B&C Speakers

Quarterly Report • May 12, 2023

Informazione Regolamentata n. 0931-15-2023		Data/Ora Ricezione 12 Maggio 2023 16:09:09	Euronext Star Milan
Societa'	:	B&C SPEAKERS
Identificativo Informazione Regolamentata	:	176891
Nome utilizzatore	:	BCSPEAKERSN02 - SPAPPERI
Tipologia	:	REGEM
Data/Ora Ricezione	:	12 Maggio 2023 16:09:09
Data/Ora Inizio Diffusione presunta	:	12 Maggio 2023 16:09:11
Oggetto	:	of March 31st 2023	B&C Speakers- Interim Financial report as
Testo del comunicato

Vedi allegato.

PRESS RELEASE

B&C Speakers S.p.A.:

The Board of Directors approves the Interim Report on Operations as at 31 March 2023

Also in the first three months of 2023, the trend of sharp growth in revenues, margins and profits is confirmed

• Consolidated revenue of €24.22 million (an increase of 40% compared to the €17.24 million for the first quarter of 2022);
• Consolidated EBITDA of €6.27 million (an increase of 58% compared to the Euro 3.97 million for the first quarter of 2022);
• Total Group profit of €4.03 million (also significantly up compared with the figure of €2.27 million for the first quarter of 2022);
• Group net financial position of €6.2 million (€9.4 million at year-end 2022);

Bagno a Ripoli (prov. Florence), Italy, 12 May 2023 – The Board of Directors of B&C Speakers S.p.A., one of the foremost international players in the design, manufacture, distribution and marketing of professional electro-acoustic transducers, approved the Interim Report on Operations of the Group for the first three months of 2022 prepared in accordance with the IFRS international accounting standards.

Revenue

During the first quarter of 2023, the Group's reference market confirmed a great dynamism in continuity with the best performance of 2022, the consolidated turnover thus reached the value of Euro 24.22 million (up 40% compared to the value for the first quarter of 2022 when it amounted to at Euro 17.24 million).

It was a significant growth in production and sales volumes compared to the same period in 2022 that led this performance; as a result, the order backlog decreased (at 31 March 2023 amounts to Euro 33.5 million, while it amounted to Euro 40 million at the end of the first quarter of 2022).

The growth in turnover was reached thanks to the excellent results achieved within the European market (which represents 44% of the Group's turnover), without forgetting the recovered dynamism of the South American market which has more than doubled compared to the corresponding period of 2022. The domestic market was also particularly brilliant, guaranteeing growth of 76% compared to the first quarter of 2022.

Below is the complete breakdown by geographical area for the first three months of 2023 compared with the same period of 2022 (amounts in Euros):

Revenues per geographic area (values in Euro/thausand)	1Q 2023 YTD	%	1Q 2022 YTD	%	Difference	Difference %
Latin America	2.110	9 %	948	5 %	1.162	122,6%
Europe	11.854	49%	7.542	44%	4.312	57,2%
Italy	1.745	% 7	991	6 %	753	76,0%
North America	4.094	17%	4.170	24%	(76)	-1,8%
Middle East & Africa	720	% 3	834	5 %	(113)	-13,6%
Asia & Pacific	3.693	15%	2.751	16%	942	34,3%
Total	24.217	100%	17.236	100%	6.980	40,5%

The increase in turnover was achieved practically in all the Group's primary markets. It is very evident that the increase in turnover is mostly driven by European and North American customers, although good performance in the Asian market is also notable.

Cost of sales

During the first three months of 2023, the cost of sales showed an improvement as a proportion of revenue compared to the same period of 2022, decreasing from 64.91% to 63.03%. This improvement was ensured by greater efficiency of the operating structure along with the return of transportation costs to normal levels.

Indirect Personnel

The cost of indirect personnel fell in terms of proportion of revenue compared to the first quarter of 2022, dropping from 5.87% to 4.80%. In absolute terms, the figure for the first quarter of 2023 slightly increased following the increase in staff compared to the first quarter of the previous year.

Commercial expenses

Commercial expenses remained stable compared to the first quarter of 2022.

Administrative and General

Administrative and general expenses increased compared to the corresponding figure for 2022, while keeping their incidence constant.

EBITDA and EBITDA Margin

As a consequence of the dynamics described above, EBITDA of the first three months of 2023 was €6.67 million, increasing by € 2.30 million (+58%) compared to the same period in 2022.

