Newprinces SpA — Earnings Release 2020

Mar 19, 2021

Informazione Regolamentata n. 2195-29-2021		Data/Ora Ricezione 19 Marzo 2021 17:24:17	MTA - Star
Societa'	:	NEWLAT FOOD S.P.A.
Identificativo Informazione Regolamentata	:	143863
Nome utilizzatore	:	NEWLATN01 - Pisoni
Tipologia	:	1.1
Data/Ora Ricezione	:	19 Marzo 2021 17:24:17
Data/Ora Inizio Diffusione presunta	:	19 Marzo 2021 17:24:18
Oggetto	:	Press release - Approvation of the draft financial statement 2020
Testo del comunicato

Vedi allegato.

PRESS RELEASE

THE BOARD OF DIRECTORS APPROVES THE DRAFT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

• Pro-forma consolidated revenues¹ : € 516.9 million, up 3.2% vs. € 500.9 million in 2019. Consolidated revenues: € 469.8 million, up 73.5% vs. €270.8 million in 2019.
• Pro-forma adjusted EBITDA² reached an all-time high: € 51.4 million, up 44.1% vs. € 35.7 million in 2019. Pro-forma Adj. EBITDA margin equal to 10%.
• Consolidated Net Income: €38.6 million, including €24.9 million of income from business combination, recording a sharp increase compared to 7.2 million in the previous year.
• Consolidated Net Financial Position substantially improved thanks to a strong cash flow generation: € 5.2 million vs. pro-forma NFP of €-38.1 million in 2019. Excluding IFRS 16 lease liabilities, consolidated NFP at 31 December 2020 is equal to € 24.2 million.
• FCF equal to € 44.1 million (excluding M&A). EBITDA FCF conversion rate 88.8% showing the Group's ability to generate free cash flow.

Reggio Emilia, 19 March 2021 – the Board of Directors of Newlat Food S.p.A. ("Newlat Food" or the "Company"), which met today under the chairmanship of Angelo Mastrolia, examined and approved the Draft Financial Statements and Consolidated Statement for the year ended 31 December 2020.

The figures relating to 2020 confirm a positive trend in the main aggregate economic and financial figures of the Group.

The pro-forma consolidated revenues of the Company in 2020 were equal to € 516.million, an increase of 3.2% compared to 2019.

The Company's pro-forma consolidated EBITDA was € 49.6 million, compared to € 35 million in the previous year. The adjusted pro-forma consolidated EBITDA was € 51.4 million, up 44.1% vs. 2019.

Consolidated Net Income was equal to € 38.6 million compared to € 7.2 million in 2019. Excluding the income arising from business combination and non-recurring expenses, the adjusted net income was € 15.6 million.

¹ The proforma figures include Centrale del Latte d'Italia S.p.A.in the scope of consolidation starting from 1st January 2020. The comparative 2019 figures include Centrale del Latte d'Italia S.p.A. and Newlat GmbH starting from 1st January 2019. ² Adjusted EBITDA is defined as the EBITDA of the period adjusted by the income and expenses which, by their nature, are reasonably expected to not occur in future periods.

Net Financial Position, including the effects of IFRS 16, also improved and was positive by € 5.2 million. Excluding the IFRS 16 lease liabilities, NFP was equal to € 24.2 million.

* * *

Angelo Mastrolia, the Chairman of Newlat Food, commented: "2020 was a particularly challenging year in light of the COVID-19 pandemic. In this last year it was essential to reconcile the protection of the health of our employees and the increasing demand for food products, both nationally and internationally.

2020 was, moreover, the first year that we faced in full as a listed company and, despite the difficulties due to the pandemic also in terms of investors relations and the performance of the stock, we are satisfied as the Company has shown great competence in relating to the market and in maintaining the commitments undertaken during the IPO phase.

The year that has just ended has also marked the year of an important acquisition that has allowed us to reach the first half billion Euros in revenue, a goal that is not to be taken for granted in view of the difficulties encountered during the pandemic. The result of the acquisition is even more significant if we consider that in a few months we turned around a company – Centrale del Latte d'Italia S.p.A., which in 2019 had closed its accounts with a heavy loss – and made it performing and profitable.

The overall Group result for 2020 allows us to look to the future with optimism, having achieved an EBITDA of € 51.4 million and a net profit of € 38.6 million. These results have allowed us to generate an excellent FCF which, together with the resources collected with the placement of the Bond issued in February 2021, allow us to have considerable resources available to continue with the external growth strategy in order to achieve, within the next 12-24 months, a billion euros in turnover.

Our management is committed to achieving the objectives of further growth through acquisitions and, considering the various dossiers we are examining, we are confident that an important acquisition can be announced by 2021."

