Quarterly Report • May 13, 2022
Quarterly Report
Open in ViewerOpens in native device viewer
| STRUCTURE OF THE GROUP | page 3 |
|---|---|
| COMPOSITION OF THE CORPORATE BODIES | page 4 |
| REPORT ON OPERATIONS | page 5 |
| CONSOLIDATED INTERIM REPORT | page 17 |
| Consolidated Statement of Financial Position | |
| Consolidated Income Statement | |
| Consolidated Statement of Comprehensive Income | |
| Consolidated Statement of Cash Flow | |
| Changes in Consolidated Shareholders' Equity | |
Information on the Statement of Financial Position
Information on the Income Statement
This document includes forward-looking statements, related to future events and Group operating, economic and financial results. These statements include risk and uncertainty elements as they depend on the occurrence of events and future developments. The actual results may deviate, even to a significant extent, from the expected outcome due to multiple factors, most of which are beyond the Group's control.
Romano Volta Executive Chair (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 Non-Executive Director
Diana Rizzo Chair Elena Lancellotti Statutory Auditor Roberto Santagostino Statutory Auditor
Giulia De Martino Alternate Statutory Auditor Eugenio Burani Alternate Statutory Auditor Patrizia Cornale Alternate Statutory Auditor
Angelo Manaresi Chair 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 held for the approval of the financial statements as of December 31, 2023.
This Consolidated Interim Report as of March 31, 2022 was drawn up pursuant to art. 154-ter of T.U.F. (Consolidated Law on Finance) and was prepared in compliance with the International Accounting Standards (IAS/IFRS) endorsed by the European Union.
The amounts reported in the tables of the Report on Operations are expressed in thousands of Euro. The notes to the accounts are expressed in millions of Euro.
Datalogic S.p.A. and its subsidiaries ("Group" or "Datalogic Group") is a global technological leader in the markets of automatic data capture and process automation. The Group is specialized in the design and production of bar code readers, mobile computers, detection, measurement and security sensors, vision and laser marking systems and RFID. Its pioneering solutions contribute to increase the efficiency and quality of processes along the entire value chain in the Retail, Manufacturing, Transportation & Logistics and Healthcare sectors.
The following table summarises the Datalogic Group's key operating and financial results as of March 31, 2022 and the comparison with the same period a year earlier, whose results has been restated in compliance with accounting principle IAS 1 (for details refer to Annex 4 of this document).
| 31.03.2022 | % on | 31.03.2021 | % on | Change | % | % Ch. | |
|---|---|---|---|---|---|---|---|
| Revenues | Restated | Revenues | Change | Net FX | |||
| Revenues | 137,928 | 100.0% | 134,366 | 100.0% | 3,562 | 2.7% | -0.6% |
| Adjusted EBITDA | 11,752 | 8.5% | 21,602 | 16.1% | (9,850) | -45.6% | -45.8% |
| Adjusted EBIT | 4,474 | 3.2% | 15,016 | 11.2% | (10,542) | -70.2% | -69.3% |
| EBIT | 2,278 | 1.7% | 12,934 | 9.6% | (10,656) | -82.4% | -81.7% |
| Net Profit/(Loss) for the period | 1,329 | 1.0% | 8,937 | 6.7% | (7,608) | -85.1% | -85.1% |
| Net financial position (NFP) | (77,663) | (30,936) | (46,727) |
The Group closed the first quarter of 2022 recording revenues of €137.9 million, achieving a growth of 2.7%, equal to €3.6 million, compared to €134.4 million reported in the first quarter of 2021 (-1.1% organic).
The trend confirmed the post-pandemic recovery in all geographies despite the severe constraints that remain on the supply chain and which continue to slow down the order fulfillment rate limiting volumes. The first quarter of 2022 also recorded a particularly positive trend, for the third consecutive quarter, of new products' sales (Vitality Index), which reached 14.7% of total turnover as of March 31, 2022 compared to 11.8% in the first quarter of 2021.
The Adjusted EBITDA margin equal to 8.5%, compared to 16.1% of the first quarter of 2021, continues to be significantly impacted by inflationary phenomena that have affected, starting from the second half of last year, the cost of production, as well as transport and logistics costs, which can only be partially offset by the improvement in price and sales mix.
The Adjusted EBIT amounted to 3.2% of revenues and was equal to €4.5 million (€15.0 million as at March 31, 2021). Operating profitability was affected both by gross operating margin erosion caused by inflationary effects, only partially offset by increase in sales, as well as by operating expenses trend, driven by the restart of commercial activities.
Net profit for the period amounted to €1.3 million (1.0% of revenues), compared to €8.9 million in the first quarter of 2021 (6.7% of revenues).
Net Debt as of March 31, 2022 was equal to €77.7 million (€26.1 million as of December 31, 2021). The change recorded in the first quarter of the year is mainly due to the acquisition of Pekat Vision for €16.0 million, as well as to the cash absorption of working capital as a result of limitations on the supply chain and the slowdown of sales' order fulfilment.
The management uses certain performance indicators, not identified as accounting measures under IFRS (NON-GAAP measures), to permit better assessment of the Group's performance. The measurement criterion applied by the Group might not be the same as that adopted by other groups and the indicators might not be comparable with their indicators. These performance indicators, in accordance with the provisions in the Guidelines on Alternative 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 accounting period that is the object of this Consolidated Interim Report on Operations and the periods it is compared to. The performance indicators must be considered as supplementary and do not supersede the information provided pursuant to the IFRS standards. The main indicators adopted are described below.
Net Working Capital: this indicator is calculated as the sum of Net Trade Working Capital and Other Current Assets and Liabilities including current Provisions for Risks and Charges.
Net Invested Capital: this indicator is the total of Current and Non-Current Assets, excluding financial assets, less Current and Non-current Liabilities, excluding financial liabilities.
The following table shows the main economic components of the period compared with the same previous period:
| Quarter ended | ||||||
|---|---|---|---|---|---|---|
| 31.03.2022 | 31.03.2021 Restated |
Change | % Change | |||
| Revenues | 137,928 | 100.0% | 134,366 | 100.0% | 3,562 | 2.7% |
| Cost of goods sold | (80,022) | -58.0% | (70,845) | -52.7% | (9,177) | 13.0% |
| Gross Operating Margin | 57,906 | 42.0% | 63,521 | 47.3% | (5,615) | -8.8% |
| Research and Development expenses | (14,352) | -10.4% | (13,740) | -10.2% | (612) | 4.5% |
| Distribution expenses | (25,577) | -18.5% | (22,981) | -17.1% | (2,596) | 11.3% |
| General and administrative expenses | (13,245) | -9.6% | (11,508) | -8.6% | (1,737) | 15.1% |
| Other (expenses) and income | (257) | -0.2% | (277) | -0.2% | 20 | -7.1% |
| Total operating expenses and other costs | (53,432) | -38.7% | (48,506) | -36.1% | (4,926) | 10.2% |
| Adjusted EBIT | 4,474 | 3.2% | 15,016 | 11.2% | (10,542) | -70.2% |
| Special items – other (costs) and revenues | (748) | -0.5% | (968) | -0.7% | 220 | -22.7% |
| Special items - D&A from acquisitions | (1,448) | -1.0% | (1.114) | -0.8% | (334) | 30.0% |
| EBIT | 2,278 | 1.7% | 12,934 | 9.6% | (10,656) | -82.4% |
| Financial income/(expenses) | (698) | -0.5% | (769) | -0.6% | 71 | -9.1% |
| Foreign exchange gains/(losses) | (884) | -0.6% | (196) | -0.1% | (688) | 350.9% |
| EBT | 696 | 0.5% | 11,969 | 8.9% | (11,273) | -94.2% |
| Taxes | 633 | 0.5% | (3,032) | -2.3% | 3,665 | n.a. |
| Net Profit/(Loss) for the period | 1,329 | 1.0% | 8,937 | 6.7% | (7,608) | -85.1% |
| Special items – other (costs) and revenues | (748) | -0.5% | (968) | -0.7% | 220 | -22.7% |
| Special items - D&A from acquisitions | (1,448) | -1.0% | (1.114) | -0.8% | (334) | 30.0% |
| Depreciation of tangible assets and rights of use | (4,406) | -3.2% | (4,125) | -3.1% | (281) | 6.8% |
| Amortization of intangible assets | (2,871) | -2.1% | (2,462) | -1.8% | (409) | 16.6% |
| Adjusted EBITDA | 11,752 | 8.5% | 21,602 | 16.1% | (9,850) | -45.6% |
Consolidated revenues, equal to €137.9 million, as of March 31, 2022 recorded a 2.7% growth compared to €134.4 million reported in the first quarter of 2021, with a remarkable performance in APAC and in Americas offsetting the underperformance of EMEAI. At constant exchange rates, sales trend was substantially flat, with a decrease of -0.6%, while on a like-for-like basis revenues showed a decrease of -1.1% compared to the first quarter of 2021, when MD Group was consolidated starting from March.
The breakdown by geographical area of the Group's revenues for the period, compared with the same period of the previous year, is reported below:
| 31.03.2022 | % 31.03.2021 |
% | Change | % | ||
|---|---|---|---|---|---|---|
| Restated | Change | |||||
| Italy | 14,449 | 10.5% | 14,030 | 10.4% | 419 | 3.0% |
| EMEAI (excluding Italy) | 61,129 | 44.3% | 66,772 | 49.7% | (5,643) | -8.5% |
| Total EMEAI | 75,577 | 54.8% | 80,801 | 60.1% | (5,224) | -6.5% |
| Americas | 40,778 | 29.6% | 35,491 | 26.4% | 5,287 | 14.9% |
| APAC | 21,573 | 15.6% | 18,074 | 13.5% | 3,499 | 19.4% |
| Total Revenues | 137,928 | 100.0% | 134,366 | 100.0% | 3,562 | 2.7% |
EMEAI ended the first quarter of 2022 with revenues decreased by 6.5% compared to the same period of 2021, despite the positive contribution from the Italian market, reporting a 3.0% increase, mainly driven by MD acquisition.
Americas consolidated its sequential post-pandemic recovery, growing by 14.9% over the period, a performance driven by the United States and Mexico.
APAC grew by 19.4% compared to the first quarter of 2021, confirming the Group's expansion into the Asia-Pacific market, with a performance led by China, the first largest market in the area (+12.0% compared to the first quarter of 2021), followed by Japan (+43.7%) in sound growth.
Gross Operating Margin, equal to €57.9 million (42.0% on revenues), €63.5 million as of March 31, 2021 (47.3% of the revenues), decreased by 5.3 pts compared to the first quarter of 2021, when the inflationary effects on the costs of materials and logistics expenses, also caused by shortage phenomena, had not reached the intensity seen in the second half of the year.
Operating costs and other charges, equal to €53.4million (€48.5 million as of March 31, 2021), recorded a 2.6% increase as a percentage of turnover, from 36.1% to 38.7%, mainly affecting general and distribution expenses.
Research and Development expenses, amounting to €14.4 million, substantially in line with March 31, 2021 (+€0.6 million), reached an incidence on revenues of 10.4%, compared to 10.2% in the same quarter of the previous year. Total Research and Development spending, gross of investments, amounted to €14.8 million (€14.4 million in the same period of the previous year) with a percentage on turnover of 10.7%, in line with the first quarter of 2021.
Distribution expenses, equal to €25.6 million, increased by 11.3% compared to the first quarter of 2021 (€23.0 million in 2021) with a percentage on turnover increasing by 1.4, from 17.1% to 18.5%. The change in the period is due to the commercial and marketing activities, as well as to trade fairs, events and visits to customers, which the pandemic had substantially limited for most of 2021.
