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B&C Speakers
Earnings Release • Nov 11, 2022
4360_er_2022-11-11_778ba02b-45c8-4058-a3c4-62aace6a31fb.pdf
Earnings Release
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| Informazione Regolamentata n. 0931-32-2022 |
Data/Ora Ricezione 11 Novembre 2022 15:50:54 |
Euronext Star Milan | |
|---|---|---|---|
| Societa' | : | B&C SPEAKERS | |
| Identificativo Informazione Regolamentata |
: | 169339 | |
| Nome utilizzatore | : | BCSPEAKERSN02 - SPAPPERI | |
| Tipologia | : | REGEM | |
| Data/Ora Ricezione | : | 11 Novembre 2022 15:50:54 | |
| Data/Ora Inizio Diffusione presunta |
: | 11 Novembre 2022 15:50:55 | |
| Oggetto | : | B&C Speakers- IIIQ 2022 Press Release | |
| 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 30 September 2022. The growth of revenues and margins is continuing:
- Consolidated revenues of € 58.11 million (+83% compared to € 31.75 million in the first nine months of 2021)
- Consolidated EBITDA of € 13.82 million (+127% compared to € 6.08 million in the first nine months of 2021);
- Total Group profit of € 7.91 million (significantly up compared to € 3.53 million in the first nine months of 2021)
- Group net financial position of €11.2 million (€3.9 million at year-end 2021)
Bagno a Ripoli (Florence), Italy, 11 November 2022 – The Board of Directors of B&C Speakers S.p.A., one of the foremost international players in the design, manufacture, distribution and marketing of professional electro-acoustic transducers, has approved the Group's Interim Report for the first nine months of 2022 prepared in accordance with the IFRS international accounting standards.
Consolidated revenue
The Group's primary market, in the period in question, benefited from full and growing activity that ensured total turnover of € 58.11 million, much higher than the figure of € 31.75 million in the corresponding period of 2021 (+83% vs 9M2021). After the positive performance achieved during the first half of the year, the third quarter of 2022 also determined for the Group record levels in terms of both quantities sold and turnover achieved.
In particular, this level of turnover was made possible by a significant increase in volumes, +51% compared to the same period of 2021, while the remainder of the increase was the result of a better sales mix and the effect of the price increases made necessary to partially offset the higher costs of raw materials.
In addition, we must stress that the volume of sales achieved during the first nine months of 2022 was approximately 20% higher compared to the corresponding figure achieved in 2019, confirming the more than complete recovery of pre-pandemic levels.
Below is the breakdown by geographical area for the first nine months of financial years 2022 and 2021:
| Revenues per geographic area | 9 months 2022 | % | 9 months 2021 | % | Difference | Difference % |
|---|---|---|---|---|---|---|
| (values in Euro/thausand) | YTD | YTD | ||||
| Latin America | 3.138 | 5% | 1.522 | 5% | 1.616 | 106,2% |
| Europe | 26.610 | 46% | 12.410 | 39% | 14.200 | 114,4% |
| Italy | 3.402 | 6% | 2.192 | 7% | 1.210 | 55,2% |
| North America | 13.989 | 24% | 6.229 | 20% | 7.760 | 124,6% |
| Middle East & Africa | 3.067 | 5% | 292 | 1% | 2.776 | 951,7% |
| Asia & Pacific | 7.899 | 14% | 9.103 | 29% | (1.204) | -13,2% |
| Total | 58.106 | 100% | 31.748 | 100% | 26.358 | 83,0% |
The increase in turnover was achieved practically in all the Group's primary markets, and it is very evident that the increase in turnover is mostly driven by European and North American customers.
Cost of sales
The cost of sales during the first nine months of 2022 showed a slight increase as a proportion of revenue compared to the same period of 2021, going up from 63.8% to 64.1%; this change was determined by a higher proportion of transport costs not completely offset by the increased efficiency in the use of direct personnel.
At the moment no further negative movements can be noted in terms of proportion of costs for procurement, while personnel expenses, despite the higher number of direct operators, are returning to the levels of efficiency typical of the usual periods for the Group.
Indirect Personnel
The cost for indirect personnel fell in terms of proportion of revenue, going down from 7.8% in the first nine months of 2021 to 5.6% in the first nine months of 2022. In absolute terms the figure for the nine months of 2022 increased following the recruitment of new resources in the commercial and technical structure.
Commercial expenses
Commercial expenses increased compared to the first nine months of 2021, as during the year trade fairs resumed and therefore the related commercial activities.
Administrative and General
Administrative and general expenses were substantially stable compared to the corresponding figure for 2021 and their proportion therefore decreased sharply, going down from 9.4% to 5.5%.
