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Gvs Earnings Release 2023
4164_10-q_2023-05-15_cfe48ca8-7ce7-49a2-ab75-c9a3db71d977.pdf
Earnings Release
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| Informazione Regolamentata n. 2251-38-2023 |
Data/Ora Ricezione 15 Maggio 2023 12:30:50 |
Euronext Milan | ||
|---|---|---|---|---|
| Societa' | : | GVS | ||
| Identificativo Informazione Regolamentata |
: | 176983 | ||
| Nome utilizzatore | : | GVSN03 - Bala | ||
| Tipologia | : | REGEM | ||
| Data/Ora Ricezione | : | 15 Maggio 2023 12:30:50 | ||
| Data/Ora Inizio Diffusione presunta |
: | 15 Maggio 2023 12:30:51 | ||
| Oggetto | : | GVS - Consolidated Q1 2023 Results Approval |
||
| Testo del comunicato |
Vedi allegato.
PRESS RELEASE
APPROVAL BY THE GVS BOARD OF DIRECTORS OF THE CONSOLIDATED RESULTS FOR Q1 2023
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CONSOLIDATED REVENUES OF 104.0 MILLION EURO, +28.2% COMPARED TO Q1 2022, THANKS TO THE CONTRIBUTION OF THE COMPANIES ACQUIRED LAST YEAR
NORMALISED EBITDA OF 22.6 MILLION EURO, UP 8.6% ON Q1 2022, WITH A MARGIN ON REVENUE OF 21.7%, DUE TO THE CONTRIBUTION OF ACQUISITIONS COMPLETED DURING 2022 AND THE PRICE INCREASE INTRODUCED DURING Q1 2023
NET FINANCIAL DEBT OF 389 MILLION EURO, UP BY APPROXIMATELY 13 MILLION EURO ON DECEMBER 2022, RELATED TO A HIGHER CASH ABSORPTION OF WORKING CAPITAL
THE UPDATE OF THE FINANCIAL ECONOMIC FORECASTS FOR THE PERIOD 2023-2025 WILL BE PRESENTED ON 25 SEPTEMBER 2023
Zola Predosa (BO), 15 May 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 interim report on operations at 31 March 2023, which have been prepared in accordance with IFRS international accounting standards.
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ANALYSIS OF THE GROUP'S ECONOMIC MANAGEMENT
In the first three months of 2023, GVS realised consolidated revenues of 104 million euro, up 28.2% compared to the 81.1 million euro recorded in the first three months of 2022, thanks to the contribution of the latest acquisitions realised during the previous year (the STT and Haemotronic groups).
Excluding the contribution of acquisitions, the Company recorded a 9.0% decrease in organic turnover compared to Q1 2022, on the back of de-stocking policies by its customers, in line with what has been observed at an industry level.
The Healthcare & Life Sciences division revenues recorded significant growth in the Healthcare Liquid business (+93.1%), compared to the same period of last year thanks to the acquisitions of STT and
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Haemotronic concluded in 2022, absorbing the contraction recorded in the Healthcare Air & Gas business. The Laboratory business reported turnover growth of 8.5% to 9.1 million euro, compared to Q1 2022 revenues of 8.4 million euro.
The Energy & Mobility division recorded a trend with a 14.6% decrease in revenue compared to the same period of the previous year, as a result of the above-mentioned de-stocking policies, particularly in the Sport & Utility segment, which recorded sales down 27.5% year-on-year.
The Health & Safety division recorded a slight decrease in turnover of -2.8%, which was also impacted by de-stocking activity from its customer base, although less than in the previous year.
Normalised EBITDA amounted to 22.6 million euro, up 8.6% compared to Q1 2022, with a margin on revenue of 21.7%. The period result is influenced by the contribution of acquisitions completed during 2022 and the price increase introduced during the first quarter of 2023. The decrease in the margin on revenue compared to Q1 2022 (by 25.6%) is mainly related to the lower absorption of fixed costs against the decrease in organic turnover.
Normalised EBIT with a margin on revenue of 15.4% amounted to 16 million euro, +2% compared to 15.7 million euro in the same period of the previous year. The item amortisation and depreciation increased by 1.2 million euro, of which 0.8 million euro attributable to the acquisition of the Haemotronic group and for the remainder attributable to the acceleration of the Group's investment plans in recent years, in order to meet the necessary increase in production capacity.