* * *

Analysis of the pro-forma consolidated revenues

In 2020, Newlat Food achieved pro-forma consolidated revenues equal to € 516.9 million, up 3.2% compared to € 500.9 million in the previous year. The revenues by Business Unit were split as follows:

Revenues by Business Unit

(In € thousand and in %)		Ended 31 December		Change
	2020	%	2019	%	2020 vs 2019	%
Pasta	148,587	28.7%	138,168	27.6%	10,419	7.5%
Milk Products	246,092	47.6%	245,367	49.0%	725	0.3%
Bakery Products	39,076	7.6%	35,670	7.1%	3,406	9.6%
Dairy Products	33,693	6.5%	33,271	6.6%	422	1.3%
Special Products	34,005	6.6%	30,547	6.1%	3,458	11.3%
Other Products	15,490	3.0%	17,931	3.7%	(2,441)	(13.6%)
Revenues from clients' contracts	516,943	100.0%	500,953	100.0%	15,990	3.2%

During 2020, Newlat Food recorded good growth and linearity in all business units, confirming management's expectations.

The revenues relating to the Pasta segment were up 7.5% due to an increase in sales volumes, in particular in the German market.

The Milk Products segment's sales increased slightly mainly due to an increase in sales volumes in the large retailers channel and a decrease in volumes in the Ho.Re.Ca. sector due to low tourism traffic caused by domestic and international lockdowns.

Revenues in the Bakery products segment recorded an increase of 9.6% versus the previous year as a result of higher sales volumes, particularly in the bread substitute segment.

Revenues deriving from the Dairy Products increase slightly due to higher sales volumes.

The Special Products segment recorded an increased in sales by 11.3% due to higher sales volumes.

The Other products segment decrease because of lower sales volumes in the Food Service channel as a consequence of the COVID-19 pandemic.

Revenues by Distribution Channel

(In € thousand and in %)	Ended 31 December			Change
	2020	%	2019	%	2020 vs 2019	%
Large retailers	334,324	64.7%	311,505	62.2%	22,819	7.3%
B2B partners	53,842	10.4%	52,062	10.4%	1,780	3.4%
Normal trade	72,063	13.9%	71,600	14.3%	463	0.6%
Private label	42,932	8.3%	41,458	8.3%	1,474	3.6%
Food service	13,782	2.7%	24,328	4.9%	(10,546)	(43.3%)
Revenues from clients' contracts	516,943	100.0%	500,953	100.0%	15,990	3.2%

Revenues relating to the large-scale distribution channel grew by 7.3% due to the contribution of Delverde, net of which there would have been a substantial linearity compared to the previous year.

Revenues in the B2B partners channel were up 3.4% due to the increase in sales of the Special Products segment. The B2B partners channel weight remained stable.

Sales in the Normal trade channel were unchanged compared to the previous year.

The Private label channel recorded a sales increase of 3.6% due to a growth in sales volumes.

Revenues related to the Food service channel decrease as a result of lower sales volumes caused by the COVID-19 pandemic.

(In € thousand and in %)	Ended 31 December				Change
	2020	%	2019	%	2020 vs 2019	%
Italy	350,836	67.9%	346,430	69.2%	4,406	1.3%
Germany	103,188	20.0%	93,294	18.6%	9,894	10.6%
Other countries	62,919	12.3%	61,229	12.3%	1,690	2.8%
Revenues from clients' contracts	516,943	100.0%	500,953	100.0%	15,990	3.2%

Revenues by Geography

Revenues in Italy grew 1.3% following an increase in sales volumes.

In Germany, sales were up 10.6% compared to the previous year as a result of higher sales volumes, in particular in the Pasta segment.

Revenues in Other Countries increase by 2.8% as a result of an overall increase of sales.

Analysis of Consolidated Results

In 2020, Cost of Goods Sold was equal to € 370.9 million, bearing 78.8% of revenues compared to 82.9% in 2019. This improvement was achieved through a more efficient procurement policy, which improved the terms of purchase of raw materials.

EBITDA was up 100% and was equal to €45.2 million, thus recording a margin of 9.6% as opposed to 8.4% in the previous year.

EBIT is reported at € 48.7 million with a margin of 10.4% compared to 4% in 2019. After deducting income arising from business combinations, EBIT was € 23.8 million.

Consolidated Net Profit was € 38.6 million, while Consolidated Net Profit net of income from business combinations was € 15.6 million vs. € 7.2 million in 2019.

Allocation of the Net Profit

During the meeting, the Board of Directors proposed to allocate the Net Profit for the year, equal to € 7,254,348 in the following manner: 5% to legal reserve and 95% to extraordinary reserve.

