Earnings Release • May 12, 2021
Earnings Release
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| Informazione Regolamentata n. 20078-11-2021 |
Data/Ora Ricezione 12 Maggio 2021 17:46:36 |
MTA - Star | |
|---|---|---|---|
| Societa' | : | Orsero S.p.A. | |
| Identificativo Informazione Regolamentata |
: | 147021 | |
| Nome utilizzatore | : | ORSERON02 - Colombini | |
| Tipologia | : | REGEM | |
| Data/Ora Ricezione | : | 12 Maggio 2021 17:46:36 | |
| Data/Ora Inizio Diffusione presunta |
: | 12 Maggio 2021 17:46:37 | |
| Oggetto | : | Orsero S.p.A. - PR Q1 2021 Results | |
| Testo del comunicato |
Vedi allegato.
Press Release
| € Million | Q1 2021 | Q1 2020 | Changes | % |
|---|---|---|---|---|
| Net Sales | 240.3 | 240.9 | (0.7) | -0.3% |
| Adjusted EBITDA4 | 13.8 | 9.5 | 4.3 | 45.3% |
| Adjusted EBITDA Margin | 5.7% | 3.9% | +180 Bps. | |
| EBIT | 6.9 | 2.5 | 4.4 | 174.9% |
| Adjusted EBIT5 | 7.3 | 3.3 | 4.0 | 121.2% |
| Adjusted Net Profit6 | 5.1 | 2.3 | 2.7 | 116.0% |
| Non-recurring profit/loss | (0.3) | (0.6) | ns | ns |
| Net Profit | 4.8 | 1.8 | 3.0 | 171.0% |
| Adjusted EBITDA Excl. IFRS 167 | 11.9 | 7.3 | 4.5 | 62.0% |
1 The following data in brackets refer to the comparison with the FY2021 Guidance published on 1st February last.
2Excluding the increase in fixed assets due to the application of IFRS 16.
3 It should be noted that on 1 January 2019 the IFRS 16 accounting principle came into force, therefore the results of Q1 2021 e Q1 2020 reflect the "right of use" value of the rents and operating leases stipulated by the companies of the Group. Data without the effect of said accounting principle are reported as "Excl. IFRS16".
4 Excluding depreciation, amortizations, provisions, exchange rate effect and non-recurring items and costs related to top management incentives. 5 Excluding non-recurring items and costs related to top management incentives.
6 Excluding non-recurring items among and costs related to top management incentives, net of tax.
7 Excluding depreciation, amortizations, provisions, exchange rate effect and non-recurring items and costs related to top management incentives.
| € Million | 31.03.2021 | 31.12.2020 |
|---|---|---|
| Net Equity | 166.5 | 160.1 |
| Net Financial Position | 100.3 | 103.3 |
| NFP /Net Equity | 0.60 | 0.65 |
| NFP/Adjusted EBITDA 8 | 1.90 | 2.13 |
| Net Financial Position Excl. IFRS 16 | 71.8 | 74.4 |
Milan, 12 May 2021 – The Board of Directors of Orsero S.p.A. (ORS:MI) today approved the Consolidated Financial Statement as at 31 March 2021 and the update of FY 2021 Guidance.
***
Raffaella Orsero, Group CEO, commented: "We are very satisfied with the results of this first quarter 2021, the work done in the last two years in terms of people, product mix and operational efficiency is paying off. The excellent results achieved in the first three months of the year, despite the climate of economic uncertainty due to the persistence of the pandemic, make us optimistic with respect to the Guidance for the year 2021".
Matteo Colombini, CFO and co-CEO, commented: "In these first three months of 2021, as expected, we have maintained a turnover in line with 2020, a very positive note in consideration of the fact that last March was characterized by moments of panic buying. The industrial margins exceeded expectations thanks to the strategy of reviewing the product mix, increasingly focused on items with greater added value, and the definitive recovery of the activity in France. The performance of the main capital indicators is also significant, with a net financial position which, due to an important generation of operating cash, is further improved compared to 31 December 2020".
