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Gvs Earnings Release 2023
4164_10-q_2023-09-05_8e2531ae-24b4-48f1-9a61-458ede297bae.pdf
Earnings Release
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| Informazione Regolamentata n. 2251-44-2023 |
Data/Ora Inizio Diffusione 05 Settembre 2023 14:18:33 |
Euronext Milan | |
|---|---|---|---|
| Societa' | : | GVS | |
| Identificativo Informazione Regolamentata |
: | 180792 | |
| Nome utilizzatore | : | GVSN03 - Bala | |
| Tipologia | : | 1.2 | |
| Data/Ora Ricezione | : | 05 Settembre 2023 14:18:32 | |
| Data/Ora Inizio Diffusione |
: | 05 Settembre 2023 14:18:33 | |
| Oggetto | : | GVS BOARD OF DIRECTORS 2023 RESULTS |
APPROVES THE CONSOLIDATED H1 |
| Testo del comunicato |
Vedi allegato.
PRESS RELEASE
GVS BOARD OF DIRECTORS APPROVES THE CONSOLIDATED H1 2023 RESULTS
-
CONSOLIDATED REVENUE OF 213.4 MILLION EURO, +28.1% COMPARED TO H1 2022
ADJUSTED EBITDA OF 47.1 MILLION EURO, UP 17.9% ON H1 2022, WITH A MARGIN ON REVENUE OF 22.1%
THIRD CONSECUTIVE QUARTER OF PROFITABILITY GROWTH, WITH ADJUSTED EBITDA MARGIN REACHING 22.4% IN Q2 2023
NET FINANCIAL DEBT OF 365 MILLION EURO, IMPROVING BY APPROXIMATELY 24 MILLION EURO ON MARCH 2023
2023-2025 FINANCIAL TARGETS UPDATE WILL BE PRESENTED ON 25 SEPTEMBER 2023
Zola Predosa (BO), 05 September 2023 - The Board of Directors of GVS S.p.A. (the "Company" or the "Group"), a leading provider of advanced filtration solutions for highly critical applications, met today in Zola Pedrosa (BO) and approved the consolidated half-yearly report at 30 June 2023, which have been prepared in accordance with IFRS international accounting standards.
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ANALYSIS OF THE GROUP'S ECONOMIC PERFORMANCE
During the first half of 2023, GVS achieved consolidated revenues of 213.4 million euro, up 28.1% compared to 166.6 million euro, recorded in the first six months of 2022, thanks to the contribution of the Healthcare & Lifesciences division (which includes the last acquisitions made during the previous year, the STT Group and the Haemotronic Group, which contributed to the revenues of the first half of 2022 from the date of their acquisition on 1 March 2022 and 15 June 2022, respectively) and the Health & Safety division.
The Healthcare & Life Sciences division revenues recorded significant growth in the Healthcare Liquid business (+80.6%), compared to the same period of last year thanks to the acquisitions concluded in 2022 of STT and Haemotronic, showing significant growth on last year, thanks to the excellent commercial performance, which made it possible to absorb the contraction recorded in the
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Healthcare Air & Gas business. The Laboratory business showed a stable turnover in the two half-year periods under comparison, settling at around 16.3 million euro, the same as in the previous period.
The Energy & Mobility division recorded a trend with a 12.4% decrease in revenue compared to the same period of the previous year, as a result of the de-stocking by its customers, particularly in the Sport & Utility segment, which recorded sales down 31% on the same period of last year.
The Health & Safety division recorded a 6.7% year-on-year increase in sales, recovering, thanks to a 16.9% growth in Q2 2022, the reduction in sales that had characterised Q1 2023.
Adjusted EBITDA, up 17.9% compared to the first half of 2023, amounted to 47.1 million euro, with a margin on revenue of 22.1%. The period result is influenced by the contribution of acquisitions completed during 2022 and the price increase introduced during the first half of 2023.
The Company also posted its third consecutive quarter of profitability growth, achieving 22.4% adjusted EBITDA as a percentage of sales in Q2 2023, compared to 21.7% as a percentage recorded in Q1 2023, 19.4% in Q4 2022 and 15.9% in Q3 2022.
Adjusted EBIT with a margin on revenue of 15.8% amounted to 33.8 million euro (+17%) compared to 28.9 million euro in the previous year's period and in line with the growth seen at Adjusted EBITDA level.