General and Administrative Expenses equal to €13.2 million as of March 31, 2022, recorded a slight increase in the incidence on turnover of approximately 1 pts, from 8.6% to 9.6%, due to the increase in utilities, EDP and in depreciation.
Adjusted EBITDA amounted to €11.8 million, with an Adjusted EBITDA margin at 8.5% of the turnover, decreasing 7.6 pts compared to 16.1% recorded in the first quarter of 2021, but by 3.3 pts compared to the fourth quarter of 2021, as a consequence of inflation and supply chain constraints that characterized the second half of 2021 and still in place, albeit partly offset by price increases and sales mix.
Adjusted EBIT amounted to 3.2% of revenues and was equal to €4.5 million (€15.0 million at March 31, 2021). Operating profitability was affected both by gross operating margin erosion caused by inflationary effects, only partially offset by increase in sales, as well by operating expenses trend, driven by the restart of commercial activities
Net financial charges, negative for €1.6 million, worsen by €0.6 million compared to March 31, 2021 following an unfavourable trend in exchange rate differences.
| Quarter ended | |||||
|---|---|---|---|---|---|
| Financial Income/(Expenses) | 31.03.2022 | 31.03.2021 | Change | ||
| Financial income/(expenses) | (413) | (452) | 39 | ||
| Foreign exchange differences | (884) | (196) | (688) | ||
| Bank expenses | (309) | (279) | (30) | ||
| Others | 24 | (38) | 62 | ||
| Total Net Financial Income/(Expenses) | (1,582) | (965) | (617) |
Net profit for the period amounted to €1.3 million, equal to 1.0% of revenues (€8.9 million as of March 31, 2021, or 6.7% of revenues).
Operating segments are identified based on the management reporting used by senior management to allocate resources and evaluate results. The operating segments are indicated below:
The tables below show the comparison of the Revenues and Adjusted EBITDA achieved during the period compared with the same period of the previous year.
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 31.03.2022 | % | 31.03.2021 Restated |
% | Change | % | % Ch. net FX |
|
| Datalogic | 134,045 | 97.2% | 130,118 | 96.8% | 3,927 | 3.0% | -0.2% |
| Informatics | 4,108 | 3.0% | 4,423 | 3.3% | (315) | -7.1% | -13.3% |
| Eliminations | (225) | -0.2% | (175) | -0.1% | (50) | ||
| Total Revenues | 137,928 | 100.0% | 134,366 | 100.0% | 3,562 | 2.7% | -0.6 |
| % on | % on | |||||
|---|---|---|---|---|---|---|
| 31.03.2022 | revenues | 31.03.2021 | revenues | Change | % | |
| Datalogic | 11,002 | 8.2% | 21,048 | 16.2% | (10,046) | -47.7% |
| Informatics | 802 | 19.5% | 545 | 12.3% | 257 | 47.2% |
| Eliminations | (52) | 9 | (61) | |||
| Total Adjusted EBITDA | 11,752 | 8.5% | 21,602 | 16.1% | (9,850) | -45.6% |
Datalogic division reported revenues of €134.0 million as of March 31, 2022, with an increase of 3.0% compared to the first quarter of 2021. Adjusted EBITDA of the division amounted to €11.0 million, reaching 8.2% of the turnover (16.2% as of March 31, 2021). Below is the breakdown of Datalogic Division's revenues by business sector:
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 31.03.2022 | % | 31.03.2021 | % | Change | % | ||
| Restated | |||||||
| Retail | 45,356 | 33.8% | 49,933 | 38.4% | (4,577) | -9.2% | |
| Manufacturing | 40,061 | 29.9% | 34,262 | 26.3% | 5,799 | 16.9% | |
| Transportation & Logistics | 20,812 | 15.5% | 15,457 | 11.9% | 5,355 | 34.7% | |
| Healthcare | 4,207 | 3.1% | 4,982 | 3.8% | (775) | -15.6% | |
| Channel | 23,608 | 17.6% | 25,484 | 19.6% | (1,876) | -7.4% | |
| Total Revenues | 134,045 | 100.0% | 130,118 | 100.0% | 3,927 | 3.0% |
The Retail sector, the Group's core segment accounting for 33.8% of divisional sales (38.4% as of March 31, 2021), declined by 9.2% compared to the first quarter of 2021. The best performing region is Asia (+69.1%), which further accelerates the growth already seen in the last quarter of 2021. A very positive trend was also recorded in the Americas, which consolidated a steady increase in turnover in 2021, closing the quarter with a 9.7% growth.
The Manufacturing sector recorded a 16.9% growth in the first quarter of 2022, mainly driven by the acquisition of MD Group occurred last year, that allowed the completion of the range of sensors and safety devices. EMEAI and the Americas led the sector's performance, recording growth of 21.2% and 40.2% respectively, while APAC was substantially stable.
The Transportation & Logistics sector is a rapidly expanding segment at global level, driven in particular by the growth of the e-commerce. In this segment, the Group recorded an overall growth of 34.7% (+30.3% at constant exchange rates) compared to the first quarter of the previous year, with double-digit increases in AMERICAS (+61.0%) and EMEAI (+31.3%) thanks to new projects in the sub-segments Courier Express Parcel, 3PL, Logistics and Airport, where Datalogic's data collection, tracking and sorting systems meet the needs of logistics and supply chain automation.
Compared to the same period of 2021, the Healthcare sector recorded a decrease of 15.6%, despite of the good result achieved in the EMEAI area (+14.9%) which fails to compensate for the slowdown in the Americas. Datalogic
has strengthened its presence in the sector by further developing its range of technological devices in the healthcare sector, to guarantee the protection of drugs and the health of patients, mainly with bed-side care devices in the hospital sector as well as check-out devices in the pharma distribution.
Sales through the distribution channel to the small and medium-sized customers recorded a decrease of 7.4% compared to the first quarter of 2021, despite the good performance in APAC (+63.3%) followed by AMERICAS (+18.0%).
The Informatics Division has achieved a turnover of €4.1 million in the first quarter of 2022 (€4.4 million as of March 31, 2021) with a decrease of 7.1% compared to the same period of the previous year following the exit from the 'System ID' market, as a result of the company's strategic repositioning on higher value business segments, including the services segment with the offer of Software as a Service (SaaS). The Adjusted EBITDA margin achieved in the first quarter of the year was 19.5%, with an improvement of 7.2 pts compared to 12.3% in the first quarter of the previous year, thus a significant improvement in the division's profitability.
The following table shows the main financial and equity items as of March 31, 2022 compared with December 31, 2021.
| 31.03.2022 | 31.12.2021 | Change | Ch. % | |
|---|---|---|---|---|
| Intangible assets | 81,172 | 81,631 | (459) | -0.6% |
| Goodwill | 212,764 | 193,497 | 19,267 | 10.0% |
| Tangible assets | 116,937 | 118,918 | (1,981) | -1.7% |
| Financial assets and investments in associates | 11,431 | 12,335 | (904) | -7.3% |
| Other non-current assets | 53,213 | 50,889 | 2,324 | 4.6% |
| Fixed Assets | 475,517 | 457,270 | 18,247 | 4.0% |
| Trade receivables | 84,497 | 87,279 | (2,782) | -3.2% |
| Trade payables | (115,299) | (139,121) | 23,822 | -17.1% |
| Inventories | 156,774 | 136,721 | 20,053 | 14.7% |
| Net Trade Working Capital | 125,972 | 84,879 | 41,093 | 48.4% |
| Other current assets | 31,073 | 29,309 | 1,764 | 6.0% |
| Other current liabilities and provisions for risks | (70,161) | (67,349) | (2,812) | 4.2% |
| Net Working Capital | 86,884 | 46,839 | 40,045 | 85.5% |
| Other non-current liabilities | (45,230) | (44,923) | (307) | 0.7% |
| Post-employment benefits | (6,909) | (7,088) | 179 | -2.5% |
| Non-current Provisions for risks | (4,277) | (4,314) | 37 | -0.9% |
| Net Invested Capital | 505,985 | 447,784 | 58,201 | 13.0% |
| Shareholders' Equity | (428,322) | (421,724) | (6,598) | 1.6% |
| Net financial position (NFP) | (77,663) | (26,060) | (51,603) | 198.0% |
Net Invested Capital, amounting to €506.0 million (€447.8 million as of December 31, 2021), increased by €58.2 million, of which €40.0 million in Net Working Capital and €18.2 million in Fixed Assets.
Fixed assets, amounting to €475.5 million (€457.3 million as of December 31, 2021) marks an overall increase of €18.2 million mainly due to translation differences for €4.5 million, and the preliminary recognition of goodwill arising from the acquisition of Pekat Vision for approximately €15.8 million.
Net Trade Working Capital as of March 31, 2022, equal to €126.0 million, increased by €41.1 million compared to December 31, 2021. As a percentage on turnover, it rose from 14.2% as of December 31, 2021 to 20.9% at the end of the first quarter of 2022. The change in the period was affected both by the increase in inventories, especially raw materials and semi-finished goods, necessary to deal with the shortage of some electronic components that has impacted several sectors at a global level since 2021, and by the slowdown of sales order conversion caused by shortage itself. Seasonality of purchases combined with inflation in costs determined a lower exposure towards supplier of about €23.8 million.
Net Financial Position as of March 31, 2022 was negative by €77.7 million. Change in consolidated Net Financial Position compared to December 31, 2021 is following reported:
| 31.03.2022 | 31.03.2021 | Change | |
|---|---|---|---|
| Net Financial Position (Net Debt) at the start of the period |
(26,060) | 8,218 | (34,278) |
| Adjusted EBITDA | 11,752 | 21,602 | (9,850) |
| Change in net trade working capital | (41,083) | (16,541) | (24,542) |
| Other changes in net working capital | 1,746 | 2,021 | (274) |
| Net investments | (4,030) | (7,381) | 3,351 |
| Change in taxes | (2,406) | (2,914) | 508 |
| Net financial income (expenses) | (1,582) | (969) | (613) |
| Business acquisition | (16,000) | (34,972) | 18,972 |
| Change in Net Financial Position | (51,603) | (39,154) | (12,449) |
| Net Financial Position (Net Debt) at the end of the period |
(77,663) | (30,936) | (46,727) |
Cash generated from operations before changes in working capital during the first quarter of 2022 was absorbed, more than in the same period of the previous year, by working capital due to an increase in inventories as a result of the shortage as described above. The Group's equity and financial solidity made it possible the acquisition of Pekat Vision in the first quarter of 2022 for a consideration of approximately €16.0 million.
As of March 31, 2022, the Net Financial Debt is detailed as follows:
| 31.03.2022 | 31.12.2021 | |
|---|---|---|
| A. Cash | 76,223 | 106,068 |
| B. Cash equivalents | 12 | 12 |
| C. Other current financial assets | 2,252 | 2,207 |
| D. Cash and cash equivalents (A) + (B) + (C) | 78,487 | 108,287 |
| E. Current financial debt | 4,737 | 8,041 |
| E1. of which Lease payables | 4,000 | 4,446 |
| F. Current portion of non-current financial debt | 87,709 | 62,888 |
| G. Current financial debt (E) + (F) | 92,446 | 70,929 |
| H. Current Net Financial Debt (Financial Position) (G) - (D) | 13,959 | (37,358) |
| I. Non-current financial debt | 63,704 | 63,418 |
| I1. of which Lease payables | 13,053 | 13,100 |
| J. Debt instruments | - | - |
| K. Trade and other payables | - | - |
| L. Non-current financial Debt (I) + (J) + (K) | 63,704 | 63,418 |
| M. Net Financial Debt/(Net Financial Position) (H) + (L) | 77,663 | 26,060 |
As of March 31, 2022, the Group has outstanding credit lines of 247.0 million, of which €200.0 million Committed. The outstanding credit lines unused and immediately available amounted to €108.0 million.
