B&C Speakers

Earnings Release • May 14, 2024

Informazione Regolamentata n. 0931-16-2024		Data/Ora Inizio Diffusione 14 Maggio 2024 17:07:19	Euronext Star Milan
Societa'	:	B&C SPEAKERS
Identificativo Informazione Regolamentata	:	190661
Utenza - Referente	:	BCSPEAKERSN02 - SPAPPERI
Tipologia	:	REGEM
Data/Ora Ricezione	:	14 Maggio 2024 17:07:19
Data/Ora Inizio Diffusione	:	14 Maggio 2024 17:07:19
Oggetto	:	B&C Speakers- Interim Consolidated Financial Statement as of March 31st 2024
Testo del comunicato

Vedi allegato

PRESS RELEASE

B&C Speakers S.p.A.:

Board of Directors approves the Interim Management Report at 31 March 2024

• Consolidated revenue totals €23.85m (up by 1.5% compared to €24.22m in the first quarter of 2023);
• Consolidated EBITDA at €5.03m (down by 19.8% compared to €6.27m for the first quarter of 2023);
• Overall Group result of €3.33m (down by 17.4% compared to €4.03m in the first quarter of 2023);
• Group net financial position positive at €3.68m (negative at €0.65m at the end of the 2023 financial year);
• Order book shows significant growth compared to 1Q 2023.

Bagno a Ripoli (Florence), 14 May 2024 – The Board of Directors of B&C Speakers S.p.A., one of the foremost international players in the design, manufacture, distribution and marketing of professional electro-acoustic transducers, has approved the Group Interim Report at 31 March 2024 in accordance with IFRS international accounting standards.

Consolidated revenue

Consolidated revenue reached a record value of €23.8m, a decrease of 1.5% compared to the first three months of 2023, when the figure was €24.2m.

The revenue contribution made by the new subsidiaries during the quarter was €2.7m, with the following geographical distribution: Eminence KY achieved a turnover of €1.5m, mainly on the North American market, while B&C Speakers Cina achieved €1.2m on the Asian market. On the Group's main markets, the drop in sales during the quarter was primarily due to the temporary slowdown in the two biggest markets, Europe and America, combined with the effect of overstock affecting many customers.

However, the trend in new orders rose steadily during the first part of 2024, showing that this downturn in sales is only temporary. During the quarter, orders amounted to €26m, compared to 13.8m during the same period of 2023 and 17.5m during the final quarter of 2023.

Below is the full breakdown by region for the first three months of 2024, compared to the same period in 2023 (amounts in euro).

Revenues per geographic area (values in Euro/thausand)	1Q 2024	%	1Q 2023	%	Difference	Difference %
Latin America	1,657	7 %	2,110	9 %	(453)	-21.5%
Europe	11,429	48%	11,854	49%	(425)	-3.6%
Italy	1,566	7 %	1,745	7 %	(179)	-10.2%
North America	4,743	20%	4,094	17%	649	15.8%
Middle East & Africa	171	1 %	720	3 %	(549)	-76.3%
Asia & Pacific	4,292	18%	3,693	15%	599	16.2%
Total	23,858	100%	24,217	100%	(358)	-1.5%

Cost of sales

During the first three months of 2024, the cost of sales remained essentially constant in terms of its impact on revenues when compared to the same period in 2023 (63%).

This trend was driven by the significant improvements in efficiency relative to the cost of production components, whose impact on revenues has risen by 3 percentage points compared to the same period in 2023. Conversely, there was a higher impact of direct personnel costs, due to the combined effect of lower volumes and the integration of the two new subsidiaries.

Indirect Personnel

Indirect personnel costs have risen as a percentage of revenue, from 4.8% to 7% compared to the first three months of 2023. In absolute terms, the figure for the first three months of 2024 is up 43% on the first quarter of 2023, mainly due to the inclusion of the two new subsidiaries in the scope of consolidation.

Commercial expenses

Commercial expenses showed an increase compared to the first three months of 2023, both in absolute terms and as a percentage of revenues, rising from 0.8% to 1.2%. This increase is mainly due to the inclusion of the two new subsidiaries in the scope of consolidation.

Administrative costs and overheads

Overheads and administrative costs, at €518 thousand, have risen compared to the corresponding figure for 2023, and as a percentage of revenues have also risen, from 5.7% to 8%. €414 thousand of these costs are due to the inclusion of the two new subsidiaries in the scope of consolidation.

EBITDA and EBITDA margin

As a result of these trends, EBITDA for the first three months of 2024 was €5.03m, a decrease of €1.24m (-19.8%) compared to the same period in 2023.

The EBITDA margin for the first three months of 2024 was 21.1% of revenues, compared to 25.9% for the same period of 2023. The drop in margins is partly due to the lower volumes during the period, and partly to the effect of the two new subsidiaries, whose margins are lower than those of B&C Speakers.

With the same scope as 1Q 2023, the EBITDA margin would have stood at 23.7%.