Net financial expenses (net of foreign exchange losses of 4.6 million euro recorded during the first six months of 2023 and exchange gains of 23.6 million euro in 2022) increased in the period under review, from 1.2 million euro for the period ended 30 June 2023 to 7.3 million euro for the period ended 30 June 2023, mainly due to new borrowings related to the acquisitions completed in 2022 and the increase in market interest rates, to which some of the existing loans are linked.
Profit before tax from recurring activities reached 21.8 million euro in the period under review, a decrease of 29.6 million euro compared to 51.4 million euro in 2022, mainly due to the effect of the foreign exchange gain recorded in 2022 against the effect of the foreign exchange loss recorded in the first half of 2023.
Net financial debt at 30 June 2023 was -365.0 million euro. The decrease compared to 31 December 2022, totalling 10.5 million euro, is mainly due to the contribution of cash generated from operations in the amount of 48.9 million euro, net of cash absorbed by changes in working capital in the amount of 8.6 million euro and cash used for net investments in tangible and intangible assets for the period (12.3 million euro), net financial expenses (10.2 million euro) and tax payments (4.7 million euro).
BUSINESS OUTLOOK
GVS continues on its path of improving its economic and financial performance through the progressive integration of the recently acquired companies.
The positive half-year result confirms the trend of profitability recovery that began in Q4 2022 and was achieved despite the negative impact of de-stocking policies on revenue growth.
Customer de-stocking is expected to continue in the second half of 2023, with the expectation of a potential recovery in sales volumes during 2024. In this regard, the impact that the current
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macroeconomic scenario, characterised by an increase in interest rates to counteract high inflationary levels, will have on the real economy will need to be carefully monitored, particularly in relation to the growth expectations of the gross domestic product of the main economies (the United States and the European Union) to which the Group is exposed.
As a result of the results achieved in the first half of 2023 and in consideration of the uncertainty variables described above, with reference to the FY 2023 guidance communicated at the time of approval of the 2022 results (revenues in a range between 440 million euro and 460 million euro, Adjusted EBITDA in a range between 95 million euro and 105 million euro and Net Financial Debt in a range between 340 million euro and 360 million euro), the Company confirms the forecasts for Adjusted EBITDA and net financial debt in line with expectations, while 2023 turnover is expected to fall within a range of between 425 and 430 million euro.
On 25 September 2023, the Company will present an update of 2023-2025 financial targets.
***
DECLARATION PURSUANT TO ARTICLE 154-BIS, PARAGRAPH 2, T.U.F.
The Manager responsible for preparing the company's financial reports, Emanuele Stanco, declares, pursuant to Article 154-bis, second paragraph of Legislative Decree 58/98, that the accounting information contained in this press release corresponds to the results in the Company's documents, books and accounting records.
The half-yearly report as at 30 June 2023, approved by the Board of Directors today, will be made available to the public at the Company's registered office and can be consulted on the Company's website at www.gvs.com and on the authorised storage mechanism "eMarket Storage", managed by Teleborsa Srl.
***
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CONFERENCE CALL
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Financial results for H1 2023 will be presented on Tuesday, 5 September at 16:00 CET during a webinar/conference call held by the Group's Senior Management.
The event can be followed in webinar or telephone mode by registering at the link below:
CLICK HERE TO REGISTER FOR THE CONFERENCE CALL & WEBINAR
The presentation given by the Senior Management will be available before the beginning of the conference call on the authorised storage mechanism eMarket Storage, managed by Teleborsa Srl, as well as on the Company's website www.gvs.com (in the section Investor Relations/Financial Presentations).
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This press release is available on the regulated information dissemination system eMarket SDIR, managed by Teleborsa Srl, as well as on the Company's website www.gvs.com (in the Investor/Press releases section).
***
Contacts
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Investor Relations GVS S.p.A.
Guido Bacchelli, Investor Relations and M&A Director
DISCLAIMER
This press release contains forward-looking statements concerning future events and operating, economic and financial results of GVS. These forecasts have by their very nature a component of risk and uncertainty, as they depend on the occurrence of future events and developments. Actual results may deviate even significantly from those announced in relation to a multitude of external factors not necessarily under GVS's control.
