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B&C Speakers

Earnings Release Mar 21, 2022

4360_10-k_2022-03-21_47615f4f-6c2c-423e-aa8c-d1fbd2efa42e.pdf

Earnings Release

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Informazione
Regolamentata n.
0931-9-2022
Data/Ora Ricezione
21 Marzo 2022
16:24:14
Euronext Star Milan
Societa' : B&C SPEAKERS
Identificativo
Informazione
Regolamentata
: 158861
Nome utilizzatore : BCSPEAKERSN02 - Spapperi
Tipologia : 1.1
Data/Ora Ricezione : 21 Marzo 2022 16:24:14
Data/Ora Inizio
Diffusione presunta
: 21 Marzo 2022 16:24:15
Oggetto : B&C Speakers- 2021 Financials Approval
Testo del comunicato

Vedi allegato.

COMUNICATO STAMPA

B&C Speakers S.p.A.:

The Board of Directors approves the Draft Financial Statement for 2021

  • Consolidated revenues amounted to Euro 45.23 million (rising by 41.5% compared to Euro 31.98 million in 2020);
  • Consolidated EBITDA equal to Euro 8.61 million (up by 68,1% compared to Euro 5.13 million in 2020);
  • Overall Group profit equal to Euro 5.12 million (rising by 210% compared to Euro 1.65 million in 2020);
  • Group Net financial position (negative) equal to Euro 3.9 million (positive and equal to Euro 0.6 million at the end of the 2020 financial year);
  • Group order book at a record level of Euro 27.9 million (Euro 4.2 million as of December 31, 2020).
  • Proposal to distribute to shareholders an ordinary dividend of EUR 0.32 for each share held with an ex-dividend date on May 2, 2022.

Bagno a Ripoli (Florence-ITALY), March 21, 2022 –The Board of Directors of B&C Speakers S.p.A., one of the leading international players in designing, producing, distributing and marketing professional electro-acoustic transducers, approved the Draft Financial Statements for the 2021 fiscal year prepared in accordance with IFRS International Financial Reporting Standards.

CEO Lorenzo Coppini commented: "the year that just ended, has witnessed a strong demand restarting in our reference market, which allowed us to recover much of the ground lost in 2020, both in quantitative and qualitative terms. The first few months of 2022 are confirming the signals of a complete recovery, or even an overtaking, of pre-Covid values. This is happening despite the fact that the general framework remains very challenging, due to the significant increase in the costs of semifinished products, as well as the possible destabilization of the world economy, as a result of the war in Ukraine."

Consolidate Revenues

The reference market of the Group showed significant and growing signs of recovery in 2021 and the turnover is equal to Euro 45.23 million, increasing by 41.5% compared to the same period of 2020, when it was equal to Euro 31.98 million.

The growth in turnover was seen in almost all the areas in which the company operates.

It should be noted that the increase compared to 2020 was mainly focused on the Asian
and European markets, marking an increase of, respectively, Euro 5.5 million (+90%
compared to 2020) and Euro 6.9 million (+57% compared to 2020).
Geographical Area 2021 % 2020 % Change % Change
Latin America 2,704,387 6% 2,037,630 6% 666,757 33%
Europe 19,146,275 42% 12,233,506 38% 6,912,768 57%
Italy 2,784,614 6% 2,413,606 8% 371,008 15%
North America 8,603,430 19% 8,825,250 28% (221,820) -3%
Middle East & Africa 410,788 1% 368,524 1% 42,264 11%
Asia & Pacific
Total revenues
11,583,469
45,232,962
26%
100%
6,096,739
31,975,254
19%
100%
5,486,730
13,257,708
90%
41%

Cost of Sales

The cost of sales was consistent with the same period of 2020 and its incidence on revenues was 64.46% (it was equal to 63.79% in 2020). This trend proves that, despite the higher costs for logistics, also due to the extraordinary use of imports by air from the Far East, and the higher procurement costs of many categories of semi-finished products, especially neodymium magnets, the Group has been able to improve itself by mitigating the impact of these factors, thanks to a process of improving the efficiency of the structure and a very careful repricing policy.

Indirect Personnel

The cost for indirect personnel, while showing a slight increase compared to 2020, decreased its incidence on turnover from 9.20% to 7.74% thanks to the increase in production and sales volumes achieved in this period.

Commercial expenses remain basically unchanged compared to 2020, since the sector trade shows have not restarted yet and the cost containment policies implemented by the Group's Management are still in place.

Administrative and General

Although general and administrative costs increased by 20% compared to 2020, they have seen a reduction in their incidence on turnover; the increase in general and administrative costs was affected, for approximately Euro 180 thousand, by non-recurring costs associated with interventions on the personnel structure.

EBITDA and EBITDA Margin

As a result of the dynamics illustrated above, EBITDA in 2021 is equal to Euro 8.61 million, with an increase of 68% compared to 2020.