Depreciation and amortisation

Depreciation and amortisation of property, plant and equipment, intangible assets and rights of use have increased compared to the first three months of 2023, amounting to €634m (€507 thousand in the first three months of 2023). This increase is mainly due to the inclusion of the two new subsidiaries. Write-offs for bad debts in the period were zero, because at the moment there are no uncollectable accounts from Group customers.

EBIT and EBIT margin

EBIT for the first three months of 2024 amounted to €3.26m, which represents a drop of 23.7% compared to the same period in 2023 (when it was €5.76m). The EBIT margin was 18.4% of revenue (23.8% in the same period of 2023).

Overall Group Profit

The Overall Group profit at the end of the first three months of 2024 amounted to €3.33m, representing 14.0% of consolidated revenue, with a total decrease of 16.7% overall, compared to the corresponding period of 2023.

The overall Net Financial Position (NFP) was positive at €3.68m, compared to a negative figure of €0.65m at the end of 2023. As mentioned, the improvement in NFP is due to the significant generation of cash during the period (€5.3m from operating activities). This has increased net cash and cash equivalents, despite the repayment of outstanding loan instalments.

	31 march	31 december
(values in Euro thousands)	2024 (a)	2023 (a)	Change
A. Cash	13,877	14,613	-5%
C. Other current financial assets	0	6,979	-100%
D. Cash and cash equivalent (A+C)	13,877	21,591	-36%
E. Current financial indebtness	(1,000)	(2,708)
F. Current portion of non current borrowings	(6,643)	(8,855)	-25%
G. Current borrowingse (E+F)	(7,643)	(11,563)	-34%
H. Current net financial indebtness (G+D)	6,234	10,028	-38%
I. Non current financial indebtness	(9,720)	(10,681)	-9%
L. Non current financial indebtness	(9,720)	(10,681)	-9%
M. Total financial indebteness (H+L)	(3,486)	(653)	434%

The Group's reclassified Income Statement for the first quarter of 2024 compared to the corresponding period in the previous year is presented below:

(€ thousands)	3 months 2024	Incidence	3 months 2023	Incidence
Revenues	23,858	100.00%	24,217	100.0%
Cost of sales	(15,035)	-63.02%	(15,265)	-63.0%
Gross margin	8,823	36.98%	8,952	37.0%
Other revenues	54	0.23%	54	0.2%
Cost of indirect labour	(1,664)	-6.97%	(1,162)	-4.8%
Commercial expenses	(275)	-1.15%	(185)	-0.8%
General and administrative expenses	(1,910)	-8.00%	(1,391)	-5.7%
Ebitda	5,029	21.08%	6,268	25.9%
Depreciation and Amortization	(634)	-2.66%	(507)	-2.1%
Writedowns	-	0.00%	0	0.0%
Earning before interest and taxes (Ebit)	4,395	18.42%	5,761	23.8%
Writedown of investments in non controlled associates	-	0.00%	-	0.0%
Financial costs	(358)	-1.50%	(734)	-3.0%
Financial income	490	2.05%	553	2.3%
Earning before taxes (Ebt)	4,527	18.97%	5,580	23.0%
Income taxes	(1,269)	-5.32%	(1,527)	-6.3%
Profit for the year	3,257	13.65%	4,053	16.7%
Minority interest	0	0.00%	0	0.0%
Group Net Result	3,257	13.65%	4,053	16.7%
Other comprehensive result	76	0.32%	(17)	-0.1%
Total Comprehensive result	3,333	13.97%	4,035	16.7%

Economic trends - Group B&C Speakers

SIGNIFICANT EVENTS SUBSEQUENT TO 31 March 2024 AND OUTLOOK FOR THE YEAR

The Shareholders' Meeting, held on 29 April 2024, approved the financial statements and resolved the distribution of an ordinary dividend of €0.70 per ordinary share outstanding at the ex-dividend date (on 6 May, with record date 7 May and payment on 8 May). On that occasion, the Shareholders' Meeting also re-elected the officers of the company. The Board of Directors' meeting, held today, authorised the powers and appointments of the Board Committees.

During the first part of 2024, the number of new orders has risen steadily, compared to the same period in 2023, and this trend continued even after the quarterly reporting date. At the end of April, the number of new orders was significantly higher than in 2023 (+85% for the first 4 months of the financial year).

Group Management therefore considers that, based on the data, there may be a positive reversal of the trend in turnover during the second half of the year.

The Board has also verified that the independent directors meet the independence criteria prescribed by law and the bylaws.

The Financial Reporting Manager of B&C Speakers S.p.A., Francesco Spapperi, hereby certifies, pursuant to Art. 154-bis, section 2 of Italian Legislative Decree No. 58/1998, that the accounting disclosures relating to the figures for the year ended 31 March 2024, as presented in this press release, are consistent with the company's accounting documents, books and records.

