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Datalogic
Quarterly Report • Nov 10, 2023
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Quarterly Report
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Consolidated Interim Report September 30, 2023
Consolidated Interim Report at September 30, 2023
TABLE OF CONTENTS
| GROUP STRUCTURE | pg. 3 |
|---|---|
| COMPOSITION OF CORPORATE BODIES | pg. 4 |
| REPORT ON OPERATIONS | pg. 5 |
| CONSOLIDATED FINANCIAL STATEMENTS | pg. 20 |
| Consolidated Statement of Financial Position | |
| Consolidated Income Statement | |
| Consolidated Statement of Comprehensive Income | |
| Consolidated Statement of Cash Flows | |
| Consolidated Statement of Changes in Equity | |
EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS pg. 27
Information on the Statement of Financial Position
Information on the Income Statement
ANNEXES
- ⋅ Certification by the Manager responsible for the preparation of the Company's financial reports
- ⋅ Consolidation area
- ⋅ Reconciliation of Alternative Performance Measures
- ⋅ Restatement 2022
DISCLAIMER
This document contains forward-looking statements relating to future events and operating, income and financial results of the Group. These forecasts have by nature an element of risk and uncertainty, as they depend on the materialisation of future events and developments. Actual results may differ even significantly from those disclosed due to a variety of factors, most of which beyond the Group's control.
COMPOSITION OF CORPORATE BODIES
Board of Directors (1)
Romano Volta Executive Chairman (2) Valentina Volta Chief Executive Officer (2) Angelo Manaresi Independent Director Chiara Giovannucci Orlandi Independent Director Filippo Maria Volta Non-Executive Director Vera Negri Zamagni Independent Director Maria Grazia Filippini Independent Director Pietro Todescato Executive Director
Board of Statutory Auditors(3)
Diana Rizzo Chair Elena Lancellotti Standing Auditor Roberto Santagostino Standing Auditor
Giulia De Martino Alternate Auditor Eugenio Burani Alternate Auditor
Patrizia Cornale Alternate Auditor
Control, Risks, Remuneration and Appointments Committee
Angelo Manaresi Chairman Chiara Giovannucci Orlandi Independent Director Vera Negri Zamagni Independent Director
Independent Auditors (4)
Deloitte & Touche S.p.A.
(1) The Board of Directors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2023.
(2) Legal representative before third parties.
(3) The Board of Statutory Auditors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2024.
(4) Deloitte & Touche S.p.A. were appointed Independent Auditors for the nine-year period from 2019 to 2027 by the Shareholders' Meeting held on April 30, 2019 and will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2027.
Report on Operations
Consolidated Interim Report at September 30, 2023
v
DATALOGIC GROUP 5
REPORT ON OPERATIONS
INTRODUCTION
This Consolidated Interim Report at September 30, 2023 was prepared in accordance with Article 154 terof the T.U.F. and is drawn up in accordance with the International Financial Reporting Standards (IAS/IFRS) adopted by the European Union.
The amounts shown in the tables of the Report on Operations are expressed in Euro thousands, while the explanatory notes are expressed in Euro millions.
GROUP PROFILE
Datalogic S.p.A. and its subsidiaries ("Group" or "Datalogic Group") is a global technological leader in the automatic data capture and process automation markets. The Group is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID. Its pioneering solutions help increase the efficiency and quality of processes along the entire value chain in the Retail, Manufacturing, Transportation & Logistics and Healthcare segments.
PERIOD HIGHLIGHTS
The following table summarises the Datalogic Group's key income and financial results at September 30, 2023 versus the same period of the prior year.
| 30.09.2023 | % on Revenue |
30.09.2022 Restated |
% on Revenue |
Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Revenue | 417,025 | 100.0% | 476,496 | 100.0% | (59,471) | -12.5% | -11.6% |
| Adjusted EBITDA | 43,297 | 10.4% | 56,288 | 11.8% | (12,991) | -23.1% | -22.8% |
| Adjusted EBIT | 19,465 | 4.7% | 33,263 | 7.0% | (13,798) | -41.5% | -41.4% |
| EBIT | 13,632 | 3.3% | 27,460 | 5.8% | (13,828) | -50.4% | -50.2% |
| Profit/(Loss) for the period | 10,754 | 2.6% | 15,327 | 3.2% | (4,573) | -29.8% | -29.6% |
| Net financial position (NFP) | (44,172) | (83,640) | 39,468 |
The Group closed nine months 2023 with Revenue from sales of €417.0 million, a percentage decrease of 12.5% (-11.6% net FX) versus €476.5 million recorded in the same period of 2022.
Adjusted EBITDA amounted to €43.3 million, down from first nine months 2022. As a percentage of sales, it stood at 10.4%.
Adjusted EBIT, down from €33.3 million at September 30, 2022, came to €19.5 million.
Net profit for the period amounted to €10.8 million, down from €15.3 million recorded in the same period of 2022.
Sales from new products (Vitality Index) in first nine months 2023 accounted for 6.7% of revenue (7.4% in third quarter 2023), down from 15.5% in first nine months 2022.
Net Financial Debt at September 30, 2023 stood at €44.2 million, an improvement of €39.5 million versus September 30, 2022, and a deterioration of €2.2 million versus December 31, 2022.
ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)
Management uses certain performance measures, not identified as accounting measures under IFRS (NON-GAAP measures), to provide a clearer picture of the Group's performance. The measurement criterion applied by the Group might not be the same as the one adopted by other Groups and the measures might not be comparable with theirs. These performance measures, determined according to provisions set out by the Guidelines on performance measures, issued by ESMA/2015/1415 and adopted by CONSOB with Communication no. 92543 of December 3, 2015, refer only to the performance in the period related to this Consolidated Interim Report and the comparison periods. The performance measures must be considered as supplementary and do not supersede the information provided under the IFRS standards. The main measures adopted are described below.
- Special Items: income items arising from non-recurring events or transactions, restructuring activities, business reorganization, write-downs of fixed assets, ancillary expense from acquisitions of businesses or companies or their disposals, including amortisation resulting from the recognition of purchase price allocation, and any other event deemed by Management not to represent current business activity.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): profit/(loss) for the period from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense) and income tax.
- Adjusted EBITDA: profit/(loss) for the period from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense), income tax and Special Items, as defined above.
- EBIT (Earnings Before Interest, Taxes) or Operating Result: profit/(loss) for the period from continuing operations before financials (including foreign exchange income and expense) and income tax.
- Adjusted EBIT or Operating Result: profit/(loss) for the period from continuing operations before financials (including foreign exchange income and expense), income tax and Special Items, as defined above.
- Net Trade Working Capital: the sum of Inventory and Trade Receivables, less Trade Payables.
- Net Working Capital: the sum of Net Trade Working Capital and Other Current Assets and Liabilities including Provisions for Current Risks and Charges.
- Net Invested Capital: the total of Current and Non-Current Assets, excluding financial assets, less Current and Non-Current Liabilities, excluding financial liabilities.
- NFP (Net Financial Position or Net Financial Debt):calculated in accordance with the provisions of "Warning Notice no. 5/21" of April 29, 2021 issued by CONSOB and referring to ESMA guideline 32-382-1138 of March 4, 2021.
- Cash Flow from Operations: the sum of Adjusted EBITDA, changes in Net Trade Working Capital, expenditure in tangible and intangible fixed assets (excluding fixed assets under right of use recognised during the year according to IFRS 16), tax paid, financial expense/income, changes in Other Current Assets and Liabilities, and Special Items, as defined above, while excluding any other changes related to equity (such as dividend distributions and/or the purchase of treasury shares), to transactions of an extraordinary nature, the repayment and/or taking out of bank loans and/or other financial items in the NFP, and any other transaction that cannot be directly attributed to the company's business operations.
GROUP RECLASSIFIED INCOME RESULTS
The following table shows the main items of the income statement for the period versus the prior period, the results of which were restated as required by IAS 1 following certain reclassifications of cost items from operating costs to cost of goods sold and among the different uses of operating costs, as well as the effects of the purchase price allocation (PPA) of Pekat S.r.o., for details of which reference is made to Annex 4 of this document:
| 30.09.2023 | 30.09.2022 | Change | % chg. | |||
|---|---|---|---|---|---|---|
| Restated | ||||||
| Revenue | 417,025 | 100.0% | 476,496 | 100.0% | (59,471) | -12.5% |
| Cost of goods sold | (239,973) | -57.5% | (284,147) | -59.6% | 44,174 | -15.5% |
| Gross Operating Margin | 177,052 | 42.5% | 192,349 | 40.4% | (15,297) | -8.0% |
| Research and Development expense | (45,931) | -11.0% | (45,089) | -9.5% | (842) | 1.9% |
| Distribution expense | (72,833) | -17.5% | (72,466) | -15.2% | (367) | 0.5% |
| Administrative and General expense | (38,558) | -9.2% | (40,975) | -8.6% | 2,417 | -5.9% |
| Other (expense) income | (265) | -0.1% | (556) | -0.1% | 291 | -52.3% |
| Total operating costs and other expense | (157,587) | -37.8% | (159,086) | -33.4% | 1,499 | -0.9% |
| Adjusted EBIT | 19,465 | 4.7% | 33,263 | 7.0% | (13,798) | -41.5% |
| Special Items-Other (Expense) and Income | (2,277) | -0.5% | (1,777) | -0.4% | (500) | 28.1% |
| Special Items- D&A from acquisitions | (3,556) | -0.9% | (4,026) | -0.8% | 470 | -11.7% |
| EBIT | 13,632 | 3.3% | 27,460 | 5.8% | (13,828) | -50.4% |
| Financials | 1,542 | 0.4% | (2,109) | -0.4% | 3,651 | n.a. |
| Foreign exchange gains/(losses) | (2,219) | -0.5% | (6,667) | -1.4% | 4,448 | -66.7% |
| EBT | 12,955 | 3.1% | 18,684 | 3.9% | (5,729) | -30.7% |
| Tax | (2,201) | -0.5% | (3,357) | -0.7% | 1,156 | -34.4% |
| Profit/(Loss) for the period | 10,754 | 2.6% | 15,327 | 3.2% | (4,573) | -29.8% |
| EBIT | 13,632 | 3.3% | 27,460 | 5.8% | (13,828) | -50.4% |
| Special Items -Other (Expense) and Income | 2,277 | 0.5% | 1,777 | 0.4% | 500 | 28.1% |
| Special Items - D&A from acquisitions | 3,556 | 0.9% | 4,026 | 0.8% | (470) | -11.7% |
| Depreciation Tang. Fixed Assets and Rights of Use |
12,084 | 2.9% | 13,513 | 2.8% | (1,429) | -10.6% |
| Amortisation Intang. Fixed Assets | 11,748 | 2.8% | 9,512 | 2.0% | 2,236 | 23.5% |
| Adjusted EBITDA | 43,297 | 10.4% | 56,288 | 11.8% | (12,991) | -23.1% |
Consolidated revenue amounted to €417.0 million at September 30, 2023, down by 12.5% versus €476.5 million in first nine months 2022, with declines affecting all geographical areas.
The breakdown by geographical area of Group revenue for the period, versus the same period of the prior year, is shown in the table below:
| 30.09.2023 | % | 30.09.2022 | % | Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Italy | 42,793 | 10.3% | 46,690 | 9.8% | (3,896) | -8.3% | -8.3% |
| EMEAI (excluding Italy) | 184,563 | 44.3% | 209,494 | 44.0% | (24,931) | -11.9% | -11.7% |
| Total EMEAI | 227,356 | 54.5% | 256,183 | 53.8% | (28,827) | -11.3% | -11.1% |
| Americas | 134,890 | 32.3% | 147,110 | 30.9% | (12,220) | -8.3% | -7.6% |
| APAC | 54,779 | 13.1% | 73,203 | 15.4% | (18,424) | -25.2% | -21.2% |
| Total revenue | 417,025 | 100.0% | 476,496 | 100.0% | (59,471) | -12.5% | -11.6% |
EMEAI was down by 11.3% in first nine months 2023, with Italy dropping by 8.3%. Americas dropped by 8.3%, while APAC fell more sharply with a 25.2% decline versus the same period of 2022.
The Gross Operating Margin, amounting to €177.1 million versus €192.3 million at September 30, 2022, improved as a percentage of sales, standing at 42.5% versus 40.4% in the same period of 2022, thanks to positive trend in price and mix effect and industrial efficiencies, which offset the negative impact of reduced sales.
Operating costs and other expense amounted to €157.6 million (€159.1 million at September 30, 2022); while decreasing in absolute value, they increased in terms of their percentage of sales from 33.4% to 37.8%, especially on research and development and distribution expense.
