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Franchi Umberto Marmi

Annual / Quarterly Financial Statement Mar 18, 2021

4163_10-k_2021-03-18_3b9cab45-0b20-48b3-b43c-5e92292db7a4.pdf

Annual / Quarterly Financial Statement

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Informazione
Regolamentata n.
20138-9-2021
Data/Ora Ricezione
18 Marzo 2021
17:45:03
AIM -Italia/Mercato
Alternativo del Capitale
Societa' : FRANCHI UMBERTO MARMI
Identificativo
Informazione
Regolamentata
: 143757
Nome utilizzatore : FRANCHIUMBERTOMARMIN01 - Nannini
Tipologia : 1.1
Data/Ora Ricezione : 18 Marzo 2021 17:45:03
Data/Ora Inizio
Diffusione presunta
: 18 Marzo 2021 17:45:04
Oggetto : 31, 2020 FUM - The Board of Directors approves the
draft financial statements as of December
Testo del comunicato

Vedi allegato.

PRESS RELEASE

FRANCHI UMBERTO MARMI S.P.A.:

THE BOARD OF DIRECTORS APPROVES THE DRAFT FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020

Sustained revenue growth in the last quarter compared to both the previous period of 2020 and the same period of 2019

  • Total Revenues and Other Income as of December 31, 2020: €51.2 million compared to €65.2 million as of December 31, 2019 (-21.5%), decrease attributable to the effects of the Covid-19 pandemic and substantially concentrated in the second quarter. Strong sales recovery in the last quarter of 2020 of €15.3 million up 53.0% compared to the third quarter of 2020 and up 19.5% compared to the fourth quarter of 2019;
  • Adjusted1 Ebitda as of December 31, 2020: €17.9 million compared to €27.0 million as of December 31, 2019 (-33.6%). Adjusted Ebitda margin is 34.9% of revenues (at December 31, 2019 was 41.3%);
  • Net income of €10.3 million at December 31, 2020 compared to €16.6 million at December 31, 2019;
  • Positive net cash position of €1.0 million as of December 31, 2020 (€6.4 million as of December 31, 2019);
  • Ordinary and extraordinary shareholders' meeting convened to: (i) approve the financial statements on 19 April 2021 with a proposed dividend of €0.241/share corresponding to a payout ratio of 70% and a dividend yield of 2.9% comparing the unit amount to the price of EUR 8.30 per share recorded on 17 March 2021; (ii) amend the Articles of Association mainly in order to adapt them to the new provisions of the AIM Issuers' Regulations as well as to the provisions of Article 2441, paragraph 4, of the Italian Civil Code.
  • To meet with Investors via videoconference on Monday, March 22, 2021 at 6:00 p.m. CET to present the 2020 results.

Alberto Franchi, Chairman and CEO of the Company, commented as follows: "2020 will remain in everyone's memory as a very painful period but also a time of great changes. Our company has worked to take all the necessary measures to protect the safety of our employees; we managed to achieve revenues of more than €51 million, confirming the solidity of our Company, which overcame

1 The Adjustment excludes the effects of non-recurring one-off extraordinary costs related to the business combination with TheSpac SpA through which, after the merger, the Company was listed on the AIM Italia market, as well as those related to the acquisition of 50% of the shares of Ingegner Giulio Faggioni Carrara Srl in January 2021.

a lockdown period, in which we were closed for more than a month, recovering significantly in the last quarter of 2020 with a recovery in revenues even increasing compared to the same period in 2019. We hope that, in the coming months, the situation will improve and the economic outlook for the Carrara marble district and for our Company can become positive again, recovering the results that had been achieved and preparing for a new development cycle.

We are very satisfied because, despite the very complicated period, we never stopped and we completed, at the beginning of this year, the acquisition of 50% of Ingegner Giulio Faggioni Carrara S.r.l. thus improving our strategic positioning and expectations of future profitability.

Many new features have been introduced: we completed the construction of new display areas at our headquarters in Carrara in line with the objectives of Industry 4.0, we signed a partnership with a distributor in Australia where we opened a new showroom and introduced the sale of our products also remotely uploading all our inventory in digital format.