EBITDA and EBITDA Margin
Due to the trends illustrated above, EBITDA in the first nine months of 2022 came out at € 13.8 million, increasing by € 7.7 million, +127% compared to the same period of 2021. A sharp improvement was observed also in terms of EBITDA margin, 23.8% of revenue in the period compared to 19.2% in the first nine months of 2021.
Depreciation, amortisation and provisions
The depreciation and amortisation of property, plant and equipment, intangible assets and rights of use was in line with the first nine months of the previous year and amounted to € 1.5 million.
Provisions set aside in the period, of € 91 thousand, reflect the limited risk of uncollectable receivables from the Group's customers.
EBIT and EBIT margin
EBIT for the first nine months of 2022 amounted to € 12.2 million, up by 169% compared to € 4.5 million in the same period of 2021. The EBIT margin was 21% of revenues (14.3% in the corresponding period of 2021).
Group Net Profit
The Group net profit at the end of the first nine months of 2022 came out at € 7.9 million with a total increase of 124% compared to the corresponding period of 2021, with a proportion of 13.6% of consolidated revenue.
| The overall Net Financial Position was a negative € 11.2 million compared to a negative figure of € 3.91 million at the end of 2021. This trend is explained by the need to finance net working capital, in particular inventories of stock, to cope with the very strong recovery in demand. The Net Financial Position at 30 September 2022 was sharply improved compared to the figure for 30 June 2022 (when it was a negative € 13.67 million) despite the decrease in the value of short-term securities that recorded a loss in fair value of € 1.5 million (at 30 June 2022 the corresponding loss in the Fair Value of securities was € 1.4 |
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|---|---|---|---|
| million). We can note also that during 2022 short-term securities were disposed of for a figure of approximately € 1 million without incurring capital losses. |
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| 30 september | 31 december | ||
| (values in Euro thousands) | 2022 (a) | 2021 (a) | Change |
| A. Cash | 7.122 | 8.075 | -12% |
| C. Other current financial assets | 8.282 | 10.829 | -24% |
| D. Cash and cash equivalent (A+C) | 15.404 | 18.905 | -19% |
| E. Current financial indebtness | 0 | 0 | |
| F. Current portion of non current borrowings | (14.657) | (10.275) | 43% |
| G. Current borrowingse (E+F) | (14.657) | (10.275) | 43% |
| H. Current net financial indebtness (G+D) | 747 | 8.628 | -91% |
| I. Non current financial indebtness | (11.953) | (12.542) | -5% |
| L. Non current financial indebtness | (11.953) | (12.542) | -5% |
| M. Total financial indebteness (H+L) | (11.207) | (3.912) | 186% |
The Group's reclassified Income Statement for the first nine months of 2022 compared with the corresponding period in 2021 is presented below:
Economic trends - Group B&C Speakers
| (€ thousands) | 9 months | Incidence | 9 months | Incidence |
|---|---|---|---|---|
| 2022 | 2021 | |||
| Revenues | 58.106 | 100,00% | 31.748 | 100,0% |
| Cost of sales | (37.253) | -64,11% | (20.270) | -63,8% |
| Gross margin | 20.853 | 35,89% | 11.478 | 36,2% |
| Other revenues | 172 | 0,30% | 472 | 1,5% |
| Cost of indirect labour | (3.284) | -5,65% | (2.472) | -7,8% |
| Commercial expenses | (717) | -1,23% | (393) | -1,2% |
| General and administrative expenses | (3.205) | -5,52% | (3.000) | -9,4% |
| Ebitda | 13.820 | 23,78% | 6.085 | 19,2% |
| Depreciation and amortiation | (1.505) | -2,59% | (1.510) | -4,8% |
| Writedowns | (91) | -0,16% | (39) | -0,1% |
| Earning before interest and taxes (Ebit) | 12.224 | 21,04% | 4.537 | 14,3% |
| Writedown of investments in non controlled associates | 0 | 0,00% | - 19,18 |
-0,1% |
| Financial costs | (2.926) | -5,04% | (322) | -1,0% |
| Financial income | 1.444 | 2,49% | 533 | 1,7% |
| Earning before taxes (Ebt) | 10.742 | 18,49% | 4.728 | 14,9% |
| Income taxes | (2.834) | -4,88% | (1.198) | -3,8% |
| Profit for the year | 7.908 | 13,61% | 3.531 | 11,1% |
| Minority interest | 0 | 0,00% | 0 | 0,0% |
| Group Net Result | 7.908 | 13,61% | 3.531 | 11,1% |
| Other comprehensive result | 367 | 0,63% | 86 | 0,3% |
| Total Comprehensive result | 8.275 | 14,24% | 3.616 | 11,4% |
Significant events subsequent to 30 September 2022
Also after the end of the first nine months of the year the Group maintained at record levels the volume of production output as well as the turnover recorded (net also of the price list effect). Also the order Backlog remains very interesting at the value of 54.6 million of Euro.