Also in terms of the EBITDA margin, we can note an improvement, with the figure reaching 25.88% of revenue in the period, compared to the 23.03% of the first quarter of 2022.

Depreciation and amortisation

Depreciation and amortisation on tangible and intangible fixed assets and rights of use are essentially consistent with the first three months of 2023 and amount to €507 thousand (€490 thousand in the first three months of 2022). Provisions made during this period are zero as there are currently no uncollectible situations from the Group's customers.

Write-downs in the period are zero because, at the moment, there are no situations of uncollectable receivables from the Group's customers.

EBIT and EBIT margin

EBIT for the first three months of 2023 amounts to €5.76 million, up by 65.6% compared to the same period of 2022 (when it amounted to €3.48 million). The EBIT margin is 23.79% of revenue (20.18% in the corresponding period of 2022).

Group Net Profits

The Group's net profits at the end of the first three months of 2023 amounts to €4.05 million, representing a share of 16.73% of consolidated revenue, with an overall increase of 87.8% compared to the corresponding period in 2022.

The Group's overall Net Financial Position is negative and amounts to Euro 6.20 million against a negative value of Euro 9.41 million at the end of 2022. The improvement in the NFP is due to the excellent cash generation in this quarter, which allowed to increase cash and cash equivalents despite the repayment of outstanding loan installments.

	31 march	31 december
(values in Euro thousands)	2023 (a)	2022 (a)	Change
A. Cash	7.296	5.825	25%
C. Other current financial assets	8.594	8.574	0%
D. Cash and cash equivalent (A+C)	15.890	14.399	10%
E. Current financial indebtness	(488)	(476)
F. Current portion of non current borrowings	(10.644)	(11.519)	-8%
G. Current borrowingse (E+F)	(11.133)	(11.994)	-7%
H. Current net financial indebtness (G+D)	4.758	2.405	98%
I. Non current financial indebtness	(10.958)	(11.818)	-7%
L. Non current financial indebtness	(10.958)	(11.818)	-7%
M. Total financial indebteness (H+L)	(6.201)	(9.414)	-34%

The Group's reclassified Income Statement for the first quarter of 2023 compared to the corresponding period in 2022 is presented below:

Economic trends - Group B&C Speakers

Revenues 24.217 100,00% 17.236 100,0% Cost of sales (15.265) -63,03% (11.188) Gross margin 8.952 36,97% 6.048 Other revenues 54 129 0,22% Cost of indirect labour (1.162) (1.012) -4,80% Commercial expenses (185) (187) -0,77% General and administrative expenses (1.391) (1.010) -5,74% Ebitda 6.268 3.969 25,88% Depreciation and Amortization (507) (490) -2,09% Writedowns 0 0 0,00% Earning before interest and taxes (Ebit) 5.761 3.479 23,79% Writedown of investments in non controlled associates 0 0,00% - Financial costs (734) -3,03% (789) Financial income 553 2,28% 268 Earning before taxes (Ebt) 5.580 23,04% 2.957 Income taxes (1.527) -6,31% (799) Profit for the year 4.053 16,73% 2.158 Minority interest 0 0,00% 0 Group Net Result 4.053 16,73% 2.158 Other comprehensive result (17) -0,07% 68 Total Comprehensive result 4.035 16,66% 2.226 12,9%	(€ thousands)	1Q 2023	Incidence	1Q 2022	Incidence
					-64,9%
					35,1%
					0,8%
					-5,9%
					-1,1%
					-5,9%
					23,0%
					-2,8%
					0,0%
					20,2%
					0,0%
					-4,6%
					1,6%
					17,2%
					-4,6%
					12,5%
					0,0%
					12,5%
					0,4%

Significant events subsequent to 31 March 2023

The Shareholders' Meeting, held on 28 April 2023, approved the financial statements and resolved the issue of an ordinary dividend of €0.6 per ordinary share outstanding at the exdividend date (occurring on May 8, 2023, with a record date on May 9, 2023).

Business outlook

The atmosphere within the reference market is highly positive with respect to the current year and suggests that 2023 could close with significantly better production and sales levels than in 2022. The Group's management believes that 2023 can be another year of growth. In terms of margins, we note the continuing upward tensions of some important production factors, while a return to normality of all logistics-related costs is being confirmed.

