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Zignago Vetro Earnings Release 2023

Nov 7, 2023

4402_rns_2023-11-07_c7267957-9b21-4096-8a9b-db0193e0c869.pdf

Earnings Release

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PRESS RELEASE

In accordance with Consob Resolution 11971/99 and subsequent amendments and supplements

ZIGNAGO VETRO S.P.A.

Board of Directors of Zignago Vetro S.p.A. approves the 2023 Third Quarter Report and appoints Mr. Biagio Costantini as Director General

Revenues up significantly in the first nine months (+17.6%), with good margins. Strong cash generation also in the third quarter, despite contracting volumes.

  • Revenues of Euro 545.9 million (+17.6% on 2022), of which exports account for 31.7%. Q3 23 revenues decrease slightly on Q3 22 (-2.2%).
  • EBITDA of Euro 168.5 million (30.9% margin, +73.1%). In Q3 23 totalling Euro 48.1 million (29.9% margin, +44.8% on Q3 22).
  • EBIT of Euro 116 million (21.3% margin, + 123.5%). In Q3 23 totalling Euro 30.4 million (18.9% margin, +70% on Q3 22).
  • Group Net Profit of Euro 95.6 million (17.5% margin, +116.7%). In Q3 23 totalling Euro 21 million (13% margin, +60.9% on Q3 22).

Cash generation, before investments, of Euro 158.1 million (29% of revenues). In Q3 23 totalling Euro 55.5 million (34.5% of revenues).

Net financial debt of Euro 224.7 million (Euro 281.3 million at 30 September 2022), following settlement of dividends of Euro 53.3 million and capex of Euro 46 million.

Sustainability indicators (ESG) generally improving and close to the targets set for 2023.

Zignago Vetro Group 9M Key Financial Highlights (*)

9M
2023
(in Euro millions)
9M
2022
(in Euro millions)
Cge.
%
Revenues 545.9 464.3 +17.6%
EBITDA 168.5 97.3 +73.1%
EBIT 116.0 51.9 123.5%
Operating Profit 117.9 54.1 117.8%
Profit before taxes 110.7 59.6 +85.8%
Group Net Profit 95.6 44.1 +116.7%
9M 2023
(in Euro millions)
9M 2022
(in Euro millions)
Free cash flow (before investments) 158.1 73.6
Payments on investments (46) (70.8)
Free cash flow net
(further details on page 4)
112.2 2.8
30.09.2023
(in Euro millions)
30.09.2022
(in Euro millions)
Financial debt (331.0) (383.8)
Liquidity 106.3 102.5
Net financial debt (224.7) (281.3)

(*) The figures and the subsequent comments concerning the consolidated figures were based on the management view of the Group business, which provides for the proportional consolidation of the joint venture, in continuity with the accounting policies adopted until 31 December 2013. Following the entry into force of the new "IFRS 11 – Joint Arrangements" and "IAS 28 – Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA and Vetreco Srl may not be consolidated under the proportional method, as is the case for Julia Vitrum SpA from 31 December 2019, and should be recognised in the consolidated financial statements at equity. The income statement, the statement of comprehensive income, the statement of financial position, the statement of cash flows and the statement of changes in equity of the Zignago Vetro Group at 30 September 2023 and 2022 and at 31 December 2022, prepared according to international accounting standards in force from 1 January 2014, are reported respectively at attachments 4, 5, 6, 7 and 8 of this press release.

Fossalta di Portogruaro, 7 November 2023 – The Board of Directors of Zignago Vetro S.p.A – a company listed on the Euronext STAR Milan market - in a meeting held today chaired by Mr. Nicolò Marzotto approved the 2023 Third Quarter Report.

Company profile

The Zignago Vetro Group companies produce high quality glass containers for the Food and Beverage, Cosmetics and Perfumery industries and Speciality Glass bottles for wines and spirits, for the domestic and international markets. The Group is also engaged in other sectors offering synergies with its core business particularly the collection and treatment of raw glass for subsequent reuse and the construction of moulds for container production.

9M 2023 Zignago Vetro Group Operating Performance

Against a backdrop of general economic uncertainty, the third quarter of the year featured a weakening in demand for Beverage and Food glass containers, stemming from slowing end consumption and a general reduction of inventories along the supply chain by manufacturers and distributors, and particularly among the large retailers. The comparison against the high levels of the previous year is also very challenging.