Indirect indebtedness subject to conditions as of March 31, 2022 is represented exclusively by the provision for Group post-employment benefit, amounting to €6.9 million.
On March 21, 2022, the acquisition of the entire share capital of Pekat S.r.o., a company based in Brno in the Czech Republic, through the subsidiary Datalogic S.r.l., was finalized. Pekat Vision is a start-up that develops proprietary machine and deep learning algorithms in vision systems for process automation mainly in the Manufacturing and T&L sectors, with further potential in the Retail. Pekat solutions, highly innovative and performing, are interoperable and easily integrated with devices and platforms in different application areas. The acquisition, which took place for a consideration of €16.0 million, enables the Group to pursue its strategic objectives of growth and technological innovation, enhancing the Datalogic offer with cutting-edge solutions based on Artificial Intelligence (AI).
On April 29, 2022, the Shareholders' Meeting appointed the new Board of Directors, to hold office for the financial years 2021-2023, and resolved to distribute an ordinary unit dividend of €30 cents per share, gross of legal withholdings, for an overall amount of €17.5 million.
The same Shareholders' Meeting also resolved to
Socio-political tensions that resulted in a conflict between Russia and Ukraine on February 24, 2022, the developments of which at present are not yet predictable, led Western countries to enact economic sanctions against Russia. The Group does not have offices in the countries currently directly affected by the conflict, nor do these represent significant outlet or supply markets for the same. The potential effects of this event on the Group's economic and equity results are however subject to constant monitoring.
Nothing to report.
Macroeconomic expectations for 2022 continue to be strongly influenced by exogenous factors of uncertainty, primarily due to the still uncertain timing of the resolution of the war in Ukraine and tensions on the availability of supplies of production materials and the consequent increase in the prices of components and raw materials.
The high demand in the sector characterized by the persistent double-digit growth of the company's booking and the actions taken both on the supply chain and on pricing allow to continue to be confident in the recovery, forecast in the second half of the year, in terms of growth both in sales and profitability.
The Parent Company has no secondary locations.
The Chair of the Board of Directors (Mr Romano Volta)
| ASSETS (€/000) | Notes | 31.03.2022 | 31.12.2021 |
|---|---|---|---|
| A) Non-current assets (1+2+3+4+5+6+7) | 475,517 | 457,270 | |
| 1) Tangible assets | 100,467 | 101,780 | |
| Land | 1 | 12,614 | 12,524 |
| Buildings | 1 | 52,726 | 52,649 |
| Other assets | 1 | 32,186 | 32,600 |
| Assets in progress and payments on account | 1 | 2,941 | 4,007 |
| 2) Intangible assets | 293,936 | 275,128 | |
| Goodwill | 2 | 212,764 | 193,497 |
| Development costs | 2 | 20,753 | 21,786 |
| Other | 2 | 38,165 | 39,703 |
| Assets in progress and payments on account | 2 | 22,254 | 20,142 |
| 3) Right-of-use assets | 3 | 16,470 | 17,138 |
| 4) Equity investments in associates | 4 | 530 | 530 |
| 5) Non-current financial assets | 10,901 | 11,805 | |
| Equity investments | 6 | 10,901 | 11,805 |
| 6) Trade and other receivables | 7 | 790 | 821 |
| 7) Deferred tax assets | 12 | 52,423 | 50,068 |
| B) Current assets (8+9+10+11+12) | 350,831 | 361,596 | |
| 8) Inventories | 156,774 | 136,721 | |
| Raw and ancillary materials and consumables | 8 | 95,599 | 83,681 |
| Work in progress and semi-finished products | 8 | 25,910 | 19,865 |
| Finished products and goods | 8 | 35,265 | 33,175 |
| 9) Trade and other receivables | 104,831 | 105,145 | |
| Trade receivables | 7 | 84,497 | 87,279 |
| of which from associates | 7 | 2,283 | 2,435 |
| of which from related parties | 7 | 13 | 7 |
| Other receivables, accrued income and prepaid expenses | 7 | 20,334 | 17,866 |
| 10) Tax receivables | 9 | 10,739 | 11,443 |
| of which to Parent Company | 9 | 1,807 | 1,807 |
| 11) Current financial receivables | 2,252 | 2,207 | |
| 12) Cash and cash equivalents | 76,235 | 106,080 | |
| Total Assets (A+B) | 826,348 | 818,866 |
| LIABILITIES (€/000) | Notes | 31.03.2022 | 31.12.2021 |
|---|---|---|---|
| A) Total Shareholders' Equity (1+2+3+4+5+6) | 10 | 428,322 | 421,724 |
| 1) Share capital | 10 | 30,392 | 30,392 |
| 2) Reserves | 10 | 125,140 | 119,668 |
| 3) Retained earnings (losses) | 10 | 268,378 | 229,691 |
| 4) Profit (loss) for the period | 10 | 1,371 | 38,913 |
| 5) Group Shareholders' Equity | 10 | 425,281 | 418,665 |
| Profit (Loss) for the period of Minority interests | 10 | (41) | 627 |
| Shareholders' Equity of Minority interests | 10 | 3,082 | 2,432 |
| 6) Minority interests | 3,041 | 3,060 | |
| B) Non-current liabilities (7+8+9+10+11+12) | 120,120 | 119,743 | |
| 7) Non-current financial payables | 11 | 63,704 | 63,418 |
| 8) Tax payables | 809 | 793 | |
| 9) Deferred tax liabilities | 12 | 26,164 | 25,844 |
| 10) Post-employment benefits | 13 | 6,909 | 7,088 |
| 11) Provisions for risks and charges, non-current | 14 | 4,277 | 4,314 |
| 12) Other liabilities | 15 | 18,257 | 18,286 |
| C) Current liabilities (13+14+15+16) | 277,906 | 277,399 | |
| 13) Trade and other payables | 171,525 | 190,566 | |
| Trade payables | 15 | 115,299 | 139,121 |
| of which to associates | 15 | 151 | 156 |
| of which to related parties | 15 | 112 | 105 |
| Other payables, accrued liabilities and deferred income | 15 | 56,226 | 51,445 |
| 14) Tax payables | 9 | 10,696 | 12,420 |
| of which to Parent Company | 9 | 3,450 | 3,450 |
| 15) Provisions for risks and charges, current | 14 | 3,239 | 3,484 |
| 16) Current financial payables | 11 | 92,446 | 70,929 |
| Total Liabilities (A+B+C) | 826,348 | 818,866 |
| 31.03.2022 | 31.03.2021 | ||
|---|---|---|---|
| (€/000) | Notes | Restated | |
| 1) Revenues | 16 | 137,928 | 134,366 |
| Revenues from sale of products | 127,891 | 124,717 | |
| Revenues from services | 10,037 | 9,649 | |
| of which to related parties and associates | 2,514 | 1,796 | |
| 2) Cost of goods sold | 17 | 80,040 | 70,869 |
| of which to related parties and associates | 80 | 158 | |
| Gross Operating Margin (1-2) | 57,888 | 63,497 | |
| 3) Other revenues | 18 | 204 | 337 |
| 4) Research and development expenses | 17 | 14,505 | 13,791 |
| of which to related parties and associates | 138 | 136 | |
| 5) Distribution expenses | 17 | 26,069 | 23,652 |
| of which to related parties and associates | 47 | 21 | |
| 6) General and administrative expenses | 17 | 14,779 | 12,843 |
| of which to related parties and associates | 140 | 61 | |
| 7) Other operating expenses | 17 | 461 | 614 |
| Total operating costs | 55,814 | 50,900 | |
| Operating result | 2,278 | 12,934 | |
| 8) Financial income | 19 | 5,246 | 7,637 |
| 9) Financial expenses | 19 | 6,828 | 8,602 |
| Financial income/(expenses) (8-9) | (1,582) | (965) | |
| Profit/(Loss) before taxes from continuing operations | 696 | 11,969 | |
| Income taxes | 20 | (633) | 3,032 |
| Profit/(Loss) for the period from continuing operations | 1,329 | 8,937 | |
| Net Profit/(Loss) for the period | 1,329 | 8,937 | |
| Basic earnings/(loss) per share (€) | 21 | 0.02 | 0.16 |
| Diluted earnings/(loss) per share (€) | 21 | 0.02 | 0.16 |
| Attributable to: | ||
|---|---|---|
| Shareholders of the Parent Company | 1,370 | 8,713 |
| Minority interests | (41) | 224 |
| (€/000) | Notes | 31.03.2022 | 31.03.2021 Restated |
|---|---|---|---|
| Net Profit/(Loss) for the period | 1,329 | 8,937 | |
| Other components of the statement of comprehensive income: | |||
| Other components of the Statement of comprehensive income which will be subsequently reclassified to profit/(loss) for the period: |
|||
| Profit/(Loss) on derivative financial instruments (cash flow hedge) |
10 | 27 | 38 |
| Profit/(Loss) due to translation of the accounts of foreign companies |
10 | 6,377 | 11,542 |
| Total other components of the Statement of comprehensive income which will be subsequently reclassified to profit/(loss) for the period |
6,404 | 11,580 | |
| Other components of the Statement of comprehensive income which will not be subsequently 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 | (868) | (357) |
| of which tax effect | 10 | 4 | |
| Total other components of the Statement of comprehensive income which will not be subsequently reclassified to profit/(loss) for the period |
(868) | (357) | |
| Total profit/(loss) in the Statement of Comprehensive Income | 5,537 | 11,223 | |
| Total comprehensive profit/(loss) for the period | 6,866 | 20,160 | |
| Attributable to: | |||
| Shareholders of the Parent Company | 6,841 | 19,936 | |
| Minority interests | 24 | 224 |
| (€/000) | Notes | 31.03.2022 | 31.03.2021 Restated |
|---|---|---|---|
| Profit/(Loss) before taxes | 696 | 12,099 | |
| Depreciation of tangible assets and write-downs | 1, 2 | 3,334 | 3,083 |
| Amortization of intangible assets and write-downs | 1, 2 | 4,306 | 3,571 |
| Depreciation of right-of-use assets | 3 | 1,088 | 1,047 |
| Losses (Gains) from sale of fixed assets | 17, 18 | (8) | 40 |
| Change in provisions for risks and charges | 14 | (282) | (339) |
| Financial Income/(Expenses) | 19 | 1,582 | 965 |
| Other non-monetary changes | 680 | 847 | |
| Cash flow generated (absorbed) from operations before changes in working capital |
11,396 | 21,313 | |
| Change in trade receivables | 7 | 2,820 | (7,959) |
| Change in inventories | 8 | (20,048) | (14,240) |
| Change in trade payables | 15 | (23,850) | 5,543 |
| Change in other current assets | 7 | (2,465) | (91) |
| Change in other current liabilities | 15 | 4,713 | 2,815 |
| Change in other non-current assets | 6 | 31 | (56) |
| Change in other non-current liabilities | 5 | (29) | (323) |
| Cash flow generated (absorbed) from operations after changes in working capital |
(27,433) | 7,002 | |
| Change in taxes | (2,396) | (2,914) | |
| Interest paid | (671) | (765) | |
| Interest collected | 27 | 28 | |
| Cash flow generated (absorbed) from operations (A) | (30,473) | 3,351 | |
| Increase in intangible assets | 2 | (3,343) | (3,903) |
| Decrease in intangible assets | 2 | 13 | - |
| Increase in tangible assets | 1 | (1,301) | (1,859) |
| Decrease in tangible assets | 1 | 15 | - |
| Cash paid for business acquisition, net of cash acquired | (16,000) | (34,972) | |
| Change in investments and current and non-current financial assets | 5 | 21 | 7,212 |
| Cash flow generated (absorbed) from investments (B) | (20,595) | (33,522) | |
| Payment of financial liabilities | 11 | (11,096) | (11) |
| New financial liabilities | 11 | 35,000 | 1,544 |
| Other changes in financial liabilities | 11 | (2,941) | - |
| Change in lease financial payables | (493) | (1,137) | |
| Dividend payment | - | - | |