Research and Development expense, amounting to €45.9 million, increased by 1.9% versus September 30, 2022. Total monetary costs in R&D, before capitalisation of internal costs and without amortisation and depreciation (R&D Cash Out), amounted to €46.8 million (€46.4 million in the same period of the prior year), with a percentage of sales of 11.2% (9.7% in first nine months 2022).
Distribution expense amounted to €72.8 million, slightly higher than in first nine months 2022 (€72.5 million in the same period of 2022), with the percentage of revenue increasing to 17.5% from 15.2% in the same period of 2022.
Administrative and General Expenseamounted to €38.6 million at September 30, 2023, down by 5.9% versus first nine months 2022, and up as a percentage of sales from 8.6% to 9.2%.
Adjusted EBITDA came to €43.3 million, with an Adjusted EBITDA margin at 10.4% of sales, decreasing by 1.4% from 11.8% recorded in first nine months 2022, due to the higher impact of operating costs as a result of the reduction in sales, partly offset by the improvement in the gross operating margin.
Adjusted EBIT stood at 4.7% of revenue and amounted to €19.5 million (€33.3 million at September 30, 2022).
Financials closed with a negative €0.7 million, improving by €8.1 million versus September 30, 2022, thanks to favourable exchange rate differences in the current period and the income from the disposal of the 15% minority interest still held in Solution Net Systems LLC (SNS).
Net profit for the period amounted to €10.7 million, or 2.6% of revenue (€15.3 million at September 30, 2022, or 3.2% of revenue).
DIVISIONAL INCOME RESULTS FOR THE PERIOD
Operating segments are identified based on operating reports used at the highest decision-making level to allocate resources and assess results. The operating segments are shown below:
- Datalogic represents the Group's core business and designs and produces barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID that help increase the efficiency and quality of processes in the Retail, Manufacturing, Transportation & Logistics and Healthcare segments, along the entire value chain.
- Informatics sells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium-sized companies.
The tables below show the comparison of Revenue and Adjusted EBITDA by Division in the period versus the same period of the prior year:
REVENUE BY DIVISION
| 30.09.2023 | % | 30.09.2022 | % | Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Datalogic | 404,800 | 97.1% | 464,195 | 97.4% | (59,395) | -12.8% | -11.9% |
| Informatics | 12,634 | 3.0% | 13,734 | 2.9% | (1,100) | -8.0% | -7.2% |
| Intersegment adjustments | (409) | -0.1% | (1,433) | -0.3% | 1,024 | ||
| Total revenue | 417,025 100.0% | 476,496 | 100.0% | (59,471) | -12.5% | -11.6% |
ADJUSTED EBITDA BY DIVISION
| 30.09.2023 | % on | 30.09.2022 | % on | Change | % chg. | |
|---|---|---|---|---|---|---|
| Revenue | Revenue | |||||
| Datalogic | 40,998 | 10.1% | 54,717 | 11.8% | (13,719) | -25.1% |
| Informatics | 2,145 | 17.0% | 1,813 | 13.2% | 332 | 18.3% |
| Intersegment adjustments | 154 | (242) | 396 | |||
| Total Adjusted EBITDA | 43,297 | 10.4% | 56,288 | 11.8% | (12,991) | -23.1% |
DATALOGIC DIVISION
The Datalogicdivision reported revenuefrom sales of €404.8 million at September 30, 2023, down by 12.8% versus the same period of 2022. The geographical area that most affected the decline was APAC, down by 25.2%, followed by EMEAI with an 11.3% decline, and Americas with a 9.0% decrease.
The division's adjusted EBITDA amounted to €41.0 million, equal to 10.1% of sales (11.8% at September 30, 2022).
To better align with its strategic goals and prioritize product and solution offerings, starting from the first quarter of the current year, Datalogic reviewed its operating model and introduced two new Market Segments, which feature distinct sales models, customers with varying purchasing needs, and different stakeholders: Data Capture and Industrial Automation.
Reflecting the new operating model, the revenue breakdown for the Datalogic Division is now presented by the new segments, in place of the previous breakdown by Industries:
| 30.09.2023 | % | 30.09.2022 | % | Change | % chg. | % chg. net FX |
|
|---|---|---|---|---|---|---|---|
| Data Capture | 250,426 | 61.9% | 288,249 | 62.1% | (37,823) | -13.1% | -12.3% |
| Industrial Automation | 154,374 | 38.1% | 175,946 | 37.9% | (21,572) | -12.3% | -11.2% |
| Total revenue | 404,800 | 100.0% | 464,195 | 100.0% | (59,395) | -12.8% | -11.9% |
Data Capture
The Data Capture segment, with 61.9% of divisional sales (62.1% at September 30, 2022), fell by 13.1% versus first nine months 2022, across all geographical areas.
Industrial Automation
The Industrial Automation segment declined by 12.3% in first nine months 2023, with decreases reported across all geographical areas, particularly in APAC, while EMEAI and Americas fell less.
INFORMATICS DIVISION
The Informatics Division recorded sales of €12.6 million in first nine months 2023, down versus the same period of 2022.
The adjusted EBITDA margin in first nine months stood at 17.0%, improving by 3.8% versus 13.2% in the same period of the prior year.
GROUP RECLASSIFIED INCOME RESULTS FOR THIRD QUARTER
The following statement summarises the Datalogic Group's key income and financial results of third quarter 2023 versus the same quarter of the prior year:
| 30.09.2023 | Quarter ended % on |
30.09.2022 | % on | Change | % chg. | % chg. | |
|---|---|---|---|---|---|---|---|
| Revenue | Restated | Revenue | net FX | ||||
| Revenue | 119,050 | 100.0% | 161,897 | 100.0% | (42,847) | -26.5% | -24.3% |
| Adjusted EBITDA | 10,286 | 8.6% | 22,032 | 13.6% | (11,746) | -53.3% | -57.6% |
| Adjusted EBIT | 2,511 | 2.1% | 14,045 | 8.7% | (11,534) | -82.1% | -89.5% |
| EBIT | 1,002 | 0.8% | 12,149 | 7.5% | (11,147) | -91.8% | -100.3% |
| Profit/(Loss) for the period | (1,367) | -1.1% | 6,485 | 4.0% | (7,852) | -121.1% | -137.2% |
In third quarter 2023, revenue decreased by €42.8 million in absolute terms and by 26.5% in percentage terms to €119.1 million.
The breakdown of Group revenue by geographical area in third quarter 2023 versus the same quarter of 2022 is shown below:
| Quarter ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 30.09.2023 | % | 30.09.2022 | % | Change | % chg. | % chg. net FX |
|||
| Italy | 12,123 | 10.2% | 14,962 | 9.2% | (2,839) | -19.0% | -19.0% | ||
| EMEAI (excluding Italy) | 51,226 | 43.0% | 70,874 | 43.8% | (19,648) | -27.7% | -26.7% | ||
| Total EMEAI | 63,349 | 53.2% | 85,836 | 53.0% | (22,488) | -26.2% | -25.4% | ||
| Americas | 43,248 | 36.3% | 50,933 | 31.5% | (7,685) | -15.1% | -12.3% | ||
| APAC | 12,453 | 10.5% | 25,127 | 15.5% | (12,675) | -50.4% | -45.3% | ||
| Total revenue | 119,050 | 100.0% | 161,897 | 100.0% | (42,848) | -26.5% | -24.3% |
Sales in the third quarter dropped across all geographical areas, especially in APAC and EMEAI.
Adjusted EBITDA in the quarter came to €10.3 million (8.6% of revenue), down versus 13.6% recorded in third quarter 2022.
In the quarter, the Group posted a net loss of €1.4 million (-1.1% of sales) versus a profit of €6.5 million in third quarter 2022 (4.0% of sales).
DIVISIONAL INCOME RESULTS OF THE THIRD QUARTER
The tables below show the trend in Revenue and Adjusted EBITDA by division in third quarter 2023 versus the same quarter of 2022:
REVENUE BY DIVISION
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 30.09.2023 | % | 30.09.2022 Restated |
% | Change | % | % chg. net FX |
|
| Datalogic | 114,858 | 96.5% | 157,541 | 97.3% | (42,683) | -27.1% | -25.0% |
| Informatics | 4,385 | 3.7% | 5,222 | 3.2% | (837) | -16.0% | -13.0% |
| Intersegment adjustments | (193) | (865) | 672 | ||||
| Total revenue | 119,050 | 100.0% | 161,897 | 100.0% | (42,847) | -26.5% | -24.3% |
ADJUSTED EBITDA BY DIVISION
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 30.09.2023 | % on | 30.09.2022 | % on | Change | % chg. | |||
| Revenue | Revenue | |||||||
| Datalogic | 9,514 | 8.3% | 21,824 | 13.9% | (12,310) | -56.4% | ||
| Informatics | 734 | 16.7% | 390 | 7.5% | 344 | 88.2% | ||
| Adjustments | 37 | -19.2% | -183 | 21.2% | 220 | |||
| Total Adjusted EBITDA | 10,285 | 8.6% | 22,031 | 13.6% | (11,746) | -53.3% |
DATALOGIC DIVISION
In third quarter 2023, the Datalogic division reported sales of €115.0 million, down by 27.1% versus the same quarter of 2022.
Adjusted EBITDA of the division came to €9.5 million, 8.3% as a percentage of sales, a deterioration from both third quarter 2022 and the first two quarters of 2023.
The breakdown of Datalogic Division revenue by the new segments is shown below:
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 30.09.2023 | % 30.09.2022 |
% | Change | % | % chg. net | ||
| FX | |||||||
| Data Capture | 71,553 | 62.3% | 97,572 | 61.9% | (26,019) | -26.7% | -24.5% |
| Industrial Automation | 43,305 | 37.7% | 59,969 | 38.1% | (16,664) | -27.8% | -25.9% |
| Total revenue | 114,858 | 100.0% | 157,541 | 100.0% | (42,683) | -27.1% | -25.0% |
Data Capture
The Data Capture segment, with 62.3% of divisional sales (61.9% in third quarter 2022), fell by 26.7% versus third quarter 2022. The decline is witnessed across all geographical areas.
Industrial Automation
The Industrial Automation segment recorded a 27.8% decline in third quarter 2023, affected by all geographical areas, APAC in particular.
INFORMATICS DIVISION
In third quarter 2023, the Informatics Division's revenue dropped by 16.0%. EBITDA came to €0.7 million, accounting for 16.7% of revenue (€0.4 million in third quarter 2022, 7.5% of revenue).
GROUP RECLASSIFIED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD
| 30.09.2023 | 31.12.2022 | Change | % chg. | |
|---|---|---|---|---|
| Intangible fixed assets | 89,742 | 91,971 | (2,229) | -2.4% |
| Goodwill | 213,137 | 212,043 | 1,094 | 0.5% |
| Tangible fixed assets | 107,298 | 114,557 | (7,259) | -6.3% |
| Financial assets and investments in associates | 8,148 | 8,679 | (531) | -6.1% |
| Other fixed assets | 55,373 | 56,975 | (1,602) | -2.8% |
| Fixed Assets | 473,698 | 484,225 | (10,527) | -2.2% |
| Trade receivables | 54,380 | 91,299 | (36,919) | -40.4% |
| Trade payables | (85,986) | (112,054) | 26,068 | -23.3% |
| Inventory | 123,989 | 129,824 | (5,835) | -4.5% |
| Net Trade Working Capital | 92,383 | 109,069 | (16,686) | -15.3% |
| Other current assets | 33,313 | 32,681 | 632 | 1.9% |
| Other liabilities and provisions for current risks | (62,229) | (71,605) | 9,376 | -13.1% |
| Net Working Capital | 63,467 | 70,145 | (6,678) | -9.5% |
| Other non-current liabilities | (48,031) | (49,440) | 1,409 | -2.8% |
| Post-employment benefits | (5,816) | (6,163) | 347 | -5.6% |
| Provisions for non-current risks | (5,155) | (5,193) | 38 | -0.7% |
| Net Invested Capital | 478,163 | 493,574 | (15,411) | -3.1% |
| Equity | (433,991) | (451,567) | 17,576 | -3.9% |
| Net financial position (NFP) | (44,172) | (42,007) | (2,165) | 5.2% |
The following table shows the main financial and equity items at September 30, 2023 versus December 31, 2022.
Net Invested Capital, at €478.2 million (€493.6 million at December 31, 2022), shows an overall decrease of €15.4 million, of which €6.7 million on Net Working Capital and €10.5 million on Fixed Capital.
Fixed Assets, amounting to €473.7 million (€484.2 million at December 31, 2022), dropped by €10.5 million, due mainly to the decrease in Tangible and Intangible Fixed Assets from amortisation and depreciation in the period, while translation differences were positive and amounted to €2.4 million (of which €1.1 million recognized on goodwill).
