Gefran: the Board of Directors approves the draft financial statements for the year ending 31 december 2019

March 12, 2020

  • Revenues of 140.6 million Euro (+5 million Euro over 2018)
  • EBITDA positive by 19.7 million Euro, equal to 14% of revenues (-0.3 million Euro less than 2018)
  • Net profit of 7 million Euro (-1.1 million Euro since 2018)
  • Net financial position was a negative 13.3 million Euro, following investment of 16 million Euro (as compared to a negative 4.5 million Euro at 31 December 2018)
  • Dividend of 0.15 Euro per share proposed


Provaglio d’Iseo (BS), 12 March 2020 – The GEFRAN S.p.A. Board of Directors met today, chaired by Maria Chiara Franceschetti, via video conference and unanimously approved the company’s draft financial statement, consolidated financial statement and non-financial consolidated statement at 31 December 2019.

Revenues as of 31 December 2019 amount to Euro 140.535 million, as compared with revenues of Euro 135.571 million in the same period in 2018, registering Euro 4.964 million in growth. The growth rate of +3.7% is a result of the change in the scope of consolidation resulting from the takeover of Elettropiemme S.r.l. in January of last year. Without this effect, revenues would be lower than in the same period in the previous year (-0.6%).

The breakdown of revenues by geographical region shows strong growth in North America (+42.3%, net of the positive effect of the favourable exchange rate trend), particularly in the second half, and in South America (+10.1%), while sales fell in non-EU Europe (-34.2%) and the European Union (-3.7%). The growth recorded in Italy (+4.9%) was due to the change in the scope of the consolidation, without which there would have been a decrease in sales compared to the previous year (-7.5%).

EBITDA at 31 December 2019 amounted to 19.730 million Euro (20.058 million Euro at 31 December 2018), corresponding to 14% of revenues (14.8% at 31 December 2018), down by 0.328 million Euro. The addition of Elettropiemme S.r.l. to the Group brought an increase of 1,033 million Euro, without which EBITDA would have been 1.361 million Euro lower than in 2018. The decrease is primarily attributable to higher operating costs during the period, only partly compensated by the greater added value earned and the positive effect of application of the new IFRS16 accounting standard, which requires reversal of leasing fees in the period.

EBIT as of 31 December 2019 was positive and equal to 10.375 million Euro, representing 7.4% of revenues, compared to an EBIT of 13.743 million Euro (10.1% of revenues) at 31 December 2018, a decrease of 3.368 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. Considering that the building originally identified for this purpose was unable to guarantee sufficient technological and energy performance and long-term sustainability, it was demolished to permit construction of a more advanced, functional building. The work was completed in December 2019, and work on the new plant began in January 2020. If this loss is eliminated, along with the positive impact of the addition of Elettropiemme S.r.l. to the Group, EBIT in 2019 would total 11.136 million Euro, 2.607 million Euro lower than the 2018 figure.

Group net profit in the year 2019 was 7.042 million Euro, compared with a profit of 8.151 million Euro in 2018. When the positive impact of the newly purchased Elettropiemme S.r.l. and the loss of value of assets described above are eliminated, net profit at 31 December 2019 is 8,061 million Euro, 0.090 million Euro higher than the 2018 figure.

Net financial position at 31 December 2019 was negative and equal to 13.287 million Euro, 8.766 million Euro worse than the figure for 31 December 2018, when it was negative by 4.521 million Euro. This change is mainly due to positive cash flows from ordinary operations (18.045 million Euro), absorbed by technical investments in the period (15.644 million Euro), distribution of dividends (4.599 million Euro), the net effect of the acquisition of Elettropiemme S.r.l. (0.231 million Euro) and payment of taxes (2.183 million Euro). In addition to this, there was the negative effect of the application of IFRS 16, which led to a worsening of the company’s net financial position (3.084 million Euro).


Maria Chiara Franceschetti, Chairman of the Gefran Group, comments: “The results of the year 2019 confirm the Group’s stable ability to grow and generate value even in a complex economic scenario with growing competition on the market. In 2019 we concentrated on our core business and continued implementing our three-year plan for investment in technological capital (plants and equipment for innovating and increasing the efficiency of our production) and human capital (increasing our professional staff)”.

“The implementation of our plan reinforces our technologies, productive assets and know-how, adding to the Group’s capacity to respond to demand for efficiency, quality and dependability as a result of the evolution of the market. We’re doing all this while safeguarding the Group’s solidity, as demonstrated by our net financial position at 31 December”.

The Gefran Group Chairman offered the following comments on the situation created by the spread of the COVID-19 virus: “We're working in full compliance with the orders issued by the medical and government authorities to protect our employees’ health and guarantee continuity of supplies and services for our customers. Our production plants are fully operative, as are our offices, through smart working. We believe it is early to speculate on future developments in the medical emergency in the countries where we work, but we're confident we have the solidity required to face its predictable economic impact. As always, we will concentrate on our work and keep working toward achievement of our goals”.

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