| Effect of change in cash and cash equivalents | 752 | (887) | |
| Other changes | - | 2,538 | |
| Cash flow generated (absorbed) from financial activity (C) | 21,222 | 2,047 | |
| Net increase (decrease) in available cash (A+B+C) | (29,846) | (28,124) | |
| Net cash and cash equivalents at beginning of period | 106,080 | 137,452 | |
| Net cash and cash equivalents at end of period | 76,235 | 109,328 |
| Description | Share capital |
Share premium reserve |
Treasury shares |
Translation reserve |
Other reserves |
Retained earnings |
Group Profit (Loss) |
Group Shareholders' Equity |
Profit (Loss) of Minority interests |
Minority interest capital and reserve |
Shareholders' Equity of Minority interests |
Profit (Loss) |
Shareholders' 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 earnings | - | - | - | - | - | 38,912 | (38,912) | - | (627) | 627 | - | (39,540) | - |
| Dividends | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Treasury shares | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Share-based incentive plan | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other changes | - | - | - | - | - | (226) | - | (226) | - | (42) | (42) | - | (268) |
| Net Profit/(Loss) for the year | - | - | - | - | - | - | 1,370 | 1,370 | (41) | 3,017 | 2,976 | 1,329 | 4,387 |
| Other components of the Statement of comprehensive income |
- | - | - | 6,313 | (841) | - | - | 5,472 | - | 65 | 65 | - | 5,537 |
| Total comprehensive Profit (Loss) | - | - | - | 6,313 | (841) | - | 1,370 | 6,842 | (41) | 3,082 | 3,041 | 1,329 | 9,924 |
| 31.03.2022 | 30,392 | 111,779 | (26,096) | 29,059 | 10,398 | 268,378 | 1,370 | 425,281 | (41) | 3,082 | 3,041 | 1,329 | 428,322 |
| Description | Share capital |
Share premium reserve |
Treasury shares |
Translation reserve |
Other reserves |
Retained earnings |
Group Profit (Loss) |
Group Shareholders' Equity |
Profit (Loss) of Minority interests |
Minority interest capital and reserve |
Shareholders' Equity of Minority interests |
Profit (Loss) |
Shareholders' Equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01.01.2021 | 30,392 | 111,779 | (21,899) | 2,331 | 6,204 | 225,816 | 13,582 | 368,205 | 300 | 1,853 | 2,153 | 13,882 | 370,358 |
| Allocation of earnings | - | - | - | - | - | 13,582 | (13,582) | - | (300) | - | 300 | (13,882) | - |
| Dividends | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Treasury shares | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Share-based incentive plan | - | - | - | - | 474 | - | - | 474 | - | - | - | - | 474 |
| Other changes | - | - | - | - | - | - | - | - | - | 97 | 97 | - | 97 |
| Net Profit/(Loss) for the year | - | - | - | - | - | - | 8,713 | 8,713 | 224 | 2,026 | 2,250 | 8,937 | 8,937 |
| Other components of the Statement of comprehensive income |
- | - | - | 11,542 | (319) | - | - | 11,223 | - | - | - | - | 11,223 |
| Total comprehensive Profit (Loss) | - | - | - | 11,542 | (319) | - | 8,713 | 19,936 | 224 | 2,026 | 2,250 | 8,937 | 20,160 |
| 31.03.2021 | 30,392 | 111,779 | (21,899) | 13,873 | 6,359 | 239,398 | 8,713 | 388,615 | 224 | 2,026 | 2,250 | 8,937 | 391,089 |
The Datalogic Group is the global leader in the markets of automatic data capture and process automation. The Group is specialized in the design and production of bar code readers, mobile computers, sensor, measurement and security sensors, vision and laser marking and RFID.
Its pioneering solutions contribute to 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 address of the registered office is Via Candini, 2 - Lippo di Calderara (BO).
This Consolidated Interim Report as of March 31, 2022 includes the figures of the Parent Company and its subsidiaries (defined hereinafter as the "Group"), as well as its minority interests in associates.
The publication of this Consolidated Interim Report as of March 31, 2022 of the Datalogic Group was authorized by resolution of the Board of Directors dated May 12, 2022.
This Consolidated Interim Report was drawn up pursuant to Art. 154-ter of Legislative Decree no. 58 (T.U.F.) of February 24, 1998 and following amendments and supplements, as well as to the Consob's Issuer Regulation. These drafting criteria comply with IAS 34 "Interim Financial Statements" providing the abbreviated notes required by this international accounting standard, supplemented to provide additional information, as necessary.
This Consolidated Interim Report must therefore be read together with the Consolidated Financial Statements as of December 31, 2021, which were prepared in accordance with the IFRS accounting standards, endorsed by the European Union, approved at the Meeting of the Board of Directors held on March 10, 2022 and available in the section Investor Relations in the Group's website (www.datalogic.com).
This Consolidated Interim Report is drawn up in thousands of Euro, which is the Group's "functional" and "presentation" currency.
The financial statements adopted are compliant with those required by IAS 1 and were used in the Consolidated Financial Statements for the year ended as of December 31, 2021, in particular:
current and non-current assets, as well as current and non-current liabilities are disclosed separately in the Statement of Financial Position. Current assets, which include cash and cash equivalents, are those set to be realized, sold or used during the Group's normal operational cycle; current liabilities are those whose extinction is envisaged during the Group's normal operating cycle or in the 12 months after the end of the period;
with regard to the Income Statement, cost and revenue items are disclosed based on grouping by function, as this classification was deemed more explanatory for understanding the Group's economic result;
On January 1, 2022, the following amendments to the accounting standards currently in force entered into effect:
The adoption of these amendments had no impact on the Group's consolidated financial statements.
As at the date of preparation of this Interim Report, some accounting standards illustrated in the Consolidated Financial Statements as of December 31, 2021, to which reference should be made, had been issued but have not yet entered into force. The Group intends to adopt these standards and interpretations, if applicable, when they will enter into force.
The preparation of the Consolidated Interim Report in application of the IFRS requires the directors to apply accounting principles and methodologies which, in certain circumstances, are based on valuations and estimates based on historical experience and assumptions that are assessed from time to time according to specific circumstances. The application of such estimates and assumptions affects the amounts related to revenues, costs, assets and liabilities, as well as contingent liabilities disclosed and any relevant information. The actual amounts of accounting items, for which these
estimates and assumptions have been used, might be different from those reported due to the uncertainty characterizing the assumptions and conditions on which estimates are based.
This Consolidated Interim Report as of March 31, 2022 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 equity investments included in the consolidation area is included in Annex 2 of the Explanatory Notes, with an indication of the methodology used.
As of March 31, 2022, there was a change in consolidation area due to the acquisition, on March 21, 2022, of the entire share capital of the company Pekat S.r.o.
The exchange rates used to determine the countervalue in Euro of financial statements expressed in foreign currency of subsidiaries (currency for 1 Euro) are shown hereunder:
| Currency (ISO Code) | Quantity of currency for 1 Euro | ||||||
|---|---|---|---|---|---|---|---|
| March 2022 | March 2022 | December 2021 | March 2021 | ||||
| Final exchange | Average | Final exchange | Average | ||||
| change | exchange rate | change | exchange rate | ||||
| US Dollar (USD) | 1.11 | 1.12 | 1.13 | 1.21 | |||
| British Pound Sterling (GBP) | 0.84 | 0.84 | 0.84 | 0.87 | |||
| Swedish Krona (SEK) | 10.33 | 10.48 | 10.25 | 10.12 | |||
| Singapore Dollar (SGD) | 1.50 | 1.52 | 1.53 | 1.61 | |||
| Japanese Yen (JPY) | 135.17 | 130.46 | 130.38 | 127.81 | |||
| Australian Dollar (AUD) | 1.48 | 1.55 | 1.56 | 1.56 | |||
| Hong Kong Dollar (HKD) | 8.69 | 8.76 | 8.83 | 9.35 | |||
| Chinese Renminbi (CNY) | 7.04 | 7.12 | 7.19 | 7.81 | |||
| Brazilian Real (BRL) | 5.30 | 5.87 | 6.31 | 6.60 | |||
| Mexican Peso (MXN) | 22.09 | 23.00 | 23.14 | 24.53 | |||
| Hungarian Forint (HUF) | 369.77 | 364.60 | 369.19 | 361.21 | |||
| Czech crown (CZK) | 24.37 | 24.65 | n.a. | n.a. |
On March 21, 2021, the acquisition of the entire share capital through the subsidiary Datalogic S.r.l. of the company Pekat S.r.o. was completed.
Pekat S.r.o. is a company based in Brno in the Czech Republic that develops machine learning and deep learning algorithms for applications in the supply chain and industrial automation areas.
The following table shows preliminary fair value as of March 31, 2022 of the assets and liabilities of the acquisition, the preliminary goodwill deriving from the transaction and the net cash used for the acquisition:
| Provisional PPA as of March 31, 2022 | Book value | Fair value |
|---|---|---|
| Tangible assets | 13 | 13 |
| Intangible assets | 250 | 250 |
| Other non-current receivables | - | - |
| Inventories | 5 | 5 |
| Trade and other current receivables | 71 | 71 |
| Cash and cash equivalents | - | - |
| Financial liabilities | - | - |
| Liabilities for defined employee benefits | - | - |
| Deferred tax liabilities | - | - |
| Trade payables | (27) | (27) |
| Other payables | (68) | (68) |
| Net assets at acquisition date | 243 | 243 |
| % pertaining to Group | 100% | 100% |
| Group net assets | 243 | 243 |
| Acquisition cost | 16,000 | 16,000 |
| Goodwill at acquisition date | 15,757 | 15,757 |
| Net cash used in acquisition: | ||
| Cash and cash equivalents of acquiree | [A] | - |
| Payments made to the seller | [B] | 16,000 |
| Acquisition cost | 16,000 | |
| Net cash used in acquisition | [A] - [B] | 16,000 |
Since the acquisition is a business combination, the Group has recognized it using the purchase method, pursuant to the revised IFRS 3. The cost of an acquisition is measured as the sum of the consideration transferred, measured at fair value on the acquisition date.
The preliminary goodwill emerging from this transaction amounted to €15,757 thousand. It should be noted that for the purposes of preparing this Consolidated Interim Report, the accounting for the above-mentioned business combination was carried out on a provisional basis as the activities aimed at determining the fair value of assets, liabilities or contingent liabilities are in progress. As envisaged by IFRS 3, any possible adjustments shall be recognized within 12 months from the acquisition date.