Net Trade Working Capital at September 30, 2023 amounted to €92.4 million and decreased by €16.7 million versus December 31, 2022, with the percentage of sales decreasing from 16.7% at December 31, 2022 to 15.5% at September 30, 2023. The change in the period is affected by a decrease in trade receivables of €36.9 million and a decrease in inventory of €5.8 million, offset by a decrease in trade payables of €26.1 million.
30.09.2023 30.09.2022 Change Net financial position (Financial debt) beginning of period (42,007) (26,060) (15,947) Adjusted EBITDA 43,297 56,288 (12,991) Change in net trade working capital 16,686 (58,093) 74,779 Other changes in net working capital and special items (12,058) (971) (11,087) Net expenditure (18,024) (15,853) (2,171) Tax paid (4,769) (4,203) (566) Net financial income (expense) (4,762) (8,753) 3,991 Cash Flow from Operations 20,370 (31,585) 51,955 Dividend distribution (17,034) (16,934) (100) Sale (Purchase) of treasury shares (13,360) - (13,360) Disinvestments (investments) of financial assets 4,085 5,693 (1,608) Acquisitions - (15,994) 15,994 Other changes 3,774 1,240 2,534 Change in Net Financial Position (2,165) (57,580) 55,414 Net financial position (financial debt) end of period (44,172) (83,640) 39,467
The Net Financial Position at September 30, 2023 stood at a negative €44.2 million. The cash flows that led to the change in the consolidated Net Financial Position versus December 31, 2022 are detailed below.
Cash Flow from Operations at September 30, 2023 closed at a positive €20.4 million, improving by €52.0 million versus a negative €31.6 million in first nine months 2022. The positive change is attributable mainly to the cash generation of Net Working Capital. The Net Financial Position stood at €44.2 million, deteriorating slightly by €2.1 million.
At September 30, 2023, the Net Financial Debt is shown below:
| 30.09.2023 | 31.12.2022 | |
|---|---|---|
| A. Cash | 70,088 | 107,469 |
| B. Cash equivalents | - | 13 |
| C. Other current financial assets | - | - |
| D. Liquid assets (A) + (B) + (C) | 70,088 | 107,482 |
| E. Current financial debt | 5,816 | 36,612 |
| E1. of which lease payables | 3,978 | 4,164 |
| F. Current portion of non-current financial debt | 14,669 | 33,810 |
| G. Current Financial Debt (E) + (F) | 20,485 | 70,422 |
| H. Current Net Financial Debt (Financial Position) (G) -(D) | (49,603) | (37,060) |
| I. Non-current financial debt | 93,775 | 79,067 |
| I1. of which lease payables | 8,374 | 11,962 |
| J. Debt instruments | - | - |
| K. Trade and other non-current payables | - | - |
| L. Non-Current Financial Debt (I) + (J) + (K) | 93,775 | 79,067 |
| M. Total Net Financial Debt/(Net Financial Position) (H) + (L) | 44,172 | 42,007 |
At September 30, 2023, the Group had outstanding financial credit lines of approximately €290.0 million, of which approximately €200.0 million committed. Undrawn and readily available financial lines amounted to €190.0 million.
Indirect and conditional debt at September 30, 2023 is represented exclusively by the Group's provision for postemployment benefits of €5.8 million.
SIGNIFICANT EVENTS IN THE PERIOD
On April 3, 2023, a transaction was finalized to transfer the 15% minority interest still held in Solution Net Systems LLC (SNS) by the subsidiary Datalogic USA Inc..
On July 1, 2023, Pietro Todescato, a key management personnel, left the Group due to age limit. Mr. Todescato will continue to serve as a director of Datalogic S.p.A..
RECLASSIFICATION OF INCOME STATEMENT ITEMS
Starting from the first quarter of the current year, to provide a clearer picture of Group performance, certain costs related mainly to installations, previously shown in distribution expense, have been classified in cost of goods sold; additionally, certain quality-related expense has been itemized and allocated based on the intended purpose. Comparative figures have been consistently restated; reference is made to the table in Annex 4 of this document for details of the amounts.
GOVERNANCE
On April 27, 2023, the Shareholders' Meeting approved the Financial Statements at December 31, 2022, and reviewed the Group's Consolidated Financial Statements at December 31, 2022, and resolved to distribute an ordinary unit dividend, gross of tax, of 30 Euro cents per share, for a maximum total amount of €17.0 million.
The same Meeting also resolved to:
- set, pursuant to and for the purposes of Article 20 of the Bylaws, in the amount of €2.5 million, the maximum global annual compensation to be granted to all the members of the Board of Directors, including those holding strategic responsibilities for the current year (2023) and for the portion of the following year (2024), until the date of approval of the Company's 2023 financial statements, with the explicit exclusion of compensation plans based on financial instruments approved by the Shareholders' Meeting, leaving to the discretion of the Board itself any decision regarding the allocation of the above maximum global amount among the different Directors;
- approve the 2023 remuneration policy set out in section one of the Report on Remuneration Policy and on Compensation Paid and to vote in favour of compensation paid in 2022 set out in section two of the Report;
- authorize the Board of Directors, pursuant to and in accordance with Article 2357 et seq. of the Italian Civil Code and Article 132 of Legislative Decree no. 58 of February 24, 1998, to carry out transactions involving the purchase of the Company's treasury shares, on one or more occasions, within 18 months from the date of this resolution, concurrently revoking, for the portion unexecuted as of the date of the Shareholders' Meeting, the authorization to the Board of Directors to purchase the Company's treasury shares resolved by the Shareholders' Meeting on April 29, 2022.
RUSSIAN-UKRAINIAN CONFLICT
The socio-political tensions that escalated into a conflict between Russia and Ukraine on February 24, 2022, the developments of which are unpredictable to date, have led Western countries to impose economic sanctions on Russia. The Group has no offices in the countries currently directly affected by the conflict, nor do they represent significant outlet or supply markets for it. The ongoing conflict has triggered inflationary pressure, which has persisted since last year and into 2023, impacting mainly energy and certain commodity prices, and contributing to market volatility, leading to an increase in interest rates.
The potential effects of this situation on the Group's income and financial results are constantly monitored.
Since the outbreak of the conflict and the adoption of sanctions by the EU against Russia, a cross-functional working group has been established to assess and ascertain (including monitoring of "Denied Parties"), from a technical point of view, which Datalogic products and which business partner relationships could potentially be subject to sanctions. Following entry into force of the ninth European sanctions package, the Group companies have suspended all sales and post-sales activities with Russia (trade with Belarus had already been blocked) and have implemented control systems in order to prevent business transactions with sanctioned countries.
EVENTS AFTER THE END OF THE PERIOD
Nothing to report.
BUSINESS OUTLOOK
The macroeconomic outlook for 2023 confirms a transition from a state of uncertainty to one marked by reduced investment and consumption. This is due to persistent inflationary pressure, restrictive monetary policies, and continued geopolitical tensions.
Demand continues to pose difficulties. All of the Group's main end markets are still feeling the effects of lower investment, leading to longer order times, while the trend of inventory reduction in distribution channels continues. In the fourth quarter, business conditions and revenue levels are expected to remain largely unchanged from the previous quarter.
Nevertheless, the Group remains committed to achieving medium- to long-term growth and continues to invest in research and development. The aim is to be ready with increasingly innovative products and solutions for its customers as markets level out, projected starting from the latter part of 2024. In an effort to alleviate the short-term impacts of declining volumes on profitability, the Group also continues to focus on constant efficiency and cost optimization actions.
SECONDARY LOCATIONS
The Parent Company has no secondary locations.
Chairman of the Board of Directors (Romano Volta)
Consolidated Financial Statements
Consolidated Interim Report at September 30, 2023
DATALOGIC GROUP 20
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| ASSETS (Euro/000) | Notes | 30.09.2023 | 31.12.2022 |
|---|---|---|---|
| A) Non-current assets (1+2+3+4+5+6+7) | 473,698 | 484,225 | |
| 1) Tangible fixed assets | 95,271 | 98,799 | |
| Land | 1 | 12,809 | 12,740 |
| Buildings | 1 | 52,059 | 52,449 |
| Other assets | 1 | 25,619 | 29,825 |
| Fixed assets under construction and advances | 1 | 4,784 | 3,785 |
| 2) Intangible fixed assets | 302,879 | 304,014 | |
| Goodwill | 2 | 213,137 | 212,043 |
| Development costs | 2 | 34,926 | 27,209 |
| Other | 2 | 37,457 | 43,206 |
| Fixed assets under construction and advances | 2 | 17,359 | 21,556 |
| 3) Right of use fixed assets | 3 | 12,027 | 15,758 |
| 4) Investments in associates | 4 | 544 | 560 |
| 5) Non-current financial assets | 6 | 7,604 | 8,119 |
| 6) Trade and other receivables | 7 | 781 | 768 |
| 7) Deferred tax assets | 12 | 54,592 | 56,207 |
| B) Current assets (8+9+10+11+12) | 281,770 | 361,286 | |
| 8) Inventory | 123,989 | 129,824 | |
| Raw and ancillary materials and consumables | 8 | 59,129 | 62,503 |
| Work in progress and semi-finished products | 8 | 22,099 | 25,864 |
| Finished products and goods | 8 | 42,761 | 41,457 |
| 9) Trade and other receivables | 76,425 | 109,845 | |
| Trade receivables | 7 | 54,380 | 91,299 |
| of which associates | 7 | 1,463 | 2,861 |
| of which related parties | 7 | 11 | 11 |
| Other receivables, accrued income and prepaid expense | 7 | 22,045 | 18,546 |
| 10) Tax receivables | 9 | 11,268 | 14,135 |
| of which Parent Company | - | 1,807 | |
| 11) Current financial receivables | - | - | |
| 12) Cash and cash equivalents | 5 | 70,088 | 107,482 |
| Total Assets (A+B) | 755,468 | 845,511 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| LIABILITIES (Euro/000) | Notes | 30.09.2023 | 31.12.2022 |
|---|---|---|---|
| A) Total Equity (1+2+3+4+5+6) | 10 | 433,991 | 451,567 |
| 1) Share capital | 10 | 30,392 | 30,392 |
| 2) Reserves | 10 | 121,721 | 132,266 |
| 3) Retained earnings (losses) | 10 | 267,774 | 255,840 |
| 4) Profit (loss) for the period | 10 | 10,794 | 29,550 |
| 5) Group Equity | 10 | 430,681 | 448,048 |
| Profit (loss) for the period attributable to non-controlling interests | 10 | (40) | 576 |
| Share capital attributable to non-controlling interests | 10 | 3,350 | 2,943 |
| 6) Equity attributable to non-controlling interests | 3,310 | 3,519 | |
| B) Non-current liabilities (7+8+9+10+11+12) | 152,777 | 139,863 | |
| 7) Non-current financial payables | 11 | 93,775 | 79,067 |
| 8) Tax payables | - | - | |
| 9) Deferred tax liabilities | 12 | 27,577 | 28,680 |
| 10) Provisions for post-employment and retirement benefits | 13 | 5,816 | 6,163 |
| 11) Provisions for non-current risks and charges | 14 | 5,155 | 5,193 |
| 12) Other liabilities | 15 | 20,454 | 20,760 |
| C) Current liabilities (13+14+15+16) | 168,700 | 254,081 | |
| 13) Trade and other payables | 140,024 | 166,713 | |
| Trade payables | 15 | 85,986 | 112,054 |
| of which associates | 15 | 64 | 101 |
| of which related parties | - | 24 | |
| Other payables, accrued expense and deferred income | 15 | 54,038 | 54,659 |
| 14) Tax payables | 9 | 5,319 | 13,478 |
| of which Parent Company | - | 2,013 | |
| 15) Provisions for current risks and charges | 14 | 2,872 | 3,468 |
| 16) Current financial payables | 11 | 20,485 | 70,422 |
| Total Liabilities (A+B+C) | 755,468 | 845,511 |
CONSOLIDATED INCOME STATEMENT
| (Euro/000) | Notes | 30.09.2023 | 30.09.2022 |
|---|---|---|---|
| Restated | |||
| 1) Revenue | 16 | 417,025 | 476,496 |
| Revenue from sale of products | 382,701 | 442,691 | |
| Revenue from services | 34,324 | 33,805 | |
| of which related parties and associates | 5,585 | 9,736 | |
| 2) Cost of goods sold | 17 | 240,076 | 284,562 |
| of which related parties and associates | 235 | 380 | |
| Gross operating margin (1-2) | 176,949 | 191,934 | |
| 3) Other revenue | 18 | 1,540 | 1,152 |
| 4) Research and development expense | 17 | 47,600 | 46,179 |
| of which related parties and associates | 541 | 463 | |
| 5) Distribution expense | 17 | 73,922 | 73,773 |
| of which related parties and associates | 146 | 139 | |
| 6) Administrative and general expense | 17 | 41,530 | 43,966 |
| of which related parties and associates | 124 | 146 | |