Net Revenues, equal to approximately € 240.3 million, are in line with Q1 2020 figures of € 240.9 million. There was a slight growth in the Import & Distribution BU partially offset by the reduction in turnover of the Shipping BU as commented in the following paragraph on the performance of the Business Units.
***
The Adjusted EBITDA, equal to € 13.8 million, shows a significant increase of 45.3% compared to € 9.5 million of Q1 2020, with an outstandingly positive Adjusted EBITDA Margin equal to 5.7% up by 180 bps compared with Q1 2020. The Adjusted EBIT equal to € 7.3 million grows more than significantly compared to € 3.3 million recorded in Q1 2020.
The Adjusted Net Profit9 shows a positive result of € 5.1 million compared to a profit of € 2.3 million at Q1 2020, with a remarkable increase of € 2.7 million as a consequence of the increase in margins for the period.
9 Excluding non-recurring items net of tax (totalling around € -0.3million in Q1 2021 and around € -0.6 million in Q1 2020).
8 For the purposes of the calculation, the Adjusted Ebitda of the last 12 mobile months was taken into account, i.e. the period 1/4/2020 - 31/03/2021.
The Net Profit stands at € 4.8 million with a significant increase of € 3 million, compared to a profit of € 1.8 million in Q1 2020.
Total Shareholders 'Equity, equal to € 166.5 million, with an increase of abt. € 6.3 million compared with the Shareholders' Equity at 31 December 2020 equal to € 160.1 million.
The Net Financial Position10 is € 100.3 million compared with € 103.3 million at 31 December 2020. The improvement, equal to a decrease of € 3.0 million, is a net effect of the investments for the period for about € 4.3 million (of which 1.3 relating to higher rights of use IFRS 16) and the remarkable operating cash generation of approximately € 4.6 million, linked to the positive contribution of operating activities partially balanced by the increase in the commercial working capital.
***
| Thousands of € | Q1 2021 | Q1 2020 |
|---|---|---|
| "Import & Distribution" Segment | 225,045 | 223,246 |
| "Shipping" Segment | 24,016 | 28,709 |
| "Service" Segment | 2,475 | 3,257 |
| Adjustment intra-segment | (11,262) | (14,267) |
| Net sales | 240,274 | 240,946 |
| Thousands of € | Q1 2021 | Q1 2020 |
| "Import & Distribution" Segment | 9,689 | 4,490 |
| "Shipping" Segment | 5,722 | 6,129 |
| "Service" Segment | (1,617) | (1,127) |
| Adjusted Ebitda | 13,794 | 9,492 |
| Adjusted Ebitda Excl. IFRS 1611 | 11,871 | 7,328 |
The Import & Distribution segment achieved net revenues of € 225.0 million, recording an increase of approximately € 1.8 million compared to the first quarter of 2020, with overall stable volumes but with an improving price/mix effect due to the implementation of the strategy of revising the product portfolio marketed with a reduction in the weight of commodities products (e.g. banana) against an increase in products with higher added value (e.g. avocado, mango, table grapes, kiwi). The Adjusted EBITDA is equal to € 9.7 million with a significant increase of approximately € 5.2 million compared with Q1 2020, and an improvement in margins which goes from 2.0% to 4.3% as at 31 March 2021, mainly thanks to the mix effect described above and the excellent performance of the companies in France.
The Shipping segment generated net revenues of € 24.0 million, highlighting a decrease of € 4.7 million compared to 31 March 2020. This decrease is essentially connected with two factors: the lower price of the bunker which negatively affected the freight rate (BAF clause) and a stronger EUR / USD exchange rate, with a negative conversion effect on shipping sales originating in USD. The Adjusted EBITDA is equal to € 5.7
10 Net Financial Position includes IFRS 16 effects.
11 The positive effect of IFRS 16 on the Adjusted Ebitda for the Q1 2021 amounts to approximately € 1.9 million, consisting of approximately € 1.1 million for the Import & Distribution BU, approximately € 0.8 million for the BU Shipping and approximately € 0.09 million for the Services BU. As for the Q1 2020, the same values are equal to approximately € 2.2 million in total, of which approximately € 1.2 million for the Import & Distribution BU, approximately € 0.9 million for the Shipping BU and approximately € 0.08 million for the Services BU.
million, compared to € 6.1 million in the first quarter of 2020 o, and shows a further improvement in EBITDA Margin equal to 23.8%, made possible both by the good load factor of approximately 95% and for the operational efficiencies due to the navigation schedule with 5 ships (4 owned and 1 chartered) implemented from 2019.