EBITDA Margin for 2021 is equal to 19.04% of revenues and is clearly up on the 2020 figure (when it was equal to 16% of revenues).

Depreciation

The depreciation of tangible and intangible fixed assets and rights of use are slightly decreasing compared to 2020 and amounts to Euro 2.01 million (Euro 2.2 Million in 2020).

EBIT and EBIT Margin

EBIT for 2021 amounts to Euro 6.55 million, a significant increase compared to 2020, when it was equal to Euro 2.89 million. EBIT margin is equal to 14.49% of revenues (9.04% in 2020).

Group Net Profit

The Group's net profit at the end of 2021 amounted to Euro 5.12 million and represented 11.31% of consolidated revenues, with an overall increase of 210% compared to 2020.

The overall Net Financial Position is equal to Euro 3.9 million against a positive value of Euro 0.59 million at the end of the 2020 financial year. The Net Financial Position has been mainly affected by the absorption of liquidity from working capital needed to finance the recovery and by the distribution of the dividend equal to Euro 2.9 million, that took place during May 2021

31 december 31 december
(values in Euro thousands) 2021 (a) 2020 (a) Change
A. Cash 8,075 13,415 -40%
C. Other current financial assets 10,829 8,044 35%
D. Cash and cash equivalent (A+C) 18,905 21,459 -12%
E. Current financial indebtness (0) 0
F. Current portion of non current borrowings (10,275) (7,848) 31%
G. Current borrowingse (E+F) (10,276) (7,848) 31%
H. Current net financial indebtness (G+D) 8,629 13,610 -37%
I. Non current financial indebtness (12,542) (13,022) -4%
L. Non current financial indebtness (12,542) (13,022) -4%
M. Total financial indebteness (H+L) (3,913) 590 -763%

The following chart shows the reclassified Group Income Statement relating 2021 financial year, compared with the previous year:

Economic trends - Group B&C Speakers

Economic trends - Group B&C Speakers
(€ thousands) 2021 Incidence 2020 Incidence
Revenues 45,233 100.00% 31,975 100.0%
Cost of sales (29,157) -64.46% (20,397) -63.8%
Gross margin 16,076 35.54% 11,578 36.2%
Other revenues 811 1.79% 541 1.7%
Cost of indirect labour (3,501) -7.74% (2,943) -9.2%
Commercial expenses (633) -1.40% (579) -1.8%
General and administrative expenses (4,141) -9.16% (3,474) -10.9%
Ebitda 8,612 19.04% 5,123 16.0%
Depreciation of tangible assets (1,871) -4.14% (1,989) -6.2%
Amortization of intangible assets (139) -0.31% (194) -0.6%
Writedowns (49) -0.11% (51) -0.2%
Earning before interest and taxes (Ebit) 6,553 14.49% 2,889 9.0%
Writedown of investments in non controlled associates (19) -0.04% - 0.0%
Financial costs (491) -1.09% (983) -3.1%
Financial income 640 1.41% 378 1.2%
Earning before taxes (Ebt) 6,683 14.77% 2,284 7.1%
Income taxes (1,708) -3.78% (367) -1.1%
Profit for the year 4,975 11.00% 1,917 6.0%
Minority interest 0 0.00% 0 0.0%
Group Net Result 4,975 11.00% 1,917 6.0%
Other comprehensive result 142 0.31% (269) -0.8%
Total Comprehensive result 5,117 11.31% 1,647 5.2%

SIGNIFICANT EVENTS AFTER DECEMBER 31, 2021

The order collection, also after the end of 2021, confirmed its brilliant growth trend that now positively involves all the reference markets and brought the Group's portfolio to new record levels - at the date of this press release it was in fact equal to Euro 38.3 million. At the moment, the order flow does not seem to be affected by the dramatic developments in Ukraine, as the Group's turnover in Russia and Ukraine has always been very limited. Nevertheless, it cannot be excluded that a lengthened duration of the conflict could indirectly affect both demand, procurement and logistics costs.

CdA Other Resolutions adopted by the same BoD

The Board convened the Ordinary Shareholders' Meeting, in single call, for April 29, 2022 with the following Agenda

  • 1) Statutory and consolidated financial statements as at December 31, 2021. Related and consequent resolutions;
  • 2) Report on Remuneration pursuant to art. 123-ter of Legislative Decree 58/98. Related and consequent resolutions;
  • 3) Authorization for the purchase and sale of own shares. Related and consequent resolutions.

Il Consiglio di amministrazione propone all'assemblea dell'Emittente di deliberare la distribuzione di un dividendo pari ad Euro 0,32 per ogni azione in circolazione.