All this has enabled us to maintain our profitability at extraordinary levels with an adjusted EBITDA margin close to 40% and a net profit of over €10 million . The Board of Directors has proposed to the next Shareholders' Meeting the distribution of a dividend equal to 70% of Net Income corresponding to a dividend yield of approximately 3%. [comparing price on March 17, 2021].

In these first months of 2021 we have acquired important orders from China and the United States, our reference markets, and above all we are very confident about the results that we could achieve on the Chinese market, where the exhibition fair of Xiamen has been confirmed in where we will be present with a dedicated stand managed by our local agents. We believe we can return to the levels reached during 2019 both in terms of revenues and profitability and we are confident that all the actions we are putting in place can produce important results allowing us to achieve our growth targets on international markets".

***

Carrara, March 18, 2021 - The Board of Directors of Franchi Umberto Marmi S.p.A., an international leader in the processing and marketing of Carrara marble, listed on the AIM Italia market (Ticker: FUM) (the "Company"), approved the draft financial statements as of December 31, 2020 prepared in accordance with IFRS.

MAIN RESULTS

In fiscal year 2020, FUM achieved Total Revenues and Other Income of €51.2 million compared to €65.2 million recorded in the same period of 2019 (-21.5%). The decline in revenues was mainly concentrated in the lockdown phase (substantially in the second quarter) while the last quarter of 2020 saw a strong recovery in sales reaching €15.3 million (+53% compared to the third quarter of 2020 and +19.5% compared to the fourth quarter of 2019).

Sales held up substantially on the Italian market (€24.3 million in 2020 compared to €24.5 million in 2019) and in the United States (€6.5 million in 2020 compared to €7.0 million in 2019), while there

was a sharp contraction in China (€8.2 million in 2020 compared to €16.3 million in 2019). The result in China can be attributed both to the long period of Chinese and Italian lockdowns but also to logistical difficulties that blocked customer visits to on-site showrooms.

In terms of products sold, there was a significant drop in Calacatta revenues (-€10.7 million compared to 2019) in view of the decline in sales in China where Calacatta is by far the most soughtafter product. This was offset by an increase in Statuario (+€0.9 million compared to 2019), Gioia Venato (+1.8 million compared to 2019) and Bianco Carrara (+1.6 million compared to 2019).

As of December 31, 2020, Adjusted Ebitda amounted to €17.9 million compared to €27.0 million in the same period of the previous year (-33.6%). The decrease is substantially attributable to the contraction in revenues and in particular to lower sales of Calacatta on which industrial margins are particularly high only partially offset by the higher revenues realized by Statuario.

Adjusted Ebitda margin as of December 31, 2020 was 34.9% compared to 41.3% in the same period of the previous year, with profitability essentially holding up given the decline in revenues.

EBITDA is €14.6 million compared to €25.3 million in 2019 (-42.4%), with a margin on revenues of 28.4% compared to 38.8% in fiscal 2019.

EBIT amounted to €13.3 million compared to €24.2 million in the same period last year (-45.0%).

Net Income is €10.3 million compared to €16.6 million in fiscal year 2019 (-38.0%).

Capital expenditure as of December 31, 2020 amounted to €2.1 million, down from €4.9 million in the previous year both due to the effect of the Covid-19 pandemic but mainly due to the fact that activities related to the expansion of exhibition space at the Company's headquarters were substantially completed in the first months of FY2020.

The Net Financial Position as at 31 December 2020 was positive and equal to -€1.0 million compared to -€6.4 million as at December 31, 2019. This result reflects the significant self-financing generated in the period, the increase in working capital related to the increase in inventory in view of the inauguration of the new exhibition spaces at the company's headquarters and the payment facilities granted to Customers as well as the distribution of dividends during 2020.

Significant events as at 31 December 2020 and afterwards

Significant events during 2020 include the business combination with TheSpac S.p.A., already listed on the AIM Italia market through which, following the merger by incorporation of the Company into TheSpac, FUM was listed on the AIM Italia market with effect from October 5, 2020.

