- Revenues of 105.1 million Euro (+4 million Euro over the first nine months of 2018)
- Positive EBITDA of 15.1 million Euro, amounting to 14.3% of revenues (-0.3 million Euro at 30 September 2018)
- Net profit of 5.7 million (+0.2 million Euro at 30 September 2018)
- Net financial position was a negative 14.9 million Euro, following investment of 11.2 million Euro (as compared to a negative 4.5 million Euro at 31 December 2018)
Provaglio d’Iseo (BS), 13 November 2019 – The Board of Directors of GEFRAN S.p.A met today under the chairmanship of Giovanna Franceschetti, at the company’s Provaglio d'Iseo (BS) headquarters, to approve the company’s results as of 30 September 2019.
Revenues in the first nine months of 2019 amount to 105.114 million Euro, as compared with revenues of 101.080 million Euro in the same period in 2018, registering 4.034 million Euro in growth (+4%). The purchase of Elettropiemme S.r.l. on 23 January 2019 contributed a total of 4.269 million Euro to this increase in revenues. If this effect is not taken into account, revenues are aligned with the same period in the previous year (-0.2%). Revenues from motion control were up due to increased sales of products for industrial applications and custom orders.
The breakdown of revenues by geographical region shows strong growth in North America (+28.6%, net of the positive effect of the favourable exchange rate trend), particularly in the last quarter, and in South America (+10.5%), while sales fell in non-EU Europe (-32.7%) and the European Union (-3.4%). The growth recorded in Italy (+10.1%) was due to the change in the scope of the consolidation, without which there would have been a decrease in sales compared to the first nine months of 2018 (-3.3%).
The breakdown of revenues by business area reveals growth in motion control (+4.4%) and in the automation components business line (+13.3%). In the second case, the increase represents the revenues of the newly acquired company Elettropiemme S.r.l., without which sales in this business line would have been lower than in the same period in the previous year (-1.8%). On the other hand, sales in the sensors business line contracted (-2.4%), mainly in the Asian, European and Italian markets.
Added value for the first nine months of 2019 was 70.132 million Euro (67.322 million Euro at 30 September 2018), equivalent to 66.7% of revenues (up over the figure of 66.5% for the first nine months of 2018).
EBITDA for the first nine months of 2019 amounted to 15.063 million Euro (15.429 million Euro on 30 September 2018), and reached 14.3% of revenues (15.3% on 30 September 2018), a drop of 0.366 million Euro.
EBIT as of 30 September 2019 was positive and equal to 7.728 million Euro, representing 7.4% of revenues, compared to an EBIT of 10.728 million Euro (10.6% of revenues) at 30 September 2018, a decrease of 3.000 million Euro. EBIT reflects a 1.531 million Euro drop in the value of assets as a result of demolition of a building used by the sensors business, expansion of which required additional space for new production lines. The work will be completed in 2019 and the plant will be fully operative by the beginning of 2020. If this loss is eliminated, along with the positive impact of the addition of Elettropiemme S.r.l. to the Group, EBIT in the first nine months of 2019 would total 8.705 million Euro, 2.023 million Euro lower than in the first nine months of 2018.
Group net profit was 5.660 million Euro as of 30 September 2019, compared with a profit of 5.444 million Euro in the same period of 2018.
Working capital was 28.159 million Euro at 30 September 2019, compared with 23.028 million Euro at 31 December 2018, an overall increase of 5.131 million Euro.
Shareholders’ equity at 30 September 2019 was 74.165 million Euro, compared with 72.814 million Euro at 31 December 2018. The change was primarily a result of the positive result in the period, totalling 5.668 million Euro, absorbed by distribution of 4.599 million Euro in dividends.
Investment in the first nine months of 2019 amounted to 11.244 million Euro (6.875 million Euro in the same period of the previous year).
The company’s net financial position at 30 September 2019 was negative and equal to 14.882 million Euro, 10.361 million Euro worse than the figure for 31 December 2018, when it was negative by 4.521 million Euro.
“The results in the third quarter are overall positive in terms of revenues and margins, thanks also to the contribution of the newly acquired Elettropiemme. Although the scenario of our reference markets still presents areas of uncertainty, especially in Europe and Asia, we expect an improvement in revenues in the last part of the year, especially in the drives and motion control business”, says Gefran Group CEO Alberto Bartoli.
“The investment plan, that will allow us to face the medium-long term challenges, has continued regularly during this quarter. In 2019, as at 30 September, investments of 11 million euros has been made in technological assets and 65 employees were hired.”
“Confirming our previous forecast, we expect to close the year 2019 with higher revenues than 2018 and EBITDA margin in line with the one of the previous year.”
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