Gefran S.p.A. Board approves consolidated results at 30 june 2020

06 de agosto de 2020
  • Revenues of 62.7 million Euro (-13% compared to the first six months of 2019)
  • Positive EBITDA of 7.3 million Euro (positive at 10.7 million Euro at 30 June 2019)
  • Net profit of 1.1 million Euro (4 million Euro at 30 June 2019)
  • Net financial position was a negative EUR 13.6 million, while it was a negative EUR 13.3 million at 31 December 2019.


Provaglio d’Iseo(BS), 6 August 2020 – The Board of Directors of GEFRAN S.p.A met today, under the chairmanship of Maria Chiara Franceschetti, to approve the results at 30 June 2020.

Revenues in the first half of 2020 amount to 62.735 million Euro, as compared with revenues of 72.099 million Euro in the same period in 2019, registering a 9.364 million Euro drop (-13%). 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. Moreover, in April, other countries were also affected by the lockdown (India and Brazil, for example), limiting the possibility to travel and consequently affecting the activities usually carried out by the commercial network. This situation led to shrinkage of revenues affecting all the Group’s business units and all the geographical regions the Group works in, particularly: Italy (-14.4%), the European Union (-16.4%), and North and South America (-20.8% and -28.6%, respectively). On the other hand, revenues increased in the non-EU European area thanks to the healthy performance of the motion control business in this region.

The breakdown of revenues by business area in the first half of 2020 reveals a drop over the figure for the same period of 2019 in all the sectors the Group works in: sales of drives were down by 13.3%, while sales of automation components dropped 17.2%. Revenues from the sensors business were also down (-9.3%), with shrinkage in Italy, Europe and America, while sales of sensors in Asia increased in the first half of 2020 over the same period in the previous year.

Right from the first signs of the COVID-19 pandemic, new organisational procedures and cost containment processes were promptly activated, redefining internal activities and priorities; this led to a reduction in both other operating costs as well as personnel costs in absolute value in the first half of 2020 compared to the same period of 2019, of 1.799 and 0.521 million Euro, respectively. On the one hand, the cost items that saw the biggest reductions were travel and trade fair expenses while, on the other, use of the redundancy fund, where possible, and reduction in variable performance-related bonuses made it possible to contain labour costs.

EBITDA at 30 June 2020 was positive at 7.336 million Euro (11.7% of revenues) and recorded a negative change of 3.399 million Euro compared to the first half of 2019, when it stood at 10.735 million Euro. The reduction in operating costs was not sufficient to offset the reduction in added value.

EBIT at 30 June 2020 is positive by 3.321 million Euro (5.3% of revenues) compared to an EBIT of 5.376 million Euro for the same period in 2019 (7.5% of revenues), 2.055 million Euro lower. The change is a result of reduced revenues, only partially compensated by lower operating costs and depreciation/amortisation.

Group net profit amounted to 1,139 million Euro in the first half of 2020, compared with a profit of 4.029 million Euro in the same period of the previous year, a 2.890 million Euro decrease.

Working capital was 28.535 million Euro at 30 June 2020, compared with 25.058 million Euro at 31 December 2019, an overall increase of 3.477 million Euro. 

Shareholders’ equity as of 30 June 2020 amounted to 75.845 million Euro, compared to 75.044 million Euro on 31 December 2019, up 0.801 million. The change mainly relates to the positive result for the period, partially offset by the negative impact generated by changes in the translation reserve.

Investments made in the first six months of 2020 amounted to 2.927 million Euro, compared to 8.632 million Euro in the first half of 2019 and refer mainly to investments made in Research and Development.

Net financial position at 30 June 2020 was negative by 13.559 million Euro, 0.272 million Euro higher than at the end of 2019, when it was on the whole negative by 13.287 million Euro. 

Net financial debt comprises short-term cash and cash equivalents of 15,605 thousand Euro and medium-/long-term debts of 29,164 thousand Euro.

Marcello Perini, Chief Executive Officer of the Gefran Group, said: “Considering the impact of the health emergency on the global economy, the result for the first half of the year reflects Gefran's ability to react, the sustainability of its business model and the Group's strength in facing challenges, since in a difficult environment we were able to respond to our customers' requests both in terms of product delivery and, more specifically, service..

The willingness, perseverance and commitment to implement cost containment actions and, at the same time, reorganisation processes to pursue all opportunities to restart have been essential in recent months in order to achieve a result that I believe is positive.

Gefran's determination to advance its development plans has remained unchanged: even though some investments have necessarily been downsized, we have confirmed those considered fundamental and in the coming months, with limited delays compared to planned dates, new products designed to increase our competitiveness on the market will be released.

I believe that the timeframe for a full recovery of activities remains uncertain, not least in view of the fact that in some countries of significance to our business the pandemic is not yet under control. For these reasons, in the second half of this year I do not expect to achieve the results of the same period 2019, thus confirming for the current year, as already mentioned, lower revenues and margins than the previous year".

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