Consolidated Financial Statements as of 30 June 2023
Consolidated Income Statement
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| Half-year ended 30 June | ||||
|---|---|---|---|---|
| (In thousands of euro) | 2023 | 2022 | ||
| Revenues from contracts with customers | 213,372 | 166,611 | ||
| Other revenues and proceeds | 2,595 | 1,551 | ||
| Total revenues | 215,967 | 168,162 | ||
| Purchases and consumption of raw materials, semi-products and finished products | (70,285) | (52,357) | ||
| Personnel costs | (67,213) | (56,188) | ||
| Service costs | (28,710) | (20,985) | ||
| Other operating costs | (4,139) | (2,102) | ||
| Gross operating profit (EBITDA) | 45,620 | 36,530 | ||
| Net write downs of financial assets | (479) | (232) | ||
| Amortisation, depreciation and write downs | (21,403) | (15,553) | ||
| EBIT | 23,738 | 20,745 | ||
| Financial proceeds | 1,244 | 23,947 | ||
| Financial charges | (15,017) | (2,167) | ||
| Profit (loss) before tax | 9,965 | 42,525 | ||
| Income tax | (2,629) | (10,084) | ||
| Net profit | 7,336 | 32,441 | ||
| Group's share | 7,331 | 32,437 | ||
| Minority share | 5 | 4 | ||
| Basic net profit per share (in euro) | 0.04 | 0.19 | ||
| Diluted net profit per share (in euro) | 0.04 | 0.19 |
Analysis of reclassified Income Statement
| Period of 6 months ended 30 June | ||||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands of euro) | 2023 | of which non recurring |
2023 Adjusted |
% | 2022 | of which non recurring |
2022 Adjusted |
% |
| Revenues from sales and services | 213,372 | 213,372 | 100.0% | 166,611 | 166,611 | 100.0% | ||
| Other revenues and income | 2,595 | 319 | 2,276 | 1.1% | 1,551 | 1,551 | 0.9% | |
| Total revenue | 215,967 | 319 | 215,648 | 101.1% | 168,162 | - | 168,162 | 100.9% |
| Raw material purchase costs and changes in inventories |
(70,285) | (70,285) | -32.9% | (52,357) | (996) | (51,361) | -30.8% | |
| Provision of services | (28,710) | (268) | (28,442) | -13.3% | (20,985) | (978) | (20,007) | -12.0% |
| Other operating expenses | (4,139) | (857) | (3,282) | -1.5% | (2,102) | (2,102) | -1.3% | |
| Added value | 112,833 | (806) | 113,639 | 53.3% | 92,718 | (1,974) | 94,692 | 56.8% |
| Labour cost | (67,213) | (649) | (66,564) | -31.2% | (56,188) | (1,415) | (54,773) | -32.9% |
| EBITDA | 45,620 | (1,455) | 47,075 | 22.1% | 36,530 | (3,389) | 39,919 | 24.0% |
| Depreciation and amortisation | (21,403) | (8,579) | (12,824) | -6.0% | (15,553) | (4,725) | (10,828) | -6.5% |
| Provisions and write-downs | (479) | (479) | -0.2% | (232) | (232) | -0.1% | ||
| EBIT | 23,738 | (10,034) | 33,772 | 15.8% | 20,745 | (8,114) | 28,859 | 17.3% |
| Financial income and expenses | (13,773) | (1,784) | (11,989) | -5.6% | 21,780 | (713) | 22,493 | 13.5% |
| Pre-tax result | 9,964 | (11,818) | 21,783 | 10.2% | 42,525 | (8,827) | 51,352 | 30.8% |
| Income taxes | (2,629) | 2,654 | (5,283) | -2.5% | (10,084) | 1,788 | (11,872) | -7.1% |
| Group and minority net profit | 7,336 | (9,164) | 16,501 | 7.7% | 32,441 | (7,039) | 39,480 | 23.7% |
Consolidated Balance Sheet
| (In thousands of euro) | At 30 June 2023 |
At 31 December 2022 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | 481,175 | 494,846 |
| Assets represented by usage rights | 20,836 | 22,991 |
| Tangible assets | 120,526 | 120,404 |
| Advance tax assets | 7,213 | 3,487 |
| Non-current financial assets | 3,745 | 3,754 |
| Non-current derivative financial instruments | 7,673 | 6,648 |