Analysis of Net Debt and Investments

Net financial position at 31 December 2020 was equal to € 5.2 million. In 2019, pro-forma NFP was negative by € 38.1 million. The change in NFP between the two periods is primarily due to a strong cash flow generation from operations and a better management of NWC. Excluding the effects of IFRS 16 lease liabilities, NFP was equal to € 24.2 million.

During 2020, the Group invested a total amount of € 17.5 million. Capital investments in tangible fixed assets were primarily linked to the purchase of equipment, mainly attributable to projects for updating and renewing the production and packaging lines as well as an innovative automated warehouse at the Turin plant.

* * *

SIGNIFICANT EVENTS OCCURRED DURING THE YEAR

The significant events that occurred during the year under analysis are illustrated below:

on 1st April 2020 Newlat Food purchased n. 6,660,242 ordinary shares of Centrale del Latte d'Italia S.p.A. ("CLI"), representing 47.58% of the share capital, upon payment of the consideration equal to € 1 and no. 0.33 ordinary shares of Newlat Food. Following this acquisition, the Company launched a mandatory public purchase and exchange offer ("OPAS") on the remaining ordinary CLI shares, pursuant to and in accordance with applicable law, at the same consideration paid to the sellers;

• On 30 July 2020, the definitive results of the takeover bid were disclosed, which ended with the adhesion of no. 2,803,460 CLI ordinary shares, representing 20.02% of the share capital and equal to 38.19% of the ordinary shares subject of the offer. Following the takeover bid, Newlat Food came to hold a total of no. 9,463,702 ordinary CLI shares, representing 67.59% of its share capital and paid, to each member, a consideration equal to € 1 and n. 0.33 newly issued Newlat Food ordinary shares, resulting from the share capital increase approved by the Shareholders' Meeting of the Company on 25 June 2020. Payment of the consideration for the shares contributed to the offer during the subscription period is which took place on 31 July 2020.
• on 21 December 2020, a contract was signed for the lease of the milk & dairy business unit between Newlat Food and CLI.

* * *

SIGNIFICANT EVENTS OCCURRED AFTER THE REPORTING DATE

On 19 February 2021, the Company issued an unrated, unsecured, non-convertible senior bond loan, called "Senior Unsecured Fixed Rate Notes due February 2027" for a total amount of € 200,000,000 and with an interest rate equal to 2.625%, the bond was issued to support the Company's further M&A activity.

* * *

BUSINESS OUTLOOK

In 2021, the Company will continue to maintain a great focus on external growth, also relying on liquidity of approximately € 300 million.

From an operational point of view, organic turnover is expected to grow at low-single digit levels in 2021 with a further improvement in margins.

* * *

OTHER RESOLUTIONS OF THE BOARD OF DIRECTORS

The Board of Directors has also approved (i) the report on the corporate governance system and ownership structures, prepared pursuant to art. 123-bis of the TUF; (ii) the explanatory report by the Board of Directors on the items on the agenda of the Shareholders' Meeting and (iii) the report on the remuneration policy and the remuneration paid, pursuant to art. 123-ter of the TUF and, therefore, to proceed with making available it to the public in the manner established by law.

* * *

CONFERENCE CALLON THE 2020 RESULTS OF THE NEWLAT FOOD GROUP

The FY 2020 results of the Group will be illustrated during the conference call to be held today at 16:00 (CET). To participate in the Conference Call (Meeting number: 181 215 2887; Meeting password: Y5Wh5Z5a22i or 95945952 from telephone and video systems) it is necessary to connect, at least 10 minutes before the beginning of the call, to the following numbers: (i) Italy: +39-069-974-8087; (ii) France: +33-1-7091-8646; (iii) Germany: +49-619-6781-9736; (iv) Switzerland: +41-2256-75905; (v) United Kingdom: +44-20-7660-8149.

Otherwise – to follow the presentation live broadcast – connect at the link: https://newlatfoodspa.my.webex.com/newlatfoodspa.my/j.php?MTID=mfc4bfc8622462046cd843c693fc3 6330

The presentation can be downloaded at corporate.newlat.it about 30 minutes before the beginning of the conference.

Should you be unable to attend the conference call, an MP3 file will be available at corporate.newlat.it from 22nd March.

* * *

DECLARATION OF THE MANAGER RESPONSIBLE FOR PREPARING THE CORPORATE ACCOUNTING DOCUMENTS

The manager in responsible for preparing the corporate accounting documents Rocco Sergi declares, pursuant to and for the purposes of Article 154-bis, paragraph 2, of Legislative Decree no. 58 of 1998, that the information contained in this press release corresponds to the document results, books and accounting records.