| 7) Other operating expense | 17 | 1,805 | 1,708 |
| Total operating costs | 164,857 | 165,626 | |
| EBIT | 13,632 | 27,460 | |
| 8) Financial income | 19 | 18,180 | 33,533 |
| 9) Financial expense | 19 | 18,857 | 42,309 |
| Financials (8-9) | (677) | (8,776) | |
| Profit/(Loss) before tax from continuing operations | 12,955 | 18,684 | |
| Income tax | 20 | 2,201 | 3,357 |
| Profit/(Loss) for the period | 10,754 | 15,327 | |
| Basic earnings/(loss) per share (€) | 22 | 0.19 | 0.27 |
| Diluted earnings/(loss) per share (€) | 22 | 0.19 | 0.27 |
| Attributable to: | |||
| Shareholders of the Parent Company | 10,794 | 15,062 | |
| Non-controlling interests | (40) | 265 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Notes | 30.09.2023 | 30.09.2022 | |
|---|---|---|---|
| (Euro/000) | Restated | ||
| Profit/(Loss) for the period | 10,754 | 15,327 | |
| Other items of the statement of comprehensive income: | |||
| Other items of the statement of comprehensive income that will later be reclassified to Profit/(Loss) for the period |
|||
| Profit/(Loss) on cash flow hedges (CFH) | 10 | 58 | 71 |
| Profit (loss) from the translation of financial statements of foreign companies | 10 | 1,642 | 46,306 |
| Total other items of the statement of comprehensive income that will later be reclassified to Profit/(Loss) for the period |
1,700 | 46,377 | |
| Other items of the statement of comprehensive income that will not later be reclassified to Profit/(Loss) for the period |
|||
| Actuarial gains (losses) on defined-benefit plans | |||
| of which tax effect | |||
| Profit/(Loss) from financial assets at FVOCI | 10 | (404) | (4,099) |
| of which tax effect | 4 | 48 | |
| Total other items of the statement of comprehensive income that will not later be reclassified to Profit/(Loss) for the period |
(404) | (4,099) | |
| Total profit/(loss) of the statement of comprehensive income | 1,296 | 42,278 | |
| Comprehensive profit/(loss) for the period | 12,050 | 57,605 | |
| Attributable to: | |||
| Shareholders of the Parent Company | 12,258 | 57,225 | |
| Non-controlling interests | (208) | 380 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| (Euro/000) | Notes | 30.09.2023 | 30.09.2022 Restated |
|---|---|---|---|
| Profit/(Loss) before tax | 12,955 | 18,684 | |
| Depreciation of tangible fixed assets and write-downs | 1 | 8,966 | 10,166 |
| Amortisation of intangible fixed assets and write-downs | 2 | 15,275 | 13,496 |
| Depreciation of ROU fixed assets | 3 | 3,160 | 3,391 |
| Losses (Gains) from sale of fixed assets | 17, 18 | (72) | (22) |
| Change in provisions for risks and charges | 14 | (635) | 100 |
| Change in provision for obsolescence | 8 | 1,859 | 1,884 |
| Financials | 19 | 677 | 8,776 |
| Monetary effect foreign exchange gains/(losses) | (513) | (2,286) | |
| Other non-monetary changes | (810) | 5,097 | |
| Cash flow generated (absorbed) from operations before changes in working capital |
40,862 | 59,286 | |
| Change in trade receivables | 7 | 37,244 | (3,389) |
| Change in final inventory | 8 | 4,364 | (16,565) |
| Change in trade payables | 15 | (26,210) | (36,642) |
| Change in other current assets | 7 | (3,432) | (4,265) |
| Change in other current liabilities | 15 | (726) | 2,437 |
| Change in other non-current assets | 6 | (22) | 40 |
| Change in other non-current liabilities | 5 | (382) | 821 |
| Cash flow generated (absorbed) from operations after changes in working capital |
51,698 | 1,724 | |
| Change in tax assets and liabilities | (6,016) | (6,991) | |
| Interest paid | (2,494) | (2,286) | |
| Interest collected | 205 | 229 | |
| Cash flow generated (absorbed) from operations (A) | 43,392 | (7,324) | |
| Increase in intangible fixed assets | 2 | (13,082) | (11,146) |
| Decrease in intangible fixed assets | 2 | - | 13 |
| Increase in tangible fixed assets | 1 | (5,087) | (5,899) |
| Decrease in tangible fixed assets | 1 | 145 | (61) |
| Cash flow from business combinations, net of cash acquired | - | (15,994) | |
| Change in investments and current and non-current financial assets | 5 | 4,138 | 5,336 |
| Cash flow generated (absorbed) from investments (B) | (13,886) | (27,751) | |
| Payment of financial payables | 11 | (56,189) | (26,452) |
| New financial payables | 11 | 25,000 | 60,000 |
| Other changes in financial payables | 11 | 56 | (1,521) |
| Payments of financial liabilities from leases | (3,395) | (3,545) | |
| (Purchase) sale of treasury shares | 10 | (13,360) | - |
| Dividend payment | 10 | (17,034) | (16,934) |
| Effect of change in cash and cash funds | (605) | 2,599 | |
| Other changes | (1,374) | (4,101) | |
| Cash flow generated (absorbed) from financing activities (C) | (66,901) | 10,046 | |
| Net increase (decrease) in cash (A+B+C) | (37,395) | (25,029) | |
| Net cash and cash equivalents at beginning of period | 107,482 | 106,080 | |
| Net cash and cash equivalents at end of period | 70,088 | 81,051 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Description | Share capital |
Share premium res. |
Treasury shares |
Translation reserve |
Other reserves |
Retained earnings |
Group Profit (Loss) |
Group Equity |
Profit (Loss) of non controlling interests |
Share capital and reserves attributable to non controlling interests |
Equity attributable to non controlling interests |
Profit (Loss) |
Equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01.01.2023 | 30,392 | 111,779 | (22,191) | 39,331 | 3,347 | 255,840 | 29,550 | 448,048 | 576 | 2,943 | 3,519 | 30,126 | 451,567 |
| Allocation of profit | - | - | - | - | - | 29,550 | (29,550) | - | (576) | 576 | - | (30,126) | - |
| Dividends | - | - | - | - | - | (17,034) | - | (17,034) | - | - | - | - | (17,034) |
| Treasury shares | - | - | (13,360) | - | - | - | - | (13,360) | - | - | - | - | (13,360) |
| Share-based incentive plan | - | - | - | - | 680 | - | - | 680 | - | - | - | - | 680 |
| Other changes | - | - | - | - | 671 | (582) | - | 89 | - | - | - | - | 89 |
| Profit/(Loss) for the period | - | - | - | - | - | - | 10,794 | 10,794 | (40) | - | (40) | 10,754 | 10,754 |
| Other items of the statement of comprehensive income |
- | - | - | 1,809 | (345) | - | - | 1,464 | (168) | (168) | - | 1,296 | |
| Total comprehensive Profit (Loss) | - | - | - | 1,809 | (345) | - | 10,794 | 12,258 | (40) | (168) | (208) | 10,754 | 12,050 |
| 30.09.2023 | 30,392 | 111,779 | (35,551) | 41,140 | 4,353 | 267,774 | 10,794 | 430,681 | (40) | 3,350 | 3,310 | 10,754 | 433,991 |
| Description | Share capital |
Share premium res. |
Treasury shares |
Translation reserve |
Other reserves |
Retained earnings |
Group Profit (Loss) |
Group Equity |
Profit (Loss) of non controlling interests |
Share capital and reserves attributable to non controlling interests |
Equity attributable to non controlling interests |
Profit (Loss) |
Equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 01.01.2022 | 30,392 | 111,779 | (26,096) | 22,746 | 11,239 | 229,692 | 38,913 | 418,665 | 627 | 2,432 | 3,060 | 39,540 | 421,724 |
| Allocation of profit | - | - | - | - | - | 38,913 | (38,913) | - | (627) | 627 | - | (39,540) | - |
| Dividends | - | - | - | - | - | (16,934) | - | (16,934) | - | - | - - |
(16,934) | |
| Treasury shares | - | - | - | - | - | - | - | - | - | - | - - |
- | |
| Share-based incentive plan | - | - | 4,698 | - | (4,793) | 235 | - | 140 | - | - | - - |
140 | |
| Other changes | - | - | - | - | 233 | 3,673 | - | 3,906 | - | (29) | (29) | - | 3,877 |
| Profit/(Loss) for the period | - | - | - | - | - | - | 15,062 | 15,062 | 265 | - | 265 | 15,327 | 15,327 |
| Other items of the statement of comprehensive income |
- | - | - | 46,191 | (4,028) | - | - | 42,163 | 115 | 115 | - | 42,278 | |
| Total comprehensive Profit (Loss) | - | - | - | 46,191 | (4,028) | - | 15,062 | 57,225 | 265 | 115 | 380 | 15,327 | 57,605 |
| 30.09.2022 Restated | 30,392 | 111,779 | (21,398) | 68,936 | 2,651 | 255,577 | 15,062 | 462,999 | 265 | 3,145 | 3,410 | 15,327 | 466,409 |
Explanatory Notes
Consolidated Interim Report at September 30, 2023
DATALOGIC GROUP 27
EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INFORMATION
Datalogic is a global technological leader in the automatic data capture and process automation markets. The Company is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID.
Its pioneering solutions help increase efficiency and quality of processes in the areas of Retail, Manufacturing, Transportation & Logistics, and Healthcare, along the entire value chain.
Datalogic S.p.A. (hereinafter "Datalogic", the "Parent Company" or the "Company") is a joint-stock company listed on Euronext STAR Milan of Borsa Italiana S.p.A. and is headquartered in Italy. The registered office is in Via Candini 2, Lippo di Calderara (BO).
This Consolidated Interim Reportfor the period ended September 30, 2023 includes the figures of the Parent Company and its subsidiaries (hereinafter referred to as the "Group") and the relevant shares in associates.
The publication of this Consolidated Interim Report for the period ended September 30, 2023 of the Datalogic Group was authorized by resolution of the Board of Directors on November 9, 2023.
BASIS OF PRESENTATION
1) General criteria
This Consolidated Interim Reportwas prepared pursuant to Article 154-ter D. Legislative Decree no. 58 of February 24, 1998 (TUF) as subsequently amended and supplemented, as well as to the CONSOB Issuer Regulation. The criteria for the preparation of the Statement are in accordance with the requirements of IAS 34 "Interim Financial Reporting", providing the summary information notes required by the above standard, supplemented if the case to provide a greater level of information where deemed necessary.
This Consolidated Interim Reportshould therefore be read in conjunction with the Consolidated Annual Financial Report at December 31, 2022, prepared in accordance with IFRS accounting standards adopted by the European Union, approved by the Board of Directors on March 9, 2023, and available in the Investor Relations section of the Group's website (www.datalogic.com).
This Consolidated Interim Report is prepared in Euro thousands, which is the Group's functional and presentation currency.
2) Reporting formats
The reporting formats adopted are compliant with those required by IAS 1 and were used in the Consolidated Annual Financial Report for the year ended December 31, 2022, in particular:
- current and non-current assets, as well as current and non-current liabilities are shown separately in the Statement of Financial Position. Current assets, which include cash and cash equivalents, are those intended
to be realized, sold or consumed in the Group's normal operating cycle; current liabilities are those expected to be settled in the Group's normal operating cycle or in the twelve months following the end of the period;
- with regard to the Income Statement, cost and revenue items are shown based on grouping by function, as this classification was deemed more explanatory for understanding the Group's results of operations;
- the Statement of Comprehensive Income shows the items that determine profit/(loss) for the period, considering income and expense recognised directly in equity;
- the Statement of Cash Flows is presented using the "indirect method".
3) New IFRS accounting standards, amendments and interpretations applied by the Group
The following IFRS international accounting standards, amendments and interpretations have been applied for the first time by the Group as of January 1, 2023:
• On May 18, 2017, the IASB published IFRS 17 – Insurance Contracts, intended to supersede IFRS 4 - Insurance Contracts. The standard was applied as of January 1, 2023. The aim of the new standard is to ensure that an entity provides relevant information that faithfully represents the rights and obligations deriving from insurance contracts issued. The IASB developed the standard to eliminate the inconsistencies and weaknesses of the existing accounting standards, providing a single principle-based framework to take account of all types of insurance contracts, including reinsurance contracts that an insurer holds.
The new standard also sets out reporting and disclosure requirements in order to improve comparability between entities from the same sector.
The new standard measures an insurance contract based on a General Model or a simplified version, called the Premium Allocation Approach ("PAA").
Additionally, on December 9, 2021, the IASB published "Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information". The amendment is a transition option related to comparative information on financial assets presented at the date of initial application of IFRS 17. The amendment was applied as of January 1, 2023, together with the application of IFRS 17, to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and to improve the usefulness of comparative information for financial statement readers.
