Quarterly Report • May 28, 2018
Quarterly Report
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Quarterly Financial Report at 31 st March 2018
| GROUP STRUCTURE | pag. 1 |
|---|---|
| COMPOSITION OF CORPORATE BODIES | pag. 2 |
| MANAGEMENT REPORT | pag. 3 |
| CONSOLIDATED FINANCIAL STATEMENTS | |
| Statement of financial position - assets | pag. 14 |
| Statement of financial position - liabilities | pag. 15 |
| Income Statement | pag. 16 |
| Statement of comprehensive income | pag. 17 |
| Statement of cash flow | pag. 18 |
| Changes in consolidated shareholders' equity | pag. 19 |
| Presentation and content | pag. 20 |
|---|---|
| Information on the statement of financial position | pag. 23 |
| Information on the statement of income | pag. 41 |
| Events occurring after year end | pag. 47 |
1. Declaration pursuant to Art. 154-bis, pars. 2, Legislative Decree 58/1998
Volta Romano Chairman (2)
Volta Valentina Director & Chief Executive Officer (2)
Aversa Carlo Achille Director
Di Stefano Luigi Independent Director
Mazzalveri Gaia Independent Director
Todescato Pietro Director
Volta Filippo Maria Director
Fiorenza Salvatore Marco Andrea Chairman
Santagostino Roberto Statutory Auditor
Lancellotti Elena Statutory Auditor
Prandi Paolo Alternate Statutory Auditor
Fuzzi Mario Alternate Statutory Auditor
Reconta Ernst & Young S.p.A.
(1) The Board of Directors will remain in office until the general meeting that approves the accounts for the financial year ending 31 December 2017. On 23 November 2017, Mr. Pier Paolo Caruso and Mrs. Sonia Magnani resigned from their offices as member of the Datalogic Board of Directors and Alternate Statutory Auditor.
(2) Legal representative with respect to third parties.
(3) The Statutory Auditors in office until the approval of the accounts for the financial year ending 31 December 2018.
This Interim Report on Operations as at 31 March 2018 was drawn up pursuant to Art. 154 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.
Datalogic is the world 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 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 at 31 March 2018 in comparison with the same period a year earlier:
| 31.03.2018 | % on Revenues |
31.03.2017 | % on Revenues |
change | % | % ch. at constant exch. rate |
|
|---|---|---|---|---|---|---|---|
| Total revenues | 142,942 | 100.0% | 141,524 | 100.0% | 1,418 | 1.0% | 7.8% |
| EBITDA | 21,952 | 15.4% | 20,764 | 14.7% | 1,188 | 5.7% | 4.2% |
| Operating result (EBIT) | 16,520 | 11.6% | 15,255 | 10.8% | 1,265 | 8.3% | 2.6% |
| Group net profit/loss | 11,183 | 7.8% | 11,906 | 8.4% | (723) | -6.1% | |
| Net financial position (NFP) | 32,348 | (10,469) | 42,817 |
In the first quarter of 2018, thanks to the increase in revenues and the improvement in gross profit, EBITDA increased by 5.7%, to €22 million; EBITDA margin thus achieved 15.4%. EBIT grew by 8.3%, to €16.5 million.
Net profit amounted to €11.2 million (€11.9 million the first quarter of 2017).
The Net Financial Position is positive by €32.3 million, with an improvement of €42.8 million compared to 31 March 2017.
To allow for a better valuation of the Group's performance, the Management adopted some performance indicators that are not identified as accounting measures within IFRS (NON-GAAP measures). The measurement criteria applied by the Group might be not consistent with the ones adopted by other groups and the indicators might not be comparable with the one determined by the latter. These performance indicators, determined according to provisions set out by Guidelines on Performance Indicators, issued by ESMA/2015/1415 and adopted by Consob with communication no. 92543 of 3 December 2015, refer only to the performance of the accounting period related to this Interim Report on Operations and the compared periods.
The performance indicators must be considered as supplementary and do not supersede information given pursuant to IFRS standards. The description of the main indicators adopted is given hereunder.
The following table shows the main income statement items of the current period, compared with the same period in the previous period:
| Quarter ended | ||||||
|---|---|---|---|---|---|---|
| 31.03.2018 | % on Revenues |
31.03.2017 | % on Revenues |
change | % | |
| Total Revenues | 142,942 | 100.0% | 141,524 | 100.0% | 1,418 | 1.0% |
| Cost of goods sold | (73,136) | -51.2% | (75,329) | -53.2% | 2,193 | -2.9% |
| Gross profit | 69,806 | 48.8% | 66,195 | 46.8% | 3,611 | 5.5% |
| Other revenues | 457 | 0.3% | 216 | 0.2% | 241 | 111.6% |
| Research and development expenses | (14,519) | -10.2% | (13,202) | -9.3% | (1,317) | 10.0% |
| Distribution expenses | (25,771) | -18.0% | (24,458) | -17.3% | (1,313) | 5.4% |
| General and administrative expenses | (11,094) | -7.8% | (11,478) | -8.1% | 384 | -3.3% |
| Other operating costs | (493) | -0.3% | (467) | -0.3% | (26) | 5.6% |
| Total Operating costs and other costs | (51,877) | -36.3% | (49,605) | -35.1% | (2,272) | 4.6% |
| Non-recurring costs and revenues | (760) | -0.5% | (274) | -0.2% | (486) | 177.4% |
| Depreciation & amortisation due to acquisitions |
(1,106) | -0.8% | (1,277) | -0.9% | 171 | -13.4% |
| Operating result (EBIT) | 16,520 | 11.6% | 15,255 | 10.8% | 1,265 | 8.3% |
| Net financial income (expenses) | (1,065) | -0.7% | (773) | -0.5% | (292) | 37.8% |
| Profits/(losses) from associates | 0 | 0.0% | (140) | -0.1% | 140 | -100% |
| Foreign exchange gains/(losses) | (779) | -0.5% | (356) | -0.3% | (423) | 118.8% |
| Pre-tax profit/(loss) (EBT) | 14,676 | 10.3% | 13,986 | 9.9% | 690 | 4.9% |
| Taxes | (3,493) | -2.4% | (2,080) | -1.5% | (1,413) | 67.9% |
| GROUP NET PROFIT/(LOSS) | 11,183 | 7.8% | 11,906 | 8.4% | (723) | -6.1% |
| Non-recurring costs and revenues | (760) | -0.5% | (274) | -0.2% | (486) | 177.4% |
| Depreciation and write-downs of tangible assets |
(2,535) | -1.8% | (2,829) | -2.0% | 294 | -10.4% |
| Amortisation and write-downs of intangible assets |
(2,137) | -1.5% | (2,406) | -1.7% | 269 | -11.2% |
| EBITDA | 21,952 | 15.4% | 20,764 | 14.7% | 1,188 | 5.7% |
Consolidated net revenues amounted to €142.9 million, and, despite a negative trend of the Euro/Dollar exchange rate, they increased by 1% compared to €141.5 million reported as at 31 March 2017 (+7.8% at constant exchange rate).
Gross profit, equal to €69.8 million, increased by 5.5% against €66.2 million reported in the same period of the previous year (+11.2% at constant exchange rate), while its impact on revenues increased by 2 percentage points, from 46.8% in 2017 to 48.8% in 2018 (up 1.5 percentage points at constant exchange rate). The improvement is attributable primarily to the improved mix and efficiency related to cost of materials.
Operating costs, equal to €51.9 million, increased by 4.6% (+13.7% at constant exchange rate), against €49.6 million in the same period of 2017, and increased by 1.2 percentage points, in their impact on sales, from 35.1% to 36.3% (+1.9 percentage points at constant exchange rate). In particular:
EBITDA grew by 5.7%, from €20.8 million recorded in the first quarter of 2017, to €22 million (+4.2% at constant exchange rate), while the impact on revenues (EBITDA margin) grew to 15.4% compared to 14.7% in 2017, primarily thanks to the improvement of EBITDA.
The Operating Result (EBIT) increased by 8.3% to €16.5 million compared to €15.3 million in the previous year (+2.6% at constant exchange rate), with an impact on revenues from 11.6% to 10.8% recorded in the first quarter of 2017.
Non-recurring charges, equal to €0.8 million (€0.3 million in the first quarter 2017), related primarily to restructuring transactions of some corporate departments.
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Financial income/(expenses) | (799) | (445) | (354) |
| Foreign exchange differences | (779) | (356) | (423) |
| Bank expenses | (363) | (411) | 48 |
| Other | 97 | 83 | 14 |
| Total Net financial income (expenses) | (1,844) | (1,129) | (715) |
Financial management was negative by €1.8 million, compared to a negative result of €1.1 million related to the same period of the previous year, which mainly refers to the trend of foreign exchange differences, negative by €0.8 million, due to the effect of depreciation of the US Dollar on Group net balances. The increase in financial charges, amounting to €0.4 million, compared to the first quarter of 2017, is attributable to the increase in gross indebtedness.
The Group net profit, amounting to €11.2 million, decreased by 6.1% compared to the profit recorded in the same period of the previous year (€11.9 million).
The following table shows the breakdown by geographical area of Group revenues achieved in the first quarter of 2018 compared with the same period of 2017:
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31.03.2018 | % | 31.03.2017 (**) |
% | Change | % | % ch. at constant exch. rate |
||
| Italy | 14,379 | 10.1% | 12,271 | 8.7% | 2,108 | 17.2% | ||
| EMEA (except Italy) | 67,403 | 47.2% | 66,355 | 46.9% | 1,048 | 1.6% | ||
| Total EMEA (*) | 81,782 | 57.2% | 78,626 | 55.6% | 3,156 | 4.0% | 5.4% | |
| North America | 39,642 | 27.7% | 43,590 | 30.8% | (3,948) | -9.1% | 5.2% | |
| Latin America | 2,897 | 2.0% | 2,612 | 1.8% | 285 | 10.9% | 27.7% | |
| APAC (*) (incl. China) | 18,621 | 13.0% | 16,696 | 11.8% | 1,925 | 11.5% | 22.6% | |
| Total Revenues | 142,942 | 100.0% | 141,524 | 100.0% | 1,418 | 1.0% | 7.8% |
(*) EMEA: Europe, Middle East and Africa; APAC: Asia & Pacific
(**) As from June 2017, data related to geographical areas are disclosed to reflect the actual involvement of each area within the new commercial organisation of the Group. Comparative data as at 31 March 2017 are disclosed accordingly.
During the first quarter of 2018, a 4% growth in EMEA was recorded (+5.4% at constant exchange rate) and a double digit growth in APAC, equal to 11.5% (+22.6% at constant exchange rate), driven by China and Korea (+15.3% and +26% at constant exchange rate) and in Latin America, equal to 10.9% (+27.7% at constant exchange rate). In North America a negative trend was reported, with a decrease of 9.1%, substantially attributable to the negative effect in the exchange rate (+5.2% at constant exchange rate).
Operating segments are identified based on the management reporting used by senior management to allocate resources and evaluate results.