The Services segment achieved net revenues of € 2.5 million and a negative Adjusted EBITDA of abt. € 1.6 million both worsening mainly due to lower intra-group invoicing. It should be remembered that the result of the sector is physiologically negative at the Adjusted EBITDA level as it includes the activities of the Parent Company, the result of which is linked to the extent of dividends received by the companies of the Group.
***
The Shareholders' Meeting was held on 29 April 2021 which resolved, among other: (i) the distribution of an ordinary dividend of € 0.2 (detachment date 10 May 2021, record date 11 May and payment starting from 12 May 2021 ) ; (ii) the renewal of the authorization to the Board of Directors, subject to revocation of the previous authorization for the part not performed, to purchase ordinary treasury shares, also in several tranches, for a period of 18 months and related to a maximum number of shares which, taking into account the ordinary shares of the Company held from time to time in the portfolio, does not in total exceed the maximum value of € 2 million; as well as the authorization to dispose of treasury shares held without time limits and for all purposes permitted by law.
As of the date of this press release, also as a result of the aforementioned transactions, Orsero holds 152,514 treasury shares, equal to 0.86% of the share capital.
***
The first quarter of 2021 continues to be characterized by the presence of the Covid-19 pandemic which, as already reported in the financial report as at 31 December 2020, given the nature of the Group's activity linked to the marketing of basic food products, did not involve particular effects on its business, at least until now, in terms of sales and results. The absence of a significant impact of the Covid-19 epidemic on the Group's accounts did not, therefore, call into question the assumption of business continuity and even less determined the deterioration of future economic prospects with consequent impacts on the Group's assets as well as indicated in the Consob reference in note 1/21 of February 16, 2021 and in the ESMA recommendation of October 28, 2020.
On the other hand, the most significant impacts continue to be on the operational level, where the necessary care and precautions continue to be applied to employees and third parties both in warehouses and markets as well as in offices, in order to reduce the health risk of contagion. The companies have thus continued to implement the security protocols outlined by the Authorities to regularize the entrances and interpersonal contacts within their operating platforms and offices, to provide for the necessary sanitation activities, to make personal protective equipment available. All staff, both internal and external, continue to cooperate fully, making it possible to effectively handle our products inside the warehouses.
In economic terms, as of March 31, 2021, the costs associated with the purchase of personal protective equipment and sanitation services totalled € 75 thousand.
The management of the Group continues to carry out an activity of continuous monitoring of the situation from a financial, commercial and organizational point of view, as well as the treasury situations relating to collections from customers and, finally, any subsidy measures in favour of companies in discussion with the government authorities of each country.
***
It should be noted that on the basis of the budget projections approved for the year 2021 and in continuity with the previous year, as well as in relation to the positive trend of the first three months of the year, the Board of Directors revised upwards the previous Guidance on the main economic-financial indicators for the current year, published on 1 February 2021.
The main consolidated forecast indicators are as follows:
The 2021 projections, developed on a like-for-like basis with respect to 2020 scope of consolidation, take into account a very uncertain current European macroeconomic and health context and, as far as possible, prospective that remains very uncertain although, as already noticed and communicated in 2020, the nature of the activity, the reference sector and the business model of the Orsero group, have proved resilient to the effects of the Covid-19 pandemic.
The management and the Company constantly monitor the main economic and capital indicators in order to be able to react promptly to any possible new scenarios unforeseeable to this day.
***
Today's board of directors has also approved the update of the Procedure for transactions with related parties in order to incorporate the regulatory changes in force from 1 July next. The procedure, as revised, will be made available to the public in accordance with the law through publication on the corporate website www.orserogroup.it, section "Governance / Corporate procedures".
12 Constant scope of consolidation excluding possible M&A transactions. The data in brackets refer to the comparison with the FY2021 Guidance published on 1st February last.