The table below shows the Consolidated Income Statement and Balance Sheet for the first quarter of 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Values in Euro)		31 March 2024	31 December 2023
ASSETS
Fixed assets
Tangible assets		4,366,839	3,872,531
Right of use		6,115,079	6,477,332
Goodwill		2,318,181	2,318,181
Other intangible assets		432,927	447,843
Investments in non controlled associates		-	-
Deferred tax assets		906,097	906,969
Other non current assets		583,808	579,561
	related parties	6,700	6,700
Total non current assets		14,722,931	14,602,417
Currents assets
Inventory		27,319,394	27,623,705
Trade receivables		20,137,903	18,149,825
Tax assets		192,614	190,315
Other current assets		10,838,718	11,168,904
Cash and cash equivalents		13,877,288	14,612,848
Total current assets		72,365,917	71,745,597
Total assets		87,088,848	86,348,014
LIABILITIES
Equity
Share capital		1,097,356	1,099,613
Other reserves		5,190,531	5,589,481
Foreign exchange reserve		442,167	365,116
Retained earnings		42,411,755	39,156,124
Total equity attributable to shareholders of the parent		49,141,809	46,210,334
Minority interest		-	-
Total equity		49,141,809	46,210,334
Non current liabilities
Long-term borrowings		4,762,664	5,452,443
Long-term lease liabilities		4,957,721	5,228,386
	related parties	2,247,441	2,452,012
Severance Indemnities		2,542,508	2,537,875
Provisions for risk and charges		43,012	43,012
Total non current liabilities		12,305,905	13,261,716
Current liabilities
Short-term borrowings		6,297,545	10,147,066
Short-term lease liabilities		1,345,343	1,416,216
	related parties	895,234	921,670
Trade liabilities		12,238,642	10,823,737
	related parties	86,981	88,737
Tax liabilities		2,297,160	1,011,163
Other current liabilities		3,462,444	3,477,782
Total current liabilities		25,641,134	26,875,964
Total Liabilities		87,088,848	86,348,014

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Values in Euro)	1Q 2024	1 Q 2023

Revenues	23,858,450	24,216,536
Cost of sales	(15,035,188)	(15,264,700)
Other revenues	54,015	54,409
Cost of indirect labour	(1,663,824)	(1,162,190)
Commercial expenses	(275,291)	(185,267)
General and administrative expenses	(1,909,614)	(1,391,125)
Depreciation and amortization	(633,650)	(506,888)
Writedowns	-	0
Earning before interest and taxes	4,394,897	5,760,776
Writedown of investments in non controlled associates	-	-
Financial costs	(358,270)	(733,703)
related parties	(17,423)	(20,263)
Financial income	490,060	552,995
Earning before taxes	4,526,687	5,580,067
Income taxes	(1,269,462)	(1,527,475)
Profit for the year (A)	3,257,225	4,052,592
Other comprehensive income/(losses) for the year that will not be reclassified in icome statement:
Actuarial gain/(losses) on DBO (net of tax)	(1,333)	6,526
Other comprehensive income/(losses) for the year that will be reclassified in
icome statement:
Exchange differences on translating foreign operations	77,051	(23,952)
Total other comprehensive income/(losses) for the year (B)	75,718	(17,426)
Total comprehensive income (A) + (B)	3,332,943	4,035,167
Profit attributable to:
Owners of the parent	3,257,225	4,052,592
Minority interest	-	-
Total comprehensive income atributable to:
Owners of the parent	3,332,943	4,035,167
Minority interest	-	-
Basic earning per share	0.30	0.37
Diluted earning per share	0.30	0.37

B&C Speakers S.p.A. Financial Reporting Manager Francesco Spapperi certifies – in accordance with Art. 154 bis, section 2 of Italian Legislative Decree No. 58/1998 — that the accounting disclosures contained in this press release are consistent with company's accounting documents, books and records.

B&C Speakers S.p.A.

Francesco Spapperi (Head of Investor Relations), Email: investors@bcspeakers.com

B&C Speakers S.p.A. is an international leader in the design, production, distribution and marketing of professional electro-acoustic transducers (the main components in acoustic speakers for music, commonly referred to as loudspeakers), supplied mainly to professional audio-system manufacturers (OEM). With around 220 employees, approximately 10% of whom are in its Research and Development Department, B&C Speakers carries out all design, production, marketing and control activities under the Group's brands at its offices in Florence, Reggio Emilia, Eminence (KY-USA) and DongGuan (CN): B&C, 18SOUND, EMINENCE and CIARE. Most of its products are developed according to its key customers' specifications. B&C Speakers also operates in the US and Brazil through two subsidiaries carrying out commercial activities.

Press Office

Spriano Communication Fiorella Girardo - fgirardo@sprianocommunication.com Cristina Tronconi - ctronconi@sprianocommunicaton.com www.sprianocommunication.com

Fine Comunicato n.0931-16-2024	Numero di Pagine: 10
--------------------------------	----------------------