For 2018, the operating segments were included in the following divisions:
The following tables show the comparison between the divisional Revenues and EBITDA achieved in the first quarter of 2018 and those achieved in the same period of 2017:
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31.03.2018 | % | 31.03.2017 | % | Change | % | % ch. at constant exch. rate |
||
| Datalogic | 132,567 | 92.7% | 131,523 | 92.9% | 1,044 | 0.8% | 6.8% | |
| Solution Net Systems | 6,093 | 4.3% | 4,964 | 3.5% | 1,129 | 22.7% | 32.9% | |
| Informatics | 4,773 | 3.3% | 5,966 | 4.2% | (1,193) | -20.0% | -8.3% | |
| Adjustments | (491) | -0.3% | (929) | -0.7% | 438 | -47.1% | ||
| Total Revenues | 142,942 | 100.0% | 141,524 | 100.0% | 1,418 | 1.0% | 7.8% |
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31.03.2018 | % of revenues |
31.03.2017 (**) | % of revenues |
Change | % | |||
| Datalogic | 20,803 | 15.7% | 21,071 | 16.0% | (268) | (1.3%) | ||
| Solution Net Systems | 957 | 15.7% | 90 | 1.8% | 867 | 963.3% | ||
| Informatics | 139 | 2.9% | (446) | (7.5%) | 585 | (131.2%) | ||
| Adjustments | 53 | (10.7%) | 49 | (5.3%) | 4 | 7.3% | ||
| Total EBITDA | 21,952 | 15.4% | 20,764 | 14.7% | 1,188 | 5.7% |
(*) It is worth noting that, as from June 2017, some items with an irrelevant amount were re-allocated amongst the various departments. The comparative data as at 31 March 2017 are disclosed accordingly.
In the first quarter, the Datalogic Division reported a turnover of €132.6 million, up by 0.8% compared to the same period of 2017 (+6.8% at constant exchange rate), with a very positive performance in EMEA, Latin America and APAC, especially in China and Korea, where a growth of over 15% was recorded (+25.9% at constant exchange rate).
The EBITDA of the division, equal to €20.8 million, decreased by 1.3%, with an impact on turnover of 15.7% (16.0% as at 31 March 2017). This decrease is attributable to higher investments in R&D and increased Distribution expenses for the start-up of the commercial development plan, in line with the Group's strategy.
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31.03.2018 | % | 31.03.2017 (**) | % | Change | % | % ch. at constant exch. rate |
||
| Retail | 68,479 | 51.7% | 65,271 | 49.6% | 3,208 | 4.9% | 12.6% | |
| Manufacturing | 41,572 | 31.4% | 36,543 | 27.8% | 5,029 | 13.8% | 18.2% | |
| Transportation & Logistics |
12,797 | 9.7% | 10,556 | 8.0% | 2,241 | 21.2% | 29.6% | |
| Healthcare | 4,555 | 3.4% | 7,081 | 5.4% | (2,526) | -35.7% | -30.2% | |
| Channel (unallocated) (*) | 5,164 | 3.9% | 12,072 | 9.2% | (6,908) | -57.2% | -57.0% | |
| Total Revenues | 132,567 | 100.0% | 131,523 | 100.0% | 1,044 | 0.8% | 6.8% |
Below is the breakdown of the Datalogic Division's revenues, divided by business sector:
(*) The Channel sector (unallocated) includes revenues not directly attributable to the 4 areas identified. (**) It is noted that data for 2017 have been restated.
The Retail sector reported a 4.9% increase compared to last year (+12.6% at constant exchange rate), mainly in EMEA (+11.1%) and Latin America (+12.5%), after reporting a negative performance over the last two quarters of 2017.
The Manufacturing sector confirmed its expansion trend, up by 13.8% compared to the previous year (+18.2% at constant exchange rate), mainly driven by the growth in EMEA (+14.3%) as well as in China and Korea (+42.1%).
The Transportation & Logistics sector reported a 21.2% increase compared to the same period of 2017 (+29.6% at constant exchange rate), with a double-digit growth in EMEA and North America.
The Healthcare sector reported a 35.7% decrease (-30.2% at constant exchange rate), compared to the first quarter of 2017, characterised by exceptionally positive results due to the acquisition of orders in some of the leading US hospital chains in the first half of 2017.
The sales through distribution channel, especially to small and medium-sized customers, not directly attributable to any of the four main sectors, reported a 57.2% decrease due to a physiological seasonal trend of stock reduction in the main distributors, in addition to the negative exchange rate effect in North America.
The Solution Net Systems Division reported revenues for €6.1 million, up by 22.7% compared to the first quarter of 2017 (+32.9% at constant exchange rate), due to the acquisition of further important orders, both in the postal and in the retail sectors.
The EBITDA related to the division amounted to €1 million, with an impact of turnover of 15.7% compared to 1.8% recorded in the first quarter of 2017.
In the first quarter, the Informatics Division recorded a turnover of €4.8 million, down 20% (-8.3% at constant exchange rate) compared to the first quarter of 2017.
EBITDA related to the division amounted to €0.1 million (negative by 0.4 million in the same period of 2017).
The following table shows the main financial and equity items as at 31 March 2018, for the Datalogic Group, compared with 31 December 2017 and 31 March 2017.
| 31.03.2018 | 31.12.2017 | 31.03.2017 | |
|---|---|---|---|
| Intangible assets | 39,678 | 41,980 | 49,445 |
| Goodwill | 169,239 | 174,343 | 186,319 |
| Tangible assets | 68,779 | 69,733 | 71,316 |
| Equity investments in associates | 11,660 | 11,757 | 8,515 |
| Other non-current assets | 50,383 | 50,058 | 55,467 |
| Non-current capital | 339,739 | 347,871 | 371,062 |
| Trade receivables | 73,878 | 83,195 | 82,344 |
| Trade payables | (91,294) | (107,651) | (90,800) |
| Inventories | 90,226 | 85,938 | 89,658 |
| Net working capital in the trading segment | 72,810 | 61,482 | 81,202 |
| Other current assets | 33,525 | 31,121 | 35,622 |
| Held-for-sale assets | 508 | 1,021 | 0 |
| Other current liabilities and provisions for short term risks |
(77,115) | (71,621) | (81,806) |
| Net Working Capital | 29,728 | 22,003 | 35,018 |
| Other M/L term liabilities | (25,365) | (26,747) | (30,141) |
| Employee severance indemnity | (6,566) | (6,633) | (6,743) |
| Provisions for risks | (14,256) | (13,602) | (11,888) |
| Net Invested Capital | 323,280 | 322,892 | 357,308 |
| Shareholders' Equity | (355,628) | (353,029) | (346,839) |
| Net financial position (NFP) | 32,348 | 30,137 | (10,469) |
As at 31 March 2018, the Net Working Capital amounted to €72.8 million, up by €11.3 million compared to 31 December 2017 and down by €8.4 million compared to 31 March 2017.
As at 31 March 2018, the Net Financial Debt/(Net Financial Position) is broken down as follows:
| 31.03.2018 | 31.12.2017 | 31.03.2017 | |
|---|---|---|---|
| A. Cash and bank deposits | 259,771 | 256,201 | 123,686 |
| B. Other cash and cash equivalents | 11 | 11 | 49 |
| b1. restricted cash deposit | 11 | 11 | 49 |
| C. Securities held for trading | 0 | 0 | 0 |
| c1. Short-term | 0 | 0 | 0 |
| c2. Long-term | |||
| D. Cash and equivalents (A) + (B) + (C) | 259,782 | 256,212 | 123,735 |
| E. Current financial receivables | 0 | 0 | 0 |
| F. Other current financial receivables | 0 | 0 | 0 |
| f1. hedging transactions | 0 | 0 | 0 |
| G. Bank overdrafts | 278 | 92 | 257 |
| H. Current portion of non-current debt | 48,717 | 48,108 | 34,380 |
| I. Other current financial payables | 4,214 | 2,913 | 2,424 |
| i1. hedging transactions | 0 | 0 | 718 |
| i2. payables for leasing | 0 | 0 | 173 |
| i3. current financial payables | 4,214 | 2,913 | 1,533 |
| J. Current net financial debt/(current net financial position) (G) + (H) + (I) |
53,209 | 51,113 | 37,061 |
| K. Current net financial debt, net/(current net financial position) (J) - (D) - (E) - (F) |
(206,573) | (205,099) | (86,674) |
| L. Non-current bank borrowing | 205,717 | 205,656 | 128,163 |
| M. Other financial assets* | 31,492 | 31,444 | 31,020 |
| N. Other non-current liabilities | 0 | 750 | 0 |
| n1. hedging transactions | 0 | ||
| n2. lease payables | 0 | 0 | 0 |
| n3. non-current financial payables | 0 | 750 | 0 |
| O. Non-current financial debt (L) - (M) + (N) | 174,225 | 174,962 | 97,143 |
| P. Net financial debt/(net financial position) (K) + (O) | (32,348) | (30,137) | 10,469 |
(*) The "Other financial assets" item consists of an investment of corporate liquidity in two insurance policies and a mutual investment fund that are readily convertible into cash.
The Net Financial Position, as at 31 March 2018, was positive by €32.3 million, up by €42.8 million compared to 31 March 2017 (negative by €10.5 million) and up by 2.2 million, compared to 31 December 2017 (positive by €30.1 million).
Cash flows, which determined the improvement of the Group's consolidated net financial position as at 31 March 2018, are summarised as follows.
| 2018 | |
|---|---|
| (Net Financial Position)/Net Financial Debt as at 01 January | 30,137 |
| EBITDA | 21,952 |
| Change in the net working capital in the trading segment | (11,328) |
| Net investments | (2,694) |
| Change in tax | (3,169) |
| Cash flows related to the financial management | (1,844) |
| Other changes | (706) |
| Increase/(Decrease) of Net Financial Debt | 2,211 |
| (Net Financial Position)/Net Financial Debt as at 31 March | 32,348 |
The Reconciliation Statements between Shareholders' Equity and Net Profit of Datalogic S.p.A. and the corresponding consolidated values as at 31 March 2018 and 31 December 2017, as envisaged in Consob Communication no. DEM/6064293 of 28 July 2006, are disclosed here below.
| 31 March 2018 | 31 December 2017 | ||||
|---|---|---|---|---|---|
| Total | Equity Period results | Total Equity | Period results |
||
| Parent Company shareholders' equity and profit | 289,177 | 419 | 291,639 | 25,592 | |
| Difference between consolidated companies' shareholders' equity and their carrying value in the Parent Company's financial statements; effect of equity-based valuation |
122,899 | 7,636 | 119,689 | 62,913 | |
| Reversal of dividends | (30,428) | ||||
| Amortisation of intangible assets "business combination" | (5,827) | (5,827) | |||
| Effect of acquisition under common control | (31,733) | (31,733) | |||
| Elimination of capital gain on sale of business branch | (17,067) | (17,067) | 183 | ||
| Effect of eliminating intercompany transactions | (10,237) | 3,321 | (12,276) | 1,769 | |
| Reversal of write-downs and capital gains on equity investments |
5,517 | 5,517 | |||
| Other | (1,319) | 25 | (1,349) | (137) | |
| Deferred taxes | 4,218 | (218) | 4,436 | 188 | |
| Group shareholders' equity | 355,628 | 11,183 | 353,029 | 60,080 |
Albeit with a negative impact on sales due to the Euro/Dollar exchange rate, the results for the first quarter of the year reported a steady growth in revenues.
