- Revenues of 31.4 million Euro (-4.5 million Euro over the first three months of 2019)
- EBITDA positive by 3.2 million Euro, equal to 10.3% of revenues (-3 million Euro less than 31 March 2019)
- Net profit of 0.1 million (-2.5 million Euro at 31 March 2019)
- Net financial position was a negative EUR 16.1 million, while it was a negative EUR 13.3 million at 31 December 2019.
Provaglio d’Iseo (BS), 14 May 2020 – The Board of Directors of GEFRAN S.p.A met today, via video-conferencing, under the chairmanship of Maria Chiara Franceschetti, to approve the results at 31 March 2020.
Revenues in the first three months of 2020 amount to 31.426 million Euro, as compared with revenues of 35.973 million Euro in the same period in 2019, registering a 4.547 million Euro drop (-12.6%). The Coronavirus pandemic resulted in closure of the Group’s Chinese subsidiary in February, followed by closure of the Group’s Italian plants in the month of March. While the other countries where the Group operates did not impose lockdown until April, movement within individual areas has been subject to significant restrictions, making it impossible for our sales network to operate.
This situation has led to shrinkage of revenues, affecting all the Group’s business units and all the geographical regions the Group works in, particularly: Italy (-15.4%), the European Union (-15.3%),
and North and South America (-23% and -13%, respectively). On the other hand, revenues increased in non-EU Europe thanks to the healthy performance of the motion control business unit.
The breakdown of revenues by business area in the first quarter of 2020 reveals a drop over the figure for the first quarter of 2019 in all sectors served by the Group: sales of drives fell by 12.6%, while sales of automation components fell by 18.1% and the revenues of the sensors business dropped 9.6% due to shrinkage in Italy, Europe and the Americas, while sales of sensors in Asia increased over the same period in the previous year.
EBITDA at 31 March 2020 was positive by 3.227 million Euro (6.269 million Euro at 31 March 2019), representing 10.3% of revenues (17.4% of revenues in the first quarter of 2019), down 3.042 million Euro over the previous year in absolute terms. The reduction due to shrinking revenues was only partially compensated by reduced operating costs.
EBIT at 31 March 2020 is positive by 1.230 million Euro (3.9% of revenues), as compared to an EBIT of 2.978 million Euro for the same period in 2019 (8.3% of revenues), 1.748 million Euro lower. The change is a result of reduced revenues, only partially compensated by lower operating costs and depreciation/amortisation.
Group net profit was 2.458 million Euro in the first quarter of 2020, compared with a profit of 2.548 million Euro in the same period of 2019, a 2.469 million Euro decrease.
Impact of Covid-19 and related actions
Gefran has suffered the effects of the spread of Covid-19 in the countries where the Group operates, either directly with its own branches or indirectly through customers and suppliers, primarily as a result of the partial or total shutdown of production.
The Group responded with prompt introduction of measures aimed at protecting the safety of its employees and everyone it works with while ensuring business continuity compatibly with government directives. This has led to the definition of specific procedures for behaviour and access to company premises, and to preparation of health and safety protocols, and reorganisation of the company processes to be particularly sensitive in these circumstances (such as supply chain management).
The Group has now resumed production in its principal sectors, while office staff continue to work from home. The Gefran Group has also resorted to use of the exceptional wages guarantee fund and begun the required procedures for requesting government aid wherever available. In addition, actions are under way aimed at cutting costs and redefining the Group’s actions and priorities.
Gefran Group CEO Marcello Perini comments: “Though down over the first quarter of 2019, the results achieved by the Group may be viewed as positive in a quarter characterised by the global spread of the pandemic and the consequent restrictive measures on economic activities.
The timely reaction of each individual Group subsidiary, made possible by sharing experiences in the various countries of operation, allowed to partially mitigate the effects of the pandemic.
This rapid reaction will be also a key to taking advantage of the opportunities at global level will arise with the gradual return to normality that we expect, however, characterized by a contraction in demand.
In view of the above, and in the absence of further unexpected events, we may expect to close the year 2020 with lower revenues and profit margins than we saw in 2019.”
Click here and read the press release.