In addition, in January 2021 the Company finalized the acquisition of 50% of the shares of Ingegner Giulio Faggioni Carrara S.r.l., owner of an important quarry in the Apuane mining district, through which it has secured an important source of supply of high quality marble (Calacatta and Statuario) thus improving both its strategic positioning and its expected future profitability. Thanks to this important acquisition the Company has guaranteed itself the supply potential to support its growth plan for the future years.

The acquisition has seen a partial reinvestment by the entrepreneur Gualtiero Vanelli through GVM - La civiltà del marmo S.r.l., who has thus acquired 9% of the share capital of FUM, as well as being appointed as a director of the same. GVM in the signed commitments it also guaranteed the reinvestment of €1.5 million in shares of the Company that today has already been made for a total of 12.100 shares, thus bringing the participation of the shareholder GVM to 9.05%, while the remaining part of the investment will be completed during the year 2021.

Impacts and effects of the COVID-19 outbreak

During 2020, the COVID-19 outbreak significantly affected the Company's operations. During the general lockdown in March and April 2020, product shipments and major manufacturing activities were suspended. The Company took immediate action to perform all possible routine maintenance in order to recover as much as possible and prepare for reopening during April-May. The impact on revenues was significant and was inevitably reflected in the first three quarters of the year in which revenues decreased by €16.5 million compared to the same period in 2019. In the first and second quarters in view of the generalized lockdowns both in Italy and in other countries (with particular reference to China and the United States) and then, albeit to a more limited extent, in the third quarter due to travel constraints that prevented customers from coming to the Company's showrooms. The extraordinary commercial result of the last quarter of 2020 partially offset the decrease in revenues accumulated in the first months of the year.

Foreseeable evolution of operations

The first months of 2021 confirm the recovery trend highlighted during the last quarter of 2020 in terms of both revenues and profitability. In particular, the intense commercial activity that the Company is planning for the current year, including participation in the trade fairs in China, scheduled for May, and in Verona - Marmomacc, scheduled for late September/early October should allow it to recover the sales and profitability levels achieved in 2019.

Notice of Call for the Shareholders' Meeting

The Board of Directors resolved to convene the Shareholders' Meeting for April 19, 2021, in a single call, for the approval, in ordinary session, of the financial statements as of December 31, 2020.

In consideration of the economic result resulting from the draft financial statements for 2020 (equal to €10.3 million), the Board of Directors proposed the distribution of a dividend equal to 70% of the Net Profit or equal to €0.241 per share with ISIN IT0005335754.

Moreover, in the context of the same meeting the shareholders will be called upon to approve (i) at extraordinary session, some amendments to the text of the Articles of Association, in order to adapt them, inter alia, to the provisions of the AIM Issuers' Regulations, as last amended, as well as to the provisions of Article 2441, paragraph 4, of the Italian Civil Code, as amended by Law Decree no. 76 2020, regarding the possibility to resolve on capital increases with exclusion of pre-emption rights within the limits of 10% of the pre-existing share capital; and (ii) in the ordinary session, the appointment of Deloitte & Touche S.p.A. as independent auditor for the nine-year period 2021-2028 pursuant to art. 17 of Legislative Decree no. 39/2010, in view of FUM's qualification as "issuer of shares that are widely distributed among the public to a significant extent" pursuant to art. 2-bis, paragraphs 1 and 2 of CONSOB Regulation no. 11971/1999.

Today, the Board of Directors has also verified that all members of the Board of Directors and the Board of Statutory Auditors comply with the requirements for the office, also based on the latest amendments to the AIM Issuers' Regulation. The Directors Maurizia Leto Di Priolo and Roberto Lettieri confirmed compliance with the independence requirements pursuant to art. 148, paragraph 3 of Legislative Decree no. 58 of 24 February 1998.