The Group continues its growth strategy focused on a continuous increase in R&D investments, an improvement of service levels offered to customers, a further improvement of all commercial organisations in the main development areas, with special focus on North America and the optimisation of production costs, combined with a thorough control on operating costs and overheads.
In the absence of significant changes in ongoing economic and sectorial trends, the Group expects to achieve growth targets in revenues over the current year, while maintaining its profitability and financial position.
The Parent Company has no secondary locations.
The Chairman of the Board of Directors
(Mr. Romano Volta)
| ASSETS (Euro/000) | Note | 31.03.2018 | 31.12.2017 |
|---|---|---|---|
| A) Non-current assets (1+2+3+4+5+6+7) | 371.231 | 379.315 | |
| 1) Tangible assets | 68.779 | 69.733 | |
| land | 1 | 7.665 | 7.719 |
| buildings | 1 | 29.105 | 29.369 |
| other assets | 1 | 29.519 | 30.495 |
| assets in progress and payments on account | 1 | 2.490 | 2.150 |
| of which from related parties | 258 | 258 | |
| 2) Intangible assets | 208.917 | 216.323 | |
| goodwill | 2 | 169.239 | 174.343 |
| development costs | 2 | 3.337 | 3.863 |
| other | 2 | 32.189 | 34.352 |
| assets in progress and payments on account | 2 | 4.152 | 3.765 |
| 3) Equity investments in associates | 3 | 2.194 | 2.184 |
| 4) Financial assets | 40.958 | 41.017 | |
| equity investments | 5 | 9.466 | 9.573 |
| securities | 5 | 0 | 0 |
| other | 5 | 31.492 | 31.444 |
| 5) Loans | 5 | 0 | 0 |
| 6) Trade and other receivables | 7 | 2.145 | 2.194 |
| 7) Deferred tax assets | 13 | 48.238 | 47.864 |
| B) Current assets (8+9+10+11+12+13+14) | 457.411 | 456.466 | |
| 8) Inventories | 90.226 | 85.938 | |
| raw and ancillary materials and consumables | 8 | 38.086 | 33.101 |
| work in progress and semi-finished products | 8 | 23.209 | 25.417 |
| finished products and goods | 8 | 28.931 | 27.420 |
| 9) Trade and other receivables | 7 | 95.969 | 102.886 |
| trade receivables | 7 | 73.878 | 83.195 |
| trade receivables from third parties | 7 | 72.689 | 82.402 |
| trade receivables from associates | 7 | 1.189 | 784 |
| trade receivables from related parties | 7 | 0 | 9 |
| other receivables - accrued income and prepaid expenses | 7 | 22.091 | 19.691 |
| of which from associated parties | 574 | 587 | |
| of which from related parties | 76 | 76 | |
| 10) Tax receivables | 9 | 11.434 | 11.430 |
| of which from the parent company | 7.228 | 6.771 | |
| 11) Financial assets | 5 | 0 | 0 |
| 12) Loans | 0 | 0 | |
| 13) Financial assets - Derivative instruments | 6 | 0 | 0 |
| 14) Cash and cash equivalents | 10 | 259.782 | 256.212 |
| C) Held-for-sale assets | 508 | 1.021 | |
| Total assets (A+B+C) | 829.150 | 836.802 |
| LIABILITIES (Euro/000) | Note | 31.03.2018 | 31.12.2017 |
|---|---|---|---|
| A) Total shareholders' equity (1+2+3+4+5) | 11 | 355.628 | 353.029 |
| 1) Share capital | 11 | 148.291 | 148.291 |
| 2) Reserves | 11 | 6.231 | 14.815 |
| 3) Profits (losses) of previous years | 11 | 189.923 | 129.843 |
| 4) Group profit (loss) for the period/year | 11 | 11.183 | 60.080 |
| 5) Minority interests | 11 | 0 | 0 |
| B) Non-current liabilities (6+7+8+9+10+11+12) | 251.904 | 253.388 | |
| 6) Financial payables | 12 | 205.717 | 206.406 |
| 7) Financial liabilities - Derivative instruments | 6 | 0 | 0 |
| 8) Tax payables | 9 | 44 | 43 |
| 9) Deferred tax liabilities | 13 | 21.833 | 23.138 |
| 10) Post-employment benefits | 14 | 6.566 | 6.633 |
| 11) Provisions for risks and charges | 15 | 14.256 | 13.602 |
| 12) Other liabilities | 16 | 3.488 | 3.566 |
| C) Current liabilities (13+14+15+16+17) | 221.618 | 230.385 | |
| 13) Trade and other payables | 16 | 143.908 | 157.924 |
| trade payables | 16 | 91.294 | 107.651 |
| trade payables to third parties | 16 | 91.172 | 107.051 |
| trade payables to parent company | 16 | 0 | 0 |
| trade payables to associates | 16 | 98 | 347 |
| trade payables to related parties | 16 | 24 | 253 |
| other payables - accrued liabilities and deferred income | 16 | 52.614 | 50.273 |
| 14) Tax payables | 9 | 16.197 | 14.191 |
| of which to the parent company | 6.835 | 4.865 | |
| 15) Provisions for risks and charges | 15 | 8.304 | 7.157 |
| 16) Financial liabilities - Derivative instruments | 6 | 0 | 0 |
| 17) Financial payables | 12 | 53.209 | 51.113 |
| Total liabilities (A+B+C) | 829.150 | 836.802 |
| (Euro/000) | Note | 31.03.2018 | 31.03.2017 |
|---|---|---|---|
| 1) Total revenues | 17 | 142.942 | 141.524 |
| Revenues from sale of products | 134.847 | 133.609 | |
| Revenues from services | 8.095 | 7.915 | |
| of which from related parties and associates | 1.172 | 1.470 | |
| 2) Cost of goods sold | 18 | 73.136 | 75.329 |
| of which from related parties and associates | 215 | 212 | |
| Gross profit (1-2) | 69.806 | 66.195 | |
| 3) Other operating revenues | 19 | 457 | 216 |
| 4) R&D expenses | 18 | 14.543 | 13.252 |
| of which non-recurring | 18 | 0 | 23 |
| of which amortisation, depreciation and write-downs pertaining | 24 | 27 | |
| to acquisitions | |||
| of which from related parties and associates | 18 | 99 | 37 |
| 5) Distribution expenses | 18 | 25.771 | 24.458 |
| of which non-recurring | 18 | 0 | 0 |
| of which from related parties and associates | 30 | 0 | |
| 6) General and administrative expenses | 18 | 12.936 | 12.979 |
| of which non-recurring | 18 | 760 | 251 |
| of which amortisation, depreciation and write-downs pertaining to acquisitions |
18 | 1.082 | 1.250 |
| of which from the parent company | 206 | 187 | |
| of which from related parties and associates | 69 | 170 | |
| 7) Other operating expenses | 18 | 493 | 467 |
| Total operating costs | 53.743 | 51.156 | |
| Operating result | 16.520 | 15.255 | |
| 8) Financial income | 20 | 8.692 | 4.954 |
| 9) Financial expenses | 20 | 10.536 | 6.083 |
| Net financial income (expenses) (8-9) | (1.844) | (1.129) | |
| 10) Profits from associates | 3 | 0 | (140) |
| Profit (loss) before taxes from the operating assets | 14.676 | 13.986 | |
| Income tax | 21 | 3.493 | 2.080 |
| Profit/(loss) for the period | 11.183 | 11.906 | |
| Basic earnings/(loss) per share (€) | 22 | 0,19 | 0,20 |
| Diluted earnings/(loss) per share (€) | 22 | 0,19 | 0,20 |
| (Euro/000) | Note | 31.03.2018 | 31.03.2017 |
|---|---|---|---|
| Net profit/(loss) for the period | 11.183 | 11.906 | |
| Other components of the statement of comprehensive income: | |||
| Other components of the statement of comprehensive income which will | |||
| be restated under profit/(loss) for the year: | |||
| Profit/(loss) on cash flow hedges | 11 | 84 | (517) |
| of which tax effect | |||
| Profit/(loss) due to translation of the accounts of foreign companies | 11 | (6.032) | (53) |
| Profit/(loss) on exchange rate adjustments for financial assets available | 11 | (107) | 470 |
| for sale | |||
| of which tax effect | |||
| Reserve for exchange rate adjustment | 11 | (2.529) | (1.361) |
| of which tax effect | |||
| Total other components of the statement of comprehensive income | |||
| which will be restated under profit/(loss) for the year | (8.584) | (1.461) | |
| Total net profit/(loss) for the period | 2.599 | 10.445 | |
| Attributable to: | |||
| Parent company shareholders | 2.599 | 10.445 | |
| Minority interests | 0 | 0 |
| (Euro/000) | Note | 31.03.2018 | 31.03.2017 |
|---|---|---|---|
| Pre-tax profit | 14.676 | 13.986 | |
| Depreciation of tangible assets and write-downs | 1, 2 | 2.535 | 2.829 |
| Amortisation of intangible assets and write-downs | 1, 2 | 2.137 | 2.406 |
| Capital losses from sale of assets | 18 | 14 | 54 |
| Capital gains from sale of assets | 19 | (80) | (1) |
| Change in provisions for risks and charges | 15 | 1.801 | 527 |
| Effect of change in provisions for risks and charges | 270 | 132 | |
| Change in employee benefits reserve | 14 | (67) | 96 |
| Bad debt provisions | 18 | 142 | 46 |
| Net financial expenses including exchange rate differences | 20 | 1.210 | 929 |
| Net financial income including exchange rate differences | 20 | (145) | (156) |
| Foreign exchange differences | 20 | 779 | 356 |
| Adjustments to value of financial assets | 3 | 0 | 140 |
| Cash flow generated (absorbed) from operations before changes in working | |||
| capital | 23.272 | 21.344 | |
| Change in trade receivables (including provision) | 7 | 9.175 | (6.913) |
| Change in final inventories | 8 | (4.288) | (7.314) |
| Change in current assets | 7 | (2.400) | (1.089) |
| Change in other medium-/long-term assets | 7 | 49 | 97 |
| Change in trade payables | 16 | (16.357) | (13.785) |
| Change in other current liabilities | 16 | 2.341 | 1.174 |
| Other medium/long-term liabilities | 16 | (78) | 28 |
| Commercial foreign exchange differences | 20 | 296 | 343 |
| Foreign exchange effect of working capital | (295) | 83 | |
| Cash flow generated (absorbed) from operations after changes in working capital | 11.715 | (6.032) | |
| Change in tax | (3.169) | (3.710) | |
| Foreign exchange effect of tax | (694) | (442) | |
| Interest paid and banking expenses | 20 | (1.065) | (773) |
| Cash flow generated (absorbed) from operations (A) | 6.787 | (10.957) | |
| Increase in intangible assets excluding exchange rate effect | 2 | (2.264) | (603) |
| Decrease in intangible assets excluding exchange rate effect | 2 | 313 | 200 |