Cosmetics and Perfumery global market demand remained at good levels, in particular that related to the major cosmetics and premium perfumery brands. Signs of contraction were apparent among the lower-end segments, due to both contracting end consumption and high inventory levels. New product development within the higher-end segments however remains vibrant, as does the sector growth rate.

We consider that the above outlined glass container market dynamic reflects the normal fluctuations evident at times of increased economic uncertainty, while the market's medium to long-term growth characteristics and the strong prospects for the use of glass as a packaging material that is increasingly appreciated, both by users and consumers, remain absolutely unchanged.

Although operating against this backdrop of slowing demand, in the third quarter the Zignago Vetro Group was able to maintain strong results and growth compared to the previous year, thanks in part to the specific nature and strengths of its business model. In addition, free cash flow generation was particularly strong in the third quarter.

Consolidated Revenues in the first nine months of 2023 amounted to Euro 545.9 million, compared to Euro 464.3 million in the same period of the previous year (+17.6%). Export sales in the January-September 2023 period amounted to Euro 172.9 million, 31.7% of Revenues (+22.3% on Euro 141.4 million in the first nine months of 2022: 30.4% of revenues).

Consolidated EBITDA in 9M 2023 amounted to Euro 168.5 million, up 73.1% on 9M 2022 (Euro 97.3 million), with a margin of 30.9% (21% in 9M 2022).

Consolidated EBIT in the first nine months was Euro 116 million (up 123.5% compared to Euro 51.9 million in 2022), with a margin of 21.3% (11.2% in 9M 2022).

The Group profit in the first nine months of 2023 was Euro 95.6 million, compared to Euro 44.1 million in the first nine months of 2022 (+116.7%) – a margin of 17.5% (9.5% in 9M 2022).

Net capital expenditure in the first nine months 2023 by Group companies totalled Euro 41.2 million (Euro 58.6 million in 9M 2022). Payments on fixed assets totalled Euro 46 million in 9M 2023, compared to Euro 70.8 million in 9M 2022.

The Group generated Free cash flow in the period, before payments on fixed assets, of Euro 158.1 million (Euro 73.6 million in the first nine months of 2022); after payments on fixed assets for Euro 46 million and dividends of Euro 53.3 million, the free cash flow was +Euro 112.2 million, compared to +Euro 2.8 million at 30 September 2022.

The Group net financial debt at 30 September 2023 was Euro 224.7 million, compared to Euro 284 million at 31 December 2022 (Euro 281.3 million at 30 September 2022). The net debt reduced Euro 36.5 million in the third quarter of 2023.

Group liquidity at 30 September 2023 was Euro 106.3 million, unchanged on 31 December 2022 and Euro 102.5 million at 30 September 2022.

***********************

Zignago Vetro Group Q3 Key Financial Highlights

Q3 2023
(in Euro millions)
Q3 2022
(in Euro millions)
Cge.
$\frac{6}{6}$
Revenues 161.1 164.6 $-2.2\%$
EBITDA 48.1 33.2 $+44.8%$
EBIT 30.4 17.9 $+70.0\%$
Operating Profit 30.8 18.0 $+70.5\%$
Profit before taxes 27.5 18.2 $+51.2\%$
Group Net Profit 21.0 13.0 $+60.9\%$

Consolidated revenues in the third quarter of 2023 amounted to Euro 161.1 million, -2.2% compared to Euro 164.6 million in the same period of the previous year. Export sales amounted to Euro 50.1 million (Euro 49.6 million in 2022: +1.1%).

Consolidated EBITDA in the third quarter of 2023 totalled Euro 48.1 million, up 44.8% on the same period in the previous year (Euro 33.2 million). The EBITDA margin was 29.9% (20.2% in the third quarter of 2022).

Consolidated EBIT amounted to Euro 30.4 million (+70% compared to Euro 17.9 million in the third quarter of 2022), with a margin of 18.9% (10.9%).

The Net Profit in the quarter was Euro 21 million, up 60.9% on Euro 13 million in Q3 2022.

***********************

Appointment of General Director

Zignago Vetro informs that the Board of Directors appointed Mr. Biagio Costantini as General Director effective from today. The decision would allow to the strengthening of the Management team and organizational structure, where the contribution from Mr. Costantini will be extremely important. Mr. Biagio Costantini will report to the Zignago Vetro CEO, Mr. Roberto Cardini.

***********************

Outlook

According to our findings and the information available, glass container demand is again expected to stabilize over the coming months, substantially across all of the main Group company sectors.