13 Excluding the IFRS 16 effect: € 41 million - € 43 million.
14 Excluding the IFRS 16 effect: € 54 million - € 59 million. 15 Excluding the increase in fixed assets due to the application of IFRS 16.
A presentation of consolidated Data of Q1 2021, in English, will be made available to the public on the institutional website www.orserogroup.it, section "Investors/Financial Documents".
The Copy of the Interim Financial Report as at 31 March 2021 is available to the public in accordance with the law through publication on the institutional website www.orserogroup.it, section "Investors/Financial Documents" and on the authorized storage system eMarket Storage () other than at the registered office in Milan, via G. Fantoli 6/15. According to the same procedures, the documentation relating to the items on the agenda of the Shareholders' Meeting will also be made available to the public, pursuant to and within the terms of the law. In this regard, please refer to the Notice of Call of the Shareholders' Meeting.
The Manager in charge of preparing the corporate accounting documents of Orsero S.p.A., Mr. Giacomo Ricca certifies, pursuant to art. 154-bis, paragraph 2, of Legislative Decree 58/98 that the accounting information contained in this press release corresponds to the documentary results, books and accounting records.
***
The Group's results for Q1 2021 will be presented to the financial community on 13 May 2021 during a conference call at 9.30 CEST (UTC +02:00).
***
For information please contact the references at the bottom of this press release.
***
ORSERO is the holding company of the Italian and international group with the same name, a leader in Mediterranean Europe for the import and distribution of fresh fruit and vegetables. The Orsero Group was created more than 50 years ago at the initiative of the Orsero family, which had been operating since the 1940s in the fruit and vegetable sector, in partnership with other entrepreneurs. Over the decades, the Orsero Group has expanded its business both in terms of area covered, which today includes Italy, France, Spain, Portugal, Greece, Costa Rica and Colombia, and in terms of product categories and sectors, according to a model known as vertical integration. Along with the distribution of fresh produce, the Orsero Group's business model also includes the import of bananas and pineapples using its own ships owned, as well as the production of fruit. In 2012, the Orsero Group launched the brand "F.lli Orsero" for bananas and pineapples. The name intends to convey a sense of tradition and the passion of a large Italian family-run company for high-end produce.
ORSERO ordinary shares listed on MTA,Star segment: ISIN - IT0005138703; Bloomberg Ticker "ORS.IM"; Thomson Reuters Ticker "ORSO.MI";
Orsero S.p.A. www.orserogroup.it
Investor Relations: Edoardo Dupanloup | T. +39 347 4496044| [email protected]
Media Relations: CDR Communication Angelo Brunello | M. +39 329 211 7752 | [email protected] Martina Zuccherini | [email protected] Specialist Intesa Sanpaolo S.p.A. – Divisione IMI Largo Mattioli 3 20121 – Milano
| Thousands of euro | 31/03/2021 | 31/12/2020 |
|---|---|---|
| ASSETS | ||
| Goodwill Intangible assets other than Goodwill Property, plant and equipment |
48.426 7.404 164.084 |
48.426 7.263 166.582 |
| Investment accounted for using equity method Non-current financial assets |
5.703 5.435 |
6.175 5.359 |
| Deferred tax assets NON-CURRENT ASSETS |
8.751 239.803 |
8.999 242.804 |
| Inventories | 41.745 | 35.331 |
| Trade receivables | 117.296 | 115.479 |
| Current tax assets | 14.637 | 12.256 |
| Other receivables and other current assets | 11.971 | 12.625 |
| Cash and cash equivalent | 43.465 | 40.489 |
| CURRENT ASSETS | 229.114 | 216.179 |
| Non-current assets held for sale | - | - |
| TOTAL ASSETS | 468.917 | 458.983 |
| Share Capital | 69.163 | 69.163 |
| Other Reserves and Retained Earnings Profit/loss attributable to owners of Parent |
91.979 4.699 |