Business outlook
The figures available show that financial year 2022 will end at a level of turnover never previously reached by the Group thanks also to a last quarter in line with the best performance of this fiscal year.
At the moment initial negative consequences for the company's business deriving from the energy crisis in progress are affecting the Company; these negative impacts could become more significant during the winter time.
The Consolidated Balance Sheet and Income Statement for 30 September 2022 are presented below
| (Values in Euro) 2022 2021 ASSETS Fixed assets Tangible assets 2.506.979 2.530.233 Right of use 4.517.035 4.888.298 Goodwill 2.318.181 2.318.181 Other intangible assets 424.085 314.159 Investments in non controlled associates - - Deferred tax assets 997.473 869.899 Other non current assets 499.376 496.824 related parties 6.700 6.700 Total non current assets 11.263.129 11.417.594 Currents assets Inventory 27.529.468 17.325.538 Trade receivables 19.803.068 12.995.603 Tax assets 72.320 267.450 Other current assets 10.931.601 13.680.165 Cash and cash equivalents 7.121.993 8.075.158 Total current assets 65.458.450 52.343.914 Total assets 76.721.579 63.761.508 LIABILITIES Equity Share capital 1.085.089 1.087.901 Other reserves 4.163.895 4.186.497 Foreign exchange reserve 775.889 445.242 Retained earnings 26.796.149 22.656.388 Total equity attributable to shareholders of the parent 32.821.022 28.376.029 Minority interest - - Total equity 32.821.022 28.376.029 Non current liabilities Long-term borrowings 8.391.037 8.620.901 Long-term lease liabilities 3.562.403 3.921.073 related parties 2.918.455 3.524.407 Severance Indemnities 741.087 775.447 Provisions for risk and charges 40.291 40.291 Total non current liabilities 12.734.818 13.357.712 Current liabilities Short-term borrowings 13.557.505 9.183.071 Short-term lease liabilities 1.099.690 1.092.438 related parties 804.783 843.493 Trade liabilities 12.977.113 9.020.141 related parties 81.407 81.227 Tax liabilities 583.031 188.520 Other current liabilities 2.948.400 2.543.597 Total current liabilities 31.165.739 22.027.767 Total Liabilities 76.721.579 63.761.508 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 30 September | 31 December |
|---|---|---|---|
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Values in Euro) |
9 months 2021 |
9 months 2020 |
|---|---|---|
| Revenues | 58.106.278 | 31.748.116 |
| Cost of sales Other revenues Cost of indirect labour |
(37.252.938) 172.317 (3.283.915) |
(20.269.970) 472.242 (2.471.892) |
| Commercial expenses | (716.588) | (393.398) |
| General and administrative expenses | (3.204.661) | (2.999.729) |
| Depreciation and amortization | (1.505.076) | (1.510.017) |
| Writedowns | (91.037) | (38.589) |
| Earning before interest and taxes Writedown of investments in non controlled associates |
12.224.379 - |
4.536.763 (19.182) |
| Financial costs | (2.926.253) | (322.355) |
| related parties | (62.405) | (57.125) |
| Financial income | 1.444.160 | 533.213 |
| Earning before taxes | 10.742.286 | 4.728.438 |
| Income taxes | (2.834.327) | (1.197.883) |
| Profit for the year (A) | 7.907.959 | 3.530.555 |
| Other comprehensive income/(losses) for the year that will not be reclassified in icome statement: Actuarial gain/(losses) on DBO (net of tax) |
36.602 | 4.193 |
| Other comprehensive income/(losses) for the year that will be reclassified in | ||
| icome statement: | ||
| Exchange differences on translating foreign operations | 330.646 | 81.411 |
| Total other comprehensive income/(losses) for the year (B) | 367.248 | 85.604 |
| Total comprehensive income (A) + (B) | 8.275.207 | 3.616.159 |
| Profit attributable to: | ||
| Owners of the parent | 7.907.959 | 3.530.555 |
| Minority interest | - | - |
| Total comprehensive income atributable to: | ||
| Owners of the parent | 8.275.207 | 3.616.159 |
| Minority interest | - | - |
| Basic earning per share | 1,10 | 0,32 |
| Diluted earning per share | 1,10 | 0,32 |
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. Lorenzo Coppini (Investor Relations), Email: [email protected]
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.