* * *

This press release is available on the Company's website at www.newlat.it as well as at the authorized storage mechanism eMarketstorage at .

* * *

FOR MORE INFORMATION:

Investors Benedetta Mastrolia Newlat Food Investor Relator Mob. +393319559164 investors@newlat.com

Press Office

Roberto Stasio

Barabino & Partners Tel. 010/2725048 Mob. +393355332483 r.stasio@barabino.it

Alice Brambilla

Barabino & Partners Tel. 02/72023535 Mob. +393282668196 a.brambilla@barabino.it

* * *

The Newlat Group

The Newlat Group is a relevant multinational, multi-brand and multi-channel player in the Italian and European agri-food sector, having a large portfolio of products and brands well known in Italy and internationally. The Newlat Group holds a consolidated positioning in the Italian and German markets and sale products in more than 60 countries. The Newlat Group is mainly active in the pasta, dairy, bakery and special products sectors, and in particular in the health & wellness, gluten free and baby food sectors.

For more information, visit our website www.newlat.it.

ATTACHMENT A – PROFORMA CONSOLIDATED FINANCIAL STATEMENTS

Proforma consolidated Statement of Financial Position for the Year Ended 31 December 2020

		Ended 31 December
In € thousand	2020	2019
Non-current assets
Property, plant and equipment	151,541	151,857
Right of use	18,452	21,630
Of which towards related parties	6,708	9,467
Intangible assets	51,057	44,872
Investments in associated companies	1,397	1,397
Non-current financial assets valued at fair value with impact on I/S	746	698
Financial assets at amortized cost	801	867
Of which towards related parties	735	735
Deferred tax assets	5,466	6,698
Total non-current assets	229,460	228,019
Current assets
Inventory	41,347	36,635
Account receivables	72,729	70,739
Of which towards related parties	606	19
Current tax assets	1,888	3,946
Other receivables and current assets	11,003	13,316
Current financial assets valued at fair value with impact on I/S	4	4
Cash and cash equivalents	182,127	110,371
Of which towards related parties	69,351
Total current assets	309,099	235,011
TOTAL ASSETS	538,560	463,030
Equity
Share capital	43,935	43,935
Reserves	61,276	77,,568
Net Income	37,053	5,197
Total Group Equity	142,265	126,701
Equity attributable to non-controlling interest	13,790	12,451
Total consolidated equity	156,055	139,152
Non-current liabilities
Provisions for employees	15,411	16,502
Provisions for risks and charges	1,587	1,461
Deferred tax labilities	12,080	9,939
Non-current financial liabilities	94,811	68,278
Non-current lease liabilities	12,436	15,316
Of which towards related parties	4,144	6,989
Other non-current liabilities	-	600
Total non-current liabilities	136,325	112,096
Current liabilities
Account payables	152,850	124,752
Of which towards related parties	213	149
Current financial liabilities	63,121	58,089
Of which towards related parties	891

Current financial liabilities	6,570	6,828
Of which towards related parties	2,812	2,341
Current tax liabilities	3,438	483
Other current liabilities	20,201	21,630
Total current liabilities	246,179	211,782
TOTAL EQUTIY AND LIABILITIES	538,560	463,030

Proforma Consolidated Income Statement

(In € thousand)	Ended 31 December
	2020	2019
Revenue from clients' contracts	516,943	500,952
Of which towards related parties
Cost of goods sold	(404,767)	(400,678)
Of which towards related parties	(3,581)	(3,357)
Gross profit	112,176	100,274
Sales and distribution costs	(62,067)	(67,203)
Administrative expenses	(26,032)	(25,704)
Of which towards related parties	(180)	(417)
Net impairment losses on financial assets	(1,677)	(1,865)
Other income	8,970	8,713
Income from business combination	23,839
Other operational costs	(5,844)	(5,585)
EBIT	49,365	8,630
Financial income	586	974
Of which towards related parties	134	408
Financial expense	(4,433)	(3,883)
Of which towards related parties	(204)	(135)
EBT	45,519	5,722
Gross income tax	(7,127)	(2,635)
Net Income	38,392	3,087
Net income attributable to non-controlling interest	1,339	(2,110)
Group Net Income	37,053	5,197
Basic EPS	0,89	0,25
Diluted EPS	0,89	0,25