78.237 12.217 |
| Equity attributable to Owners of Parent | 165.841 | 159.617 |
| Non controlling interests | 619 | 494 |
| EQUITY | 166.460 | 160.111 |
| LIABILITIES | ||
| Financial liabilities | 102.342 | 103.347 |
| Other non-current liabilities | 1.001 | 1.240 |
| Deferred tax liabilities | 5.335 | 5.048 |
| Provisions | 4.520 | 4.386 |
| Employees benefits liabilities | 9.967 | 9.861 |
| NON-CURRENT LIABILITIES | 123.164 | 123.882 |
| Financial liabilities | 42.572 | 40.689 |
| Trade payables | 112.016 | 112.912 |
| Current tax liabilities | 5.385 | 3.703 |
| Other current liabilities CURRENT LIABILITIES |
19.319 179.293 |
17.686 174.990 |
| Liabilities directly associated with non-current assets held | ||
| for sale | - | - |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 468.917 | 458.983 |
| Thousands of euro | Q1 2021 | Q1 2020 |
|---|---|---|
| Net sales | 240.274 | 240.946 |
| Cost of sales | (216.550) | (221.752) |
| Gross profit | 23.724 | 19.194 |
| General and administrative expense | (16.742) | (16.647) |
| Other operating income/expense | (76) | (35) |
| Operating result | 6.906 | 2.512 |
| Financial income | 35 | 37 |
| Financial expense and exchange rate differences | (781) | (527) |
| Other investment income/expense | 2 | 1 |
| Share of profit/loss of associates and joint ventures | 159 | 17 |
| accounted for using equity method | ||
| Profit/loss before tax | 6.322 | 2.040 |
| Income tax expense | (1.520) | (268) |
| Profit/loss from continuing operations | 4.802 | 1.772 |
| Profit/loss from discontinued operations | - | - |
| Profit/loss for the period | 4.802 | 1.772 |
| Profit/loss attributable to non controlling interests | 103 | 231 |
| Profit/loss attributable to Owners of Parent | 4.699 | 1.541 |
| Thousands of euro | Q1 2021 | Q1 2020 |
|---|---|---|
| A. Cash flows from operating activities (indirect method) | ||
| Profit/loss for the period | 4.802 | 1.772 |
| Adjustments for income tax expense | 1.520 | 268 |
| Adjustments for interest income/expense | 877 | 490 |
| Adjustments for provisions | 388 | 367 |
| Adjustments for depreciation and amortisation expense and impairment loss | 6.136 | 5.839 |
| Change in inventories | (6.414) | (6.778) |
| Change in trade receivables | (2.055) | (5.379) |
| Change in trade payables | (896) | (7.638) |
| Change in other receivables/assets and in other liabilities | 828 | 1.293 |
| Interest received/(paid) | (376) | (433) |
| (Income taxes paid) | (181) | (239) |
| Cash flow from operating activities (A) | 4.629 | (10.438) |
| B. Cash flows from investing activities | ||
| Purchase of property, plant and equipment | (3.934) | (22.930) |
| Proceeds from sales of property, plant and equipment | 529 | 28.678 |
| Purchase of intangible assets | (375) | (366) |
| Proceeds from sales of intangible assets | - | - |
| Purchase of interests in investments accounted for using equity method | (159) | (17) |
| Proceeds from sales of investments accounted for using equity method | 631 | 976 |
| Purchase of other non current assets | 173 | (373) |
| Proceeds from sales of other non current assets | - | - |
| (Acquisitions)/disposal of investments in controlled companies, net of cash | - | - |
| Cash Flow from investing activities (B) | (3.134) | 5.969 |
| C. Cash Flow from financing activities | ||
| Increase/decrease of financial liabilities | 1.150 | 4.086 |
| Drawdown of new long-term loans | 2.540 | 16.522 |
| Pay back of long-term loans | (3.755) | (30.663) |
| Capital increase and other changes in increase/decrease | 1.547 | (2.990) |
| Disposal/purchase of treasury shares | - | - |
| Dividends paid | - | - |
| Cash Flow from financing activities (C) | 1.481 | (13.044) |
| Increase/decrease in cash and cash equivalent (A ± B ± C) | 2.976 | (17.513) |
| Cash and cash equivalent at 1° January 21-20 | 40.489 | 56.562 |
| Cash and Cash equivalent at 31 March 21-20 | 43.465 | 39.049 |
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