Net financial expenses (net of foreign exchange losses of 4.0 million euro recorded during the first three months of 2023 and exchange gains of 6.3 million euro in 2022) increased in the period under review, from 0.5 million euro for the period ended 31 March 2022 to 3.6 million euro for the period ended 31 March 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 8.3 million euro in the period under review, a decrease of 13.2 million euro compared to 21.6 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 quarter of 2023.
Net financial debt at 31 March 2023 was -388.9 million euro. The change with respect to 31 December 2022, totalling 13.4 million euro, is mainly due to the net cash used for investments in tangible and intangible assets in the period (7.6 million euro) and net financial expenses (5.2 million euro). In terms of current operations, cash generated by operations was almost entirely absorbed by changes in working capital.
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 result for the quarter confirms the upward trend in profitability that began in the latter part of last year and was achieved despite the decline in organic turnover related to de-stocking.
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Inventory reductions by customers are also expected to continue during the second quarter of 2023, with a related impact on the expected turnover. Although visibility on the dynamics expected in the second half of the year remains poor, sales volumes are expected to recover in the second half of 2023. In this regard, the impact that the current macroeconomic scenario, characterised by a sudden 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.
In consideration of the results achieved in the first three months of 2023 and of the uncertainty variables described above, the Company confirms the guidance communicated at the time of approval of the 2022 results (turnover 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), with expectations, as regards the turnover guidance, in the lower part of the range.
On 25 September 2023, the Company will present an update of its financial forecasts for the period 2023-2025.
ASCERTAINING THE REQUIREMENTS OF THE BOARD OF AUDITORS
The Board of Directors also ascertained the absence of grounds for incompatibility, ineligibility and disqualification for the members of the Board of Statutory Auditors, as well as the fulfilment of the requirements of professionalism and integrity by the auditors, and acknowledged the fulfilment of the legal requirements and independence requirements provided for by the Corporate Governance Code on the basis of the checks carried out by the Board of Statutory Auditors and forwarded to the Board of Directors today.
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 Interim Report on Operations as at 31 March 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 Q1 2023 will be presented on Monday, 15 May at 16:30 CET during a conference call held by the Group's Senior Management.
The conference call can be followed in webcast or telephone mode by registering at the link below:
CLICK HERE TO REGISTER FOR THE CONFERENCE CALL & WEBCAST
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).
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
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 at 31 March 2023
Consolidated Income Statement
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| Quarter ending on 31 March | |||
|---|---|---|---|
| (In thousands of Euro) | 2023 | 2022 | |
| Revenue from contracts with customers | 103.956 | 81.100 | |
| Other revenue and income | 985 | 533 | |
| Total revenue | 104.941 | 81.633 | |
| Purchases and consumption of raw materials, semi-finished and finished products | (32.186) | (24.341) | |
| Personnel costs | (33.940) | (27.639) | |
| Services Cost | (14.704) | (9.319) | |
| Other operating costs | (1.493) | (1.099) | |
| EBITDA | 22.618 | 19.236 | |
| Net write downs of financial assets | (344) | (27) | |
| Amortisation, depreciation and write downs | (10.205) | (7.314) | |
| EBIT | 12.069 | 11.895 | |
| Financial income | 294 | 6.481 | |
| Financial costs | (8.905) | (1.031) | |