The Group companies are therefore focused on undertaking all actions to contain the impact of inflationary factors as much as possible, also through modernising and upgrading production capacity, seeking to supply greater product quantities against the strong levels of container demand and to further streamline industrial operations, and particularly from an energy viewpoint.

The medium/long-term glass container sector outlook, and of the Group in particular, remains unaltered and positive, confirming the consolidated development trajectory that the glass container market has historically shown and that appears increasingly robust due to the growing appreciation of glass among users and consumers.


The Company purchased in October an additional 53,597 treasury shares, bringing its portfolio to a total of 676,582 shares.

No other significant events after 30 September 2023 occurred.

There were no atypical and/or unusual transactions for the period ended 30 September 2023 as defined by Consob Communication DEM/6064293.

***********************

In addition, the Board of Directors today approved the review of the Whistleblowing Policy and the Related Party Transactions Policy. Both policies are available to the public on the website www.zignagovetro.com.

***********************

Declaration

The Executive Responsible for Financial Reporting, Mr. Roberto Celot, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the underlying accounting documents, records and accounting entries.

***********************

Interim Financial Report at September 30, 2023

The Interim Financial Report at 30 September 2023 will be made available to the public as soon as available and in accordance with law at the registered office of the company and on the company website www.zignagovetro.com

***********************

This press release is available on the website: www.zignagovetro.com

For further information: Roberto Celot Group Chief Financial Officer Investor relations manager Zignago Vetro S.p.A. 0421-246111 [email protected]

All the figures in the Consolidated Reclassified Income Statement and Statement of Financial Position (attachments 1, 2 and 3) reported below were prepared on the basis of management's view which considers the proportional consolidation of joint ventures appropriate, in line with the approach taken until 31 December 2013. Following the entry into force of the new "IFRS 11 – Joint Arrangements" and "IAS 28 – Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA and Vetreco Srl may not be consolidated under the proportional method, as is the case from 1 January 2020 for Julia Vitrum SpA, and should be recognised in the consolidated financial statements at equity.

The statement of financial position, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity of the Zignago Vetro Group at 30 September 2023 and 31 December and 30 September 2022, prepared in accordance with the accounting standards in force from 1 January 2014, are reported respectively in the subsequent attachments 4, 5, 6, 7 and 8.

Zignago Vetro Group

ATTACHMENT 1

Reclassified Consolidated Income Statement (*)

(Management's view based on the accounting standards in force from 31 December 2013)

9M 2023 9M 2022 Changes
Euro thou. % Euro thou. % %
Revenues 545,854 100.0% 464,266 100.0% 17.6%
Changes in finished and semi-finished products
and work in progress 28,255 5.2% 987 0.2% n.a.
Internal production of fixed assets 1,737 0.3% 2,391 0.5% (27.4%)
Value of production 575,846 105.5% 467,644 100.7% 23.1%
Cost of goods and services (324,085) (59.4%) (295,415) (63.6%) 9.7%
Value added 251,761 46.1% 172,229 37.1% 46.2%
Personnel expense (83,290) (15.3%) (74,895) (16.1%) 11.2%
EBITDA 168,471 30.9% 97,334 21.0% 73.1%
Amortisation & Depreciation (51,422) (9.4%) (44,812) (9.7%) 14.8%
Accruals to provisions (1,024) (0.2%) (599) (0.1%) 71.0%
EBIT 116,025 21.3% 51,923 11.2% 123.5%
Net recurring non-operating income 1,638 0.3% 2,044 0.4% (19.9%)
Net non-recurring income 230 0.0% 150 (0.1%) 53.3%
Operating Profit 117,893 21.6% 54,117 11.7% 117.8%
Net financial expense (8,042) (1.5%) 6,398 1.4% n.a.
Net exchange rate gains/(losses) 894 0.2% (907) (0.2%) n.a.
Profit before taxes 110,745 20.3% 59,608 12.9% 85.8%
Income taxes (14,765) (2.7%) (15,040) (3.2%) (1.8%)
(Tax-rate 2023: 13.3%)
(Tax-rate 2022: 25.2%)
(Profit) Loss non-con. int. (361) (0.1%) (441) (0.2%) (18.1%)
Group Profit for the period 95,619 17.5% 44,127 9.5% 116.7%

Zignago Vetro Group

Reclassified Consolidated Income Statement (*)

(Management's view based on the accounting standards in force from 31 December 2013)