Operating segments are identified based on the management reporting used by executives to allocate resources and evaluate results. Sales transactions amongst the operating segments indicated hereunder are executed at arm's length conditions, based on the Group transfer pricing policies. For 2022, the operating segments are identified as follows:
The financial information related to operating segments as of March 31, 2022 and March 31, 2021 is as follows:
| Segment economic position | Datalogic Business |
Informatics | Adjustments | Total Group 31.03.2022 |
|---|---|---|---|---|
| Revenues | 134,045 | 4,108 | (225) | 137,928 |
| EBITDA | 11,002 | 802 | (52) | 11,752 |
| % Revenues | 8.21% | 19.52% | 8.52% | |
| EBIT | 1,654 | 677 | (53) | 2,278 |
| Segment economic position | Datalogic Business |
Informatics | Adjustments | Total Group 31.03.2021 Restated |
|---|---|---|---|---|
| Revenues | 130,118 | 4,423 | (175) | 134,366 |
| EBITDA | 21,048 | 545 | 9 | 21,602 |
| % Revenues | 16.18% | 13.32% | 16.08% | |
| EBIT | 12,474 | 451 | 9 | 12,934 |
The equity information related to operating segments as of March 31, 2022 and December 31, 2021 is as follows:
| Segment financial position | Datalogic Business |
Informatics | Adjustments | Total Group 31.03.2022 |
|---|---|---|---|---|
| Total Assets | 831,487 | 25,148 | (30,287) | 826,348 |
| Total Liabilities | 396,712 | 7,232 | (5,918) | 398,026 |
| Shareholders' Equity | 434,775 | 17,916 | (24,369) | 428,322 |
| Segment financial position | Datalogic Business |
Informatics | Adjustments | Total Group 31.12.2021 |
|---|---|---|---|---|
| Total Assets | 824,658 | 24,891 | (30,683) | 818,866 |
| Total Liabilities | 395,093 | 7,784 | (5,735) | 397,142 |
| Shareholders' Equity | 429,565 | 17,107 | (24,948) | 421,724 |
Tangible fixed assets as of March 31, 2022 amounted to €100,467 thousand. During the period were recognized net investment amounting to €1,294 thousand, €13 thousand deriving from acquisitions and depreciation for €3,334 thousand, while exchange rate effects were positive for €714 thousand. The breakdown of the item as of March 31, 2022 and December 31, 2021 is as follows:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Land | 12,614 | 12,524 | 90 |
| Buildings | 52,726 | 52,649 | 77 |
| Other assets | 32,186 | 32,600 | (414) |
| Assets in progress and payments on account | 2,941 | 4,007 | (1,066) |
| Total | 100,467 | 101,780 | (1,313) |
"Other assets" item as of March 31, 2022 includes the following categories: industrial equipment and moulds (€12,984 thousand), plant and machinery (€8,895 thousand), office furniture and machines (€6,225 thousand), general plants related to buildings (€2,539 thousand), light constructions (€520 thousand), commercial equipment and demo rooms (€654 thousand), maintenance on third-party assets (€333 thousand), and motor vehicles (€36 thousand).
The balance of item "Assets in progress and payments on account", equal to €2,941 thousand, is composed primarily of €1,829 thousand for moulds under construction, €868 thousand for equipment and production lines built in house and €115 thousand for improvements to owned buildings.
Intangible fixed assets as of March 31, 2022 amounted to €293,936 thousand. During the period, the following were recognized: net investments for €3,329 thousand, the preliminary purchase price allocation related to the acquisition of Pekat Vision for €15,757 thousand and amortization for €4,305 thousand, while the exchange rate effects were positive for €3,785 thousand. The breakdown of the item as of March 31, 2022 and December 31, 2021 is as follows:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Goodwill | 212,764 | 193,497 | 19,267 |
| Development costs | 20,753 | 21,786 | (1,033) |
| Other | 38,165 | 39,703 | (1,538) |
| Assets in progress and payments on account | 22,254 | 20,142 | 2,112 |
| Total | 293,936 | 275,128 | 18,808 |
"Goodwill", equal to €212,764 thousand, is allocated to the CGUs identified by the Management as illustrated below.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Datalogic CGU | 199,152 | 180,101 | 19,051 |
| Informatics CGU | 13,612 | 13,396 | 216 |
| Total | 212,764 | 193,497 | 19,267 |
The change with respect to the end of the previous year is to be attributed to €3,510 thousand in translation differences and €15,757 thousand in goodwill arising on the first-time consolidation of Pekat S.r.o. following the provisional accounting of the Purchase Price Allocation (PPA) and included in the Datalogic CGU.
This Goodwill has been allocated to the CGUs (Cash Generating Units) represented by the individual companies and/or sub-groups to which they refer.
The estimated recoverable value of each CGU, associated with each Goodwill item measured, consists of its corresponding value in use. Value in use is calculated by discounting the future cash flows that are expected to be generated by the CGU – during production and at the time of its disposal – to present value using a discount rate, based on the Discounted Cash Flow method.
The cash flows of the individual CGUs are estimated based on forward-looking plans prepared by Management. These plans represent the best estimate of foreseeable operating performance, based on business strategies and growth indicators in the sector to which the Group belongs and in its reference markets.
The assumptions used for the purposes of impairment were approved by the Board of Directors and the Audit and Risk, Remuneration and Appointments Committee of Datalogic S.p.A. on February 17, 2022.
The "Development costs" item, amounting to €20,753 thousand, as of March 31, 2022, is composed of specific product development projects.
The "Other" item, amounting to €38,165 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group and software licences as detailed below:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Patents | 8,711 | 9,056 | (345) |
| Know-how | 5,858 | 6,307 | (449) |
| Customer list | 12,517 | 12,742 | (225) |
| Licences | 87 | 440 | (353) |
| Software | 10,992 | 11,158 | (166) |
| Total | 38,165 | 39,703 | (1,538) |
The "Assets in progress and payments on account" item, equal to €22,254 thousand, is attributable, in the amount of €21,926 thousand, to the capitalization of costs for product development projects that are currently underway (€19,955 thousand as of December 31, 2021) as well as, in the amount of €328 thousand, to software implementations that are not yet completed.
During the period, were recognized net investments of €404 thousand and depreciation of €1,086 thousand, while exchange rate effects were positive for €14 thousand. The breakdown of the item as of March 31, 2022 and December 31, 2021 is as follows:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Buildings | 14,422 | 14,989 | (567) |
| Vehicles | 1,835 | 1,974 | (139) |
| Office equipment | 213 | 175 | 38 |
| Total | 16,470 | 17,138 | (668) |
The non-controlling equity investments held by the Group, details of which are provided in Appendix 2, totalled €530 thousand as of March 31, 2022, unchanged with respect to the previous period.
The following table provides a breakdown of "Financial assets and liabilities", formulated according to IFRS 9.
| Financial assets at amortized cost |
Financial assets at FV through the Income Statement |
Financial assets at FV through OCI |
31.03.2022 | |
|---|---|---|---|---|
| Non-current financial assets | 790 | 1,635 | 9,266 | 11,691 |
| Financial assets - Equity investments | - | 1,635 | 9,266 | 10,901 |
| Other receivables | 790 | - | - | 790 |
| Current financial assets | 181,066 | 2,252 | - | 183,318 |
| Trade receivables | 84,497 | - | - | 84,497 |
| Other receivables | 20,334 | - | - | 20,334 |
| Financial assets - Loans | - | 2,252 | - | 2,252 |
| Cash and cash equivalents | 76,235 | - | - | 76,235 |
| Total | 181,856 | 3,887 | 9,266 | 195,009 |
| Financial assets at amortized cost |
Financial assets at FV through the Income Statement |
Financial assets at FV through OCI |
31.12.2021 | |
|---|---|---|---|---|
| Non-current financial assets | 821 | 1,301 | 10,504 | 12,626 |
| Financial assets - Equity investments | - | 1,301 | 10,504 | 11,805 |
| Other receivables | 821 | - | - | 821 |
| Current financial assets | 211,225 | 2,207 | - | 213,432 |
| Trade receivables | 87,279 | - | - | 87,279 |
| Other receivables | 17,866 | - | - | 17,866 |
| Financial assets - Loans | - | 2,207 | - | 2,207 |
| Cash and cash equivalents | 106,080 | - | - | 106,080 |
| Total | 212,046 | 3,508 | 10,504 | 226,058 |
| Derivatives | Financial liabilities at amortized cost |
31.03.2022 | |
|---|---|---|---|
| Non-current financial liabilities | - | 81,961 | 81,961 |
| Financial payables | - | 63,704 | 63,704 |
| Other payables | - | 18,257 | 18,257 |
| Current financial liabilities | - | 263,971 | 263,971 |
| Trade payables | - | 115,299 | 115,299 |
| Other payables | - | 56,226 | 56,226 |
| Current financial payables | - | 92,446 | 92,446 |
| Total | - | 345,932 | 345,932 |
| Derivatives | Financial liabilities at amortized cost |
31.12.2021 | |
|---|---|---|---|
| Non-current financial liabilities | - | 81,704 | 81,704 |
| Financial payables | - | 63,418 | 63,418 |
| Other payables | - | 18,286 | 18,286 |
| Current financial liabilities | - | 261,495 | 261,495 |
| Trade payables | - | 139,121 | 139,121 |
| Other payables | - | 51,445 | 51,445 |
| Current financial payables | - | 70,929 | 70,929 |
| Total | - | 343,199 | 343,199 |
The fair value of financial assets and financial liabilities is determined according to methods that can be classified in the various levels of the fair value hierarchy as defined by IFRS 13. In particular, the Group has adopted internal valuation models that are generally used in finance and based on prices supplied by market operators, or prices taken from active markets.
All the financial instruments measured at fair value are classified in the three categories defined below:
Level 1: market prices;
Level 2: valuation techniques (based on observable market data);
Level 3: valuation techniques (not based on observable market data).
| Assets measured at fair value | Level 1 | Level 2 | Level 3 | 31.03.2022 |
|---|---|---|---|---|
| Financial assets - Equity investments | 9,266 | - | 1,635 | 10,901 |
| Financial assets - Other | - | - | 2,252 | 2,252 |
| Total | 9,266 | - | 3,887 | 13,153 |
The financial assets include the following:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Non-current financial assets | 10,901 | 11,805 | (903) |
| Current financial assets | 2,252 | 2,207 | 45 |
| Total | 13,153 | 14,012 | (858) |
The change in the item "Non-current financial assets" is detailed below:
| 2022 | 2021 | |
|---|---|---|
| As of January 1 | 11,805 | 7,823 |
| Investments (Divestments) | 195 | 224 |
| Change in consolidation area | - | 3 |
| Profits/losses recognized in OCI | (1,115) | (357) |
| Exchange rate adjustments | 16 | 34 |
| As of March 31 | 10,901 | 7,727 |
Non-current financial assets amounted to €10,901 thousand and included €9,092 thousand for 1.2% investment in the share capital of the Japanese company Idec Corporation, listed on the Tokyo Stock Exchange, whose change during the period is related to exchange rate and fair value adjustments, and the investment in the company Point Mobile Co., Ltd.
The item "Current financial assets" equal to €2,252 thousand consists of current financial receivables represented by the investment in a financial instrument convertible into capital issued by the company AWM Smart Shelf.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Trade receivables | 76,042 | 80,389 | (4,347) |
| Contract assets - Invoices to be issued | 8,846 | 7,105 | 1,741 |
| Bad debt provisions | (2,687) | (2,657) | (30) |
| Net trade receivables | 82,201 | 84,837 | (2,636) |
| Receivables from associates | 2,296 | 2,435 | (139) |
| Receivables from related parties | - | 7 | (7) |
| Sub-total - Trade receivables | 84,497 | 87,279 | (2,782) |
| Other receivables - current accrued income and prepaid expenses | 20,334 | 17,866 | 2,468 |
| Other receivables - non-current accrued income and prepaid expenses |
790 | 821 | (31) |
| Sub-total - Other receivables - accrued income and prepaid expenses |
21,124 | 18,687 | 2,437 |
| Less: non-current portion | 790 | 821 | (31) |
| Trade and other receivables - current | 104,831 | 105,145 | (314) |
The breakdown of the item as of March 31, 2022 and December 31, 2021 is as follows:
"Trade receivables", which amounted to €84,497 thousand as of March 31, 2022, show a decrease of €2,782 thousand compared to December 31, 2021. As of March 31, 2022, trade receivables sold to Factoring without recourse amounted to €26,625 thousand (compared to €33,052 thousand as of December 31, 2021). Trade receivables from associates arise from commercial transactions carried out at arm's length conditions.