| Profit before income tax | 3.458 | 17.345 | |
| Income taxes | (910) | (4.347) | |
| Net profit | 2.548 | 12.998 | |
| Group's share | 2.544 | 12.996 | |
| Minority share | 4 | 2 | |
| Basic net result per share | 0,01 | 0,07 | |
| Diluted net result per share | 0,01 | 0,07 |
Analysis of Reclassified Income Statement
| Quarter ending on 31 March | ||||||||
|---|---|---|---|---|---|---|---|---|
| of which | 2023 | of which | 2022 | |||||
| (In thousands of euro) | 2023 % non- Adjusted recurring |
2022 | non recurring |
Adjusted | % | |||
| Revenues from sales and services | 103.956 | - | 103.956 | 100,0% | 81.100 | - | 81.100 | 100,0% |
| Other revenues and income | 985 | 319 | 666 | 0,6% | 533 | - | 533 | 0,7% |
| Total revenue | 104.941 | 319 | 104.622 | 100,6% | 81.633 | - | 81.633 | 100,7% |
| Costs for purchase of raw materials and change in inventories |
(32.186) | - | (32.186) | -31,0% | (24.341) | (486) | (23.855) | -29,4% |
| Service provisions | (14.704) | - | (14.704) | -14,1% | (9.319) | - | (9.319) | -11,5% |
| Other operating expenses | (1.493) | - | (1.493) | -1,4% | (1.099) | - | (1.099) | -1,4% |
| Added value | 56.558 | 319 | 56.239 | 54,1% | 46.875 | (486) | 47.361 | 58,4% |
| Labour cost | (33.940) | (267) | (33.673) | -32,4% | (27.639) | (1.060) | (26.579) | -32,8% |
| EBITDA | 22.618 | 52 | 22.566 | 21,7% | 19.236 | (1.546) | 20.782 | 25,6% |
| Depreciation and amortisation | (10.205) | (4.038) | (6.167) | -5,9% | (7.314) | (2.303) | (5.011) | -6,2% |
| Provisions and write-downs | (344) | - | (344) | -0,3% | (27) | - | (27) | 0,0% |
| EBIT | 12.069 | (3.986) | 16.055 | 15,4% | 11.895 | (3.849) | 15.744 | 19,4% |
| Financial income and expenses | (8.610) | (892) | (7.718) | -7,4% | 5.450 | (398) | 5.848 | 7,2% |
| Pre-tax result | 3.458 | (4.878) | 8.337 | 8,0% | 17.345 | (4.247) | 21.592 | 26,6% |
| Income taxes | (910) | 1.330 | (2.240) | -2,2% | (4.347) | 892 | (5.239) | -6,5% |
| Group and minorities' net profit | 2.548 | (3.548) | 6.097 | 5,9% | 12.998 | (3.355) | 16.353 | 20,2% |
Consolidated Balance Sheet
| (In thousands of Euro) | As of March 31, 2023 |
As of December 31, 2022 |
|---|---|---|
| ASSIBITS | ||
| Non-current assets | ||
| Intangible assets | 486.631 | 494.846 |
| Right of use assets | 21.816 | 22.991 |
| Property, plant and equipment | 122.339 | 120.404 |
| Deferred tax assets | 3.648 | 3.487 |
| Non-current financial assets | 3.759 | 3.754 |
| Derivative financial instruments | 6.910 | 6.648 |
| Other non current assets and receivables | 1.695 | 1.695 |
| Total non current assets | 646.798 | 653.825 |
| Current assets | ||
| Inventories | 114.702 | 106.922 |
| Trade receivables | 71.847 | 72.944 |
| Contract assets | 1.558 | 1.205 |
| Income tax receivables | 5.753 | 5.691 |
| Other current assets and receivables | 14.874 | 12.514 |
| Current financial assets | 77.719 | 4.779 |
| Cash and cash equivalents | 102.132 | 135.169 |
| Total current assets | 388.585 | 339.224 |
| Total assets | 1.035.383 | 993.049 |
| EQUITY AND LIABILITIES | ||
| Share capital | 1.750 | 1.750 |
| Reserves | 324.032 | 301.780 |
| Profit for the period | 2.544 | 24.098 |
| Group shareholders' equity | 328.326 | 327.628 |
| Non-controlling interests | 43 | 46 |
| Total equity | 328.369 | 327.674 |
| Non-current liabilities | ||
| Payables for the purchase of equity investments and earn-outs | 41.746 | 40.983 |
| Non-current borrowings | 431.555 | 10.989 |
| Non-current lease liabilities | 15.941 | 16.899 |
| Deferred tax liabilities | 42.375 | 46.086 |
| Employee benefit obligations | 4.593 | 4.630 |
| Provisions for risks and charges | 9.163 | 9.221 |
| Total non-current liabilities | 545.373 | 128.808 |
| Current liabilities | ||
| Current borrowings | 71.744 | 438.238 |
| Current lease liabilities | 7.753 | 8.312 |
| Trade payables | 44.734 | 57.944 |
| Contract liabilities | 8.329 | 7.224 |
| Income tax pavables | 5.414 | 2.662 |
| Other current liabilities | 23.667 | 22.187 |
| Total current liabilities | 161.641 | 536.567 |
| Total equity and liabilities | 1.035.383 | 993.049 |
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 4500
Cert. N. 7838-l
alse