Consolidated Cash Flow Statement

	Ended 31 December
(In € thousand)	2020	2019 (*)
Profit before income tax	45,519	13,195
- Adjustments:
Depreciation and amortization	24,120	13,692
Capital gain / (loss) from disposal of assets	(5)	84
Financial Interest / (Income)	3,847	1,368
Of which towards related parties	(70)	273
Other non-monetary movements from business combination	(23,839)
Other non-monetary movements	(15)	652
Cash flow from operating activities before changes in net	49,626	28,991
working capital
Changes in inventory	(4,721)	1,184
Changes in trade receivables	1,475	6,384
Changes in trade payables	27,637	(10,821)
Change in other assets and liabilities	2,422	10,250
Of which towards related parties		10,000
Uses of employee benefit obligations and provisions for risks and	(24)	(1,084)
charges
Income tax paid	(2,897)	(1,171)
Total cash flow provided / (used in) operating activities	72,320	33,733
Investments in property, plant and equipment	(16,665)	(4,460)
Investments in intangible assets	(870)	(499)
Deferred payment of acquisition	(1,500)	(2,521)
Merger Delverde		(2,795)
Merger Newlat Deutschland		(58,324)
Merger Centrale Latte d'Italia	19,760
Net cash flow provided by / (used in) investing activities	725	(68,599)
Proceeds from long-term borrowings	65,000	15,000
Repayment of long-term borrowings	(41,921)	(9,866)
Changes in current financial liabilities	(7,309)	(6,345)
Repayment of lease liabilities	(2,940)	(2,940)
Of which towards related parties	(3,847)	(1,368)
Net financial expenses paid		76,544
Purchase of minority interests	(2,803)
Purchase of own shares	(922)
Net cash flow provided by / (used in) financing activities	8,198	73,965
Total cash flow provided / (used) in the year	81,243	39,099
Cash and cash equivalents at the beginning of the period	100,884	61,786
Of which towards related parties	45,338	61,429
Total change in cash and cash equivalents	81,243	39,099
Cash and cash equivalents at the end of the period	182,128	100,884
Of which towards related parties	69,351	45,338

(*)in order to provide a better representation of the effects of the aggregation of Centrale del Latte d'Italia, the comparative year 2019 refers to the preacquisition perimeter of Centrale Latte d'Italia,

ATTACHMENT - CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Financial Position

		Ended 31 December
	Note	2020	2019
Non-current assets
Property, plant and equipment	8,1	151,541	31,799
Right of use	8,2	18,452	17,326
Of which towards related parties		6,708	9,467
Intangible assets	8,3	51,058	25,217
Investments in associated companies	8,4	1,397
Non-current financial assets valued at fair value with
impact on I/S	8,5	746	42
Financial assets at amortized cost	8,6	801	866
Of which towards related parties		735	735
Deferred tax assets	8,7	5,466	5,034
Total non-current assets		229,461	80,284
Current assets
Inventory	8,8	41,347	25,880
Account receivables	8,9	72,729	49,274
Of which towards related parties		606	19
Current tax assets	8,10	1,888	716
Other receivables and current assets	8,11	11,003	4,701
Current financial assets valued at fair value with impact
on I/S	8,12	4	4
Cash and cash equivalents	8,13	182,127	100,884
Of which towards related parties		69,351	45,338
Total current assets		309,099	181,459
TOTAL ASSETS		538,560	261,743
Equity
Share capital		43,935	40,780
Reserves		61,134	43,591
Net Income		37,556	7,174
Total Group Equity	8,14	142,626	91,546
Equity attributable to non-controlling interest	8,14	13,431
Total consolidated equity	8,14	156,057	91,546
Non-current liabilities
Provisions for employees	8,15	15,411	10,646
Provisions for risks and charges	8,16	1,587	1,396
Deferred tax labilities	8,7	12,081	3,850
Non-current financial liabilities	8,17	94,811	12,000
Non-current lease liabilities	8,2	12,436	13,032
Of which towards related parties		4,144	6,989
Other non-current liabilities	8,18	-	600
Total non-current liabilities		136,326	41,524
Current liabilities
Account payables	8,19	152,849	85,592
Of which towards related parties		213	149

Current financial liabilities	8,17	63,121	22,456
Of which towards related parties
Current financial liabilities	8,2	6,570	4,776
Of which towards related parties		2,812	2,341
Current tax liabilities	8,10	3,438	471
Other current liabilities	8,20	20,200	15,379
Total current liabilities		246,178	128,674
TOTAL EQUTIY AND LIABILITIES		538,560	261,743