| Increase in tangible assets excluding exchange rate effect | 1 | (681) | (3.142) |
| Decrease in tangible assets excluding exchange rate effect | 1 | 4 | 841 |
| Change in unconsolidated equity investments | 5 | 503 | (623) |
| Cash flow generated (absorbed) from investments (B) | (2.125) | (3.327) | |
| Change in LT/ST financial receivables | 5 | 702 | (15) |
| Change in short-term and medium-/long-term financial payables | 12, 6 | 1.221 | (10.412) |
| Financial foreign exchange differences | 20 | (1.075) | (699) |
| Purchase/sale of treasury shares | 11 | 0 | |
| Change in reserves Exchange rate effect of financial assets/liabilities, equity and tangible and intangible assets |
11, 1, 2 | (2.126) | 2.121 |
| Dividend payment | 11 | ||
| Cash flow generated (absorbed) by financial activity (C) | (1.278) | (9.005) | |
| Net increase (decrease) in available cash (A+B+C) | 10 | 3.384 | (23.289) |
| Net cash and cash equivalents at beginning of period | 10 | 256.109 | 146.718 |
| Net cash and cash equivalents at end of period | 10 | 259.493 | 123.429 |
| Description | Share capital and capital reserves |
Reserves of Statement of Comprehensive Income | Profits of previous years | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total share capital and capital reserves |
Cash-flow hedge reserve |
Translation reserve |
Reserve for exchange rate adjustment |
Actuarial gains/(losses) reserve |
Held-for-sale financial assets reserve |
Total Reserves of Statement of Comprehensive Income |
Earnings carried forward |
Capital contribution reserve |
Legal reserve |
IAS reserve |
Total | Profit for the year |
Total Group shareholders' equity |
|
| 01.01.2017 | 146.291 | (28) | 25.436 | 17.290 | (371) | 490 | 42.817 | 85.721 | 958 | 6.078 | 8.683 | 101.440 | 45.846 | 336.394 |
| Allocation of earnings | 0 | 0 | 45.846 | 45.846 | (45.846) | 0 | ||||||||
| Dividends | 0 | 0 | 0 | |||||||||||
| Translation reserve | 0 | 0 | 0 | 0 | ||||||||||
| Change in IAS reserve | 0 | 0 | 0 | 0 | ||||||||||
| Sale/purchase of treasury shares | 0 | 0 | 0 | 0 | ||||||||||
| Other changes | 0 | 65 | (65) | 0 | 0 | |||||||||
| Profit/(loss) as at 31.03.2017 | 0 | 0 | 0 | 11.906 | 11.906 | |||||||||
| Total other components of the statement of comprehensive income |
(517) | (53) | (1.361) | 470 | (1.461) | 0 | (1.461) | |||||||
| 31.03.2017 | 146.291 | (545) | 25.383 | 15.929 | (371) | 960 | 41.356 | 131.632 | 958 | 6.078 | 8.618 | 147.286 | 11.906 | 346.839 |
| Description | Share capital and capital reserves |
Reserves of Statement of Comprehensive Income | Profits of previous years | |||||||||||
| Total share capital and capital reserves |
Cash-flow hedge reserve |
Translation reserve |
Reserve for exchange rate adjustment |
Actuarial gains/(losses) reserve |
Held-for-sale financial assets reserve |
Total Reserves of Statement of Comprehensive Income |
Earnings carried forward |
Capital contribution reserve |
Legal reserve |
IAS reserve |
Total | Profit for the year |
Total Group shareholders' equity |
|
| 01.01.2018 | 148.291 | (948) | 5.939 | 4.500 | (371) | 5.695 | 14.815 | 114.189 | 958 | 6.078 | 8.618 | 129.843 | 60.080 | 353.029 |
| Allocation of earnings | 0 | 0 | 60.080 | 60.080 | (60.080) | 0 | ||||||||
| Dividends | 0 | 0 | 0 | |||||||||||
| Translation reserve | 0 | 0 | 0 | 0 | ||||||||||
| Change in IAS reserve | 0 | 0 | 0 | 0 | ||||||||||
| Sale/purchase of treasury shares | 0 | 0 | 0 | 0 | ||||||||||
| Other changes | 0 | 0 | 0 | |||||||||||
| Profit/(loss) as at 31.03.2018 | 0 | 0 | 0 | 11.183 | 11.183 | |||||||||
| Total other components of the statement of comprehensive income |
84 | (6.032) | (2.529) | (107) | (8.584) | 0 | 0 | (8.584) | ||||||
| 31.03.2018 | 148.291 | (864) | (93) | 1.971 | (371) | 5.588 | 6.231 | 174.269 | 958 | 6.078 | 8.618 | 189.923 | 11.183 | 355.628 |
Datalogic is the world leader in the markets of automatic data capture and process automation. The company 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 efficiency and quality of processes in the areas of large-scale distribution, manufacturing, transport & logistics and health, along the entire value chain.
Datalogic S.p.A. (hereinafter "Datalogic", the "Parent Company" or the "Company") is a joint-stock company listed on the STAR segment of Borsa Italiana, with its registered office in Italy. The address of the registered office is Via Candini, 2 - Lippo di Calderara (BO).
The Company is a subsidiary of Hydra S.p.A., which is also based in Bologna and is controlled by the Volta family.
This Interim report on operations as at 31 March 2018 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 the Interim report on operations as at 31 March 2018 of the Datalogic Group was authorised by resolution of the Board of Directors dated 09 May 2018.
The Interim report on operations as at 31 March 2018 was prepared pursuant to Art. 154 ter of Italian Legislative Decree no. 58/1998, and to the Consob provisions in this field.
Disclosures on financial position, financial performance and cash flows, if not otherwise specified, were drawn up pursuant to measurement and recognition criteria set forth by International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and endorsed by the European Commission according to the procedure as per Article 6 of the EC Regulation no. 1606/2002 of the European Parliament and the European Council of 19 July 2002. The measurement and recognition criteria adopted in preparing the results for the first quarter 2018 are the same as those adopted for the 2017 financial statements, to which reference is made, except for the adoption of IFRS 9 and IFRS 15 standards.
The new IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments" were effective on 01 January 2018. As already described in section "Standards issued which are not yet in force"
in the 2017 consolidated financial statements, no relevant impact was reported and therefore comparative data were not restated.
The consolidated financial statements include 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.
Interim 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 at 31 March 2018, as disclosed hereunder, were all consolidated on a line-by-line basis.
| Company | Registered office | Share capital | Total shareholders' equity (€/000) |
Profit/loss for the period (€/000) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Datalogic S.p.A. | Bologna – Italy | Euro | 30,392,175 | 289,177 | 419 | |
| Datalogic Real Estate France Sas | Paris – France | Euro | 2,227,500 | 3,580 | 20 | 100% |
| Datalogic Real Estate GmbH | Erkenbrechtsweiler Germany |
Euro | 1,025,000 | 1,382 | (1) | 100% |
| Datalogic Real Estate UK Ltd | Redbourn - England | GBP | 3,500,000 | 4,461 | 17 | 100% |
| Datalogic IP Tech S.r.l. | Bologna – Italy | Euro | 65,677 | 11,853 | 930 | 100% |
| Informatics Holdings Inc. | Plano Texas - USA | USD | 1,568 | 13,555 | (60) | 100% |
| Wasp Barcode Technologies Ltd | Redbourn - England | GBP | - | 147 | 15 | 100% |
| Datalogic Automation Asia Ltd.(*) | Hong-Kong - China | HKD | 7,000,000 | (71) | 0 | 100% |
| Datalogic (Shenzhen) Industrial Automation Co. Ltd. |
Shenzhen - China | CNY | 2,136,696 | 1,320 | (24) | 100% |
| Datalogic Hungary Kft | Fonyod-Hungary | HUF | 3,000,000 | 2,857 | 344 | 100% |
| Solution Net Systems, Inc. | Quakertown, PA - USA | USD | 7,359 | 705 | 100% | |
| Datalogic S.r.l. | Bologna – Italy | Euro | 10,000,000 | 164,882 | 4,944 | 100% |
| Datalogic ADC HK Ltd.(*) | Hong-Kong - China | HKD | 100,000 | 72 | 0 | 100% |
| Datalogic Slovakia S.r.o. | Trnava-Slovakia | Euro | 66,388 | 9,127 | 1,506 | 100% |
| Datalogic USA Inc. | Eugene OR-USA | USD | 100 | 71,369 | 124 | 100% |
| Datalogic do Brazil Comercio de Equipamentos e Automacao Ltda. |
Sao Paulo - Brazil | R\$ | 206,926 | (3,175) | (209) | 100% |
| Datalogic Technologia de Mexico S.r.l. |
Colonia Cuauhtemoc Mexico |
USD | - | (76) | (3) | 100% |
| Datalogic Scanning Eastern Europe GmbH |
Darmstadt-Germany | Euro | 25,000 | 3,778 | 45 | 100% |
| Datalogic Australia Pty Ltd | Mount Waverley (Melbourne)-Australia |
\$AUD | 3,188,120 | 685 | 140 | 100% |
| Datalogic Vietnam LLC | Vietnam | USD | 3,000,000 | 75,177 | 1,064 | 100% |
| Datalogic Singapore Asia Pacific Pte Ltd. |
Singapore | SGD | 3 | 1,805 | 142 | 100% |
| SOREDI Touch Systems GmbH | Olching (Munich)- Germany |
Euro | 25,000 | 1,958 | (1) | 100% |
(*) The companies were put into liquidation during 2017
The following companies were consolidated at cost as at 31 March 2018:
| Company | Registered office |
Share capital |
Total Shareholders' Equity (€/000) |
Profit/loss for the period (€/000) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Specialvideo S.r.l. (*) | Imola - Italy | Euro | 10,000 | 481 | 101 | 40% |
| Datasensor Gmbh (*) | Otterfing - Germany |
Euro | 150,000 | 1 | (6) | 30% |
| Suzhou Mobilead Electronic Technology Co, Ltd (*) |
China | CNY | 13,262,410 | n.a. | n.a. | 25% |
| CAEN RFID S.r.l. (*) | Viareggio LU - Italy |
Euro | 150,000 | 1,160 | 39 | 20% |
| R4I S.r.l. (*) | Benevento | Euro | 105,000 | 298 | 76 | 20% |
| Datalogic Automation AB (**) | Malmö, Sweden |
KRS | 100,000 | 762 | 244 | 20% |
(*) data as at 31 December 2016
(**) data as at 30 June 2017
During the first quarter of 2018, no changes occurred in the scope of consolidation.