The details of the "Other receivables - accrued income and prepaid expenses" are shown below.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Other current receivables | 2,241 | 1,763 | 478 |
| Other non-current receivables | 790 | 821 | (31) |
| VAT receivables | 13,705 | 12,632 | 1,073 |
| Accrued income and prepaid expenses | 4,388 | 3,471 | 917 |
| Total | 21,124 | 18,687 | 2,437 |
The "VAT receivables" equal to €13,705 thousand relates to normal trade operations. The increase is due to the greater volume of exports during the period.
The "Accrued income and prepaid expenses" item is mainly composed of the recognition of insurance contracts and hardware and software licenses. The amount shows an increase of €917 thousand compared to December 31, 2021, but in line with the same period of the previous year in which it was equal to €4,346 thousand.
Inventories amounting to €156,774 thousand show an increase of €20,053 thousand in the period. The increase in the period is the result of the Group's higher supply aimed driven by a growing demand, as well as the management of raw material and component shortages, which lead to longer times in sales' orders fulfilment.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Raw and ancillary materials and consumables | 95,599 | 83,681 | 11,918 |
| Work in progress and semi-finished products | 25,910 | 19,865 | 6,045 |
| Finished products and goods | 35,265 | 33,175 | 2,090 |
| Total | 156,774 | 136,721 | 20,053 |
Inventories are disclosed net of an obsolescence provision totalling €11,687 thousand as of March 31, 2022 (€10,777 thousand as of December 31, 2021).
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Tax receivables | 10,739 | 11,443 | (704) |
| of which to Parent Company | 1,807 | 1,807 | - |
| Tax payables | (10,696) | (12,420) | 1,724 |
| of which to Parent Company | (3,450) | (3,450) | - |
| Total | 43 | (977) | 1,020 |
As of March 31, 2022 the net balance of "Tax receivables and payables" was positive and equal to €43 thousand, showing a change of €1,020 thousand compared to December 31, 2021. The change in the period is mainly due to the payment of tax advances.
The composition of the Shareholders' Equity as of March 31, 2022 is shown below:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Share capital | 30,392 | 30,392 | - |
| Share premium reserve | 111,779 | 111,779 | - |
| Treasury shares held in portfolio | (26,096) | (26,096) | - |
| Share capital and capital reserves | 116,075 | 116,075 | - |
| Translation reserve | 29,059 | 22,746 | 6,313 |
| Other reserves | 10,398 | 11,239 | (841) |
| Retained earnings | 268,378 | 229,692 | 38,686 |
| Profit for the period | 1,371 | 38,913 | (37,542) |
| Total Group shareholders' equity | 425,281 | 418,665 | 6,616 |
| Profit/Loss for the period of Minority interests | (41) | 627 | (668) |
| Shareholders' Equity of Minority interests | 3,082 | 2,432 | 650 |
| Total consolidated Shareholders' Equity | 428,322 | 421,724 | 6,598 |
As of March 31, 2022, the share capital of €30,392 thousand represents the share capital fully subscribed and paid in by the Parent Company Datalogic S.p.A. It comprises a total number of ordinary shares of 58,446,491, of which 2,000,000 are held as treasury shares for a value of €26,096 thousand, for which the outstanding shares as of that date amounted to 56,446,491. The shares have a nominal value of €0.52 each.
As of March 31, 2022, the breakdown of the main changes in other reserves were as follows:
The "Financial payables" as of March 31, 2022 amounted to €156,150 thousand, recording an increase of €21,803 thousand as detailed below.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Bank borrowings | 138,362 | 113,206 | 25,156 |
| Lease financial payables | 17,053 | 17,546 | (493) |
| Payables to factoring companies | 647 | 2,537 | (1,890) |
| Other financial liabilities | 53 | 998 | (945) |
| Bank overdrafts | 35 | 60 | (25) |
| Total | 156,150 | 134,347 | 21,803 |
The change in the item "Bank borrowings" for the period is detailed below:
| 2022 | 2021 | |
|---|---|---|
| As of January 1 | 113,206 | 130,753 |
| Increases | 35,000 | - |
| Decreases for borrowing repayments | (10,126) | (11) |
| Other changes | 282 | 408 |
| As of March 31 | 138,362 | 132,694 |
The breakdown of financial payables divided between current and non-current portion is shown below:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Non-current financial payables | 63,704 | 63,418 | 286 |
| Current financial payables | 92,446 | 70,929 | 21,517 |
| Total | 156,150 | 134,347 | 21,803 |
Some loan agreements require the Group to comply with financial covenants, measured on a half-yearly basis as of June 30 and December 31, summarized in the following table:
| Financing | Company | Covenants | Frequency | Reference financial statements |
|
|---|---|---|---|---|---|
| Club Deal | Datalogic S.p.A. | NFP/EBITDA | 2.75 | Half-year | Consolidated |
| RCF | Datalogic S.p.A. | NFP/EBITDA | 2.75 | Half-year | Consolidated |
| Roller Coaster | Datalogic S.p.A. | NFP/EBITDA | 3.00 | Half-year | Consolidated |
As of December 31, 2021, all covenants were complied with.
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 recorded in accordance with the assumptions of the future recoverability of the temporary differences from which they originated, i.e. on the basis of strategic plans of an economic and tax nature.
The temporary differences that generate deferred tax assets are mainly represented by tax losses and taxes paid abroad, provisions for risks and charges, and exchange rate adjustments. Deferred tax liabilities are mainly attributable to temporary differences for exchange rate adjustments and statutory and tax differences of the amortization/depreciation schedules of tangible and intangible assets, as well as to fair value measurements of assets as part of business combinations carried out by the Group.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Deferred tax assets | 52,423 | 50,068 | 2,355 |
| Deferred tax liabilities | (26,164) | (25,844) | (320) |
| Net deferred taxes | 26,259 | 24,224 | 2,035 |
The change in deferred taxes is linked to the release of deferred taxes recognized on income and charges that have become fiscally relevant in the period.
The breakdown of changes in the "Post-employment benefits" item as of March 31, 2022 and March 31, 2021 is shown below:
| 2022 | 2021 | |
|---|---|---|
| As of January 1 | 7,088 | 6,862 |
| Accrual | 857 | 443 |
| Payments | (725) | (440) |
| Change in consolidation area | - | 460 |
| Receivable from INPS | (304) | (66) |
| Other movements | (7) | 14 |
| As of March 31 | 6,909 | 7,273 |
As of March 31, 2022, the "Provisions for risks and charges" amounted to €7,516 thousand (€7,798 thousand as of December 31, 2021) and are represented by the best estimate of the contingent liabilities to which the Group is exposed in relation to contractual obligations for product warranties, as well as contingent liabilities of a tax, labour law and agents' supplementary indemnity nature, as illustrated below.
| 31.12.2021 | Increases | (Uses) and | 31.03.2022 | |
|---|---|---|---|---|
| (Releases) | ||||
| Product warranty provision | 6,844 | 87 | (378) | 6,553 |
| Other provisions | 954 | 9 | - | 963 |
| Total | 7,798 | 96 | (378) | 7,516 |
The "Product warranty provision" covers the estimated cost of repairing products sold up to March 31, 2022 and covered by a warranty period; said provision amounted to €6,553 thousand (of which €3,747 thousand long-term).
The "Others" item as of March 31, 2022 amounted to €963 thousand and is composed primarily of allocations made against agents' supplementary indemnity and for contingent liabilities of a fiscal and labour law nature.
The breakdown of provisions for risks is shown below, broken down into current and non-current portions:
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Provisions for risks and charges, current | 3,239 | 3,484 | (245) |
| Provisions for risks and charges, non-current | 4,277 | 4,314 | (37) |
| Total | 7,516 | 7,798 | (282) |
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Trade payables | 111,545 | 135,427 | (23,882) |
| Contractual liabilities - customer advances | 3,491 | 3,433 | 58 |
| Trade payables | 115,036 | 138,860 | (23,824) |
| Payables to associates | 151 | 156 | (5) |
| Payables to related parties | 112 | 105 | 7 |
| Total Trade payables | 115,299 | 139,121 | (23,822) |
| Other current liabilities | 36,614 | 33,091 | 3,523 |
| Current accrued liabilities and deferred income | 19,612 | 18,354 | 1,258 |
| Non-current accrued liabilities and deferred income | 18,257 | 18,286 | (29) |
| Total Other payables - accrued liabilities and deferred income | 74,483 | 69,731 | 4,752 |
| Less: non-current portion | 18,257 | 18,286 | (29) |
| Current portion | 171,525 | 190,566 | (19,041) |
Trade payables amounted to €115,299 thousand, down by €23,822 thousand compared to the end of the previous year.
| 31.03.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Payables to employees | 24,671 | 20,402 | 4,269 |
| Payables to pension and social security | 6,250 | 7,028 | (778) |
| Other payables | 2,081 | 2,525 | (444) |
| VAT payables | 3,612 | 3,136 | 476 |
| Total | 36,614 | 33,091 | 3,523 |
The item "Other current liabilities", amounting to €36,614 thousand as of March 31, 2022, is mainly represented by "Payables to employees" for the fixed and variable component of remuneration, for holidays, as well as the related "Payables to pension and social security" for the related social security contributions. The change for the year in amounts due to employees of €4,269 thousand is represented by higher payables for the variable salary component relating to the year 2021, which will be settled in the second quarter of 2022.
The item "Accrued liabilities and deferred income", amounting to €37,869 thousand as of March 31, 2022 is mainly composed of deferred revenues related to the Ease of Care multi-year maintenance contracts. The increase for the year of €1,229 thousand (€36,640 thousand as of December 31, 2021) is due to the signing of new contracts.
Revenues divided by type are shown in the following table:
| Quarter ended | |||
|---|---|---|---|
| 31.03.2022 | 31.03.2021 Restated |
Change | |
| Revenues from sale of products | 127,891 | 124,717 | 3,174 |
| Revenues from services | 10,037 | 9,649 | 388 |
| Total Revenues | 137,928 | 134,366 | 3,562 |
As of March 31, 2022, consolidated net revenues amounted to €137,928 thousand, up 2.7% compared with €134,366 thousand in the same period of 2021. The Group's revenues, classified by recognition method and business segment, are broken down as follows:
| Revenues broken down by recognition method | Datalogic | Informatics | Adjustments | 31.03.2022 |
|---|---|---|---|---|
| Revenues from sale of goods and services - point in time | 121,118 | 2,497 | (225) | 123,390 |
| Revenues from sale of goods and services - over the time | 12,927 | 1,611 | - | 14,538 |
| Total | 134,045 | 4,108 | (225) | 137,928 |
| Revenues broken down by recognition method | Datalogic | Informatics | Adjustments | 31.03.2021 Restated |
|---|---|---|---|---|
| Revenues from sale of goods and services - point in time | 120,015 | 3,203 | (175) | 123,043 |
| Revenues from sale of goods and services - over the time | 10,103 | 1,220 | - | 11,323 |
| Total | 130,118 | 4,423 | (175) | 134,366 |
The Group recognizes revenues from the sale of goods and services in a specific moment, when the control of the assets has been transferred to the customer, generally upon delivery of the goods or the rendering of the service.