La data per lo stacco dei dividendi è prevista a partire dal 2 maggio 2022 – conformemente alle disposizioni impartite dalla Borsa Italiana S.p.A. – con record date al 3 maggio 2022 e payment date al 4 maggio 2022.

The Financial Reporting Manager of B&C Speakers S.p.A., Dr. Francesco Spapperi, hereby certifies pursuant to Art. 154-bis, paragraph 2 of the Italian Legislative Decree No. 58/1998 - that the accounting disclosures as shown in this press release, are consistent with company's accounting documents, books and records.

The Consolidated Balance Sheet and Income Statement for the year 2021 are shown below:

(Values in Euro)
2021
2020
ASSETS
Fixed assets
Tangible assets
2,530,233
2,768,007
Right of use
4,888,298
Goodwill
2,318,181
2,318,181
Other intangible assets
314,159
303,453
Investments in non controlled associates
-
Deferred tax assets
869,899
760,716
Other non current assets
496,824
655,222
related parties
6,700
6,700
Total non current assets
11,417,594
9,967,080
Currents assets
Inventory
17,325,538
12,253,639
Trade receivables
12,995,603
7,084,606
Current tax assets
267,450
1,247,765
Other current assets
13,680,165
8,994,755
Cash and cash equivalents
8,075,158
13,415,179
Total current assets
52,343,914
42,995,944
Total assets
63,761,508
52,963,024
LIABILITIES
Equity
Share capital
1,087,901
1,088,495
Other reserves
4,186,497
4,745,482
Foreign exchange reserve
445,242
296,495
Retained earnings
22,656,388
20,080,251
Total equity attributable to shareholders of the parent
28,376,029
26,210,723
Minority interest
-
Total equity
28,376,029
26,210,723
Non current liabilities
Long-term borrowings
8,620,901
10,754,968
Long-term lease liabilities
3,921,073
related parties
3,524,407
Severance Indemnities
775,447
935,531
Provisions for risk and charges
40,291
39,271
Total non current liabilities
13,357,712
13,996,824
Current liabilities
Short-term borrowings
9,183,071
6,904,309
Short-term lease liabilities
1,092,438
related parties
843,493
Trade liabilities
9,020,141
2,956,786
related parties
81,227
47,976
Current tax liabilities
188,520
110,521
Other current liabilities
2,543,597
1,840,351
Total current liabilities
22,027,767
12,755,477
Total Liabilities
63,761,508
52,963,024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 december 31 December
3,111,501
50,000
-
2,267,054
1,694,474
943,509
596,026

Pagina 6 di 8

(Values in Euro)
------------------ -- -- -- --
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Values in Euro)
2021 2020
Revenues 45,232,962 31,975,254
Cost of sales (29,157,063) (20,396,953)
Other revenues 810,792 541,058
Cost of indirect labour (3,500,996) (2,942,757)
Commercial expenses (632,630) (579,475)
General and administrative expenses (4,141,209) (3,473,916)
Depreciation and amortization (2,009,838) (2,183,381)
Writedowns (49,258) (50,659)
Earning before interest and taxes 6,552,760 2,889,172
Writedown of investments in non controlled associates (19,182) -
Financial costs (490,797) (983,111)
related parties (80,947) (71,839)
Financial income 639,930 377,869
Earning before taxes 6,682,712 2,283,929
Income taxes (1,707,944) (367,380)
Profit for the year (A) 4,974,767 1,916,549
Other comprehensive income/(losses) for the year that will not be reclassified in icome
statement:
Actuarial gain/(losses) on DBO (net of tax) (6,579) (4,826)
Other comprehensive income/(losses) for the year that will be reclassified in icome statement:
Exchange differences on translating foreign operations 148,747 (264,466)
Total other comprehensive income/(losses) for the year (B) 142,168 (269,292)
Total comprehensive income (A) + (B) 5,116,935 1,647,257
Profit attributable to:
Owners of the parent 4,974,767 1,916,549
Minority interest - -
Total comprehensive income atributable to:
Owners of the parent
Minority interest
5,116,935
-
1,647,257
-
Basic earning per share 0.46 0.18
Diluted earning per share 0.46 0.18

The Financial Reporting Manager of B&C Speakers S.p.A., Francesco Spapperi, hereby certifies - pursuant to Art. 154-bis, paragraph 2 of the Italian Legislative Decree No. 58/1998 - that the accounting disclosures as shown in this press release, are consistent with company's accounting documents, books and records.

B&C Speakers S.p.A.

Francesco Spapperi (Investor Relator), Email: [email protected]

B&C Speakers S.p.A. is an international leader in the design, production, distribution and commercialization 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). Counting roughly 150 employees, with approximately 10% of staff assigned to its Research and Development Department, the Company – under the brands of the Group: B&C SPEAKERS, 18SOUND and CIARE carries out all design, production, commercialization and control activities at its facility in Florence and Reggio Emilia, Italy. 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.

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