Mod 3065 rev 04 ISO 13485
Cert. N. 9124 GVS 3
Consolidated Cash Flow Statement
| Quarter ending on 31 March | ||||
|---|---|---|---|---|
| (In thousands of Euro) | 2023 | 2022 | ||
| Profit before income tax | 3.458 | 17.345 | ||
| - Adjustments: | ||||
| Depreciation and amortization | 10.205 | 7.314 | ||
| Capital loss / (gain) from disposal of assets | 41 | (14) | ||
| Net financial expenses | 8.611 | (5.450) | ||
| Other non-monetary movements | 540 | 2.000 | ||
| Cash flow from operating activities before changes in net working capital | 22.855 | 21.195 | ||
| Changes in inventory | (8.797) | (3.664) | ||
| Changes in trade receivables | 82 | 3.119 | ||
| Changes in trade payables | (12.332) | (3.389) | ||
| Changes in other assets and liabilities | 94 | (870) | ||
| Uses of employee benefit obligations and provisions for risks and charges | (271) | (301) | ||
| Income tax paid | (1.784) | (2.122) | ||
| Net cash flow provided by / (used in) operating activities | (153) | 13.969 | ||
| Investments in property, plant and equipment | (6.050) | (2.139) | ||
| Investments in intangible assets | (1.554) | (1.359) | ||
| Disposal of property, plant and equipment | 52 | 62 | ||
| Investments in financial assets | (75.000) | (30) | ||
| Disposal of financial assets | 2.280 | 6.451 | ||
| Acquisition of company branch (net of cash acquired) | (70.347) | |||
| Net cash flow provided by / (used in) investing activities | (80.272) | (67.362) | ||
| Proceeds from long term borrowings | 75.000 | |||
| Repayment of long term borrowings | (21.799) | (15.979) | ||
| Repayment of lease liabilities | (1.686) | (669) | ||
| Finance costs paid | (3.224) | (1.007) | ||
| Finance income received | 145 | 149 | ||
| Treasury shares | (1.405) | |||
| Net cash flow provided by / (used in) financing activities | 48.437 | (18.911) | ||
| Total cash flow provided / (used) in the year | (31.989) | (72.304) | ||
| Cash and cash equivalents at the beginning of the period | 135.169 | 136.893 | ||
| Total cash flow provided / (used) in the year | (31.989) | (72.304) | ||
| Exchange differences from translation of cash and cash equivalents | (1.047) | 2.030 | ||
| Cash and cash equivalents at the end of the period | 102.133 | 66.618 |
(
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
ISO 13485
Cert. N. 9124 GVS 3
Mod 3065 rev 04
Consolidated Net Financial Debt
| (In thousands of euro) | At 31 March 2023 | At 31 December 2022 | |
|---|---|---|---|
| (A) | Cash on hand | 102.132 | 135.169 |
| (B) | Cash equivalents | 75.000 | |
| Fixed-term deposits | |||
| Securities held for trading | 2.535 | 4.592 | |
| Financial receivables for leasing | 184 | 187 | |
| (C) | Other current financial assets | 2.719 | 4.779 |
| (D) Cash and cash equivalents (A)+(B)+(C) | 179.851 | 139.948 | |
| Financial payables to other companies in the GVS Group for leases | 2.010 | 2.907 | |
| Financial payables for leases | 5.743 | 5.405 | |
| Other current debt | |||
| Other Financial Payables | 256 | 256 | |
| (E) Current financial payables | 8.009 | 8.568 | |
| (H) | Current portion of non-current payables | 71.488 | 437.982 |
| (G) Current financial debt (E) + (F) | 79.497 | 446.550 | |
| (H) Net current financial debt (G) - (D) | 100.354 | (306.602) | |
| Non-current bank payables | 347.555 | 10.094 | |
| Non-current bonds | 7.987 | ||
| Other financial payables | 42.641 | 41.878 | |
| Other financial payables to GVS Group | 75.118 | ||
| Financial payables to other companies in the GVS Group for leases | 1.729 | 1.547 | |
| Non-current payables for leasing | 14.212 | 15.352 | |
| (I) Non-current financial payables | 489.242 | 68.871 | |
| Derivative financial instruments with negative values | |||
| (1) | Debt obligations | ||
| (K) | Commercial and other non-current debt | ||
| (L) Non-current financial debt (I) + (J) + (K) | 489.242 | 68.871 | |
| (M) Total net financial debt (H)-(L) | (388.888) | (375.473) |
UNIEN ISO 9001 - CISO 9001 - CISO 9001 - CISO 9001 - Click Cert. N. 7838-E
GVS S.p.A.
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
JNI EN ISO 450
Cert. N. 7838-
IATF 16949
Cert. N. 9136 GVS 4
Mod 3065 rev 04 ISO 13485
Cert. N. 9124 GVS 3