Q3 2023 Q3 2022 Changes
Euro thou. % Euro thou. % %
Revenues 161,094 100.0% 164,637 100.0% (2.2%)
Changes in finished and semi-finished products and
work in progress
17,762 11.0% 2,639 1.6% n.a.
Internal production of fixed assets 517 0.3% 558 0.3% (7.3%)
Value of production 179,373 111.3% 167,834 101.9% 6.9%
Cost of goods and services (104,995) (65.2%) (110,335) (67.0%) (4.8%)
Value added 74,378 46.2% 57,499 34.9% 29.4%
Personnel expense (26,265) (16.3%) (24,266) (14.7%) 8.2%
EBITDA 48,113 29.9% 33,233 20.2% 44.8%
Amortisation & Depreciation (17,542) (10.9%) (15,188) (9.2%) 15.5%
Accruals to provisions (179) (0.1%) (166) (0.1%) 7.8%
EBIT 30,392 18.9% 17,879 10.9% 70.0%
Net recurring non-operating income 291 0.2% 54 0.0% 438.9%
Net non-recurring income 80 0 111 0.1% (27.9%)
Operating Profit 30,763 19.1% 18,044 11.0% 70.5%
Net financial expense (2,786) (1.7%) 771 0.4% n.a.
Net exchange rate gains/(losses) (477) (0.3%) (629) (0.4%) n.a.
Profit before taxes 27,500 17.1% 18,186 11.0% 51.2%
Income taxes (6,341) (3.9%) (4,860) (3.0%) 30.5%
(Tax-rate 2023: 26.2%)
(Tax-rate 2022: 26.7%)
(Profit) Loss non-con. int. (176) (0.1%) (287) (0.1%) (38.7%)
Group Profit for the period 20,983 13.0% 13,039 7.9% 60.9%

Zignago Vetro Group

Reclassified Consolidated Statement of Financial Position(*)

(Management's view based on the accounting standards in force from 31 December 2013)

30.09.2023 30.06.2023 31.12.2022 30.09.2022
Euro thou. % Euro thou. % Euro thou. % Euro thou. %
Trade receivables 155,071 182,069 172,721 152,299
Other receivables 20,050 30,131 38,742 30,016
Inventories 172,162 152,019 137,161 120,728
Current non-financial payables (171,507) (166,828) (155,442) (155,770)
Payables on fixed assets (9,797) (9,235) (14,585) (11,154)
A) Working capital 165,979 28.3% 188,156 31.2% 178,597 29.6% 136,119 24.4%
Net tangible and intangible assets 371,455 371,448 381,332 377,094
Goodwill 53,409 53,437 53,402 53,379
Other equity investments and non-current
assets
24,977 20,280 18,832 15,736
Non-current provisions and non-financial
payables
(29,547) (29,465) (29,693) (25,339)
B) Net fixed capital 420,294 71.7% 415,700 68.8% 423,873 70.4% 420,870 75.6%
A+B= Net capital employed 586,273 100.0% 603,856 100.0% 602,470 100.0% 556,989 100.0%
Financed by:
Current loans and borrowings 99,178 105,551 128,326 122,342
Cash and cash equivalents (106,275) (97,142) (106,329) (102,471)
Current net debt (7,097) (1.3%) 8,409 1.3% 21,997 3.6% 19,871 3.6%
Non-current loans and borrowings 231,790 39.5% 252,748 41.9% 262,000 43.5% 261,383 46.9%
C) Net financial debt 224,693 38.3% 261,157 43.2% 283,997 47.1% 281,254 50.5%
Dividends paid (53,261) (53,261) (35,497) (35,497)
Other equity changes 388 2,666 5,555 5,140
Group Profit for the period 95,619 74,636 86,596 44,127
D) Closing equity 360,696 61.6% 341,991 56.7% 317,950 52.8% 275,066 49.4%
E) Non-controlling interest equity 884 0.2% 708 0.1% 523 0.1% 669 0.1%
D+E = Group Equity 361,580 61.7% 342,699 56.8% 318,473 52.9% 275,735 49.5%
C+D+E = Total financial debt and equity 586,273 100.0% 603,856 100.0% 602,470 100.0% 556,989 100.0%

Zignago Vetro Group

Consolidated Income Statement (*)

(based on IAS in force from 1 January 2014)

