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

12 november 2020

  • Revenues of 93.9 million Euro (-10.6% compared to the first nine months of 2019)
  • Positive EBITDA of 11.9 million Euro (positive at 15.1 million Euro at 30 September 2019)
  • Net profit of 2.7 million Euro (5.7 million Euro at 30 September 2019)
  • Net financial position was a negative EUR 9.3 million, improved by 4 million compared to  EUR 13.3 million at 31 December 2019

 

Provaglio d’Iseo (BS), 12 November 2020 – The GEFRAN S.p.A. Board of Directors met today chaired by Maria Chiara Franceschetti to approve its financial statement at 30 September 2020.

Revenues in the first nine months of 2020 amounted to 93.921 million Euro, compared to 105.144 million Euro in revenues in the same period in 2019, a decrease of 11.193 million Euro (-10.6%). The spread of Coronavirus in the current year has led to a drop in revenues in all business lines and all the geographical areas in which the Group operates, and specifically: Italy (-15.3%), the European Union (-14.3%), and North and South America (-20.6% and -21.9%, respectively). On the other hand, revenues increased in non-EU Europe (+6.5%) and Asia (+5.1%), thanks to the good performance of the motion control business in the first case and the sensors business in the second.

The breakdown of revenues by business area compared to 30 September 2019 saw a drop in revenues from motion control (-11.3%), automation components (-14.1%) and sensors (-7.4%). A drop in sales of sensors was reported in Italy, Europe and the United States, while sales in Asia grew in the first nine months of 2020 as compared to the same period in the previous year.

Added value  as of 30 September 2020 amounted to 61.150 million Euro, down 8.982 million Euro over the figure for the same period in 2019 as a result of decreased revenues.

As soon as the first signs of the COVID-19 pandemic appeared, new organisational methods and cost-saving measures were adopted, redefining the company’s activities and priorities. These actions permitted the company to cut operating costs and personnel costs  by 2.609 and 3.245 million Euro, respectively, over the same period in 2019. The operating costs that were reduced most sharply were the cost of travel and participation in trade fairs. The cost of labour was limited through use of the redundancy fund wherever possible, and reduction of performance-related bonuses.

EBITDA at 30 September 2020 was positive by 11.935 million Euro (equal to 12.7% of revenues), 3.128 million Euro lower than on 30 September 2019, when it was 15.063 million Euro.

EBIT at 30 September 2020 was positive by 5.865 million Euro (6.2% of revenues), compared to an EBIT of 7.728 million Euro for the same period in 2019 (7.4% of revenues), 1.863 million Euro lower.

Group net profit  in the first nine months of 2020 was 2.686 million Euro, as compared to a net profit of 5.660 million Euro in the same period in the previous year, down 2.974 million Euro.

 

Shareholders’ equity as of 30 September 2020 amounted to 76.879 million Euro, compared to 75.044 million Euro on 31 December 2019, up 1.835 million.

Investment in the first nine months of 2020 amounted to 4.112 million Euro, as compared to 11.244 million Euro in the same period in 2019, and primarily represented Research and Development costs.

Net financial position as of 30 September 2020 is negative by 9.267 million Euro, down 4.020 million Euro over the end of 2019, when it was, on the whole, negative by 13.287 million Euro.

 

Impact of Covid-19 and related actions

The Gefran Group suffered from the impact of the Covid-19 pandemic in all the countries where it works either directly with its own branches or indirectly through customers and suppliers, primarily as a result of partial or total suspension of production.

Resort was made to use of redundancy funds, and the required procedures were begun for requesting government aid wherever available. In addition, actions have been put in place aimed at cutting costs and redefining the Group’s actions and priorities.

In response to the recent upswing in the contagion curve, especially in Europe, governments have adopted new measures to protect citizens’ health which could give rise to further uncertainty and concern and may have an impact on the economy.

All the measures introduced by Gefran since the first signs of the pandemic began remain in effect and allow the company to address the situation.

The Group continues regular production in its main sectors, while office staff continue to work partly from home and partly in the office in order to guarantee the necessary social distancing.

 

Marcello Perini, Chief Executive Officer of the Gefran Group, comments:The positive results of the quarter demonstrate an upturn compared to recent months.

The capacity of our production plants and the flexibility and efficiency of our operations have allowed us to respond to growing demand, led primarily by the Asian markets, and particularly China, allowing us to achieve better than expected results.

We expect this to continue in the final quarter of the year. This would allow us to close the year mitigating the fears of the first half of the year in terms of revenues and profit margins.

At this time of resurgence of the pandemic, we can only speculate on the future, therefore a possible drop in demand, which has not yet appeared and cannot be predicted with certainty, could have an impact on the annual result. Nevertheless, the company has organised to deal with the medical emergency, adopting all the protocols required to ensure continuity of operations while safeguarding human health”.

Click here and read the press release.

 

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