Consolidated Income Statement

(In € thousand)		Ended 31 December
	Note	2020	2019
Revenues from clients' contracts	9,1	469,826	270,752
Cost of goods sold	9,2	(370,188)	(224,355)
Of which towards related parties		(3,581)	(3,458)
Gross profit		99,638	46,398
Sales and distribution costs	9,2	(54,372)	(25,108)
Administrative expenses	9,2	(22,725)	(11,511)
Of which towards related parties		(180)	(417)
Net impairment losses on financial assets	9,3	(1,509)	(674)
Other income	9,4	8,057	4,642
Income from business combination	9,5	24,865
Other operational costs	9,6	(5,236)	(2,954)
EBIT		48,718	10,792
Financial income	9,7	536	438
Of which towards related parties		134	408
Financial expense	9,7	(3,851)	(1,852)
Of which towards related parties		(204)	(459)
EBT		45,404	9,378
Gross income tax	9,8	(6,761)	(2,204)
Net Income		38,643	7,174
Net income attributable to non-controlling interest		1,088	0
Group Net Income		37,554	7,174
Basic EPS	9,9	0,91	0,25
Diluted EPS	9,9	0,91	0,25

Consolidated Statement of Comprehensive Income

(In € thousand)		Ended 31 December
	Note	2020	2019
Net Profit (A)		38,643	7,174
a) Other comprehensive income that will not be reclassified to profit or loss
Actuarial gains / (losses)	8,15	(1,317)	(343)
Tax effects on profit / (actuarial losses)	8,15	336	94
Total other comprehensive income that will not be reclassified to profit or loss		(981)	(249)
Total other comprehensive income for the period, net of tax (B)		(981)	(249)
Total comprehensive income for the period (A)+(B)		37,662	6,925
Net income attributable to non-controlling interest		969
Group Net Income		36,692	6,924

Consolidated Statement of Changes in Equity

(In € thousand)	Notes	Share capital	Reserve s	Net Income	Group Total Equity	Equity attributabl e to non controlling interest	Total
Ended 31 December 2018		27,000	20,359	3,361	50,720		50,720
Income allocation from the previous year			3,361	(3,361)	-		-
Merger Newlat Deutschland		-	(42,367)	-	(42,367)		(42,367)
Total transactions with shareholders	8,14	-	(42,367)	-	(42,367)		(42,367)
Share capital increase IPO Share premium reserve IPO costs IPO costs tac benefit		13,780	66,147 (5,075) 1,415		13,780 66,147 (5,075) 1,415		13,780 66,147 (5,075) 1,415
Total IPO	8,14	13,780	62,487	-	76,267		76,267
Net Income Actuarial gains / (losses) net of tax			(249)	7,173	7,173 (249)		7,173 (249)
Total comprehensive income for the period	8,14	-	(249)	7,173	6,924		6,924
Ended 31 December 2019		40,780	43,591	7,173	91,544	-	91,545
Income allocation of the previous year			7,173	(7,173)	-
Centrale del Latte d'Italia SpA Acquisition		2,221	9,101		11,322	19,817	31,139
Minority interest purchase in Centrale del Latte d'Italia S,p,A,		934	3,617		4,551	(7,354)	(2,803)
Capital increase costs			(564)		(564)		(564)
Total costs for capital increase	8,14	3,155	12,154	-	15,309	12,463	27,772
Own shares			(922)		(922))		(922)
Total own shares	8,14		(922)		(922)		(922)
Net income Actuarial gains / (losses) net of tax			(862)	37,554	37,554 (862)	1,088 (119)	38,643 (981)
Total comprehensive income for the period	8,14		(862)	37,554	36,692	969	37,662
Ended 31 December 2020		43,935	61,134	37,554	142,625	13,432	- 156,057

Consolidated Cash Flow Statement

		Ended 31 December
(In € thousand)	Note	2020	2019
Profit before income tax		45,404	9,377
- Adjustments:
Depreciation and amortization	8,1-8,2-8,3	21,393	9,989
Capital gain / (loss) from disposal of assets	9,2-9,3-9,4	(5)	84
Financial Interest / (Income)	9,7	3,315	1,367
Of which towards related parties		(51)	273
Other non-monetary movements from business combination		(24,865)
Other non-monetary movements	8,8-8,9-8,15-8,16	(15)	2,025
Cash flow from operating activities before changes in
net working capital		45,226	22,842
Changes in inventory	8,8	(4,721)	982
Changes in trade receivables	8,9	1,643	409
Changes in trade payables	8,19	27,636	(4,981)
Change in other assets and liabilities	8,6-8,11-8,18-8,20	3,019	12,733
Of which towards related parties			10,000
Uses of employee benefit obligations and provisions for risks
and charges	8,15-8,16	(624)	(1,421)
Income tax paid	8,10	(3,562)	(399)
Total cash flow provided / (used in) operating activities		68,617	30,165
Investments in property, plant and equipment	8,1-8,2	(13,776)	(3,462)
Investments in intangible assets	8,3	(588)	(760)
Deferred payment of acquisition	8,18-8,20	(1,500)	(2,512)
Merger Delverde	8,15	-	(2,795)
Merger Newlat Deutschland	8,15	-	(27,625)
Merger Centrale Latte d'Italia	8,15	19,760
Net cash flow provided by / (used in) investing
activities		3,896	(37,154)
Proceeds from long-term borrowings	8,17	65,079	15,000
Repayment of long-term borrowings	8,17	(42,000)	(15,811)
Changes in current financial liabilities	8,2	(7,309)	(4,176)
Repayment of lease liabilities		(3,046)	(3,046)
Of which towards related parties	9,7	(3,315)	(1,368)
Net financial expenses paid	8,14		76,545
Purchase of minority interests	8,14	(2,803)	-
Purchase of own shares	8,14	(922)	-
Net cash flow provided by / (used in) financing
activities		8,730	70,190
Total cash flow provided / (used) in the year		81,242	63,201
Cash and cash equivalents at the beginning of the		100,884	37,683
period
Of which towards related parties		45,338	37,345
Total change in cash and cash equivalents		81,242	63,201
Cash and cash equivalents at the end of the period		182,127	100,884
Of which towards related parties		69,351	45,338