Details of movements as at 31 March 2018 and 31 December 2017 are as follows:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Land | 7,665 | 7,719 | (54) |
| Buildings | 29,105 | 29,369 | (264) |
| Other assets | 29,519 | 30,495 | (976) |
| Assets in progress and payments on account | 2,490 | 2,150 | 340 |
| Total | 68,779 | 69,733 | (954) |
The "Other assets" item as at 31 March 2018 mainly includes the following categories: Industrial equipment and moulds (€9,941 thousand), Plant and machinery (€8,341 thousand), Office furniture and machines (€7,926 thousand), General plants related to buildings (€1,799 thousand), Maintenance on third-party assets (€932 thousand), Commercial equipment and demo room (€422 thousand) and Motor vehicles (€73 thousand).
The increase for this item (€1,528 thousand) is mainly due to the following:
The decrease in the "Other assets" item relates mainly to the depreciation expense for the period (€2,396 thousand).
The balance of "Assets in progress and payments on account", equal to €2,490 thousand, consists of €460 thousand for investments related to the enlargement of the plant in Hungary and, for the remaining portion, to down payments for equipment, instruments and moulds for normal production activities.
Details of movements as at 31 March 2018 and 31 December 2017 are as follows:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Goodwill | 169,239 | 174,343 | (5,104) |
| Development costs | 3,337 | 3,863 | (526) |
| Other | 32,189 | 34,352 | (2,163) |
| Assets in progress and payments on account | 4,152 | 3,765 | 387 |
| Total | 208,917 | 216,323 | (7,406) |
"Goodwill", totalling €169,239 thousand, consisted of the following items:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| CGU Datalogic | 156,701 | 161,538 | (4,837) |
| CGU Informatics | 12,538 | 12,805 | (267) |
| Total | 169,239 | 174,343 | (5,104) |
The negative change in Goodwill by comparison with 31 December 2017 is attributable to:
translation differences, as most of the goodwill is expressed in US Dollars (€4,354 thousand),
review of the acquisition price for the company Soredi Touch Systems GmbH, which involved a reduction of €750 thousand compared to the price provisionally defined.
The calculation of Goodwill is as follows:
| Amounts as per the Company's accounts (Euro/000) |
Adjustments | Recognised fair value (Euro/000) |
|
|---|---|---|---|
| Tangible and intangible assets | 185 | 185 | |
| Other LT receivables | 0 | 0 | |
| Inventories | 1,547 | 1,547 | |
| Trade receivables | 820 | 820 | |
| Other receivables | 75 | 75 | |
| Cash and cash equivalents | 134 | 134 | |
| Trade payables | (736) | (736) | |
| Other payables | (104) | (104) | |
| Provisions for risks and charges | (294) | (294) | |
| Net assets at acquisition date | 1,627 | 0 | 1,627 |
| % pertaining to Group | 100% | 100% | 100% |
| Group net assets | 1,627 | 0 | 1,627 |
| Acquisition cost | 9,568 | ||
| Price adjustment | (750) | ||
| Goodwill at acquisition date | 7,191 |
It is worth noting that this allocation is still provisional, as set out by IFRS 3, which envisages an evaluation period of 12 months from the acquisition date that occurred on 06 June 2017.
Goodwill has been allocated to the CGUs (Cash Generating Units) corresponding to the individual companies and/or sub-groups to which they pertain. 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 generated by the CGU – during production and at the time of its retirement – to present value using a certain discount rate, based on the Discounted Cash Flow method.
As at 31 March 2018, the assumptions used for the business plan, on which the impairment test was based as at 31 December 2017, were still valid and no impairment indicators were reported.
"Development costs", which amount to €3,337 thousand, consist of specific development projects capitalised when they meet IAS 38 requirements and in compliance with Group policies, which call for the capitalisation only of projects relating to the development of products featuring significant innovation. The change in this item, compared to 31 December 2017, is due mainly to amortisation for the period.
The "Other" item, amounting to €32,189 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, which are specifically identified and valued in the context of purchase accounting. Details are shown in the following table:
| 31.03.2018 | 31.12.2017 | Useful life | |
|---|---|---|---|
| Acquisition of the PSC group (on 30 November 2006) | 12,725 | 13,495 | |
| PATENTS | 12,725 | 13,495 | 20 |
| Acquisition of Evolution Robotics Retail Inc. (on 01 July 2010) | 1,279 | 1,460 | |
| PATENTS | 213 | 243 | 10 |
| TRADE SECRETS | 1,066 | 1,217 | 10 |
| Acquisition of Accu-Sort Inc. (on 20 January 2012) | 8,946 | 9,756 | |
| PATENTS | 5,291 | 5,770 | 10 |
| TRADE SECRETS | 3,655 | 3,986 | 10 |
| Licence agreement | 3,511 | 3,729 | 5-15 |
| Others | 5,728 | 5,912 | |
| TOTAL OTHER INTANGIBLE ASSETS | 32,189 | 34,352 |
The "Others" item mainly consists of software licences.
The "Assets in progress and payments on account" item, equal to €4,152 thousand, is attributable, in the amount of €3,192 thousand, to the capitalisation of costs relating to the R&D projects with the features required by IAS 38 and currently still underway, as well as, in the amount of €960 thousand, to software implementations that are not yet completed.
| 31.12.2017 | Increases | Decreases | Exchange rate diff. |
Share of profit |
31.03.2018 | |
|---|---|---|---|---|---|---|
| Associates | ||||||
| CAEN RFID Srl | 550 | 550 | ||||
| Suzhou Mobilead Electronic Technology Co., Ltd. |
1,408 | 10 | 1,418 | |||
| R4I Srl | 150 | 150 | ||||
| Datalogic Automation AB | 2 | 2 | ||||
| Specialvideo Srl | 29 | 29 | ||||
| Datasensor GMBH | 45 | 45 | ||||
| TOTAL | 2,184 | 0 | 0 | 10 | 0 | 2,194 |
Equity investments owned by the Group as at 31 March 2018 were as follows:
Compared to 31 December 2017, the change in the "Equity investments in associates" item is attributable to translation differences related to the equity investments in the company Suzhou Mobilead Electronic Technology Co., Ltd., as it is expressed in Chinese Renminbi (CNY).
The financial statement items coming within the scope of "financial instruments" as defined by IAS/IFRSs are as follows:
| 31.03.2018 | Loans and | Financial assets at fair value charged to the |
Available for | Total |
|---|---|---|---|---|
| receivables | income statement |
sale | ||
| Non-current financial assets | 2,145 | 31,492 | 9,466 | 43,103 |
| Financial assets - Equity investments (5) | 9,466 | 9,466 | ||
| Financial assets - Securities | 0 | |||
| Financial assets - Loans | 0 | |||
| Financial assets - Other | 31,492 | 31,492 | ||
| Other receivables (7) | 2,145 | 2,145 | ||
| Current financial assets | 353,912 | 0 | 0 | 353,912 |
| Trade receivables from third parties (7) | 72,689 | 72,689 | ||
| Other receivables from third parties (7) | 21,441 | 21,441 | ||
| Financial assets - Other (5) | 0 | |||
| Financial assets - Securities (5) | 0 | |||
| Cash and cash equivalents (10) | 259,782 | 259,782 | ||
| TOTAL | 356,057 | 31,492 | 9,466 | 397,015 |
| 31.03.2018 | Derivatives Other financial liabilities |
Total | |
|---|---|---|---|
| Non-current financial liabilities | 0 | 209,205 | 209,205 |
| Financial payables (12) | 205,717 | 205,717 | |
| Financial liabilities - Derivative instruments (6) | 0 | ||
| Other payables (16) | 3,488 | 3,488 | |
| Current financial liabilities | 0 | 196,995 | 196,995 |
| Trade payables to third parties (16) | 91,172 | 91,172 | |
| Other payables (16) | 52,614 | 52,614 | |
| Financial liabilities - Derivative instruments (6) | 0 | 0 | |
| Short-term financial payables (12) | 53,209 | 53,209 | |
| TOTAL | 0 | 406,200 | 406,200 |
Most of financial assets and liabilities are short-term financial assets and liabilities for which, given their nature, the book value is considered as a reasonable approximation of fair value.
In the other residual positions, fair value is determined based on methods that can be classified under the various hierarchy levels of fair value, as set forth by IFRS 13.
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).
| 31.03.2018 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Assets measured at fair value | ||||
| Financial assets - Equity investments (5) | 9,389 | 77 | 9,466 | |
| Financial assets - LT securities (5) | 0 | 0 | ||
| Financial assets - Other LTs (5) | 9,957 | 21,535 | 31,492 | |
| Financial assets - Other (5) | 0 | |||
| Financial assets - Loans | 0 | |||
| Financial assets - ST derivative instruments (6) | 0 | |||
| Total Assets measured at fair value | 19,346 | 21,535 | 77 | 40,958 |
| Liabilities measured at fair value | 0 | |||
| Financial liabilities - LT derivative instruments (6) | 0 | |||
| Financial liabilities - ST derivative instruments (6) | 0 | 0 | ||
| Total Liabilities measured at fair value | 0 | 0 | 0 | 0 |
Available-for-sale financial assets include the following items:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Other equity investments | 9,466 | 9,573 | (107) |
| Other financial assets | 31,492 | 31,444 | 48 |
| Total long-term financial assets | 40,958 | 41,017 | (59) |
| Long-term loans | 0 | 0 | 0 |
| Total Financial assets | 40,958 | 41,017 | (59) |
The "Other financial assets" item consists of an investment of corporate liquidity in two insurance policies subscribed in May and July 2014, and a mutual investment fund subscribed in August 2015.
| 31.12.2017 | Increases | Decreases | Adjust. to fair value |
Exchange rate adjust. |
Reclass. | 31.03.2018 | |
|---|---|---|---|---|---|---|---|
| Listed equity investments | 9,496 | (375) | 268 | 9,389 | |||
| Unlisted equity investments |
77 | 77 | |||||
| Total Shareholdings | 9,573 | 0 | 0 | (375) | 268 | 0 | 9,466 |
As at 31 March 2018, equity investments held by the Group in other companies were as follows:
The amount of the "Listed equity investments" item is represented by the 1.2% investment in the share capital of the Japanese company Idec Corporation listed on the Tokyo Stock Exchange.
As at 31 March 2018, the Group had no interest rate swap contracts in place.
As at 31 March 2018, the Group had no active forward contracts for exchange rate risk.
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Third-party trade receivables | 73,784 | 83,579 | (9,795) |
| Less provision for doubtful receivables | 1,095 | 1,177 | (82) |
| Net third-party trade receivables | 72,689 | 82,402 | (9,713) |
| Receivables from associates | 1,189 | 784 | 405 |
| Laservall Asia | 0 | 3 | (3) |
| Suzhou Mobilead | 0 | 0 | 0 |
| Datasensor GMBH | 104 | 83 | 21 |
| Datalogic Automation AB | 1,085 | 698 | 387 |
| Related-party receivables | 0 | 9 | (9) |
| Total Trade receivables | 73,878 | 83,195 | (9,317) |
| Other receivables - current accrued income and prepaid expenses | 22,091 | 19,691 | 2,400 |
| Other receivables - non-current accrued income and prepaid expenses | 2,145 | 2,194 | (49) |
| Total Other receivables - accrued income and prepaid expenses | 24,236 | 21,885 | 2,351 |
| Less non-current portion | 2,145 | 2,194 | (49) |
| Trade and other receivables - current portion | 95,969 | 102,886 | (6,917) |
The "Trade receivables" item, as at 31 March 2018, amounted to €73,878 thousand and decreased by 11.2% (-10.1% at constant exchange rates).