The adoption of this standard and its amendment had no effects on the Group's consolidated financial statements.
• On May 7, 2021, the IASB published "Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction". The document clarifies how entities should account for deferred tax on certain transactions that can generate assets and liabilities of equal amounts, such as leases and decommissioning provisions. The amendments were applied as of January 1, 2023.
The adoption of this amendment had no effects on the Group's consolidated financial statements.
• On February 12, 2021, the IASB published two amendments named "Disclosure of Accounting Policies-Amendments to IAS 1 and IFRS Practice Statement 2" and "Definition of Accounting Estimates-Amendments to IAS 8". The amendments are intended to improve accounting policy disclosures so that they provide more useful information to investors and other primary users of financial statements, as well as to help entities distinguish changes in accounting estimates from changes in accounting policies. The amendments were applied as of January 1, 2023. The adoption of these amendments had no effects on the Group's consolidated financial statements.
4) IFRS accounting standards, amendments and interpretations not yet endorsed by the European Union
At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below.
On May 23, 2023, the IASB published "Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules". The document provides temporary relief from the recognition and disclosure requirements for deferred tax assets and liabilities related to the Pillar Two Model Rules and envisages specific disclosure requirements for entities affected by the related International Tax Reform. The document envisages the immediate application of temporary relief, while the disclosure requirements will
apply only to annual financial statements that began on or after January 1, 2023, but not to interim financial statements with a closing date prior to December 31, 2023. The Directors do not expect the Group's consolidated financial statements to be materially affected by the adoption of this amendment.
• On May 25, 2023, the IASB published "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional information on reverse factoring arrangements that will enable financial statement users to assess how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of such arrangements on the entity's exposure to liquidity risk. The amendments will apply as of January 1, 2024, but early application is permitted. The Directors do not expect the Group's consolidated financial statements to be materially affected by the adoption of this amendment.
5) Use of estimates and assumptions
The preparation of the IFRS-compliant Consolidated Interim Report requires Directors to apply accounting standards and methodologies that, in some cases, are based on valuations and estimates, which in turn refer to historic experience and assumptions based on specific circumstances at any given time. The application ofthese estimates and assumptions affects the amounts of revenue, expense, assets and liabilities and their disclosure, as well as the disclosure of contingent liabilities. The results of financial statement items for which the above estimates and assumptions were used may differ from those shown owing to the uncertainty surrounding the assumptions and conditions on which the estimates are based.
6) Consolidation scope
This Consolidated Interim Report at September 30, 2023 includes the income statement and balance sheet data of Datalogic S.p.A. and all the companies that it directly or indirectly controls.
The list of investments included in the consolidation scope appears in Annex 2 of the Explanatory Notes, with an indication of the methodology used.
7) Translation criteria of foreign currency financial statements
The exchange rates used to determine the value in Euro of financial statements denominated in foreign currency of subsidiaries (currency for 1 Euro) are shown hereunder:
| Currency (ISO Code) | Quantity of currency for 1 Euro | ||||||
|---|---|---|---|---|---|---|---|
| September 2023 | September 2023 | December 2022 | September 2022 | ||||
| Actual exchange | Average | Actual exchange | Average | ||||
| rate | exchange rate | rate | exchange rate | ||||
| for the period | for the period | ||||||
| US Dollar (USD) | 1.06 | 1.08 | 1.07 | 1.06 | |||
| British Pound Sterling (GBP) | 0.86 | 0.87 | 0.89 | 0.85 | |||
| Swedish Krona (SEK) | 11.53 | 11.48 | 11.12 | 10.53 | |||
| Singapore Dollar (SGD) | 1.44 | 1.45 | 1.43 | 1.46 | |||
| Japanese Yen (JPY) | 158.10 | 149.65 | 140.66 | 135.97 | |||
| Australian Dollar (AUD) | 1.63 | 1.62 | 1.57 | 1.50 | |||
| Hong Kong Dollar (HKD) | 8.30 | 8.49 | 8.32 | 8.33 | |||
| Chinese Renminbi (CNY) | 7.74 | 7.62 | 7.36 | 7.02 | |||
| Brazilian Real (BRL) | 5.31 | 5.42 | 5.64 | 5.46 | |||
| Mexican Peso (MXN) | 18.50 | 19.28 | 20.86 | 21.55 | |||
| Hungarian Forint (HUF) | 389.50 | 381.76 | 400.87 | 384.81 | |||
| Czech Crown (CZK) | 24.34 | 23.84 | 24.12 | 24.62 |
SEGMENT DISCLOSURE
Operating segments are identified based on operating reports used at the highest decision-making level to allocate resources and assess results. Transfers amongst the operating segments indicated hereunder are executed at arm's length conditions, based on the Group transfer pricing policies. For first nine months 2023, the operating segments are identified as follows:
- Datalogic, the Group's core business, designs and produces barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID that help increase the efficiency and quality of processes in the Data Capture and Industrial Automationareas in which it operates.
- Informatics sells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium-sized companies.
The income information related to operating segments at September 30, 2023 and September 30, 2022 is the following:
| Datalogic | Informatics | Adjustments | Total Group | |
|---|---|---|---|---|
| Divisional income position | Business | 30.09.2023 | ||
| Revenue | 404,800 | 12,634 | (409) | 417,025 |
| Adjusted EBITDA | 40,998 | 2,145 | 154 | 43,297 |
| % Revenue | 10.13% | 16.98% | 10.38% | |
| EBIT | 11,479 | 1,999 | 154 | 13,632 |
| Datalogic | Informatics | Adjustments | Total Group | |
|---|---|---|---|---|
| Divisional income position | Business | 30.09.2022 | ||
| Restated | ||||
| Revenue | 464,195 | 13,734 | (1,433) | 476,496 |
| Adjusted EBITDA | 54,717 | 1,813 | (242) | 56,288 |
| % Revenue | 11.79% | 13.20% | 11.81% | |
| EBIT | 26,156 | 1,546 | (242) | 27,460 |
The equity information related to operating segments at September 30, 2023 and at December 31, 2022 is the following.
| Divisional financial position | Datalogic Business |
Informatics | Adjustments | Total Group 30.09.2023 |
|---|---|---|---|---|
| Total Assets | 758,727 | 29,849 | (33,108) | 755,468 |
| Total Liabilities | 323,130 | 8,421 | (10,074) | 321,477 |
| Equity | 435,597 | 21,428 | (23,034) | 433,991 |
| Divisional financial position | Datalogic Business |
Informatics | Adjustments | Total Group 31.12.2022 |
|---|---|---|---|---|
| Total Assets | 848,979 | 28,416 | (31,884) | 845,511 |
| Total Liabilities | 392,016 | 8,666 | (6,738) | 393,944 |
| Equity | 456,963 | 19,750 | (25,146) | 451,567 |
INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
Note 1. Tangible fixed assets
Tangible fixed assets at September 30, 2023 amounted to €95,271 thousand. During the period, net expenditure of €5,014 thousand and depreciation of €8,966 thousand was recognised, while exchange rate effects closed with a positive €424 thousand. The breakdown of the item at September 30, 2023 and at December 31, 2022 is shown below.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Land | 12,809 | 12,740 | 69 |
| Buildings | 52,059 | 52,449 | (390) |
| Other assets | 25,619 | 29,825 | (4,206) |
| Fixed assets under construction and advances | 4,784 | 3,785 | 999 |
| Total | 95,271 | 98,799 | (3,528) |
The "Other assets" item at September 30, 2023 includes the following categories: industrial equipment and moulds (€10,922 thousand), plant and machinery (€6,120 thousand), office furniture and machines (€4,962 thousand), generic plant related to buildings (€2,381 thousand), lightweight constructions (€235 thousand), commercial equipment and demo rooms (€552 thousand), leasehold improvements (€343 thousand), and motor vehicles (€104 thousand).
The balance of "Fixed assets under construction and advances", equal to €4,784 thousand, is composed primarily of moulds under construction and equipment and production lines built in house, and of improvements to owned buildings.
Note 2. Intangible fixed assets
Intangible fixed assets at September 30, 2023 amounted to €302,879 thousand. During the period, net expenditure of €13,082 thousand and amortisation of €15,262 thousand was recognised, while exchange rate effects closed with a positive €1,045 thousand. The breakdown of the item at September 30, 2023 and at December 31, 2022 is shown below:
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Goodwill | 213,137 | 212,043 | 1,094 |
| Development costs | 34,926 | 27,209 | 7,717 |
| Other | 37,457 | 43,206 | (5,749) |
| Fixed assets under construction and advances | 17,359 | 21,556 | (4,197) |
| Total | 302,879 | 304,014 | (1,135) |
Goodwill
"Goodwill", equal to €213,137 thousand, is allocated to the CGUs identified by Management as shown below.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Datalogic CGU | 199,007 | 197,989 | 1,017 |
| Informatics CGU | 14,131 | 14,054 | 77 |
| Total | 213,137 | 212,043 | 1,094 |
The change from the end of the prior year is attributable to translation differences.
Goodwill is allocated to the CGUs (Cash Generating Units)represented by the individual companies and/or sub-groups to which they refer. The recoverable value of each cash generating unit (CGU), associated with each Goodwill item measured, is estimated through its corresponding value in use. In accordance with IAS 36, the Datalogic Group estimates value in use by discounting the discounted cash flows from operations at a rate equal to the weighted average cost of debt and equity (Weighted Average Cost of Capital or "WACC") in order to obtain the value of operating capital (Enterprise Value).
At September 30, 2023, in accordance with IAS 36, it was assessed and confirmed that there were no indicators that could lead to an impairment of the recorded assets, taking account of both internal and external information sources.
Development costs, Other intangible fixed assets and Fixed assets under construction and advances
"Development costs", amounting to €34,926 thousand at September 30, 2023, consists of product development projects.
"Other", amounting to €37,457 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, and software licences as detailed below:
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Patents | 4,317 | 5,710 | (1,393) |
| Know-how | 13,172 | 14,483 | (1,311) |
| Customer portfolio | 11,168 | 11,842 | (675) |
| Licences | 1,055 | 1,662 | (607) |
| Software | 7,745 | 9,508 | (1,764) |
| Total | 37,457 | 43,206 | (5,749) |
"Fixed assets under construction and advances", amounting to €17,359 thousand (€21,556 thousand at December 31, 2022), is attributable mainly to the capitalization of costs for product development projects currently under way.
Note 3. Right of use fixed assets
Net negative changes of €495 thousand were recorded during the period and depreciation of €3,160 thousand, while exchange rate effects closed with a negative €76 thousand. The breakdown of the item at September 30, 2023 and at December 31, 2022 is shown below.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Buildings | 9,863 | 13,590 | (3,727) |
| Vehicles | 2,053 | 1,997 | 56 |
| Office equipment | 111 | 171 | (60) |
| Total | 12,027 | 15,758 | (3,731) |
Note 4. Investments in associates
Non-controlling investments held by the Group, details of which can be found in Annex 2, amounted to €544 thousand at September 30, 2023 (€560 thousand at December 31, 2022).
Note 5. Financial assets and liabilities by category
The table below provides a breakdown of "Financial assets and liabilities" under IFRS 9.
Financial assets
| Financial assets at amortized cost |
Financial assets at FV through profit and loss |
Financial assets at FV through OCI |
30.09.2023 | |
|---|---|---|---|---|
| Non-current financial assets | 781 | 3,749 | 3,855 | 8,385 |
| Non-current financial assets and investments | - | 3,749 | 3,855 | 7,604 |
| Other receivables | 781 | - | - | 781 |
| Current financial assets | 146,513 | - | - | 146,513 |
| Trade receivables | 54,380 | - | - | 54,380 |
| Other receivables | 22,045 | - | - | 22,045 |
| Financial assets - Loans | - | - | - | - |
| Cash and cash equivalents | 70,088 | - | - | 70,088 |
| Total | 147,294 | 3,749 | 3,855 | 154,898 |
| Financial assets at amortized cost |
Financial assets at FV through profit and loss |
Financial assets at FV through OCI |
31.12.2022 | |
|---|---|---|---|---|
| Non-current financial assets | 768 | 3,818 | 4,301 | 8,887 |
| Non-current financial assets and investments | - | 3,818 | 4,301 | 8,119 |
| Other receivables | 768 | - | - | 768 |
| Current financial assets | 217,327 | - | - | 217,327 |
| Trade receivables | 91,299 | - | - | 91,299 |
| Other receivables | 18,546 | - | - | 18,546 |
| Financial assets - Loans | - | - | - | - |
| Cash and cash equivalents | 107,482 | - | - | 107,482 |
| Total | 218,095 | 3,818 | 4,301 | 226,214 |
"Cash and cash equivalents" amounted to €70,088 thousand. Details are found in the Net Financial Debt schedule in the Directors' Report on Operations.