(Euro thousands) Q3 2023 Q3 2022 9M 2023 9M 2022
Revenues 119,849 120,494 406,390 340,298
Raw materials, ancillaries, consumables and
goods (16,234) (27,763) (77,665) (80,728)
Service costs (47,341) (54,910) (145,202) (145,839)
Personnel expense (20,295) (18,377) (63,997) (56,517)
Amortisation & depreciation (14,106) (11,952) (42,105) (35,798)
Impairment of fixed assets --- --- --- ---
Other operating expenses (1,612) (1,333) (3,766) (3,238)
Other operating income 751 423 2,916 4,049
Equity-accounted
joint
ventures 6,862 5,789 38,249 21,156
Operating Profit 27,874 12,371 114,820 43,383
Financial income 424 4,046 863 10,919
Financial expenses (2,486) (593) (7,420) (1,585)
Net exchange rate gains/(losses) (498) (659) 857 (954)
Profit before taxes 25,314 15,165 109,120 51,763
Income taxes (4,155) (1,839) (13,140) (7,195)
Net Profit for the period 21,159 13,326 95,980 44,568
Non-controlling interests loss (profit) (176) (287) (361) (441)
Group Profit 20,983 13,039 95,619 44,127
Earnings per share:
Basic earnings per share 0.237 0.147 1.078 0.499
Diluted earnings per share 0.235 0.147 1.071 0.496

Zignago Vetro Group

Consolidated Statement of Comprehensive Income (*)

(based on IAS in force from 1 January 2014)

Total comprehensive income for the period 19,038 11,929 96,001 42,313
Total other comprehensive income statement
items, net of taxes
A+B) (2,121) (1,110) 21 (1,814)
Total items that will not be subsequently
reclassified to profit or loss
B) --- --- --- ---
Items that will not be subsequently
reclassified to profit or loss
Actuarial gains/(losses) on defined benefit plans
Tax effect
---
---
---
---
---
---
---
---
Total items that will be subsequently reclassified
to profit or loss
A) (2,121) (1,110) 21 (1,814)
Translation difference for foreign operations
Tax effect
Share of profits/losses recognised to equity by
equity-accounted companies
(2,121)
---
---
(1,110)
---
---
277
---
(256)
(1,814)
---
---
Items that will be subsequently reclassified to
profit or loss
Net Profit for the period 21,159 13,039 95,980 44,127
(Euro thousands) Q3 2023 Q3 2022 9M 2023 9M 2022

Zignago Vetro Group

Consolidated Statement of Financial Position (*)

(based on IAS in force from 1 January 2014)

(Euro thousands) 30.09.2023 30.06.2023 31.12.2022 30.09.2022
ASSETS
Non-current assets
Property, plant and equipment 268,520 273,934 285,938 284,346
Goodwill 2,681 2,709 2,674 2,651
Intangible assets 1,623 1,969 2,641 1,854
Equity investments measured using the equity method 134,747 127,885 119,394 106,610
Equity investments 389 388 389 388
Other non-current assets 8,215 6,283 6,188 4,767
Deferred tax assets 7,242 6,971 5,834 3,444
Total non-current assets 423,417 420,139 423,058 404,060
Current assets
Inventories 138,437 121,839 112,443 97,941
Trade receivables 121,659 140,416 130,529 114,864
Other current assets 11,671 11,358 13,913 13,526
Current tax receivables 1,755 8,864 18,706 10,509
Other current financial assets 14,995 16,438 11,391 ---
Cash and cash equivalents 85,752 69,524 91,435 82,158
Total current assets 374,269 368,439 378,417 318,998
TOTAL ASSETS 797,686 788,578 801,475 723,058
EQUITY & LIABILITIES
EQUITY
Share capital 8,929 8,926 8,895 8,890
Reserves 49,637 49,331 46,887 46,011
Acquisition of treasury shares (5,283) (4,825) (2,819) (2,425)
Retained earnings 211,794 213,923 178,391 178,463
Group Profit 95,619 74,636 86,596 44,127
TOTAL GROUP EQUITY 360,696 341,991 317,950 275,066
NON-CONTROLLING INT. EQUITY 884 708 523 669
TOTAL EQUITY 361,580 342,699 318,473 275,735
LIABILITIES
Non-current liabilities
Provisions for risks and charges 2,479 2,422 2,455 2,707
Post-employment benefit provision 4,136 4,216 4,215 3,930
Other non-current liabilities 5,635 5,635 6,246 1,255
Deferred tax liabilities 2,224 2,395 2,245 2,059
Total non-current liabilities 202,359 220,238 241,485 233,070
Current liabilities
Bank loans & borrowings and current portion of non
current loans & borrowings
96,291 92,222 110,461 86,465
Trade and other payables 103,919 99,319 105,977 102,984
Other current liabilities 31,025 32,194 24,556 24,648
Current tax payables 2,512 1,906 523 156
Total current liabilities 233,747 225,641 241,517 214,253
TOTAL LIABILITIES 436,106 445,879 483,002 447,323
TOTAL EQUITY AND LIABILITIES 797,686 788,578 801,475 723,058