| Other receivables and non-current assets | 1,695 | 1,695 |
| Total non-current assets | 642,863 | 653,825 |
| Current assets | ||
| Inventories | 103,203 | 106,922 |
| Trade receivables | 70,549 | 72,944 |
| Assets from contracts with customers | 942 | 1,205 |
| Current tax receivables | 7,170 | 5,691 |
| Other receivables and current assets | 12,172 | 12,514 |
| Current financial assets | 66,264 | 4,779 |
| Cash on hand | 132,406 | 135,169 |
| Total current assets | 392,706 | 339,224 |
| TOTAL ASSETS | 1,035,569 | 993,049 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Share capital | 1,750 | 1,750 |
| Reserves | 322,431 | 301,780 |
| Net profit | 7,331 | 24,098 |
| Group shareholders' equity | 331,513 | 327,628 |
| Minority shareholders' equity | 39 | 46 |
| Total shareholders' equity | 331,551 | 327,674 |
| Non-current liabilities | ||
| Non-current payables for the purchase of equity investments and earn-outs | 24,030 | 40,983 |
| Non-current financial liabilities | 403,654 | 10,989 |
| Non-current leasing liabilities | 14,823 | 16,899 |
| Deferred tax liabilities | 45,557 | 46.086 |
| Provisions for employee benefits | 2,980 | 4,630 |
| Provisions for risks and charges | 9,931 | 9,221 |
| Total non-current liabilities | 500,975 | 128,808 |
| Current liabilities | ||
| Current payables for the purchase of equity investments and earn-outs | 18,714 | |
| Current financial liabilities | 94,628 | 438,238 |
| Current leasing liabilities | 7,789 | 8,312 |
| Current provisions for employee benefits | 1,514 | |
| Trade payables | 46,183 | 57,944 |
| Liabilities from contracts with customers | 6,432 | 7,224 |
| Current tax payables | 5,923 | 2,662 |
| Other current payables and liabilities | 21,859 | 22,187 |
| Total current liabilities | 203,042 | 536,567 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,035,569 | 993,049 |
Net
UNIEN ISO 9001 - CISO 9001 - CISO 9001 - CISO 9001 - Click Cert. N. 7838-E
Via Roma, 50 - 40069 Zola Predosa (Bologna) - Italy Tel. +39 051 6176311 - Fax +39 051 6176200 - e-mail: [email protected] - www.gvs.com Cap. Soc. € 1.750.000 int. vers. - C.F. 03636630372 - P. Iva 00644831208 R.E.A. 0305386/BO - Reg. Imprese 45539/BO - Mecc. BO 012048
GVS S.p.A.
JNI EN ISO 450
Cert. N. 7838-
alse
IATF 16949
Cert. N. 9136 GVS 4
Se
Mod 3065 rev 04
Consolidated Cash Flow Statement
| Half-year ended 30 June | ||||
|---|---|---|---|---|
| (In thousands of euro) | 2023 | 2022 | ||
| Profit (loss) before tax | 9,965 | 42,525 | ||
| - Adjustment for: | ||||
| Amortisation, depreciation and write downs | 21.403 | 15,553 | ||
| Capital losses / (capital gains) from sale of assets | 102 | 20 | ||
| Financial charges / (proceeds) | 13,773 | (21,780) | ||
| Other non-monetary variations | 3,671 | 3,750 | ||
| Cash flow generated / (absorbed) by operations before variations in net | 48,914 | 40,068 | ||
| working capital | ||||
| Variation in inventories | 418 | (9,930) | ||
| Variation in trade receivables | 1.671 | 364 | ||
| Variation in trade payables | (10,698) | 1,657 | ||
| Variation in other assets and liabilities | 45 | 1,924 | ||
| Use of provisions for risks and charges and for employee benefits | (1,432) | (779) | ||
| Taxes paid | (4,661) | (5,148) | ||
| Net cash flow generated / (absorbed) by operations | 34,257 | 28,156 | ||
| Investment in tangible assets | (9,524) | (10,319) | ||
| Investment in intangible assets | (3,060) | (2,341) | ||
| Disposal of tangible assets | 304 | 42 | ||