As at 31 March 2018, factored Trade accounts receivables amounted to €28,093 thousand (compared to €33,377 thousand at the end of 2017).
Trade receivables from affiliates arise from commercial transactions carried out at arm's length conditions. Customer trade receivables are posted net of bad debt provisions totalling €1,095 thousand (€1,177 thousand as at 31 December 2017).
The detail of the "Other receivables - accrued income and prepaid expenses" item is as shown below:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Other short-term receivables | 2,535 | 1,755 | 780 |
| Other long-term receivables | 2,145 | 2,194 | (49) |
| VAT receivables | 16,239 | 14,870 | 1,369 |
| Accrued income and prepaid expenses | 3,317 | 3,066 | 251 |
| Total | 24,236 | 21,885 | 2,351 |
The "Accrued income and prepaid expenses" item is mainly composed of prepaid expenses related to insurance and Hardware and Software instalments.
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Raw and ancillary materials and consumables | 38,086 | 33,101 | 4,985 |
| Work in progress and semi-finished products | 23,209 | 25,417 | (2,208) |
| Finished products and goods | 28,931 | 27,420 | 1,511 |
| Total | 90,226 | 85,938 | 4,288 |
Inventories are shown net of an obsolescence provision that, as at 31 March 2018, amounted to €9,996 thousand (€9,605 thousand as at 31 December 2017).
As at 31 March 2018, "Tax receivables" amounted to €11,434 thousand, substantially unchanged compared to end of 2017 (€11,430 thousand as at 31 December 2017). The receivables for IRES tax from the parent company Hydra, equal to €7,228 thousand (€6,771 thousand as at 31 December 2017) are classified under this item. This amount is due under tax consolidation.
As at 31 March 2018, "Tax payables" amounted to €16,197 thousand, up by €2,006 thousand (€14,191 thousand as at 31 December 2017). The amount payable to the parent company Hydra for IRES tax, due under tax consolidation, is classified in this item and amounted to €6,835 thousand (€4,865 thousand as at 31 December 2017).
Cash and cash equivalents are broken down as follows:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Cash and cash equivalents shown on financial statements | 259,782 | 256,212 | 3,570 |
| Restricted cash | (11) | (11) | 0 |
| Current account overdrafts | (278) | (92) | (186) |
| Cash and cash equivalents for statement | 259,493 | 256,109 | 3,384 |
According to the requirements of Consob Communication no. 15519 of 28 July 2006, the Group's financial position is reported in the following table:
| 31.03.2018 | 31.12.2017 | |
|---|---|---|
| A. Cash and bank deposits | 259,771 | 256,201 |
| B. Other cash and cash equivalents | 11 | 11 |
| b1. restricted cash deposit | 11 | 11 |
| C. Securities held for trading | 0 | 0 |
| c1. Short-term | 0 | 0 |
| c2. Long-term | 0 | 0 |
| D. Cash and equivalents (A) + (B) + (C) | 259,782 | 256,212 |
| E. Current financial receivables | 0 | 0 |
| F. Other current financial receivables | 0 | 0 |
| f1. hedging transactions | 0 | 0 |
| G. Bank overdrafts | 278 | 92 |
| H. Current portion of non-current debt | 48,717 | 48,108 |
| I. Other current financial payables | 4,214 | 2,913 |
| i1. hedging transactions | 0 | 0 |
| i2. payables for leasing | 0 | 0 |
| i3. current financial payables | 4,214 | 2,913 |
| J. Current net financial debt/(current net financial position) (G) + (H) + (I) |
53,209 | 51,113 |
| K. Current net financial debt/(current net financial position) (J) - (D) - (E) - (F) | (206,573) | (205,099) |
| L. Non-current bank borrowing | 205,717 | 205,656 |
| M. Other financial assets (*) | 31,492 | 31,444 |
| N. Other non-current liabilities | 0 | 750 |
| n1. hedging transactions | ||
| n2. lease payables | 0 | 0 |
| n3. non-current financial payables | 0 | 750 |
| O. Non-current financial debt (L) - (M) + (N) | 174,225 | 174,962 |
| P. Net financial debt/(net financial position) (K) + (O) | (32,348) | (30,137) |
(*) The "Other financial assets" item consists of an investment of corporate liquidity in two insurance policies and a mutual investment fund that are readily convertible into cash.
Net Financial Position as at 31 March 2018 was positive by €32,348 thousand, an improvement of €2,211 thousand compared to 31 December 2017 (positive by €30,137 thousand).
The detail of equity accounts is shown below, while changes in equity are reported in the specific statement:
| 31.03.2018 | 31.12.2017 | |
|---|---|---|
| Share capital | 30,392 | 30,392 |
| Extraordinary share-cancellation reserve | 2,813 | 2,813 |
| Treasury shares held in portfolio | 6,120 | 6,120 |
| Treasury share reserve | 2,026 | 2,026 |
| Share premium reserve | 106,940 | 106,940 |
| Share capital and capital reserves | 148,291 | 148,291 |
| Cash-flow hedge reserve | (864) | (948) |
| Translation reserve | (93) | 5,939 |
| Reserve for exchange rate adjustment | 1,971 | 4,500 |
| Actuarial gains/(losses) reserve | (371) | (371) |
| Held-for-sale financial assets reserve | 5,588 | 5,695 |
| Other reserves | 6,231 | 14,815 |
| Retained earnings | 189,923 | 129,843 |
| Earnings carried forward | 174,269 | 114,189 |
| Capital contribution reserve | 958 | 958 |
| Legal reserve | 6,078 | 6,078 |
| IAS reserve | 8,618 | 8,618 |
| Profit for the year | 11,183 | 60,080 |
| Total Group shareholders' equity | 355,628 | 353,029 |
As at 31 March 2018, no changes were reported in the share capital, as per the table hereunder:
| Number of shares |
Share capital |
Extraordinary share cancellation reserve |
Treasury shares held in portfolio |
Treasury share reserve |
Share premium reserve |
Total | |
|---|---|---|---|---|---|---|---|
| 01.01.2018 | 58,229,477 | 30,392 | 2,813 | 6,120 | 2,026 | 106,940 | 148,291 |
| Purchase of treasury shares |
|||||||
| Sale of treasury shares | |||||||
| 31.03.2018 | 58,229,477 | 30,392 | 2,813 | 6,120 | 2,026 | 106,940 | 148,291 |
The Extraordinary Shareholders' Meeting of Datalogic S.p.A., held on 20 February 2008, approved a reduction of share capital through the cancellation of 5,409,981 treasury shares (equal to 8.472% of the share capital), owned by the Company.
When these shares were cancelled, as resolved by the Extraordinary Shareholders' Meeting, an extraordinary share-cancellation reserve was set aside for the amount of €2,813 thousand, through the use of the share premium reserve. Therefore, this reserve remained classified under item "Share Capital".
As at 31 March 2018, the total number of ordinary shares was 58,446,491, including 217,014 held as treasury shares, making the number of shares in circulation at that date 58,229,477. The shares have a nominal unit value of €0.52 and are fully paid up.
The "Treasury shares" item, amounting to €6,120 thousand, includes capital gains/(losses) resulting from the sale of treasury shares, net of purchases and related charges (€8,146 thousand).
Pursuant to provisions set forth by IAS 39, the change in fair value of derivative contracts, designated as effective hedging instruments, is recognised in accounts directly with Shareholders' Equity, in the cash-flow hedge reserve. These contracts were entered to hedge exposure to the risk of interest rate fluctuations on loans. The reserve, negative by €864 thousand, includes the fair value of the hedging instrument related to refinancing.
In compliance with IAS 21, translation differences arising from translation of the foreign currency financial statements of consolidated companies into the Group accounting currency are classified as a separate equity component.
In application to IAS 21.40, this reserve comprises profits/losses generated by monetary elements which are an integral part of the net investment of foreign managements. In particular, it relates to the effect of exchange rates measurement at year-end for receivables for loans in US dollars granted to some Group companies by the Parent Company Datalogic S.p.A. and Datalogic USA Inc. For these loans no regulation and/or defined reimbursement plan are provided, nor is it deemed probable that they will be reimbursed in the foreseeable future.
Pursuant to IAS 19, this reserve includes actuarial gains and losses, which are now recognised under other components in the Statement of Comprehensive Income and excluded from the Income Statement.
This reserve was created upon first-time adoption of international accounting standards as at 01 January 2004 (Consolidated Financial Statements for the year ended 31 December 2003) pursuant to IFRS 1.
This item includes equity changes occurring in consolidated companies after acquisition date.
On 20 March 2018, the Board of Directors resolved on approving the proposal, made to the Shareholders' Meeting of Datalogic S.p.A., to distribute an ordinary unit dividend, gross of legal withholdings, of 50 cents per share with coupon detachment on 28 May 2018 (record date 29 May 2018) and payment from 30 May 2018, for a maximum amount of €29,223,245, also taking resources from the reserve available related to the profit from previous years, to the extent necessary.
The reconciliation between the Parent Company's Shareholders' Equity and net profit and the corresponding consolidated amounts is as shown below:
| 31 March 2018 | 31 December 2017 | |||
|---|---|---|---|---|
| Total equity | Period results |
Total equity | Period results |
|
| Parent Company shareholders' equity and profit | 289,177 | 419 | 291,639 | 25,592 |
| Difference between consolidated companies' shareholders' equity and their carrying value in the Parent Company's financial statements; effect of equity-based valuation |
122,899 | 7,636 | 119,689 | 62,913 |
| Reversal of dividends | (30,428) | |||
| Amortisation of intangible assets "business combination" |
(5,827) | (5,827) | ||
| Effect of acquisition under common control | (31,733) | (31,733) | ||
| Elimination of capital gain on sale of business branch |
(17,067) | (17,067) | 183 | |
| Effect of eliminating intercompany transactions | (10,237) | 3,321 | (12,276) | 1,769 |
| Reversal of write-downs and capital gains on equity investments |
5,517 | 5,517 | ||
| Other | (1,319) | 25 | (1,349) | (137) |
| Deferred taxes | 4,218 | (218) | 4,436 | 188 |
| Group shareholders' equity | 355,628 | 11,183 | 353,029 | 60,080 |
The breakdown of the item, divided by short/long-term classification, is shown in the following table:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Long-term financial payables | 205,717 | 206,406 | (689) |
| Short-term financial payables | 53,209 | 51,113 | 2,096 |
| Total Financial payables | 258,926 | 257,519 | 1,407 |
The breakdown of this item is as detailed below:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Bank loans | 254,434 | 253,764 | 670 |
| Other | 1,250 | 2,000 | (750) |
| Payables to factoring companies | 2,964 | 1,663 | 1,301 |
| Payables for leasing | 0 | 0 | 0 |
| Bank overdrafts (ordinary current accounts) | 278 | 92 | 186 |
| Total Financial payables | 258,926 | 257,519 | 1,407 |
The breakdown of changes in the "Bank loans" item as at 31 March 2018 and 31 March 2017 is shown below:
| 2018 | 2017 | |
|---|---|---|
| 1 January | 253,764 | 169,501 |
| Increases | 670 | 0 |
| Repayments | 0 | 0 |
| Decreases for loan repayments | 0 | (6,958) |
| 31 March | 254,434 | 162,543 |
The increase is related primarily to the share of interest accrued and still unpaid.