Zignago Vetro Group

Consolidated Statement of Cash Flows (*)

(based on IAS in force from 1 January 2014)

(Euro thousands) 9M 2023 H1 2023 12 months
2022
9M 2022
CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit for the period 95,980 74,821 86,891 31,242
Adjustments to reconcile net profit with cash flow generated from operating
activities
Amortisation & depreciation 42,105 27,999 48,836 23,840
Impairment of property, plant and machinery --- --- 5,757 ---
Losses/(gains) on sale of property, plant & equipment (48) (40) (392) (405)
Share-based payment settled with equity instruments 339 226 795 (605)
Provision adjustments 24 (33) (720) 590
Financial income (863) (439) (11,893) (6,346)
Financial expenses 7,420 4,934 2,599 465
Net exchange rate gains/(losses) (857) (1,355) 380 295
Income taxes 13,140 8,985 4,736 (2,710)
Equity-accounted joint ventures (38,249) (31,387) (35,069) (15,367)
Changes in operating assets and liabilities:
Decrease/(increase) in trade receivables 8,870 (9,887) (35,740) (17,928)
Decrease/(increase) in other current assets 2,242 2,555 (23,007) (2,737)
Decrease/(increase) in inventories (25,994) (9,396) (18,609) (1,608)
Increase/(decrease) in trade & other payables 2,679 (988) 29,061 19,203
Increase (decrease) in other current liabilities 6,469 7,638 2,338 2,794
Change in other non-current assets and liabilities 1,654 549 4,035 1,144
Total adjustments and changes 18,931 (639) (26,893) 625
Dividends distributed by equity-accounted joint ventures 22,640 22,640 13,685 13,685
Interest paid in the period --- --- (9,597) ---
Net Cash Flows from operating activities (A) 137,551 96,822 64,086 45,552
CASH FLOW FROM INVESTING ACTIVITIES:
Gross investments in intangible assets --- (35) (1,437) (73)
Gross investments in property, plant and equipment (23,162) (13,207) (66,353) (46,225)
Increase/(decrease) in payables for purchases of non-current assets (4,737) (5,670) (5,253) (5,328)
Sales price of property, plant and equipment 48 40 2,456 2,424
Investments in financial assets (3,604) (6,784) --- ---
Acquisition of subsidiaries, net of liquidity acquired --- --- (85) ---
Net cash flow used in
investing activities (B) (31,455) (25,656) (70,672) (49,202)
CASH FLOWS FROM FINANCING ACTIVITIES:
Acquisition of treasury shares (2,464) (2,006) (1,726) (714)
Proceeds from the exercise of stock options 2,463 2,267 6,922 6,522
Interest paid in the period (4,114) (4,713) (1,819) (598)
Interest received in the period 305 305 216 8
New financing 28,472 28,472 97,000 37,682
Decrease in bank payables (81,016) (63,830) (79,844) (33,385)
Repayment leases liabilities (2,813) (1,985) (4,317) (1,845)
Dividends distribution (53,261) (53,261) (35,497) (35,427)
Net cash flow from financing activities (C) (112,428) (94,751) (19,065) (27,757)
Change in assets and liabilities items due to translation effect (D) 649 1,674 (450) 237
Net change in cash and cash equivalents (A+B+C+D) (5,683) (21,911) (26,101) (31,170)
Cash & cash equivalents at beginning of period 91,435 91,435 117,536 117,536
Cash & cash equivalents at end of period 85,752 69,524 91,435 86,366

Zignago Vetro Group

Statement of changes in Equity (*)

(based on IAS in force from 1 January 2014)

Share capital reserve
Legal:
Revaluation
reserve
Other reserves paid-in
Capital
shares
Treasury
Translation reserve Actuarial gains/(losses) on
deferred benefit plans
Retained eamings Profit Total Group equity non-controlling interest
equity
$\operatorname{\mathsf{Total}}$
Total consolidated equity
Balance at
30 June 2022
8,890 1,760 27,334 24,195 157 (1, 807) (3, 631) (1, 173) 176,857 31,088 263,670 382 264,052
Profit (Loss)
Profit (loss) recognised directly
to e quity
- - -
$- - -$