| Investment in financial assets | (82,500) | (1,073) | ||
| Disinvestment in financial assets | 21,393 | 6,451 | ||
| Fee for acquisition of business unit net of cash and cash equivalents | ||||
| acquired | (239,162) | |||
| Net cash flow generated / (absorbed) by investment | (73,387) | (246,402) | ||
| Opening of long-term financial payables | 75,936 | 232,511 | ||
| Repayment of long-term financial payables | (27,293) | (23,219) | ||
| Repayment of leasing payables | (3,278) | (2,367) | ||
| Financial charges paid | (8,782) | (1,268) | ||
| Financial proceeds collected | 608 | 1,285 | ||
| Treasury shares | (1,405) | |||
| Net cash flow generated/(absorbed) by financial assets | 37,192 | 205,537 | ||
| Total variation in cash on hand | (1,938) | (12,709) | ||
| Cash on hand at the beginning of the period | 135,169 | 136,893 | ||
| Total variation in cash on hand | (1,938) | (12,709) | ||
| Conversion differences on cash on hand | (824) | 4,500 | ||
| Cash on hand at the end of the period | 132 406 | 128 684 |
UNIEN ISO 9001 - CISO 9001 - CISO 9001 - CISO 9001 - Click Cert. N. 7838-E
Via Roma, 50 - 40069 Zola Predosa (Bologna) - Italy Tel. +39 051 6176311 - Fax +39 051 6176200 - e-mail: [email protected] - www.gvs.com Cap. Soc. € 1.750.000 int. vers. - C.F. 03636630372 - P. Iva 00644831208 R.E.A. 0305386/BO - Reg. Imprese 45539/BO - Mecc. BO 012048
GVS S.p.A.
JNI EN ISO 450
Cert. N. 7838-
IATF 16949
Cert. N. 9136 GVS 4
ISO 13485
Cert. N. 9124 GVS 3
Consolidated Net Financial Debt
| (In thousands of euro) | At 30 June 2023 | At 31 December 2022 | |
|---|---|---|---|
| (A) | Cash on hand | 132,406 | 135,169 |
| (B) | Cash equivalents | ||
| Fixed-term deposits | 63,136 | ||
| Securities held for trading | 2,943 | 4,592 | |
| Financial receivables for leasing | 185 | 187 | |
| (C) Other current financial assets | 66,264 | 4,779 | |
| (D) Cash and cash equivalents (A)+(B)+(C) | 198,671 | 139,948 | |
| Current bank payables | |||
| Financial lease payables to other companies in the GVS Group | 2,555 | 2,907 | |
| Financial payables for leases | 5,234 | 5,405 | |
| Other current payables | |||
| Other Financial Payables | 20,493 | 256 | |
| (E) | Current financial payables | 28,282 | 8,568 |
| (-) | Current portion of non-current payables | 92,849 | 437,982 |
| (G) Current financial debt (E) + (F) | 121,131 | 446,550 | |
| (H) Net current financial debt (G) - (D) | 77,539 | (306,602) | |
| Non-current bank payables | 319,899 | 10,094 | |
| Non-current bonds | 7,989 | ||
| Other financial payables | 24,796 | 41,878 | |
| Other financial payables to GVS Group | 75,000 | ||
| Financial lease payables to other companies in the GVS Group | 1,109 | 1,547 | |
| Non-current payables for leasing | 13,714 | 15,352 | |
| (1) | Non-current financial payables | 442,507 | 68,871 |
| Derivative financial instruments with negative values | |||
| (J) | Debt obligations | ||
| (K) | Commercial and other non-current debt | ||
| (L) | Non-current financial debt (I) + (J) + (K) | 442,507 | 68,871 |
| (M) Total net financial debt (H)-(L) | (364,967) | (375,473) |
Via Roma, 50 - 40069 Zola Predosa (Bologna) - Italy Tel. +39 051 6176311 - Fax +39 051 6176200 - e-mail: [email protected] - www.gvs.com Cap. Soc. € 1.750.000 int. vers. - C.F. 03636630372 - P. Iva 00644831208 R.E.A. 0305386/BO - Reg. Imprese 45539/BO - Mecc. BO 012048
GVS S.p.A.
JNI EN ISO 450
Cert. N. 7838-
ISO 13485
Cert. N. 9124 GVS 3