Revenue is recognized over time instead, based on the stage of completion of the contractual obligations, when the service does not create an asset that has an alternative use for the Group and the Group has the right to payment of the completed service until the date in question.
| Revenues broken down by type | Datalogic | Informatics | Adjustments | 31.03.2022 |
|---|---|---|---|---|
| Sale of goods | 125,706 | 2,410 | (225) | 127,891 |
| Sale of services | 8,339 | 1,698 | - | 10,037 |
| Total | 134,045 | 4,108 | (225) | 137,928 |
| Datalogic | Informatics | Adjustments | 31.03.2021 | |
| Revenues broken down by type | Restated | |||
| Sale of goods | 121,817 | 3,075 | (175) | 124,717 |
| Sale of services | 8,301 | 1,348 | - | 9,649 |
| Total | 130,118 | 4,423 | (175) | 134,366 |
The following table shows the trends of cost of goods sold and operating costs as of March 31, 2022, compared with the same period of the previous year, including special items.
| Quarter ended | |||||
|---|---|---|---|---|---|
| 31.03.2022 | 31.03.2021 Restated |
Change | |||
| Cost of goods sold | 80,040 | 70,869 | 9,171 | ||
| Operating expenses | 55,814 | 50,900 | 4,914 | ||
| Research and development expenses | 14,505 | 13,791 | 714 | ||
| Distribution expenses | 26,069 | 23,652 | 2,417 | ||
| General and administrative expenses | 14,779 | 12,843 | 1,936 | ||
| Other operating expenses | 461 | 614 | (153) | ||
| Total | 135,854 | 121,769 | 14,085 |
The cost of goods sold as of March 31, 2022 was equal to €80,040 thousand. The change of 12.9% in the period, and the decrease of 5.3 percentage points in incidence of revenues, which rose from 52.7% to 58.0%, is due to inflationary phenomena that have progressively led to higher costs for materials and components, also due to transport and logistics costs.
"Operating expenses", amounting to €55,814 thousand, saw an increase of €4,914 thousand (+9.7%) in the first quarter of 2022 compared to the same period of 2021, worsening the impact on turnover by 2.6 percentage points from 37.9% to 40.5%, particularly as a result of the increase in general and distribution expenses.
"Research and development expenses" as of March 31, 2022 amounted to €14,505 thousand, substantially in line with the same quarter of the previous year, representing 10.5% of turnover (10.3% in the first quarter of the previous year).
"Distribution expenses" amounted to €26,069 thousand, increasing compared the same period of 2021 (+10.2%). The percentage on turnover increased from 17.6% to 18.9%, following the resumption of business travel and visits to customers, trade fairs and commercial events which in the same period of the previous year had been suspended due to the pandemic.
"Administrative and general expenses" amount to €14,779 thousand as of March 31, 2022, a worse percentage on turnover from 9.6% to 10.7%, in particular due to the increase in costs for utilities and EDP, as well as higher depreciation on ICT implementations.
"Other operating expenses", amounting to €461 thousand, are decreasing with respect to the first quarter of the previous year and primarily consist of non-income taxes and duties and other operating costs.
The following table provides the details of total costs (cost of goods sold and total operating costs) by nature:
| Quarter ended | |||||
|---|---|---|---|---|---|
| 31.03.2022 | 31.03.2021 | Change | |||
| Restated | |||||
| Material Costs | 76,348 | 71,955 | 4,393 | ||
| Change in inventories | (18,998) | (18,658) | (339) | ||
| Personnel costs | 44,523 | 41,453 | 3,070 | ||
| Amortization, depreciation and write-downs | 8,725 | 7,701 | 1,024 | ||
| Goods receipt and shipment expenses | 8,547 | 6,896 | 1,651 | ||
| Consumables and R&D material | 1,878 | 1,755 | 123 | ||
| EDP expenses | 1,610 | 1,281 | 329 | ||
| Legal, tax and other advisory consultancies | 1,512 | 1,199 | 313 | ||
| Travel and meetings expenses | 1,432 | 740 | 692 | ||
| Utilities | 1,060 | 538 | 522 | ||
| Marketing expenses | 1,057 | 489 | 568 | ||
| R&D technical consultancies | 1,021 | 399 | 622 | ||
| Royalties | 672 | 625 | 47 | ||
| Directors' remuneration | 577 | 445 | 132 | ||
| Building expenses | 548 | 532 | 16 | ||
| Installations | 469 | 153 | 316 | ||
| Telephone expenses | 467 | 362 | 105 | ||
| Sundry service costs | 464 | 401 | 63 | ||
| Audit Fees | 436 | 352 | 84 | ||
| Quality certification expenses | 424 | 299 | 125 | ||
| Expenses for plant and machinery and other assets | 417 | 370 | 47 | ||
| Commissions | 379 | 324 | 55 | ||
| Recruitment fees | 307 | 340 | (33) | ||
| Insurance | 304 | 222 | 82 | ||
| Vehicle expenses | 255 | 175 | 80 | ||
| Repairs not under warranty | 247 | 133 | 114 | ||
| Repairs and warranty provision accrual | 194 | 185 | 9 | ||
| Subcontracted work | 150 | 161 | (11) | ||
| Entertainment expenses | 139 | 67 | 72 | ||
| Others | 690 | 877 | (187) | ||
| Total Cost of goods sold and operating costs | 135,854 | 121,769 | 14,085 |
Material Costs and changes in inventoriesincreased by €4,054 thousand (+7.6%) compared to the same period of 2021, while the percentage on turnover was 41.6%, a slight increase compared to the first quarter of 2021 when it was 39.7%, following the increase in materials and procurement costs.
Personnel costs, amounting to €44,523 thousand (€41,453 thousand in the first quarter of 2021), recorded an increase of €3,070 thousand compared to the previous year (+7.4%), with the percentage on turnover increasing slightly by 1.4 percentage points compared to the same period of 2021, from 30.9% to 32.3%.
The trend is due to negative exchange rate for approximately €1,000 thousand, consolidation area variance for €1,600 thousand and higher costs for wages and salaries for approximately €1,800 thousand, of which €865 thousand related to temporary staff. The detailed breakdown of labour costs is as follows:
| Quarter ended | |||||
|---|---|---|---|---|---|
| 31.03.2022 | 31.03.2021 | Change | |||
| Wages and salaries | 34,169 | 31,923 | 2,246 | ||
| Social security charges | 7,292 | 6,699 | 593 | ||
| Post-employment benefits | 815 | 662 | 153 | ||
| Severance indemnities and similar benefits | 423 | 378 | 45 | ||
| Other labour costs | 1,824 | 1,791 | 33 | ||
| Total | 44,523 | 41,453 | 3,070 |
The item "amortization, depreciation and write-downs", amounting to €8,725 thousand, increased by €1,024 thousand, due to increased investment in recent years and to the change in the consolidation area.
"Goods receipt and shipment expenses", equal to €8,547 thousand, increased by €1,651 thousand compared to the same period of the previous year. The percentage on turnover was 6.2% (5.1% in the first quarter of 2021). The trend is attributable to the higher cost of transport and logistics as a result of the economic downturn, which was also caused by problems of reduced capacity.
"Travel and meeting expenses" and "Marketing expenses", respectively equal to €1,432 thousand and €1,057 thousand, are overall an increase of €1,260 thousand compared to the same period of the previous year, following the resumption of site visits to customers, events and trade fairs, suspended for most of 2021 due to the pandemic.
"Utilities", equal to €1,060 thousand, up by €522 thousand compared to the same period of the previous year, reflect the increase in the cost of energy.
"R&D technical consultancy" and "Quality Certification Expenses", respectively equal to €1,021 thousand and €424 thousand, are overall an increase of €747 thousand compared to the same period of the previous year due to the phasing of ongoing R&D projects.
As of March 31, 2022, Other revenues amounted to €204 thousand, down by €133 thousand compared to the same period of the previous year in which they amounted to €337 thousand. Below is the breakdown of other revenues:
| Quarter ended | ||||||
|---|---|---|---|---|---|---|
| 31.03.2022 | 31.03.2021 | Change | ||||
| Miscellaneous income and revenues | 152 | 256 | (104) | |||
| Rents | 20 | 7 | 13 | |||
| Income on disposal of fixed assets | 10 | 31 | (21) | |||
| Grants | 8 | - | 8 | |||
| Others | 14 | 17 | (3) | |||
| Contingent assets | - | 26 | (26) | |||
| Total | 204 | 337 | (133) |
| Quarter ended | |||
|---|---|---|---|
| 31.03.2022 | 31.03.2021 | Change | |
| Financial income/(expenses) | (413) | (452) | 39 |
| Foreign exchange differences | (884) | (196) | (688) |
| Bank expenses | (309) | (279) | (30) |
| Others | 24 | (38) | 62 |
| Total Net Financial Income/(Expenses) | (1,582) | (965) | (617) |
Net financial income/(expenses) was negative for €1,582 thousand, worsening of €617 thousand compared with the same period of the previous year, when they were negative by €965 thousand, primarily due to the unfavorable trend in exchange rate differences.
The tax charge as of March 31, 2022 was positive for €633 thousand as illustrated below.
| Quarter ended | ||||||
|---|---|---|---|---|---|---|
| 31.03.2022 | 31.03.2021 Restated |
Change | ||||
| Profit/(Loss) before taxes | 696 | 11.969 | (11.273) | |||
| Current Taxes Income (Expense) | (704) | (2.732) | 2.028 | |||
| Deferred Taxes Income (Expense) | 1.337 | (300) | 1.637 | |||
| Total | 633 | (3.032) | 3.665 | |||
| Tax Rate | -90,9% | 25,3% | -116,2% |
The tax rate as of March 31, 2022 reflects the distribution of net income for the period across the various geographical areas in which the Group operates, against a significantly lower taxable income than in the comparative period.
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 profit and/or loss for the period, attributable to the Shareholders of the Parent Company, by the weighted average number of ordinary shares outstanding during the reference period. For the purposes of calculation of diluted EPS, the weighted average number of outstanding shares is determined assuming translation of all potential shares with a dilutive effects (such as the stock-based incentive plan), and the Group's net profit is adjusted for the post-tax effects of translation.
| 31.03.2022 | 31.03.2021 | |
|---|---|---|
| Restated | ||
| Group profit/(loss) for the period | 1,329 | 8,937 |
| Average number of shares (thousands) | 56,446 | 56,476 |
| Basic earnings/(loss) per share | 0.02 | 0.16 |
| Group profit/(loss) for the period | 1,329 | 8,937 |
| Average number of shares (thousands) - Diluted effect | 56,887 | 57,156 |
| Diluted earnings/(loss) per share | 0.02 | 0.16 |
For the definition of "Related parties", see both IAS 24, approved by EC Regulation no. 1725/2003, and the Procedure for Transactions with Related Parties approved by the Board of Directors on November 4, 2010 (most recently amended on June 23, 2021), available on the Company's website www.datalogic.com. The parent company of the Datalogic Group is Hydra S.p.A.
Intercompany transactions are executed as part of the ordinary operations and at arm's length conditions. Furthermore, there are other relationships with related parties, always carried out as part of ordinary operations and at arm's length conditions, of an immaterial amount and in accordance with the "Procedure for Transactions with Related Parties", chiefly with Hydra S.p.A. or entities under joint control (with Datalogic S.p.A.), or with individuals that carry out the coordination and management of Datalogic S.p.A. (including entities controlled by the same and close relatives).
