65,677 | 30,495 | (5,580) | 100% |
| Informatics Holdings, Inc. | Plano, Texas - USA | USD | 1,568 | 20,106 | 974 | 100% |
| Wasp Barcode Technologies Ltd | Redbourn - United Kingdom of Great Britain |
GBP | 0 | 240 | (21) | 100% |
| Datalogic (Shenzhen) Industrial Automation Co. Ltd. |
Shenzhen - China | CNY | 2,136,696 | 6,036 | 625 | 100% |
| Datalogic Hungary Kft | Balatonboglar - Hungary |
HUF | 3,000,000 | 2,903 | 2,801 | 100% |
| Datalogic S.r.l. | Bologna – Italy | € | 10,000,000 | 138,933 | (3,963) | 100% |
| Datalogic Slovakia S.r.o. | Trnava - Slovakia | € | 66,388 | 6,246 | 1,765 | 100% |
| Datalogic USA Inc. | Eugene OR - Usa | USD | 100 | 263,351 | 7,928 | 100% |
| Datalogic do Brazil Ltda. | Sao Paulo - Brazil | BRL | 20,257,000 | 913 | 153 | 100% |
| Datalogic Technologia de Mexico S.r.l. | Colonia Cuauhtemoc - Mexico |
MXN | 0 | (452) | 5 | 100% |
| Datalogic Scanning Eastern Europe GmbH | Langen - Germany | € | 25,000 | 3,704 | (123) | 100% |
| Datalogic Australia Pty Ltd | Mount Waverley (Melbourne) - Australia |
AUD | 3,188,120 | 1,474 | 89 | 100% |
| Datalogic Vietnam LLC | Vietnam | USD | 3,000,000 | 28,457 | 1,943 | 100% |
| Datalogic Singapore Asia Pacific Pte Ltd. | Singapore | SGD | 3 | 4,170 | 644 | 100% |
| Datasensing S.r.l. | Modena - Italy | € | 2,500,000 | 19,914 | (713) | 100% |
| M.D. Micro Detectors (TIANJIN) CO., LTD. | Tianjin - China | CNY | 13,049,982 | 1,228 | 2 | 100% |
| Datasensing Ibérica, S.A.U. | Barcelona - Spain | € | 120,000 | 1,446 | 70 | 100% |
| Datalogic Japan Co., Ltd. | Tokyo - Japan | JPY | 9,913,000 | 69 | (64) | 100% |
| PEKAT s.r.o. | Brno - Czech Republic | CKZ | 202,020 | (298) | (336) | 100% |
| Suzhou Mobydata Smart System Co. Ltd | Suzhou, JiangSu - China |
CNY | 161,224 | 6,609 | 18 | 51% |
| 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 | € | 131,250 | 238 | (40) | 20% |
| Datalogic Automation AB (**) | Malmö, Sweden | SEK | 100,000 | 1,661 | 790 | 20% |
(*) figures at December 31, 2021
(**) figures at June 30, 2022
(***) figures at December 31, 2022
Below is a reconciliation of EBIT and Adjusted EBIT at June 30, 2023 versus June 30, 2022.
| 30.06.2023 | 30.06.2022 | Change | |||
|---|---|---|---|---|---|
| Adjusted EBIT | 16,954 | 5.69% | 19,218 | 6.11% | (2,264) |
| Special Items -Other Expense and (Income) | 1,947 | 0.65% | 1,112 | 0.35% | 835 |
| Special Items - D&A from acquisitions | 2,377 | 0.80% | 2,795 | 0.89% | (418) |
| Total | 4,324 | 1.45% | 3,907 | 1.24% | 417 |
| EBIT | 12,630 | 4.2% | 15,311 | 4.9% | (2,681) |
Below is a reconciliation of EBITDA and Adjusted EBITDA at June 30, 2023 versus June 30, 2022.
| 30.06.2023 | 30.06.2022 | Change | |||
|---|---|---|---|---|---|
| Adjusted EBITDA | 33,011 | 11.08% | 34,256 | 10.89% | (1,245) |
| Cost of goods sold | 103 | 0.03% | 37 | 0.01% | 66 |
| Research and Development expense | 65 | 0.02% | - | 0.00% | 65 |
| Distribution expense | 381 | 0.13% | 452 | 0.14% | (71) |
| Administrative and General expense | 1,398 | 0.47% | 623 | 0.20% | 775 |
| Other (expense) income | - | 0.00% | - | 0.00% | - |
| Total | 1,947 | 0.65% | 1,112 | 0.35% | 835 |
| EBITDA | 31,064 | 10.43% | 33,144 | 10.54% | (2,080) |
Comparative results at June 30, 2023 have been restated following reclassifications of a number of items in order to ensure full comparability of 2022 results with those of 2023, as well as the purchase price allocation (PPA) related to the acquisition of Pekat S.r.o. on March 21, 2022, the final accounting for which took place in the fourth quarter of 2022, as prescribed by IFRS 3 revised and IAS 1.
| (Euro/000) | 30.06.2022 | Restatement | 30.06.2022 |
|---|---|---|---|
| Restated | |||
| 1) Revenue | 314,599 | 314,599 | |
| Revenue from sale of products | 292,971 | 292,971 | |
| Revenue from services | 21,628 | 21,628 | |
| 2) Cost of goods sold | 184,497 | 5,559 | 190,056 |
| Gross OperatingMargin (1-2) | 130,102 | (5,559) | 124,543 |
| 3) Other revenue | 719 | 719 | |
| 4) Research and development expense | 30,638 | (91) | 30,547 |
| 5) Distribution expense | 54,573 | (5,941) | 48,632 |
| 6) Administrative and general expense | 28,902 | 788 | 29,690 |
| 7) Other operating expense | 1,083 | 1,083 | |
| Total operating costs | 115,195 | (5,244) | 109,951 |
| EBIT | 15,626 | (315) | 15,311 |
| 8) Financial income | 20,160 | 20,160 | |
| 9) Financial expense | 24,692 | 24,692 | |
| Financials (8-9) | (4,532) | (4,532) | |
| Profit/(Loss) before tax from continuing operations | 11,094 | (315) | 10,779 |
| Income tax | 1,997 | (60) | 1,937 |
| Profit/(Loss) for the period | 9,097 | (255) | 8,842 |
| Basic earnings/(loss) per share (€) | 0.16 | 0.15 | |
| Diluted earnings/(loss) per share (€) | 0.16 | 0.15 | |
| Attributable to: | |||
| Shareholders of the Parent Company | 8,843 | 8,588 | |
| Non-controlling interests | 254 | 254 |
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