Financial liabilities
| Derivatives | Financial liabilities at amortized cost |
30.09.2023 | |
|---|---|---|---|
| Non-current financial liabilities | - | 114,229 | 114,229 |
| Financial payables | - | 93,775 | 93,775 |
| Other payables | - | 20,454 | 20,454 |
| Current financial liabilities | - | 160,509 | 160,509 |
| Trade payables | - | 85,986 | 85,986 |
| Other payables | - | 54,038 | 54,038 |
| Current financial payables | - | 20,485 | 20,485 |
| Total | - | 274,738 | 274,738 |
| Derivatives | Financial liabilities at amortized cost |
31.12.2022 | |
|---|---|---|---|
| Non-current financial liabilities | - | 99,827 | 99,827 |
| Financial payables | - | 79,067 | 79,067 |
| Other payables | - | 20,760 | 20,760 |
| Current financial liabilities | - | 237,135 | 237,135 |
| Trade payables | - | 112,054 | 112,054 |
| Other payables | - | 54,659 | 54,659 |
| Current financial payables | - | 70,422 | 70,422 |
| Total | - | 336,962 | 336,962 |
The fair value of financial assets and financial liabilities is determined according to methods classifiable in the various levels of the fair value hierarchy as envisaged by IFRS 13. Specifically, the Group uses internal valuation models generally used in financial practice, based on prices provided by market participants or quotations recorded on active markets.
Fair value - hierarchy
All the financial instruments measured at fair value are classified in the three categories shown below: Level 1: market prices;
Level 2: valuation techniques (based on observable market data);
Level 3: valuation techniques (not based on observable market data).
| Assets measured at fair value | Level 1 | Level 2 | Level 3 | 30.09.2023 |
|---|---|---|---|---|
| Non-current financial assets and investments | 3,855 | - | 3,749 | 7,604 |
| Total | 3,855 | - | 3,749 | 7,604 |
Note 6. Financial assets and current financial receivables
Financial assets include the following:
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Non-current financial assets | 7,604 | 8,119 | (516) |
| Current financial assets | - | - | - |
| Total | 7,604 | 8,119 | (516) |
Non-current financial assets amounted to €7,604 thousand and refer for €3,855 thousand to the investment in the share capital of the Japanese company Idec Corporation, €2,207 thousand to the investment in a financial instrument convertible into capital issued by AWM Smart Shelf, and €1,468 thousand to investment funds. The changes during the period include the transfer of the 15% stake still held in Solution Net Systems LLC (SNS) by the subsidiary Datalogic USA Inc..
Note 7. Trade and other receivables
| 30.09.2023 | 31.12.2022 | Change |
|---|---|---|
| 47,862 | 84,880 | (37,018) |
| 6,986 | 6,385 | 601 |
| (1,942) | (2,838) | 896 |
| 52,906 | 88,427 | (35,521) |
| 1,463 | 2,861 | (1,398) |
| 11 | 11 | - |
| 54,380 | 91,299 | (36,919) |
| 22,045 | 18,546 | 3,499 |
| 781 | 768 | 13 |
| 22,826 | 19,314 | 3,512 |
| 781 | 768 | 13 |
| 76,425 | 109,845 | (33,420) |
The breakdown of the item at September 30, 2023 and at December 31, 2022 is shown below.
Trade receivables
"Trade receivables" amounted to €54,380 thousand at September 30, 2023, down by €36,919 thousand versus December 31, 2022. At September 30, 2023, trade receivables factored without recourse amounted to €26,047 thousand (€29,877 thousand at December 31, 2022). Trade receivables from associates arise from commercial transactions carried out at normal market conditions.
Other receivables - accrued income and prepaid expense
The details of "Other receivables - accrued income and prepaid expense" are shown below.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Other current receivables | 2,544 | 1,639 | 905 |
| Other non-current receivables | 781 | 768 | 13 |
| VAT receivables | 14,654 | 12,972 | 1,682 |
| Accrued income and prepaid expense | 4,847 | 3,935 | 912 |
| Total | 22,826 | 19,314 | 3,512 |
The "VAT receivable" of €14,654 thousand refers to normal commercial transactions. The difference refers to the changed ratio of offsetting tax and social security receivables and payables in the period.
The "Accrued income and prepaid expense" item is composed mainly of the recognition of insurance contracts and hardware and software licenses.
Note 8. Inventory
Inventory amounted to €123,989 thousand, down by €5,835 thousand during the period.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Raw and ancillary materials and consumables | 59,129 | 62,503 | (3,374) |
| Work in progress and semi-finished products | 22,099 | 25,864 | (3,765) |
| Finished products and goods | 42,761 | 41,457 | 1,304 |
| Total | 123,989 | 129,824 | (5,835) |
Inventory is shown net of an obsolescence provision totalling €14,300 thousand at September 30, 2023 (€12,387 thousand at December 31, 2022).
Note 9. Tax receivables and payables
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Tax receivables | 11,268 | 14,135 | (2,867) |
| of which Parent Company | - | 1,807 | (1,807) |
| Tax payables | (5,319) | (13,478) | 8,159 |
| of which Parent Company | - | (2,013) | 2,013 |
| Total | 5,949 | 657 | 5,292 |
At September 30, 2023, the net balance of "Tax Receivables and Payables" was positive and equal to €5,949 thousand versus a positive 657 thousand at December 31, 2022, marking a positive change of €5,292 thousand.
LIABILITIES AND EQUITY
Note 10. Equity
The composition of Equity at September 30, 2023 is shown below.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Share capital | 30,392 | 30,392 | - |
| Share premium reserve | 111,779 | 111,779 | - |
| Treasury shares held in portfolio | (35,551) | (22,191) | (13,360) |
| Share capital and reserves | 106,620 | 119,980 | (13,360) |
| Translation reserve | 41,140 | 39,331 | 1,809 |
| Other reserves | 4,353 | 3,347 | 1,006 |
| Retained earnings | 267,774 | 255,840 | 11,934 |
| Profit for the period | 10,794 | 29,550 | (18,756) |
| Total Group equity | 430,681 | 448,048 | (17,368) |
| Profit (loss) for the period attributable to non-controlling interests | (40) | 576 | (616) |
| Share capital attributable to non-controlling interests | 3,350 | 2,943 | 407 |
| Total consolidated equity | 433,991 | 451,567 | (17,577) |
Share capital
At September 30, 2023, the share capital of €30,392 thousand represents the fully subscribed and paid-up share capital of the Parent Company Datalogic S.p.A.. It comprises ordinary shares for a total of 58,446,491, of which 3,730,563 held as treasury shares for a value of €35,551 thousand, therefore the outstanding shares at that date amounted to 54,715,928.
| Number of shares |
Share capital |
Share cancellation reserve |
Treasury shares held in portfolio |
Treasury share reserve |
Share premium reserve |
Total | |
|---|---|---|---|---|---|---|---|
| 01.01.2023 | 56,779,438 | 30,392 | 2,813 | (22,191) | 29,651 | 79,315 | 119,980 |
| Purchase of treasury shares | (2,063,510) | (13,360) | 13,358 | (13,358) | (13,360) | ||
| 30.09.2023 | 54,715,928 | 30,392 | 2,813 | (35,551) | 43,009 | 65,957 | 106,620 |
Other Reserves
At September 30, 2023, the "Reserve for treasury shares held in portfolio" decreased by €13,360 thousand, due to the purchase of treasury shares.
The "Translation reserve" increased by €1,809 thousand, due mainly to the effects of the trend of the U.S. dollar, the functional currency of a number of the Group's main investees; part of the change is attributable to the gains/losses generated by the monetary elements that are an integral part of the net investment in foreign operations, and refers to the effect of period-end foreign exchange valuation related to receivables for loans in U.S. dollars granted by the parent company Datalogic S.p.A. to the Group company Datalogic Hungary; there is no specified settlement or repayment plan, and the repaymentis not expected to occur in the foreseeable future.
At September 30, 2023, "Other reserves", including the "Share-based incentive plan reserve", amounted to €4,353 thousand (€3,347 thousand at December 31, 2022).
Note 11. Financial payables
"Financial payables" at September 30, 2023 amounted to €114,260 thousand, decreasing by €35,229 thousand as detailed below.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Bank loans | 100,071 | 130,915 | (30,844) |
| Financial payables from leases | 12,351 | 16,126 | (3,775) |
| Payables to factoring companies | 1,396 | 2,229 | (833) |
| Other financial payables | 166 | 53 | 113 |
| Bank overdrafts | 276 | 166 | 110 |
| Total | 114,260 | 149,489 | (35,229) |
The change in "Bank loans" for the period is a result of the payment of instalments falling due and the repayment of credit lines totalling €56,189 thousand and the granting of the last portion of the credit line of €25,000 thousand under the long-term loan named "Roller Coaster".
The movements are shown below:
| 2023 | 2022 | |
|---|---|---|
| At January 1 | 130,915 | 113,206 |
| Increases | 25,000 | 60,000 |
| Decreases for borrowing repayments | (56,189) | (26,452) |
| Other changes | 345 | 421 |
| At September 30 | 100,071 | 147,175 |
"Financial payables from leases" decreased by €3,775 thousand.
The breakdown of financial payables, divided into current and non-current portions, is shown below:
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Non-current financial payables | 93,775 | 79,067 | 14,708 |
| Current financial payables | 20,485 | 70,422 | (49,937) |
| Total | 114,260 | 149,489 | (35,229) |
At September 30, 2023, the Group had credit lines in place for a total of approximately €290.0 million, of which €190.0 million undrawn, including €100.0 million long-term and €90.0 million short-term.
Covenants
Certain loan agreements require the Group to comply with financial covenants, measured on a half-year basis at June 30 and December 31, summarized in the following table:
| Loan | Company | Covenants | Frequency | Reference financial statements |
|
|---|---|---|---|---|---|
| RCF | Datalogic S.p.A. | NFP/EBITDA | 2.75 | Half-year | Consolidated |
| Roller Coaster | Datalogic S.p.A. | NFP/EBITDA | 3.00 | Half-year | Consolidated |
At June 30, 2023, all covenants had been met.
Note 12. Net deferred tax
Deferred tax assets and deferred tax 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 recorded assets and liabilities and their relevant taxable value.
Deferred tax assets are accounted for in accordance with the assumptions of future recoverability of the temporary differences they originated from, i.e., on the basis of strategic economic and tax plans.
Temporary differences generating deferred tax assets consist mainly of tax losses and tax paid abroad, provisions for risks and charges, and foreign exchange adjustments. Deferred tax liabilities are attributable mainly to temporary differences in exchange rate adjustments and statutory and tax differences in the amortisation/depreciation schedules of tangible and intangible fixed assets and fair value measurements of assets as part of business combinations carried out by the Group.
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Deferred tax assets | 54,592 | 56,207 | (1,615) |
| Deferred tax liabilities | (27,577) | (28,680) | 1,103 |
| Net deferred tax | 27,015 | 27,527 | (512) |
Deferred tax assets amounted to €54,592 thousand and included foreign tax credits attributable mainly to the subsidiary Datalogic USA Inc.
Deferred tax liabilities at September 30, 2023 amounted to €27,577 thousand and refer mainly to temporary differences related to asset amortisation/depreciation schedules, as well as tax adjustments resulting from the consolidation processes of recent acquisitions madeby the Group.
Note 13. Provisions for post-employment and retirement benefits
The breakdown of changes in "Provisions for post-employment and retirement benefits" at September 30, 2023 and at September 30, 2022 is shown below:
| At January 1 | 6,163 | 7,088 |
|---|---|---|
| Amount allocated in the period | 1,510 | 2,800 |
| Utilizations | (1,696) | (1,825) |
| Receivable from INPS | (163) | (1,205) |
| Exchange rate adjustments | 2 | 40 |
| At September 30 | 5,816 | 6,898 |
Note 14. Provisions for risks and charges
"Provisions for risks and charges" at September 30, 2023 amounted to €8,027 thousand (€8,661 thousand at December 31, 2022), represented by the best estimate of the contingent liabilities to which the Group is exposed in relation to contractual obligations for product warranties and long-term incentive and retention plans for personnel (middle management and key people), as well as contingent liabilities of a tax, labour law and supplementary agents' indemnity nature, as shown below.
| 31.12.2022 | Increases | (Utilizations) (Releases) |
Foreign exchange differences |
30.09.2023 | |
|---|---|---|---|---|---|
| Product warranty provision | 7,169 | - | (1,122) | - | 6,047 |
| Provision for incentive and retention plans | 531 | 852 | (10) | 4 | 1,377 |
| Other provisions | 961 | 6 | (365) | 1 | 603 |
| Total | 8,661 | 858 | (1,497) | 5 | 8,027 |
The "Product warranty provision" covers the estimated cost of repairing products sold up to September 30, 2023 and covered by a warranty period; said provision amounted to €6,047 thousand (of which €3,410 thousand long-term).