$- - -$
$- - -$ .
$- - -$
.
$- - -$
.
$- - -$
$\overline{\phantom{a}}$
(1, 113)
$\sim$ $\sim$
$\sim$ $\sim$ $\sim$
$\sim$ $\sim$
$- - -$
13,039
$\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$
13,039
(1, 113)
287
$\cdots$
13,326
(1, 113)
TotalComp. Income
$(\cos s)$
$- - -$ $- - -$ $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ (1, 113) $- - -$ $\sim$ $\sim$ $\sim$ 13,039 Р
11,926
287 12,213
Acquisition of treasury shares $- - -$ $- - -$ $- - -$ $- - -$ $- - -$ (618) $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $- - -$ $\sim$ $\sim$ $\sim$ (618) $- - -$ (618)
IFRS 2 $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ 72 $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $- - -$ $\sim$ $\sim$ $\sim$ 72 $\sim$ $\sim$ $\sim$ 72
Otherchanges $- - -$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ 16 $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $- - -$ $- - -$ 16 $\sim$ $\sim$ $\sim$ 16
Balance at
30 September 2022
8,890 1,760 27,334 24,283 157 (2, 425) (4, 744) (1, 173) 176,857 44,127 275,066 669 275,735
Profit (Loss)
$Profit (loss)$ $re$ $c$ $o$ $gn$ $is$ $ed$ $d$ $ire$ $ct$ $by$
to e quity
$\sim$ $\sim$ $\sim$
$- - -$
$- - -$
---
$- - -$
$- - -$
$- - -$
(1,089)
$\sim$ $\sim$ $\sim$
$\sim$ $\sim$ $\sim$
$- - -$
$- - -$
$\sim$ $\sim$
1,195
$\sim$ $\sim$ $\sim$
183
$- - -$
$- - -$
42,469
$- - -$
42,469
289
(146)
$- - -$
42,323
289
TotalComp. Income
$(\cos s)$
$- - -$ $- - -$ $\sim$ $\sim$ $\sim$ (1,089) $\frac{1}{2}$ $- - -$ 1,195 183 $\sim$ $\sim$ $\sim$ 42,469 Г
42,758
(146) 42,612
Acquisition of treasury shares . --- $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ $\sim$ $\sim$ $\sim$ (394) $\ddotsc$ $- - -$ $\sim$ $\sim$ $- - -$ (394) $\sim$ $\sim$ $\sim$ (394)
IFRS 2 $- - -$ --- $- - -$ (2, 599) $- - -$ $- - -$ $- - -$ $- - -$ 2,732 $\sim$ $\sim$ $\sim$ 133 $\cdots$ 133
Otherchanges $- - -$ $- - -$ $- - -$ (13) $- - -$ $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $- - -$ (13) $\sim$ $\sim$ $\sim$ (13)
Share issue $\sqrt{5}$ $- - -$ $\sim$ $\sim$ $\sim$ 395 $- - -$ $- - -$ $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ 400 $\sim$ $\sim$ $\sim$ 400
Balance at
31 December 2022
20,977 (2, 819) (3, 549)
Profit (Loss) 8,895
$- - -$
1,760
$- - -$
27,334
$ -$
$- - -$ 157
$- - -$
$- - -$ $- - -$ (990)
$- - -$
179,589
$- - -$
86,596
74,636
317,950
74,636
523
185
318,473
74,821
Profit (loss) recognised directly
to equity
$- - -$ $- - -$ $- - -$ (256) $- - -$ $- - -$ 2,398 $\sim$ $\sim$ $\sim$ $- - -$ $\sim$ $\sim$ $\sim$ 2,142 $\sim$ $\sim$ $\sim$ 2,142
TotalComp. Income
$(\cos s)$
Allocation of result --- --- $\sim$ $\sim$ $\sim$ (256) $\sim$ $\sim$ $\sim$ $- - -$ 2,398 $- - -$ $- - -$ 74,636 76,778 185 76,963
Acquisition of treasury shares . $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $- - -$ $\ddotsc$ $- - -$ 86,596 (86, 596) $\sim$ $\sim$ $\sim$ $\cdots$ $\sim$ $\sim$ $\sim$
IFRS 2 $- - -$
$- - -$
$- - -$
$- - -$
$\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$
$\sim$ $\sim$ $\sim$
$- - -$
226
$- - -$
$\sim$ $\sim$ $\sim$
(2,006)
$\sim$ $\sim$
$- - -$
$- - -$
$- - -$
$- - -$
$- - -$
$- - -$
$\frac{1}{2}$
$\sim$ $\sim$ $\sim$
(2,006)
226
$\cdots$
$- - -$
(2,006)
226
Otherchanges $- - -$ $- - -$ $- - -$ 37 $- - -$ $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $- - -$ 37 $\sim$ $\sim$ $\sim$ 37
Share issue 31 $- - -$ $\sim$ $\sim$ $\sim$ 2,236 $- - -$ $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ 2,267 $\cdots$ 2,267
Distribution dividends $\overline{\phantom{a}}$ $- - -$ $ -$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ (53, 261) $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ (53, 261) $\sim$ $\sim$ $\sim$ (53, 261)
Balance at
30 June 2023 8,926 1,760 27,334 23,220 157 (4, 825) (1, 151) (990) 212,924 74,636 341,991 708 342,699
Profit (Loss)
Profit (loss) recognised directly
$- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $- - -$ $- - -$ $- - -$ $- - -$ $\sim$ $\sim$ $\sim$ $- - -$ 20,983 20,983 176 21,159
to e quity
TotalComp. Income
- - - . (2, 121) $\sim$ $\sim$ $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ (2, 121) $\sim$ $\sim$ $\sim$ (2, 121)
$(\cos s)$ (2, 121) --- --- 20,983 18,862 176 19,038
Allocation of result . $- - -$ $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ $- - -$ $- - -$ $- - -$ --- $\cdots$ 86,596 (86, 596) $\sim$ $\sim$ $\sim$ $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ $- - -$
Acquisition of treasury shares . $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ $- - -$ $- - -$ (458) $\ddotsc$ $- - -$ $\sim$ $\sim$ $\sim$ $\cdots$ (458) $\cdots$ (458)
IFRS 2 . $- - -$ $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ 113 $- - -$ $- - -$ $\ddotsc$ $- - -$ $- - -$ $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ 113 $\cdots$ 113
Otherchanges . $\frac{1}{2}$ (8) $\sim$ $\sim$ $\sim$ $- - -$ $\sim$ $\sim$ $- - -$ $- - -$ $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ (8) $- - -$ (8)
Share issue 3 25 $\frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{1}{2} \frac{$ 168 $- - -$ $\sim$ $\sim$ $\ddotsc$ $ -$ $- - -$ $- - -$ 196 $\cdots$ 196
Balance at
30 September 2023
8,929 1,785 27,334 23,493 157 (5, 283) (3, 272) (990) 299,520 9,023 360,696 884 361,580