The "Others" item includes the financial debt related to the acquisition of the company Soredi Touch Systems GmbH.
Deferred tax assets and 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 consolidated balance-sheet assets and liabilities and their relevant taxable value.
Deferred tax assets are accounted for based on future recoverability assumptions of temporary differences that originated them, or based on economic and fiscal strategic plans.
Temporary differences that generate deferred tax assets are mainly tax losses and taxes paid abroad, provisions for risks and charges and adjustments on exchange rates. Deferred tax liabilities are mainly due to temporary differences for adjustments to exchange rates and statutory and fiscal differences of amortisation/depreciation plans related to tangible and intangible assets.
For a better disclosure of deferred tax assets and liabilities, albeit not required by IAS 12, the total of net deferred taxes is reported compared with the previous year.
The total of net deferred taxes is broken down as follows:
| 31.03.2018 | 31.12.2017 | change | |
|---|---|---|---|
| Deferred tax assets | 48,238 | 47,864 | 374 |
| Deferred tax liabilities | (21,833) | (23,138) | 1,305 |
| Net deferred taxes | 26,405 | 24,726 | 1,679 |
The breakdown per company of deferred taxes is shown below:
| 31.03.2018 | 31.12.2017 | change | |
|---|---|---|---|
| Datalogic S.p.A. | (1,511) | (1,437) | (74) |
| Datalogic RE France SaS | 52 | 52 | 0 |
| Datalogic RE UK Ltd | 102 | 100 | 2 |
| Datalogic IP Tech S.r.l. | 1,043 | 1,331 | (288) |
| Datalogic USA Inc. | 18,917 | 17,721 | 1,196 |
| Datalogic S.r.l. | (194) | (647) | 453 |
| Datalogic Slovakia S.r.o. | 4,895 | 4,895 | 0 |
| Datalogic ADC do Brazil Ltd. | 206 | 129 | 77 |
| Datalogic Scanning Eastern Europe GmbH | 90 | 90 | 0 |
| Datalogic Vietnam LLC | 307 | 259 | 48 |
| Datalogic Australia Pty Ltd | 153 | 160 | (7) |
| Datalogic ADC Singapore | 2 | 2 | 0 |
| Informatics Holdings Inc. | 385 | 419 | (34) |
| Solution Net Systems, Inc. | 79 | 89 | (10) |
| Total Net long-term deferred taxes | 24,526 | 23,163 | 1,363 |
| Deferred taxes recognised due to the consolidation entries | 1,879 | 1,563 | 316 |
| Total Net long-term deferred taxes | 26,405 | 24,726 | 1,679 |
The breakdown of changes in the "Post-employment benefits" item as at 31 March 2018 and 31 March 2017 is shown below:
| 2018 | 2017 | |
|---|---|---|
| 1 January | 6,633 | 6,647 |
| Amount allocated in the period | 473 | 451 |
| Uses | (498) | (173) |
| Other movements | (26) | (2) |
| Social security receivables for the employee severance indemnity reserve |
(16) | (180) |
| 31 March | 6,566 | 6,743 |
The breakdown of the "Provisions for risks and charges" item was as follows:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Short-term provisions for risks and charges | 8,304 | 7,157 | 1,147 |
| Long-term provisions for risks and charges | 14,256 | 13,602 | 654 |
| Total | 22,560 | 20,759 | 1,801 |
Below we show the detailed breakdown of and changes in this item:
| 31.12.2017 | Increases | (Uses) and (Releases) |
Exchange rate diff. |
31.03.2018 | |
|---|---|---|---|---|---|
| Product warranty provision | 11,618 | 118 | 0 | (190) | 11,546 |
| Provision for management incentive scheme | 6,264 | 776 | 0 | (52) | 6,988 |
| "Stock rotation" provision | 1,664 | 223 | (53) | (26) | 1,808 |
| Other | 1,213 | 1,148 | (140) | (3) | 2,218 |
| Total Provisions for risks and charges | 20,759 | 2,265 | (193) | (271) | 22,560 |
The "Product warranty provision" covers the estimated cost of repairing products sold up to 31 March 2018 and covered by periodical warranty. It amounts to €11,546 thousand (of which €6,869 thousand longterm) and is considered sufficient in relation to the specific risk it covers.
The "Provision for management incentive scheme" is attributable to the long-term incentive plan for directors and top managers.
The "Other" item mainly comprises:
This table shows the details of trade and other payables:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Trade payables due within 12 months | 91,172 | 107,051 | (15,879) |
| Third-party trade payables | 91,172 | 107,051 | (15,879) |
| Payables to associates | 98 | 347 | (251) |
| Laservall Asia | 0 | 7 | (7) |
| R4I Srl | 0 | 61 | (61) |
| Caen RFID Srl | 94 | 277 | (183) |
| Suzhou Mobilead | 2 | 0 | 0 |
| Datalogic Automation AB | 2 | 2 | 0 |
| Payables to the parent company | 0 | 0 | 0 |
| Hydra SpA | 0 | 0 | 0 |
| Payables to related parties | 24 | 253 | (229) |
| Total Trade payables | 91,294 | 107,651 | (16,359) |
| Other payables - current accrued liabilities and deferred income | 52,614 | 50,273 | 2,341 |
| Other payables - non-current accrued liabilities and deferred income | 3,488 | 3,566 | (78) |
| Total Other payables - accrued liabilities and deferred income | 56,102 | 53,839 | 2,263 |
| Less non-current portion | 3,488 | 3,566 | (78) |
| Current portion | 143,908 | 157,924 | (14,018) |
The detailed breakdown of this item is as follows:
| 31.03.2018 | 31.12.2017 | Change | |
|---|---|---|---|
| Other long-term payables | 3,488 | 3,566 | (78) |
| Other short-term payables: | 26,868 | 25,849 | 1,019 |
| Payables to employees | 19,682 | 17,220 | 2,462 |
| Payables to pension and social security agencies | 5,200 | 6,021 | (821) |
| Other payables | 1,986 | 2,608 | (622) |
| VAT liabilities | 3,823 | 2,982 | 841 |
| Accrued liabilities and deferred income | 21,923 | 21,442 | 481 |
| Total | 56,102 | 53,839 | 2,263 |
Amounts payable to employees represent the amount due for salaries and vacations accrued by employees as at the reporting date.
"Accrued liabilities and deferred income" are mainly composed of deferred income related to multi-annual maintenance contracts.
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Revenues from sale of products | 134,847 | 133,609 | 1,238 |
| Revenues from services | 8,095 | 7,915 | 180 |
| Total Revenues | 142,942 | 141,524 | 1,418 |
In the first quarter of 2018, consolidated net revenue amounted to €142,942 thousand, up by 1% compared to €141,524 thousand reported in the same period of 2017 (+7.8% at constant exchange rate).
The following table shows the breakdown of revenues per geographical areas:
| Quarter ended | ||||||
|---|---|---|---|---|---|---|
| 31.03.2018 | % | 31.03.2017 (**) | % | Change | % change | |
| Italy | 14,379 | 10.1% | 12,271 | 8.7% | 2,108 | 17.2% |
| EMEA (except Italy) | 67,403 | 47.2% | 66,355 | 46.9% | 1,048 | 1.6% |
| Total EMEA (*) | 81,782 | 57.2% | 78,626 | 55.6% | 3,156 | 4.0% |
| North America | 39,642 | 27.7% | 43,590 | 30.8% | (3,948) | (9.1%) |
| Latin America | 2,897 | 2.0% | 2,612 | 1.8% | 285 | 10.9% |
| APAC (*) (incl. China) | 18,621 | 13.0% | 16,696 | 11.8% | 1,925 | 11.5% |
| Total Revenues | 142,942 | 100.0% | 141,524 | 100.0% | 1,418 | 1.0% |
(*) EMEA: Europe, Middle East and Africa; APAC: Asia & Pacific
(**) As from June 2017, data related to geographical areas are disclosed to reflect the actual involvement of each area within the new commercial organisation of the Group. Comparative data as at 31 March 2017 are disclosed accordingly.
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| TOTAL COST OF GOODS SOLD (1) | 73,136 | 75,329 | (2,193) |
| of which non-recurring | 0 | 0 | 0 |
| TOTAL OPERATING COSTS (2) | 53,743 | 51,156 | 2,587 |
| Research and Development expenses | 14,543 | 13,252 | 1,291 |
| of which non-recurring | 0 | 23 | (23) |
| of which amortisation, depreciation pertaining to acquisitions | 24 | 27 | (3) |
| Distribution expenses | 25,771 | 24,458 | 1,313 |
| General and administrative expenses | 12,936 | 12,979 | (43) |
| of which non-recurring | 760 | 251 | 509 |
| of which amortisation, depreciation pertaining to acquisitions | 1,082 | 1,250 | (168) |
| Other operating costs | 493 | 467 | 26 |
| TOTAL (1+2) | 126,879 | 126,485 | 394 |
| of which non-recurring costs | 760 | 274 | 486 |
| of which amortisation, depreciation pertaining to acquisitions | 1,106 | 1,277 | (171) |
Non-recurring costs, equal to €760 thousand (€274 thousand in the first quarter of 2017) are related primarily to restructuring of some corporate functions.
Amortisation/depreciation from acquisitions (equal to €1,106 thousand), mainly included under "General and administrative expenses" (€1,082 thousand), are comprised of:
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Acquisition of the PSC group (on 30 November 2006) | 411 | 475 | (64) |
| Acquisition of Evolution Robotics Retail Inc. (on 01 July 2010) | 143 | 164 | (21) |
| Acquisition of Accu-Sort Inc. (on 20 January 2012) | 552 | 638 | (86) |
| TOTAL | 1,106 | 1,277 | (171) |
This item is equal to €73,136 thousand and increased by 2.9% compared to the same period in 2017. At constant exchange rate and less non-recurring costs, this item increased by 4.8%, while its impact on revenues decreased by 1.5 percentage points. The improvement is primarily due to the efficiency in costs of materials.
Operating costs, less non-recurring items and amortisation/depreciation pertaining to acquisitions, increased by 4.6% (+13.7% at constant exchange rates), from €49,605 thousand to €51,877 thousand, up by 1.2 percentage points as impact on sales, from 35.1% to 36.3% (+1.9 percentage points at constant exchange rates).