ATTACHMENT - SEPARATE FINANCIAL STATEMENTS

SEPARATE STATEMENT OF FINANCIAL POSITION

		Ended 31 December
	Note	2020	2019
Non-current assets
Property, plant and equipment	8,1	27,233,984	26,949,300
Right of use	8,2	14,316,808	17,207,891
Of which towards related parties		6,708,184	9,467,000
Intangible assets	8,3	5,555,126	6,387,607
Investments in subsidiaries	8,4	93,665,498	68,323,752
Non-current financial assets valued at fair value with impact on I/S	8,5	42,075	42,075
Financial assets stated at amortized cost	8,6	801,325	866,210
Of which towards related parties		735,000	735,000
Deferred tax assets	8,7	3,940,110	5,032,160
Total non-current assets		145,554,927	124,808,995
Current assets
Inventory	8,8	27,126,027	22,628,658
Account receivables	8,9	54,012,205	52,335,233
Of which towards related parties		4,095,585	3,095,703
Current tax assets	8,10	703,107	715,636
Other receivables and current assets	8,11	3,782,094	3,035,100
Current financial assets valued at fair value with impact on I/S	8,12	4,240	4,240
Cash and cash equivalents	8,13	100,324,191	70,184,098
Of which towards related parties		21,428,029	24,159,000
Total current assets		185,951,866	148,902,965
TOTAL ASSETS		331,506,793	273,711,961
Equity
Share capital		43,935,050	40,780,482
Reserves		104,279,104	86,037,456
Net income		7,254,348	7,474,719
Total equity	8,14	155,468,502	134,292,657
Non-current liabilities
Provisions for employees	8,15	10,058,831	10,082,810
Provisions for risks and charges	8,16	1,460,882	1,395,683
Non-current financial assets	8,17	25,625,013	12,000,000
Non current lease liabilities	8,3	10,479,739	12,969,293
Of which towards related parties		4,144,343	6,989,000
Total non-current liabilities		47,624,465	36,447,786

Current liabilities
Account payables	8,18	86,669,096	69,576,718
Of which towards related parties		2,923,916	149,000
Current financial liabilities	8,17	22,021,041	15,366,853
Current lease liabilities		6,267,280	-
Of which towards related parties	8,3	4,438,890	4,714,481
Current tax liabilities		2,811,890	2,341,000
Other current liabilities	8,10	2,469,802	470,742
Of which towards related parties	8,19	12,814,996	12,842,722
Total current liabilities		128,413,826	102,971,516
TOTAL EQUITY AND LIABILITIES		331,506,793	273,711,961

SEPARATE INCOME STATEMENT

		Ended 31 December
(In Euro)	Note	2020	2019
Revenues from clients' contracts	9,1	265,608,451	258,046,888
Of which towards related parties		16,467,088	17,525,000
Cost of goods sold	9,2	(218,355,795)	(213,652,693)
Of which towards related parties		(6,665,557)	3,457,517
Gross profit		47,252,656	44,394,195
Sales and distribution costs	9,2	(24,039,900)	(24,527,600)
Administrative expenses	9,2	(12,623,177)	(11,161,950)
Of which towards related parties		(180,000)	(400,667)
Net impairment losses on financial assets	9,3	(976,965)	(673,873)
Other income	9,4	6,507,469	5,614,145
Other operational costs	9,5	(3,244,848)	(2,875,731)
EBIT		12,875,235	10,769,186
Financial income	9,6	192,349	399,855
Of which towards related parties		(192,349)	370,762
Financial expense	9,6	(1,959,841)	(1,745,477)
Of which towards related parties		(205,345)	(458,891)
EBT		11,107,743	9,423,564
Income tax expense	9,7	(3,853,396)	(1,948,845)
Net income		7,254,348	7,474,719
Basic EPS	9,8	0,17	0,25
Diluted EPS	9,8	0,17	0,25

