- Revenues of 72.1 million Euro (+2.6% versus the first half of 2018)
- Positive EBITDA of 10.7 million Euro, amounting to 14.9% of revenues (-4.2% compared to 11.2 million Euro in the first half of 2018)
- Net profit of 4 million Euro (-0.8% compared to the net profit of 4.1 million Euro in the first half of 2018)
- Net financial position was a negative 16.9 million Euro, after having invested 8.6 million Euro (as compared to a negative 4.5 million Euro at 31 December 2018)
Provaglio d’Iseo (BS), 6 August 2019 – The Board of Directors of GEFRAN S.p.A met today under the chairmanship of Maria Chiara Franceschetti, at the Provaglio d'Iseo (BS) headquarters, to approve the results at 30 June 2019.
Revenues for the first six months of 2019 amounted to 72.099 million Euro, compared with revenue of 70.260 million Euro in the same period in 2018, an increase of 1.839 million Euro (+2.6%). The acquisition of Elettropiemme S.r.l. on 23 January 2019 contributed a total of 2.870 million Euro to the increase in revenues. Without this effect, revenues would have been 1.031 million Euro (-1.5%) lower than in the first half of the
previous year as a result of a slowdown in economic growth.
The breakdown of revenues by geographical region shows strong growth in North America (+23.6%, net of the positive effect of the favourable exchange rate trend) and South America (+9.8%), while there was a contraction in sales in non-EU Europe (-33.3%). The growth recorded in Italy (+7.5%) 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 half of 2018 (-5.2%).
The breakdown of revenues by business area reveals growth in motion control (+5.8%) and in the automation components business line (+10%), where 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 first half of the previous year (-4.2%). On the other hand, sales in the sensors business line contracted (-4.5%), mainly in the Asian, European and Italian markets.
Added value for the first half of 2019 was 48.247 million Euro (46.747 million Euro at 30 June 2018), equivalent to 66.9% of revenues (up over the figure of 66.5% for the first half of 2018).
Other operating costs at 30 June 2019 amounted to 11.905 million Euro, down compared to the figure of 12.373 million Euro over the first half of 2018, representing 16.5% of revenues (as compared to 17.6% in the first half of 2018).
Personnel costs at 30 June 2019 amounted to 25.607 million Euro, compared with 23.164 million Euro in the same period of 2018, with an increase relating to both the newly acquired Elettropiemme S.r.l. and the hiring of new employees, with an increase in the average number of employees from 746 in the first half of 2018 to 800 in the first half of 2019.
EBITDA for the first half of 2019 amounted to 10.735 million Euro (11.210 million Euro on 30 June 2018), and reached 14.9% of revenues (16% on 30 June 2018), a drop of 0.475 million Euro.
EBIT as of 30 June 2019 was positive and equal to 5.376 million Euro, representing 7.5% of revenues, compared to an EBIT of 8.122 million Euro (11.6% of revenues) at 30 June 2018, a decrease of 2.746 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.
Group net profit was 4.029 million Euro in the first half of 2019, compared with a profit of 4.061 million Euro in the same period of 2018.
Working capital was 28.895 million Euro as of 30 June 2019, compared with 23.028 million Euro at 31 December 2018, an overall increase of 5.867 Euro million.
Shareholders' equity at 30 June 2019 amounted to 72.116 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 4.029 million Euro, absorbed by distribution of 4.599 million Euro in dividends.
Investments made in the first six months of 2019 amounted to 8.632 million Euro (4.826 million Euro as of 30 June 2018).
The company’s net financial position at 30 June 2019 was negative and equal to 16.926 million Euro, 12.405 million Euro worse than the figure for 31 December 2018, when it was negative by 4.521 million Euro.
“Despite the slow-down in the economic cycle, the first half of the year registered an increase in revenues due not only to the acquisition of Elettropiemme, but to orders acquired in the motion control area, where the effects of the growth strategy we have adopted in the past few years are now being felt,” comments Alberto Bartoli, Chief Executive Officer of the Gefran Group.
“The half-year confirmed the importance of continuing to invest in technological innovation and human capital in line with the plan resolved on in 2017 for responding to medium- and long-term challenges facing the Group. In the first half of the year we invested 9 million Euro and added 40 new staff members to the company,” added Bartoli.
“Despite the lacklustre economic scenario, we expect to close the year 2019 with higher revenues than 2018 and ebit margins in line with those of the previous year.”
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