Financial data presentation to the financial community

Alberto Franchi, President and CEO, Carlo Varni, General Manager and Marco Nannini, CFO will meet with Investors via videoconference on Monday, March 22, 2021 at 6:00 p.m. to present 2020 results. A Q&A session will follow.

To register please use the following link:

https://us02web.zoom.us/meeting/register/tZcldO2srT0rHdAIVOWaY0GNk-btnBYyYVPv

* * *

This press release is available on the Company's website www.franchigroup.it/Investor/comunicatistampapricesensitive and at the EMARKET STORAGE authorized storage facility ().

* * *

The draft annual report and financial statements as at 31 December 2020 will be made available to the public at the Company's registered office and at Borsa Italiana, as well as on the website www.franchigroup.it/Investor/documentifinanziari.

***

Franchi Umberto Marmi, whose origins date back to 1971, is a leading company active in the processing and marketing of blocks and slabs of Carrara marble, a natural stone that is an authentic expression of "Made in Italy" and luxury, with unique features and characteristics on the national and international scene.

Contacts

Franchi Umberto Marmi
S.p.A.
IMI –
Intesa Sanpaolo
Nomad
Image Building:
Media Relations
Via del Bravo n. 14
54033 Carrara (MS)
Tel: +39 [0585 70057]
Largo Mattioli 3
20121 Milano
Simona Raffaelli
Tel: +39 335 12545191
[email protected] franchi
[email protected]
Giulia Rampinelli
Tel: +39 331 5741385
[email protected]

Corporate website: www.fum.it

INCOME STATEMENT AT 31 DECEMBER 2020

STATEMENT OF PROFI T OR LOSS 2020 2019
(Amounts in Euro)
Revenues 50.957.427 64.857.969
Other income 242.936 371.981
Total revenuesand other income 51.200.362 65.229.950
Purchase of raw materials, consumables, goods (21.434.958) (25.808.274)
and changes in inventories
Costs for services (10.635.921) (10.180.904)
Leases and rentals costs (5.820) (1.388)
Personnel costs (3.093.672) (2.706.704)
Provisions for risks and charges - (9.500)
Other operating costs (569.756) (575.011)
Depreciation, amortisation and impairment (1.250.689) (1.110.709)
Impairment of receivables (528.725) (450.196)
Profit/(loss) from investments measured with the
equity method (378.671) (217.332)
Total costs (37.898.212) (41.060.018)
Operating result 13.302.150 24.169.932
Financial income 216.894 121.721
Financial expenses (383.862) (193.566)
Foreign exchange gains / (losses) (106.376) (34.726)
Profit beforetaxation 13.028.806 24.063.361
Taxes on income (2.702.102) (7.476.847)
Net profit for theyear 10.326.704 16.586.514
Earningsper share 0,34 0,54
EBI TDA 14.552.839 25.280.641
ADJUSTED EBI TDA 17.893.832 26.958.892

STAEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2020

STATEMENTSOF FI NANCI AL POSI TI ON December
31, 2020
December 31,
2019
(Amounts in Euro)
Intangible assets 18.244 21.107
Property, plant and equipment 20.376.424 19.466.002
Rights of use 124.192 170.304
Investments 2.332.540 2.542.489
Other non-current assets 433.155 5.012.400
Deferred tax assets 1.189.093 973.557
Total non-current assets 24.473.648 28.185.859
Inventories 19.314.962 17.492.696
Trade receivables 27.289.604 22.335.814
Current financial assets 210.000 208.437
Tax receivables 2.224.732 1.304.122
Other current assets 6.613.948 516.777
Cash and cash equivalents 13.614.049 8.027.342
Total current assets 69.267.294 49.885.188
Total assets 93.740.941 78.071.047
Share capital 6.301.000 6.295.480
Share premium reserve 39.952.418 -
Legal reserve - 20.308
First-time adoption reserve 117.448 (376.924)
Future employee benefits reserve (349.717) (317.672)
Translation reserve (219.762) (278.205)
Other reserve 14.890.346 44.110.821
Net profit for the year 10.326.704 16.586.514
Total equity 71.018.436 66.040.323
Non-current financial liabilities 5.055.556 999.548
Non-current lease liabilities 71.132 116.066
1.429.142 1.869.110
Employee benefits 80.071 79.500
Provisions for risks and charges
Deferred tax liabilities
78.979 175.039
Total non-current liabilities 6.772.936 3.239.263
Current portion of non-current financial 6.943.992 682.752
liabilities
Current financial liabilities 689.168 1.035
Current lease liabilities 49.475 45.494
Trade payables 7.457.770 7.221.787
Tax and social security payables 379.169 429.897
Other current liabilities 488.051 410.496
Total current liabilities 16.007.625 8.791.461
Total liabilities 22.722.505 12.030.724
Total equity and liabilities 93.740.941 78.071.047