SEPARATE STATEMENT OF COMPREHENSIVE INCOME

	Ended 31 December
	2020	2019
	7,254,348	7,474,719
8,14	(642,350)	(343,000)
8,14	176,885	94,000
	(465,465)	(249,000)
		(249,000)
	6,788,883	7,225,719
	Note	(465,465)

SEPARATE STATEMENT OF CHANGES IN EQUITY

(In Euro)	Note	Share capital	Reserves	Net result	Total equity
Ended 31 December 2019		40,780,482	86,037,456	7,474,719	134,292,657
Income allocation of the previous year			7,474,719	(7,474,719)	-
Aggregation of Centrale del Latte di Salerno		2,220,568	9,101,000		11,321,568
Acquisition of a minority stake in Centrale del Latte d'Italia		934,000	3,617,599		4,551,599
Capital increase costs net of the effect			(564,286)		(564,286)
Total capital increase operation	8,14	3,154,568	12,154,313	-	15,308,881
Buy back			(921,920)		(921,920)
Total buy back	8,14		(921,920)		(921,920)
Net income				7,254,348	7,254,348
Actuarial gains/(losses), net of tax			(465,465)		(465,465)
Total comprehensive income for the period	8,14		(465,465)	7,254,348	6,788,883
Ended 31 December 2020		43,935,050	104,279,104	7,254,348	155,468,502

SEPARATE CASH FLOW STATEMENT

		Ended 31 December
(In Euro)	Note		2019
Profit before income tax		11,107,743	9,423,564
- Adjustments for:
Depreciation and amortization	8,1-8,2-8,3	11,783,414	9,989,444
Capital gain / (loss) from disposal of assets	8,23-8,24	(5,000)	84,000
Financial expense/ (income)	8,25	1,767,492	1,367,999
Of which towards related parties		(397,694)	(88,129)
Other non-monetary movements	8,7-8,8-8,15-8,16	(15,000)	2,025,000
Cash flow from operating activities before changes in net		24,638,650	22,890,007
working capital
Changes in inventory	8,7	(4,497,369)	981,630
Changes in trade receivables	8,8	(2,653,938)	409,369
Changes in trade payables	8,18	17,092,378	(4,980,955)
Changes in other assets and liabilities	8,5-8,10-8,17-8,19	(774,720)	10,164,480
Of which towards related parties		-	10,000,000
Uses of employee benefit obligations and provisions for risks and	8,14-8,15	(586,130)	(1,420,973)
charges
Income tax paid	8,9	(1,142,034)	(398,820)
Net cash flow provided by / (used in) operating activities		32,076,836	27,644,738
Investments in property, plant and equipment	8,1-8,2	(5,353,507)	(3,461,609)
Investments in intangible assets	8,3	(295,045)	(752,054)
Disposal of financial assets	8,5-8,11	64,855	-
Acquisition of Delverde Industrie Alimentari S,p,A,	8,13	-	(2,795,000)
Acquisition of Newlat GmbH	8,13	-	(58,323,752)
Acquisition of Centrale del Latte d'Italia S,p,A,	8,13	(9,463,702)
Net cash flow provided by / (used in) investing activities		(15,047,369)	(65,332,415)
Proceeds from long-term borrowings	8,16	25,000,000	15,000,000
Repayment of long-term borrowings	8,16	(4,720,799)	(15,811,017)
Repayment of lease liabilities	8,3	(4,479,162)	(4,176,317)
Of which towards related parties		(3,504,308)	(3,512,000)
Net financial expenses paid	9,6	(1,767,492)	(1,367,999)
IPO	8,13	-	76,544,563
Buy back	8,13- 8,13ì4	(921,920)	-
Net cash flow provided by / (used in) financing activities		13,110,627	70,189,230
Total cash flow provided / (used) in the year		30,140,094	32,501,553
Cash and cash equivalents at the beginning of the period		70,184,098	31,239,000
Of which towards related parties		24,159,000	30,940,000
Cash and cash equivalents from Centrale del Latte business aggregation		-	6,443,546
Total cash flow provided / (used) in the year		30,140,094	32,501,553
Cash and cash equivalents at the end of the period		100,324,191	70,184,098
Of which towards related parties		21,428,029	24,159,000