In particular:
The breakdown of "Other operating costs" is as follows:
| Quarter ended | ||||
|---|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | ||
| Non-income taxes | 312 | 321 | (9) | |
| Provisions for doubtful accounts | 142 | 46 | 96 | |
| Capital losses on assets | 14 | 54 | (40) | |
| Contingent and unsubstantiated liabilities | 3 | 2 | 1 | |
| Cost charge backs | 14 | 38 | (24) | |
| Other | 8 | 6 | 2 | |
| Total | 493 | 467 | 26 |
The following table provides the details of total costs (cost of goods sold and total operating costs) by type, for the main items:
| Quarter ended | ||||
|---|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | ||
| Purchases | 59,113 | 61,093 | (1,980) | |
| Inventory change | (7,379) | (5,232) | (2,147) | |
| Payroll & employee benefits | 43,688 | 41,440 | 2,248 | |
| Amortisation, depreciation and write-downs | 4,672 | 5,235 | (563) | |
| Goods receipt & shipment | 4,200 | 3,888 | 312 | |
| Travel & accommodation | 2,513 | 1,946 | 567 | |
| Technical, legal and tax advisory services | 2,410 | 2,185 | 225 | |
| Repairs and allocation to the warranty provision | 1,789 | 1,466 | 323 | |
| Marketing expenses | 1,722 | 2,006 | (284) | |
| Building expenses | 1,611 | 1,569 | 42 | |
| Subcontracted work | 1,551 | 389 | 1,162 | |
| EDP expenses | 1,119 | 980 | 139 | |
| Material collected from the warehouse | 882 | 1,177 | (295) | |
| Consumables and R&D materials | 818 | 805 | 13 | |
| Royalties | 749 | 984 | (235) | |
| Meeting expenses | 671 | 295 | 376 | |
| Telephone expenses | 560 | 734 | (174) | |
| Utilities | 545 | 588 | (43) | |
| Directors' remuneration | 509 | 464 | 45 | |
| Financial St. certification costs and other services | 488 | 456 | 32 | |
| Sundry service costs | 468 | 412 | 56 | |
| Commissions | 446 | 421 | 25 | |
| Expenses for plant and machinery and other assets | 441 | 278 | 163 | |
| Quality certification expenses | 327 | 348 | (21) | |
| Vehicle expenses | 310 | 274 | 36 | |
| Insurance | 224 | 218 | 6 | |
| Entertainment expenses | 158 | 148 | 10 | |
| Training courses for employees | 115 | 123 | (8) | |
| Stationery and printings | 54 | 62 | (8) | |
| Other | 2,105 | 1,733 | 372 | |
| Total Cost of goods sold and operating costs | 126,879 | 126,485 | 394 |
The decrease in the "Amortisation, depreciation and write-downs" item is due primarily to the exchange rate effect and to the write-down (€298 thousand) of tangible fixed assets that occurred last year.
The "Marketing expenses" item, equal to €1,722 thousand, decreased by €284 thousand compared to the same period of 2017, mainly due to the decrease in advertising costs and generally to a more efficient management of Marketing expenses.
Costs related to "Subcontracted work" amounted to €1,551 thousand (up €1,162 thousand compared to the same period of 2017) and refer primarily to orders in the Solution Net System division.
Expenses reported in the "Travel & accommodation" item and in the "Meetings" item increased due to the organisation of some commercial events which involved a higher number of customers compared to the previous year.
The detailed breakdown of payroll & employee benefits is as follows:
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Wages & salaries | 32,969 | 32,069 | 900 |
| Social security charges | 6,174 | 5,793 | 381 |
| Employee severance indemnities | 560 | 547 | 13 |
| Retirement and similar benefits | 321 | 286 | 35 |
| Medium- to long-term managerial incentive plan | 774 | 774 | 0 |
| Vehicle expenses for employees | 795 | 801 | (6) |
| Other costs | 1,328 | 1,013 | 315 |
| Early retirement incentives | 767 | 157 | 610 |
| Total | 43,688 | 41,440 | 2,248 |
The "Wages and salaries" item, equal to €32,969 thousand, includes Sales commissions and incentives of €4,588 thousand (€4,238 thousand as at 31 March 2017). This item reported an increase of €900 thousand (up €3,477 thousand at constant exchange rates) compared to the same period of the previous year.
The "Early retirement incentives" item includes costs, totalling €512 thousand, stated under "Non-recurring costs and revenues" and mainly result from the re-organisation of some corporate departments.
The detailed breakdown of this item is as follows:
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Miscellaneous income and revenues | 322 | 183 | 139 |
| Rents | 18 | 23 | (5) |
| Capital gains on asset disposals | 80 | 1 | 79 |
| Contingent assets | 12 | 1 | 11 |
| Other | 25 | 8 | 17 |
| Total | 457 | 216 | 241 |
The "Miscellaneous income and revenues" mainly includes revenues for internal building works, in the amount of €232 thousand as at 31 March 2018 (€157 thousand as at 31 March 2017).
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Financial income/(expenses) | (799) | (445) | (354) |
| Foreign exchange differences | (779) | (356) | (423) |
| Bank expenses | (363) | (411) | 48 |
| Other | 97 | 83 | 14 |
| Total Net financial income (expenses) | (1,844) | (1,129) | (715) |
Net financial income (expenses) is negative by €1,844 thousand, compared to a negative result of €1,129 thousand reported in the same period of 2017, mainly due to the trend of exchange differences, negative by €779 thousand, due to the depreciation of the Dollar on Group net balances and increased financial charges.
The "Financial income/(expenses)" item increased by €354 thousand, mainly by reason of the increased gross indebtedness, due to the entering of a new loan agreement with a pool of banks for the amount of €250 million on 13 April 2017 and the redemption, at the same time, of pre-existing loan amounting to €126 million. This transaction permitted to increase the average life of the financial debt and therefore reduce the exposure to variable interest rates as the new contract is at fixed rate.
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Pre-tax profit | 14,676 | 13,986 | 690 |
| Income tax | 3,253 | 5,916 | (2,663) |
| Deferred taxes | 240 | (3,836) | 4,076 |
| Total | 3,493 | 2,080 | 1,413 |
| Tax Rate | 23.8% | 14.9% | 8.9% |
The average tax rate comes to 23.8% (14.9% as at 31 March 2017). Taxes were calculated by using the best estimate of the annual tax rate expected at the reporting date.
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | ||
| Group earnings/(loss) for the period | 11,183,000 | 11,906,000 | |
| Average number of shares | 58,229,477 | 58,144,262 | |
| Basic earnings/(loss) per share | 0.19 | 0.20 | |
| Average number of shares | 58,229,477 | 58,144,262 | |
| Diluted effect | 0 | 0 | |
| Basic earnings/(loss) per share | 0.19 | 0.20 |
EPS as at 31 March 2018 was calculated by dividing Group net profit of €11,183 thousand (Group net profit of €11,906 thousand as at 31 March 2017) by the average number of ordinary shares outstanding as at 31 March 2018, equal to 58,229,477 shares (58,144,262 as at 31 March 2017).
For the definition of "Related parties", see both IAS 24, approved by EC Regulation 1725/2003, and the Procedure for Transactions with Related Parties approved by the Board of Directors on 4 November 2010 (most recently amended on 24 July 2015), available on the Company's website www.datalogic.com.
The parent company of the Datalogic Group is Hydra S.p.A.
Infragroup 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 the ordinary operations and at arm's length conditions, with an irrelevant amount and by the effects of the "OPC Procedure", 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 noninstrumental 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 to the related parties are not a significant proportion of the total amount of the financial statements.
Pursuant to Art. 5, par. 8, of the Consob Regulations, it should be noted that, over the period 01/01/2018 - 31/03/2018, the Company's Board of Directors did not approve any relevant transaction, as set out by Art. 3, par. 1, lett. 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 |
Subsidiaries of Hydra SpA |
Not consolidated companies on a line-by-line basis |
member of BoD |
TOTAL 31.03.2018 |
|
|---|---|---|---|---|---|
| Equity investments | 0 | 0 | 2,194 | 2,194 | |
| Non-current assets | 0 | 0 | 258 | 0 | 258 |
| Held-for-sale assets | 0 | 0 | 0 | 0 | 0 |
| Trade receivables - accrued income and prepaid expenses |
0 | 76 | 1,763 | 0 | 1,839 |
| Receivables pursuant to tax consolidation | 7,228 | 0 | 0 | 0 | 7,228 |
| Financial receivables | 0 | 0 | 0 | 0 | 0 |
| Liabilities pursuant to tax consolidation | 6,835 | 0 | 0 | 0 | 6,835 |
| Trade Payables | 0 | 8 | 98 | 4 | 110 |
| Financial payables | 0 | 0 | 0 | 0 | 0 |
| Sales/service expenses/allocations | 0 | 284 | 105 | 5 | 394 |
| Commercial revenues | 0 | 0 | 1,172 | 0 | 1,172 |
| Financial income | 0 | 0 | 0 | 0 | 0 |
| Profits/(losses) from associates | 0 | 0 | 0 | 0 | 0 |
| Quarter ended | |||
|---|---|---|---|
| 31.03.2018 | 31.03.2017 | Change | |
| Datalogic | 2,846 | 2,630 | 216 |
| Solution Net Systems | 39 | 39 | 0 |
| Informatics | 77 | 90 | (13) |
| Total | 2,962 | 2,759 | 203 |
On 3 April 2018, Datalogic signed a buy back agreement with a broker for the repurchase of treasury shares on the market, according to the resolution made on 4 May 2017 by the Shareholders' Meeting to authorise the purchase and sale of treasury shares.
The broker will purchase the shares in full independence, within the parameters and criteria that are contractually predefined, in addition to restrictions set out by applicable law and the resolution taken by the Shareholders' Meeting on 4 May 2017. The purchases will be carried out to ensure equal treatment to shareholders as per Art. 132 of T.U.F. [Consolidated Law on Finance], as well as in compliance with operating modalities set out by organisational and management regulations of Borsa Italiana S.p.A..
In particular, the agreement envisages the repurchase of 500,000 shares maximum and a term of 7 months starting from 3 April 2018.
On 23 April 2018, the Board of Directors of Datalogic S.p.A., after hearing the opinion of the Audit and Risk Management Committee, Remuneration and Appointments Committee, resolved on the guidelines of the new "2018-2021 Remuneration Plan" that will be submitted for approval on the occasion of the Shareholders' Meeting, already called for 23 May 2018.
The Chairman of the Board of Directors (Mr. Romano Volta)
Il sottoscritto Dott. Alessandro D'Aniello, quale Dirigente Preposto alla redazione dei documenti contabili societari di Datalogic S.p.A.
attesta
in conformità a quanto previsto dal secondo comma dell'art. 154 bis, comma secondo, del decreto legislativo 24 febbraio 1998, n. 58 che il resoconto intermedio di gestione al 31 marzo 2018 corrisponde alle risultanze documentali, ai libri e alle scritture contabili.
Datalogic S.p.A.
Il Dirigente Preposto alla redazione dei documenti contabili Alessandro D'Aniello
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