STATEMENT OF CASH FLOWS AT 31 DECEMBER 2020

STATEMENT OF CASH FLOWS

Amounts in Euro
A. Cash flowsfromoperating activities 2020 2019
Net profit for theyear 10.326.704 16.586.514
Taxes on income 2.702.102 7.476.847
Interest (income)/expense
(Profit) / loss of Investments
166.969
368.600
(71.844)
217.332
Revaluations of Financial Instruments - (128.822)
(Gains)/losses on the disposal of assets (43.565) 256.267
1.Profit (loss) for theyear beforeincometaxes,
interest, dividendsand gains/losseson disposal
13.520.809 24.336.294
Adjustments for non-monetary items
Allocation to provisions 193.486 147.045
Depreciation and amortisation 1.250.689 1.110.709
Impairment of receivables and inventories 720.420 530.170
2. Cash flowbeforechangesin Net Working 15.685.405 26.124.218
Capital
Changes in Net Working Capital
Decrease/(Increase) in inventories (2.022.569) (2.123.549)
Decrease/(Increase) in trade receivables (5.323.714) 1.868.230
(Decrease)/Increase in trade payables 23.109 (2.980.570)
Decrease/(Increase) in other current assets (1.553.570) 98.456
(Decrease)/Increase in other current liabilities 77.555 22.899
Other changes in Net Working Capital (Deferred
tax assets, tax receivables, deferred tax liabilities,
tax and social security payables)
(599.615) (407.885)
3. Cash flowafter changesin Net Working 6.286.600 22.601.798
Capital
Other adjustments
Interest collected/(paid) (30.721) 204.163
(Taxes on income paid)
Dividends received
(3.385.418) (8.359.341)
323.163
Employee benefits (paid) -
(645.628)
(422.547)
(Use of provisions) (168.301) (583.160)
Cash flowfromoperating activities(A) 2.056.532 13.764.076
B. Cash flowfrominvesting activities
Property, plant and equipment
(Additions) (2.130.925) (4.896.488)
Disposals 51.333 155.618
I ntangibleassets
(Additions) (4.400) (8.289)
Disposals
I nvestments
- -
(Additions) (91.600) (180.801)
Disposals - -
Non-current financial assets
(Additions) - (5.143.919)
Disposals - 873.362
Current financial assets
(Additions) - (208.437)
Disposals 378.235 6.245.719
Cash flowfrominvesting activities(B) (1.797.358) (3.163.234)
C. Cash flowsfromfinancing activities
Third parties resources
Proceeds from bank borrowings 11.000.000 -
Payment of bank borrowings (630.814) (935.169)
Proceeds from current financial liabilities 13.027 1.035
Payment of current financial liabilities (30.691) (4.118.093)
Own resources
Share capital increase - -
Dividends (and dividends advanaces) paid (6.596.688) (9.719.086)
Cash flowfromfinancing activities(C) 3.754.834 (14.771.314)
I ncrease/(decrease) in cash and cash
equivalents(A+-B+-C)
4.014.008 (4.170.471)
Cash and cash equivalentsat January 1 8.027.342 12.197.814
Cash and cash equivalentsfromRelevant 1.572.699 -
Transaction
Cash and cash equivalentsat December 31 13.614.049 8.027.342

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