The Consolidated Balance Sheet and Income Statement for 31 March 2023 are shown below:

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Values in Euro)		31 March 2023	31 December 2022
ASSETS
Fixed assets
Tangible assets		2.570.457	2.513.000
Right of use		4.358.910	4.657.737
Goodwill		2.318.181	2.318.181
Other intangible assets		368.964	400.956
Investments in non controlled associates		-	-
Deferred tax assets		999.455	756.478
Other non current assets		544.794	536.368
	related parties	6.700	6.700
Total non current assets		11.160.761	11.182.720
Currents assets
Inventory		27.331.572	26.420.332
Trade receivables		22.375.040	21.592.254
Tax assets		19.767	19.831
Other current assets		15.280.855	14.968.330
Cash and cash equivalents		7.296.400	5.825.350
Total current assets		72.303.634	68.826.097
Total assets		83.464.395	80.008.817
LIABILITIES
Equity
Share capital		1.083.690	1.083.955
Other reserves		3.456.505	3.490.104
Foreign exchange reserve		418.324	442.276
Retained earnings		35.735.710	31.676.850
Total equity attributable to shareholders of the parent		40.694.229	36.693.185
Minority interest		-	-
Total equity		40.694.229	36.693.185
Non current liabilities
Long-term borrowings		7.625.171	8.183.309
Long-term lease liabilities		3.333.008	3.634.895
	related parties	2.860.686	3.086.130
Severance Indemnities		774.799	772.315
Provisions for risk and charges		41.487	41.487
Total non current liabilities		11.774.465	12.632.006
Current liabilities
Short-term borrowings		9.950.974	10.819.475
Short-term lease liabilities		1.181.911	1.174.874
	related parties	892.112	885.605
Trade liabilities		12.808.616	13.487.204
	related parties	85.312	83.175
Tax liabilities		4.218.395	2.445.913
Other current liabilities		2.835.806	2.756.160
Total current liabilities		30.995.702	30.683.626
Total Liabilities		83.464.396	80.008.817

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Values in Euro)		1Q 2023	1Q 2022
Revenues		24.216.536	17.236.042
Cost of sales		(15.264.700)	(11.187.934)
Other revenues		54.409	129.335
Cost of indirect labour		(1.162.190)	(1.012.154)
Commercial expenses		(185.267)	(186.682)
General and administrative expenses		(1.391.125)	(1.009.948)
Depreciation and amortization		(506.888)	(489.999)
Writedowns		-	-
Earning before interest and taxes		5.760.776	3.478.660
Writedown of investments in non controlled associates		-	0
Financial costs		(733.703)	(789.329)
	related parties	(62.405)	(21.895)
Financial income		552.995	267.626
Earning before taxes		5.580.067	2.956.957
Income taxes		(1.527.475)	(798.851)
Profit for the year (A)		4.052.592	2.158.106
Other comprehensive income/(losses) for the year that will not be reclassified in icome statement:
Actuarial gain/(losses) on DBO (net of tax)		6.526	(1.645)
Other comprehensive income/(losses) for the year that will be reclassified in
icome statement:
Exchange differences on translating foreign operations		(23.952)	69.524
Total other comprehensive income/(losses) for the year (B)		(17.426)	67.879
Total comprehensive income (A) + (B)		4.035.167	2.225.985
Profit attributable to:
Owners of the parent		4.052.592	2.158.106
Minority interest		-	-
Total comprehensive income atributable to:
Owners of the parent		4.035.167	2.225.985
Minority interest		-	-
Basic earning per share		0,37	0,20
Diluted earning per share		0,37	0,20

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

B&C Speakers S.p.A. is an international leader in the design, production, distribution and marketing of professional electro-acoustic transducers (the main components in acoustic speakers for music, commonly referred to as loudspeakers), supplied mainly to professional audio-system manufacturers (OEM). With around 150 employees, approximately 10% of whom are assigned to its Research and Development Department, B&C Speakers carries out all design, production, marketing and control activities at its offices in Florence and Reggio Emilia for the brands of the Group: B&C, 18SOUND and CIARE. Most of its products are

developed according to its key customers' specifications. B&C Speakers also operates in the US and Brazil through two subsidiaries carrying out commercial activities.

B&C Speakers S.p.A. Lorenzo Coppini (Investor Relator), Tel. +39 055 65721 Email: investors@bcspeakers.com

PRESS OFFICE

Spriano Communication &Partners Via Santa Radegonda,1620121 Milano Fiorella Girardo Mob: +39 348 857 7766 fgirardo@sprianocommunication.com Cristina Tronconi Mob: +39 346 0477 901 ctronconi@sprianocommunication.com