Zignago Vetro Group ATTACHMENT 9

ESG: main indicators and KPI's (*)

KPIs 2022 2023 30/09/2023 2030
actual Targets actual (**) Strategic objectives
% of recycled glass of
external origin on total glass
produced
53.4% 55.0% 49.7% 70.0%
Energy consumption per
kilogram of molten glass
(KWh/Kg)
1.889 1.870 1.846 1.646
% of electricity from
renewable sources
44.6% 46.0% 45.1% 100.0%
Specific water consumption
per ton of molten glass
(m 3
/ton)
1.23 1.10 0.94 0.80
Scope 1 and 2 specific CO2
emissions on molten glass
(tonCO2/ton)
0.533 0.529 0.498 0.351
Sustainable logistics In development
phase
In development phase In development phase In development phase
Ordinary waste per ton of
molten glass (kg/ton)
7.83% 7.77% n.a. 5.50%
Adopted FSSC
22000 in Fossalta
FSSC 22000 at
Zignago Vetro Polska
in progress Maintain current certifications
ISO 5000ssalta
and Empoli
completed Adopt following new certifications:
● ISO 45001 in Empoli, in
Fossalta and in Vetro Revet by
2024, in Poland by 2025, in
Group certifications France by 2026
● ISO 14001 in France by 2025
Ecovadis: Platinum
rating (85/100)
Ecovadis: maintain
rating
n.a. Improve Ecovadis and CDP
CDP climate
Change B Water
Security A-score B
CDP improvement
score
n.a. scores
Social / environmental
initiatives
0.25% of annual
consolidated result
to social and
environmental
initiatives
0.25% of annual
consolidated result to
social and
environmental
initiatives
0.25% of annual
consolidated result to
social and environmental
initiatives
0.25% of annual consolidated
result to social and environmental
initiatives

(*) 2023 data not audited