Related-party transactions refer chiefly to commercial and real estate transactions (instrumental and non-instrumental premises for the Group under lease or leased) and advisory activities as well as to companies joining the scope of tax consolidation. None of these assumes particular economic or strategic importance for the Group since receivables, payables, revenues and costs referred to the related parties are not a significant proportion of the total amount of the financial statements.
Pursuant to art. 5, paragraph 8, of the Consob Regulations, it should be noted that, over the period 01.01.2022 – 31.03.2022, the Company's Board of Directors did not approve any relevant transaction, as set out by art. 3, paragraph 1, letter b) of the Consob Regulations, or any transaction with minority related parties that had a significant impact on the Group's equity position or profit/(loss).
| Parent Company | Company controlled by Chair of BoD |
Companies not consolidated on a line-by-line basis |
31.03.2022 | ||
|---|---|---|---|---|---|
| Equity investments | - | - | 530 | 530 | |
| Trade receivables and other, accrued income, prepaid expenses |
- | 13 | 2,283 | 2,296 | |
| Receivables pursuant to tax consolidation | 1,807 | - | - | 1,807 | |
| Financial receivables | - | - | - | - | |
| Payables pursuant to tax consolidation | 3,450 | - | - | 3,450 | |
| Trade payables and other, accrued liabilities, deferred income |
110 | 2 | 151 | 263 | |
| Financial payables | - | - | - | - | |
| Commercial and service costs | 90 | 286 | 23 | 399 | |
| Revenues and other operating revenues | - | - | 2,514 | 2,514 | |
| Other revenues | - | - | 36 | 36 |
| 31.03.2022 | 31.03.2021 | Change | |
|---|---|---|---|
| Datalogic | 2,809 | 2,920 | (111) |
| Informatics | 66 | 76 | (10) |
| Total | 2,875 | 2,996 | (121) |
The Chair of the Board of Directors (Mr Romano Volta)
The undersigned Mr. Alessandro D'Aniello, as Manager in charge of drawing up Datalogic S.p.A.'s accounting statements, hereby certifies that, pursuant to the provision set out by paragraph 2 of Art. 154 bis, of Legislative Decree no. 58 of 24 February 1998, the Consolidated Interim Report as of March 31, 2022 is consistent with the documentary results, the books and accounting records.
Lippo di Calderara di Reno (BO), May 12, 2022
Manager in charge of drawing up Company's accounting statements
Alessandro D'Aniello
The Consolidated Interim Report includes interim reports of the Parent Company and the companies that are directly and/or indirectly controlled by the Parent Company or on which the latter has a significant influence. Reports of subsidiaries were duly adjusted, as necessary, to render them consistent with the accounting criteria of the Parent Company. The companies included in the scope of consolidation as of March 31, 2022, consolidated on a line-by-line basis, are disclosed hereunder:
| Company | Registered office | Share capital | Total Shareholders' Equity (€/000) |
Profit/loss for the period (€/000) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Datalogic S.p.A. | Bologna – Italy | € | 30,392,175 | 347,117 | (14) | |
| Datalogic Real Estate France Sas | Courtabeuf Cedex – France | € | 2,227,500 | 3,860 | 26 | 100% |
| Datalogic Real Estate UK Ltd. | Redbourn - United Kingdom of Great Britain |
GBP | 3,500,000 | 4,696 | (31) | 100% |
| Datalogic IP Tech S.r.l. | Bologna – Italy | € | 65,677 | 35,887 | (1,588) | 100% |
| Informatics Holdings, Inc. | Plano, Texas - USA | USD | 1,568 | 17,666 | 459 | 100% |
| Wasp Barcode Technologies Ltd | Redbourn - United Kingdom of Great Britain |
GBP | 0 | 250 | 5 | 100% |
| Datalogic (Shenzhen) Industrial Automation Co. Ltd. |
Shenzhen - China | CNY | 2,136,696 | 5,518 | 858 | 100% |
| Datalogic Hungary Kft | Balatonboglar - Hungary | HUF | 3,000,000 | 876 | (720) | 100% |
| Datalogic S.r.l. | Bologna – Italy | € | 10,000,000 | 167,479 | (1,751) | 100% |
| Datalogic Slovakia S.r.o. | Trnava - Slovakia | € | 66,388 | 4,542 | 97 | 100% |
| Datalogic USA Inc. | Eugene, OR - USA | USD | 100 | 231,021 | 2,496 | 100% |
| Datalogic do Brazil Comercio de Equipamentos e Automacao Ltda. |
Sao Paulo - Brazil | BRL | 20,257,000 | 427 | 72 | 100% |
| Datalogic Technologia de Mexico S.r.l. | Colonia Cuauhtemoc - Mexico |
MXN | 0 | (376) | (9) | 100% |
| Datalogic Scanning Eastern Europe GmbH |
Langen - Germany | € | 25,000 | 3,973 | 16 | 100% |
| Datalogic Australia Pty Ltd | Mount Waverley (Melbourne) - Australia |
AUD | 3,188,120 | 1,404 | 57 | 100% |
| Datalogic Vietnam LLC | Vietnam | USD | 3,000,000 | 23,160 | 1,528 | 100% |
| Datalogic Singapore Asia Pacific Pte Ltd. |
Singapore | SGD | 3 | 3,093 | 128 | 100% |
| Datasensing S.r.l. | Modena - Italy | € | 2,000,000 | 17,678 | 863 | 100% |
| M.D. Micro Detectors (TIANJIN) CO., LTD. |
Tianjin - China | CNY | 13,049,982 | 1,329 | 2 | 100% |
| Micro Detectors Ibérica, S.A.U. | Barcelona - Spain | € | 120,000 | 1,324 | 158 | 100% |
| Datalogic Japan Co., Ltd. | Tokyo - Japan | JPY | 9,900,000 | 72 | (1) | 100% |
| PEKAT s.r.o. | Brno - Czech Republic | CKZ | 202,000 | 246 | - | 100% |
| Suzhou Mobydata Smart System Co. Ltd. |
Suzhou, JiangSu - China | CNY | 161,224 | 6,101 | (84) | 51% |
| Company | Registered office | Share capital | Total Shareholders' Equity (€/000) |
Net Profit (loss) for the year (€/000) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Datasensor Gmbh (*) | Otterfing - Germany | € | 150,000 | 12 | 10 | 30% |
| CAEN RFID S.r.l. (***) | Viareggio LU - Italy | € | 150,000 | 870 | (233) | 20% |
| R4I S.r.l. (***) | Benevento - Italy | € | 131,250 | 387 | (43) | 20% |
| Datalogic Automation AB (**) | Malmö, Sweden | SEK | 100,000 | 1,374 | 517 | 20% |
(*) data as of December 31, 2019
(**) data as of June 30, 2021
(***) data as of December 31, 2020
The following table shows the reconciliation between EBIT and Adjusted EBIT as of March 31, 2022, compared with March 31, 2021.
| 31.03.2022 | 31.03.2021 Restated |
Change | |||
|---|---|---|---|---|---|
| Adjusted EBIT | 4,474 | 3.24% | 15,016 | 11.18% | (10,542) |
| Special Items - other costs and (revenues) | 748 | 0.54% | 968 | 0.72% | (220) |
| Special items - D&A from acquisitions | 1,448 | 1.05% | 1,114 | 0.83% | 334 |
| Total | 2,196 | 1.59% | 2,082 | 1.55% | 114 |
| EBIT | 2,278 | 1.7% | 12,934 | 9.6% | (10,656) |
The following table shows the reconciliation between EBITDA and Adjusted EBITDA as of March 31, 2022, compared with March 31, 2021.
| 31.03.2022 | 31.03.2021 Restated |
Change | |||
|---|---|---|---|---|---|
| Adjusted EBITDA | 11,752 | 8.52% | 21,602 | 16.08% | (9,850) |
| Cost of goods sold | 18 | 0.01% | 24 | 0.02% | (6) |
| Research and Development expenses | - | 0.00% | - | 0.00% | - |
| Distribution expenses | 267 | 0.19% | 596 | 0.44% | (329) |
| General and administrative expenses | 463 | 0.34% | 347 | 0.26% | 116 |
| Other expenses and (income) | - | 0.00% | - | 0.00% | - |
| Total | 748 | 0.54% | 968 | 0.72% | (220) |
| EBITDA | 11,004 | 7,98% | 20,634 | 15.36% | (9,630) |
The comparative results as of March 31, 2021 have been restated following the definitive accounting of the purchase price allocation (PPA) related to the acquisition of the MD Group which took place in the fourth quarter of 2021, as required by the accounting standards IFRS 3 revised and IAS 1, as well as the financial statements reclassifications to ensure full comparability of the 2021 results with those of 2022.
The table below shows the reconciliation between the Income Statement presented in the Consolidated Interim Report as of March 31, 2021 and the restated Income Statement as of March 31, 2021.
| 31.03.2021 | Restatement | 31.03.2021 | |
|---|---|---|---|
| (€/000) | Restated | ||
| 1) Revenues | 135,413 | (1,047) | 134,366 |
| Revenues from sale of products | 125,764 | (1,047) | 124,717 |
| Revenues from services | 9,649 | - | 9,649 |
| 2) Cost of goods sold | 71,916 | (1,047) | 70,869 |
| Gross Operating Margin (1-2) | 63,497 | - | 63,497 |
| 3) Other revenues | 337 | - | 337 |
| 4) Research and development expenses | 13,740 | 51 | 13,791 |
| 5) Distribution expenses | 23,577 | 75 | 23,652 |
| 6) General and administrative expenses | 12,838 | 5 | 12,843 |
| 7) Other operating expenses | 614 | - | 614 |
| Total operating costs | 50,769 | 131 | 50,900 |
| Operating result | 13,064 | (131) | 12,934 |
| 8) Financial income | 7,637 | - | 7,637 |
| 9) Financial expenses | 8,602 | - | 8,602 |
| Financial income/(expenses) (8-9) | (965) | - | (965) |
| Profit/(Loss) before taxes from continuing operations | 12,099 | (131) | 11,969 |
| Income taxes | 3,070 | (38) | 3,032 |
| Profit/(Loss) for the period from continuing operations | 9,029 | (93) | 8,937 |
| Net Profit/(Loss) for the period | 9,029 | (93) | 8,937 |
| Basic earnings/(loss) per share (€) | 0.16 | - | 0.16 |
| Diluted earnings/(loss) per share (€) | 0.16 | - | 0.16 |
| Attributable to: | |||
| Shareholders of the Parent Company | 8,803 | (91) | 8,713 |
| Minority interests | 226 | (2) | 224 |
| 31.03.2021 | Restatement | 31.03.2021 | |
|---|---|---|---|
| Restated | |||
| Italy | 14,050 | (20) | 14,030 |
| EMEAI (excluding Italy) | 67,334 | (562) | 66,772 |
| Total EMEAI | 81,384 | (583) | 80,801 |
| Americas | 36,011 | (520) | 35,491 |
| APAC | 18,018 | 56 | 18,074 |
| Total Revenues | 135,413 | (1,047) | 134,366 |
| 31.03.2021 | Restatement | 31.03.2021 Restated |
|
|---|---|---|---|
| Retail | 49,647 | 286 | 49,933 |
| Manufacturing | 33,153 | 1,109 | 34,262 |
| Transportation & Logistics | 15,479 | (22) | 15,457 |
| Healthcare | 4,571 | 411 | 4,982 |
| Channel | 28,313 | (2,829) | 25,484 |
| Total Revenues | 131,163 | (1,045) | 130,118 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.