"Provision for staff incentive and retention plans" refers to the estimated bonuses to be paid to staff based on longterm incentive and retention plans accrued at September 30, 2023.
"Other provisions" at September 30, 2023 amounted to €603 thousand and consisted mainly of provisions for supplementary agent's indemnity and for contingent liabilities of a fiscal and labour law nature.
The breakdown of provisions for risks, divided into current and non-current portions, is shown below:
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Provisions for risks and charges, current portion | 2,872 | 3,468 | (596) |
| Provisions for risks and charges, non-current portion | 5,155 | 5,193 | (38) |
| Total | 8,027 | 8,661 | (634) |
| Note 15. Trade and other payables, accrued expense and deferred income |
|---|
| ------------------------------------------------------------------------ |
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Trade payables | 82,642 | 108,363 | (25,721) |
| Contractual liabilities - customer advances | 3,280 | 3,566 | (286) |
| Trade payables | 85,922 | 111,929 | (26,007) |
| Payables to associates | 64 | 101 | (37) |
| Payables to related parties | - | 24 | (24) |
| Total trade payables | 85,986 | 112,054 | (26,068) |
| Other current payables | 32,114 | 33,603 | (1,489) |
| Current accrued expense and deferred income | 21,925 | 21,056 | 869 |
| Non-current accrued expense and deferred income | 20,454 | 20,760 | (306) |
| Total Other payables - accrued expense and deferred income | 74,493 | 75,419 | (926) |
| Less: non-current portion | 20,454 | 20,760 | (306) |
| Current portion | 140,025 | 166,713 | (26,688) |
Trade payables
"Trade payables" amounted to €85,986 thousand, down by €26,068 thousand versus the end of the prior year.
Other current payables
| 30.09.2023 | 31.12.2022 | Change | |
|---|---|---|---|
| Payables to employees | 21,403 | 21,078 | 325 |
| Payables to welfare and social security entities | 6,511 | 7,130 | (619) |
| Other payables | 2,238 | 2,850 | (612) |
| VAT payables | 1,962 | 2,545 | (583) |
| Total | 32,114 | 33,603 | (1,489) |
"Other current payables" amounting to €32,114 thousand at September 30, 2023, consists mainly of "Payables to employees" for the fixed and variable components of salaries and holiday entitlements, as well as the related "Payables to welfare and social security entities".
Accrued expense and deferred income
"Accrued expense and deferred income", amounting to €42,379 thousand at September 30, 2023 (€41,816 thousand at December 31, 2022), is composed mainly of deferred revenue related to the Ease of Care long-term maintenance contracts.
INFORMATION ON THE INCOME STATEMENT
Note 16. Revenue
Revenue classified by type is shown in the following table:
| 30.09.2023 | 30.09.2022 | Change | |
|---|---|---|---|
| Revenue from sale of products | 382,701 | 442,691 | (59,990) |
| Revenue from services | 34,324 | 33,805 | 519 |
| Total revenue | 417,025 | 476,496 | (59,471) |
At September 30, 2023, consolidated net revenue amounted to €417,025 thousand, down by 12.5% versus €476,496 thousand in the same period of 2022. The Group's revenue, classified by recognition method and business segment, is broken down as follows:
| Revenue broken down by recognition method | Datalogic | Informatics | Adjustments | 30.09.2023 |
|---|---|---|---|---|
| Revenue from sale of goods and services - point in time |
364,524 | 8,869 | (409) | 372,984 |
| Revenue from sale of goods and services - over time | 40,276 | 3,765 | - | 44,041 |
| Total | 404,800 | 12,634 | (409) | 417,025 |
| Revenue broken down by recognition method | Datalogic | Informatics | Adjustments 30.09.2022 | |
|---|---|---|---|---|
| Revenue from sale of goods and services - point in time | 424,080 | 10,269 | (1,433) | 432,916 |
| Revenue from sale of goods and services - over time | 40,115 | 3,465 | - | 43,580 |
| Total | 464,195 | 13,734 | (1,433) | 476,496 |
The Group recognises revenue for the sale of goods and services at a specific point in time when control of the assets has been transferred to the customer, usually at the same time as the delivery of the good or provision of the service. Instead, revenuerecognition takes place over time, based on the status of performance of contractual obligations, when the performance does not create an asset that has an alternative use for the Group and the Group has the collectible right to payment for the completed performance up to the date considered.
| Revenue broken down by type | Datalogic | Informatics | Adjustments | 30.09.2023 |
|---|---|---|---|---|
| Sale of goods | 376,670 | 6,440 | (409) | 382,701 |
| Sale of services | 28,130 | 6,194 | - | 34,324 |
| Total | 404,800 | 12,634 | (409) | 417,025 |
| Revenue broken down by type | Datalogic | Informatics | Adjustments | 30.09.2022 |
|---|---|---|---|---|
| Sale of goods | 435,925 | 8,016 | (1,250) | 442,691 |
| Sale of services | 28,270 | 5,718 | (183) | 33,805 |
| Total | 464,195 | 13,734 | (1,433) | 476,496 |
Note 17. Cost of goods sold and operating costs
The following table shows the trends of cost of goods sold and operating costs at September 30, 2023, versus the same period of the prior year, before special items.
| 30.09.2023 | 30.09.2022 Restated | Change | |
|---|---|---|---|
| Cost of goods sold | 240,076 | 284,562 | (44,486) |
| Operating costs | 164,857 | 165,626 | (769) |
| Research and development expense | 47,600 | 46,179 | 1,421 |
| Distribution expense | 73,922 | 73,773 | 149 |
| Administrative and general expense | 41,530 | 43,966 | (2,436) |
| Other operating expense | 1,805 | 1,708 | 97 |
| Total | 404,933 | 450,188 | (45,255) |
Cost of goods sold
Cost of goods sold at September 30, 2023 was €240,076 thousand. The change is -15.6%; the percentage of sales shows a 2.2% improvement to 57.6% from 59.7% in the nine months last year.
Operating costs
"Operating Costs", totalling €164,857 thousand, saw the percentage of sales deteriorate by 4.8 percentage points, increasing from 34.8% to 39.5% during nine months 2023. This change was due primarily to the increase in distribution expense and research and development costs.
"Research and development expense", amounting to €47,600 thousand at September 30, 2023, increased by 3.1% versus the same period of the prior year, accounting for 11.4% of sales (9.7% in the nine months last year). The detail items showing the largest increase are related to external consulting in connection with ongoing product development projects, and to higher amortisation and depreciation.
"Distribution expense" amounted to €73,922 thousand, up slightly versus the same period of 2022 (+0.2%). The percentage of sales increased from 15.5% to 17.7%; the change is related mainly to increased sales initiatives, marketing and participation in trade fairs and events, and customer visits, as well asincreased personnel expense.
"Administrative and general expense" amounted to €41,530 thousand at September 30, 2023, down by 5.5% versus the comparison period, while the percentage of sales increased slightly from 9.2% to 10.0%.
"Other operating expense", amounting to €1,805 thousand, increased by €97 thousand versus the same period of the prior year, and consisted mainly of non-income tax and fees and other operating expense.
Costs by nature
The following table provides the details of total costs (cost of goods sold and total operating expense) by nature:
| 30.09.2023 | 30.09.2022 Restated |
Change | |
|---|---|---|---|
| Purchases | 173,133 | 206,043 | (32,910) |
| Personnel expense | 135,460 | 136,837 | (1,377) |
| Amortisation, depreciation and write-downs | 27,388 | 27,052 | 336 |
| Goods receipt and shipment expense | 14,926 | 25,440 | (10,514) |
| Travel and meetings expense | 7,742 | 5,614 | 2,128 |
| EDP expense | 5,851 | 5,264 | 587 |
| Consumables and R&D material | 5,829 | 5,411 | 418 |
| Marketing expense | 4,694 | 3,487 | 1,207 |
| R&D technical consultancies | 4,363 | 2,895 | 1,468 |
| Legal, tax and other consulting | 3,049 | 3,837 | (788) |
| Utilities | 2,599 | 3,257 | (658) |
| Building expense | 1,924 | 1,804 | 120 |
| Royalties | 1,724 | 2,370 | (646) |
| Telephone expense | 1,449 | 1,473 | (24) |
| Fees | 1,437 | 1,310 | 127 |
| Expense for plant and machinery and other assets | 1,380 | 1,365 | 15 |
| Directors' fees | 1,341 | 1,739 | (398) |
| Sundry service costs | 1,270 | 1,383 | (113) |
| Vehicle expense | 1,012 | 920 | 92 |
| Quality certification expense | 993 | 945 | 48 |
| Insurance | 938 | 937 | 1 |
| Installations | 817 | 1,528 | (711) |
| Recruitment fees | 808 | 1,276 | (468) |
| Non-warranty repairs | 736 | 1,069 | (333) |
| Audit fees | 716 | 740 | (24) |
| Entertainment expense | 660 | 486 | 174 |
| Subcontracted work | 500 | 611 | (111) |
| Repairs and warranty provision accrual | 476 | 1,616 | (1,140) |
| Other | 1,718 | 3,479 | (1,761) |
| Total cost of goods sold and operating costs | 404,933 | 450,188 | (45,255) |
Purchasing costs decreased by €32,910 thousand (-16.0%) versus the same period of 2022, improving the percentage of sales by 1.7%.
Personnel expense of €135,460 thousand (€136,837 thousand in the same period of 2022) fell by €1,377 thousand versus 2022 (-1.0%), with the percentage of sales, however, worsening from 28.7% to 32.5%.
The detailed breakdown of personnel expense is as follows:
| 30.09.2023 | 30.09.2022 | Change | |
|---|---|---|---|
| Wages and salaries | 102,051 | 106,136 | (4,085) |
| Social security charges | 21,427 | 21,206 | 221 |
| Post-employment benefits | 1,855 | 1,990 | (135) |
| Retirement benefits and the like | 1,419 | 1,501 | (82) |
| Other personnel costs | 8,708 | 6,004 | 2,704 |
| Total | 135,460 | 136,837 | (1,377) |
"Travel and meetings expense" and "Marketing expense", amounting to €7,742 thousand and €4,694 thousand, respectively, were up by a total of €3,335 thousand versus the same period of the prior year, as a result of increased business initiatives and participation in trade fairs and events as well as customer visits.
The item "Amortisation, depreciation and write-downs", amounting to €27,388 thousand, increasedby €336 thousand, due to continued increased expenditure incurred in recent years.
"Goods receipt and shipment expense", amounting to €14,926 thousand, fell sharply by €10,514 thousand versus the same period of the prior year; the percentage of sales was in fact 3.6% versus 5.3% in the comparison period.
"R&D technical consulting", amounting to €4,363 thousand, increased sharply (+50.7%), accounting for 1.0% of revenue versus 0.6% in the comparison period, due to ongoing research projects.
Note 18. Other revenue
At September 30, 2023, "Other revenue" amounted to €1,540 thousand, increasing by €388 thousand versus €1,152 thousand in the same period of the prior year, thanks to public grants received for research projects. Other revenue is broken down as follows:
| 30.09.2023 | 30.09.2022 | Change | |
|---|---|---|---|
| Grants to Research and Development expense | 391 | 130 | 261 |
| Miscellaneous income and revenue | 902 | 839 | 63 |
| Rents | 97 | 82 | 15 |
| Gains from disposal of fixed assets | 114 | 42 | 72 |
| Contingent assets | 35 | 28 | 7 |
| Other | 1 | 31 | (30) |
| Total | 1,540 | 1,152 | 388 |
Note 19. Financials
| 30.09.2023 | 30.09.2022 | Change | |
|---|---|---|---|
| Financial income/(expense) | (1,383) | (1,327) | (56) |
| Foreign exchange differences | (2,219) | (6,667) | 4,448 |
| Fair Value investments | 103 | (85) | 188 |
| Bank expense | (1,288) | (1,044) | (244) |
| Dividends | 168 | 177 | (9) |
| Other | 3,942 | 170 | 3,772 |
| Total net financials | (677) | (8,776) | 8,099 |
Financials ended with a negative €677 thousand, improving by €8,099 thousand versus a negative €8,776 thousand in the same period of the prior year, thanks to the favourable trend in exchange rate differences and to the gain earned from the transfer of the minority interest in Solution Net Systems LLC (SNS).
Note 20. Tax
The Group's tax burden at September 30, 2023 is €2,201 thousand as shown below.
| 30.09.2023 | 30.09.2022 | Change | |
|---|---|---|---|
| Restated | |||
| Pre-tax profit/(loss) | 12,957 | 10,779 | 2,178 |
| Tax income (expense) - for current tax | 689 | 2,155 | (1,465) |
| Tax income (expense) - for deferred and prepaid tax | 1,512 | 1,202 | 310 |
| Total Tax | 2,201 | 3,357 | (1,156) |
| Tax rate | 17.0% | 31.1% | -14.1% |
The tax rate at September 30, 2023 reflects the distribution of the profit of the period among the various geographical areas in which the Group operates.
Note 21. Earnings/loss per share
Earnings/loss per share
As required by IAS 33, information on data used to calculate the earning/loss per share is provided below. Basic EPS is calculated by dividing the result for the period, profit and/or loss, attributable to Shareholders of the Parent Company by the weighted average number of shares outstanding during the reporting period. For the purpose of calculating diluted EPS, the weighted average number of shares outstanding is adjusted by assuming the conversion of all potential shares with dilutive effects (such as the share-based incentive plan), while the Group's net result is adjusted for the after-tax effects of conversion.
| 30.09.2023 | 30.09.2022 | |
|---|---|---|
| Restated | ||
| Profit/(Loss) for the period attributable to the shareholders of the parent | 10,754 | 15,327 |
| Average number of shares (thousands) | 56,311 | 56,539 |
| Basic earnings/(loss) per share | 0.19 | 0.27 |
| Profit/(Loss) for the period attributable to the shareholders of the parent | 10,754 | 15,327 |
| Average number of shares (thousands) - Diluted effect | 56,617 | 56,941 |
| Diluted earnings/(loss) per share | 0.19 | 0.27 |
TRANSACTIONS WITH SUBSIDIARIES THAT ARE NOT CONSOLIDATED LINE BY LINE, ASSOCIATES AND RELATED PARTIES
For the definition of "Related Parties", reference is made not only to IAS 24, approved by EC Regulation no. 1725/2003, but also to the Procedure for Related-Party Transactions approved by the Board of Directors on November 4, 2010 (last amended on June 23, 2021) available on the Company website www.datalogic.com. The parent company of the Datalogic Group is Hydra S.p.A..
Intercompany transactions are carried out as part of the ordinary operations and at normal market conditions. Additionally, there are related-party transactions carried out again in the ordinary course of business and at normal market conditions, of an immaterial amount pursuant to and for the purposes of the "RPT Procedure", attributable mainly to Hydra S.p.A. or to entities subject (with Datalogic S.p.A.) to common control or to persons exercising administrative and management functions at Datalogic S.p.A. (including entities controlled by them and close family members).
Related-party transactions refer mainly to commercial and property transactions (instrumental and non-instrumental premises for the Group leased or rented out), consulting services, and participation in tax consolidation. None of them are of particular economic or strategic importance to the Group, since receivables, payables, revenue, and expense from related parties do not have a material percentage impact on the total amounts of the financial statements.
Pursuant to Article 5, paragraph 8, of the CONSOB Regulations, it should be noted that, over the period 01.01.2023 – 30.09.2023, the Company's Board of Directors did not approve any transaction of greater significance, as set out by Article 3, paragraph 1, letter b) of the CONSOB Regulations, or any related-party transactions of a lesser significance that had a significant impact on the Group's equity position or results.
| Company controlled by Chairman of B.o.D. |
Companies not consolidated on a line-by-line basis |
30.09.2023 | |
|---|---|---|---|
| Investments | - | 544 | 544 |
| Trade receivables - accrued income and prepaid expense | 11 | 1,463 | 1,474 |
| Trade payables - accrued expense and deferred income | - | 64 | 64 |
| Commercial and service costs | 885 | 161 | 1,046 |
| Trade revenue | - | 5,585 | 5,585 |
| Other revenue | - | 5 | 5 |
HEADCOUNT
| 30.09.2023 | 30.09.2022 | Change | |
|---|---|---|---|
| Datalogic | 2,901 | 3,009 | (108) |
| Informatics | 66 | 70 | (4) |
| Total | 2,967 | 3,079 | (112) |
The Chairman of the Board of Directors (Romano Volta)
ANNEXES
ANNEX 1
CERTIFICATION PURSUANT TO ARTICLE 154 BIS, PARAGRAPH 2, LEG. DECR. NO. 58/1998
CONSOLIDATED INTERIM REPORT AT SEPTEMBER 30, 2023
I, the undersigned Alessandro D'Aniello, as the Manager in charge of drawing up the accounting statements of Datalogic S.p.A., certify that, in accordance with the provisions of the second paragraph of Article 154-bis of Legislative Decree no. 58 of February 24, 1998, the Consolidated Interim Report at September 30, 2023 corresponds to the underlying records, books and accounting entries.
Lippo di Calderara di Reno, November 9, 2023
The Manager responsible for the preparation of the Company's financial reports
Alessandro D'Aniello
ANNEXES
ANNEX 2
CONSOLIDATION AREA
The Consolidated Interim Reportincludes the interim statements of the Parent Company and of the companies in which it directly and/or indirectly has control or significant influence. The statements of the subsidiaries were duly adjusted, where necessary, to make them consistent with the Parent Company's Accounting Standards. The companies included in the consolidation scope at September 30, 2023, consolidated on a line-by-line basis, are shown hereunder:
| Company name | Registered office | Share capital | Total equity (Euro/thousands) |
Profit (loss) for the period (Euro/thousands) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Datalogic S.p.A. | Bologna – Italy | € | 30,392,175 | 345,381 | 14,305 | |
| Datalogic Real Estate France Sas | Courtabeuf Cedex – France |
€ | 2,227,500 | 4,067 | 145 | 100% |
| Datalogic Real Estate UK Ltd. | Redbourn - United Kingdom of Great Britain |
GBP | 3,500,000 | 4,968 | 94 | 100% |
| Datalogic IP Tech S.r.l. | Bologna – Italy | € | 65,677 | 27,854 | (8,221) | 100% |
| Informatics Holdings, Inc. | Plano, Texas - USA | USD | 1,568 | 21,150 | 1,487 | 100% |
| Wasp Barcode Technologies Ltd | Redbourn - United Kingdom of Great Britain |
GBP | 0 | 278 | 18 | 100% |
| Datalogic (Shenzhen) Industrial Automation Co. Ltd. |
Shenzhen - China | CNY | 2,136,696 | 6,288 | 740 | 100% |
| Datalogic Hungary Kft | Balatonboglar - Hungary |
HUF | 3,000,000 | 152 | 120 | 100% |
| Datalogic S.r.l. | Bologna – Italy | € | 10,000,000 | 139,942 | (3,072) | 100% |
| Datalogic Slovakia S.r.o. | Trnava - Slovakia | € | 66,388 | 5,901 | 1,420 | 100% |
| Datalogic USA Inc. | Eugene OR - Usa | USD | 100 | 270,948 | 8,773 | 100% |
| Datalogic do Brazil Ltda. | Sao Paulo - Brazil | BRL | 20,257,000 | 1,001 | 246 | 100% |
| Datalogic Technologia de Mexico S.r.l. | Colonia Cuauhtemoc - Mexico |
MXN | 0 | (447) | 11 | 100% |
| Datalogic Scanning Eastern Europe GmbH | Langen - Germany | € | 25,000 | 3,645 | (182) | 100% |
| Datalogic Australia Pty Ltd | Mount Waverley (Melbourne) - Australia |
AUD | 3,188,120 | 1,553 | 163 | 100% |
| Datalogic Vietnam LLC | Vietnam | USD | 3,000,000 | 30,067 | 2,799 | 100% |
| Datalogic Singapore Asia Pacific Pte Ltd. | Singapore | SGD | 3 | 4,187 | 552 | 100% |
| Datasensing S.r.l. | Modena - Italy | € | 2,500,000 | 19,555 | (713) | 100% |
| M.D. Micro Detectors (TIANJIN) CO., LTD. | Tianjin - China | CNY | 13,049,982 | 1,341 | 93 | 100% |
| Datasensing Ibérica, S.A.U. | Barcelona - Spain | € | 120,000 | 1,492 | 115 | 100% |
| Datalogic Japan Co., Ltd. | Tokyo - Japan | JPY | 9,913,000 | 108 | (22) | 100% |
| PEKAT s.r.o. | Brno - Czech Republic | CKZ | 202,020 | (547) | (573) | 100% |
| Suzhou Mobydata Smart System Co. Ltd | Suzhou, JiangSu - China |
CNY | 161,224 | 6,648 | (84) | 51% |
Companies consolidated by the equity method at September 30, 2023 are as follows:
| Company name | Registered office | Share capital | Total equity (Euro/thousands) |
Profit (loss) for the period (Euro/thousands) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Datasensor Gmbh (*) | Otterfing - Germany | € | 150,000 | 0 | 2 | 30% |
| CAEN RFID S.r.l. (***) | Viareggio LU - Italy | € | 150,000 | 781 | 25 | 20% |
| R4I S.r.l. (***) | Benevento - Italy | € | 131,250 | 238 | (40) | 20% |
| Datalogic Automation AB (**) | Malmö, Sweden | SEK | 100,000 | 1,700 | 780 | 20% |
(*) figures at December 31, 2021
(**) figures at June 30, 2022
(***) figures at December 31, 2022
ANNEXES
ANNEX 3
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)
Below is a reconciliation of EBIT and Adjusted EBIT at September 30, 2023 versus September 30, 2022.
| 30.09.2023 | 30.09.2022 | Change | |||
|---|---|---|---|---|---|
| Adjusted EBIT | 19,465 | 4.7% | 33,263 | 7.0% | (13,798) |
| Special Items -Other Expense and (Income) | 2,277 | 0.5% | 1,777 | 0.4% | 500 |
| Special Items - D&A from acquisitions | 3,556 | 0.8% | 4,026 | 0.8% | (470) |
| Total | 5,833 | 1.4% | 5,803 | 1.2% | 30 |
| EBIT | 13,632 | 3.3% | 27,460 | 5.8% | (13,828) |
Below is a reconciliation of EBITDA and Adjusted EBITDA at September 30, 2023 versus September 30, 2022.
| 30.09.2023 | 30.09.2022 | Change | |||
|---|---|---|---|---|---|
| Adjusted EBITDA | 43,297 | 10.4% | 56,288 | 11.8% | (12,991) |
| Cost of goods sold | 103 | 0.0% | 415 | 0.1% | (312) |
| Research and Development expense | 231 | 0.1% | - | 0.0% | 231 |
| Distribution expense | 414 | 0.1% | 632 | 0.1% | (218) |
| Administrative and General expense | 1,529 | 0.4% | 730 | 0.1% | 799 |
| Other (expense) income | - | 0.0% | - | 0.0% | - |
| Total | 2,277 | 0.5% | 1,777 | 0.4% | 500 |
| EBITDA | 41,020 | 9.8% | 54,511 | 11.4% | (13,491) |
ANNEXES
ANNEX 4
RESTATEMENT 2022
Comparative results at September 30, 2023 have been restated following reclassifications of a number of items in order to ensure full comparability of 2022 results with those of 2023, as well as the purchase price allocation (PPA) related to the acquisition of Pekat S.r.o. on March 21, 2022, the final accounting for which took place in the fourth quarter of 2022, as prescribed by IFRS 3 revised and IAS 1.
Restatement Income Statement 2022
| (Euro/000) | 30.09.2022 | Restatement | 30.09.2022 |
|---|---|---|---|
| Restated | |||
| 1) Revenue | 476,496 | 476,496 | |
| Revenue from sale of products | 442,691 | 442,691 | |
| Revenue from services | 33,805 | 33,805 | |
| 2) Cost of goods sold | 275,930 | 8,632 | 284,562 |
| Gross operating margin (1-2) | 200,566 | (8,632) | 191,934 |
| 3) Other revenue | 1,152 | 1,152 | |
| 4) Research and development expense | 46,140 | 39 | 46,179 |
| 5) Distribution expense | 82,980 | (9,207) | 73,773 |
| 6) Administrative and general expense | 42,798 | 1,168 | 43,966 |
| 7) Other operating expense | 1,708 | 1,708 | |
| Total operating costs | 173,626 | (8,000) | 165,626 |
| EBIT | 28,092 | (632) | 27,460 |
| 8) Financial income | 33,533 | 33,533 | |
| 9) Financial expense | 42,309 | 42,309 | |
| Financials (8-9) | (8,776) | (8,776) | |
| 10) Profits from associates | - | - | |
| Profit/(Loss) before tax from continuing operations | 19,316 | (632) | 18,684 |
| Income tax | 3,477 | (120) | 3,357 |
| Profit/(Loss) for the period | 15,839 | (512) | 15,327 |
| Basic earnings/(loss) per share (€) | 0.28 | (0.01) | 0.27 |
| Diluted earnings/(loss) per share (€) | 0.28 | (0.01) | 0.27 |
| Attributable to: | |||
| Shareholders of the Parent Company | 15,574 | (512) | 15,062 |
| Non-controlling interests | 265 | 265 |
