Results

Announcement

1ST HALF 2022

Results Announcement 1st HALF 2022

INAPA

2

Highlights

GENERATION OF RESULTS

  • During the first half of 2022 the closure and conversion of production capacity continued, which together with the limitations on paper imports from other continents, had an unprecedented impact on paper supply.
  • Sales volume in tons in line with H1 2021.
  • Sales increased by EUR 167.9m, or 37.7%, compared with the same period of 2021.
  • EUR 45.5m increase in Gross Margin generated, corresponding to 20.8% of Sales,

  • 2.4 pp more than in the 1st half of 2021.

  • Net operating costs represented 13.4% of sales (reduction of 2.6 pp in comparison with the 1st half of 2021).
  • EBITDA of EUR 42.5m (EUR 33.1m more than in 2021), corresponding to 6.9% of Sales.
  • Operational profit (EBIT) of EUR 33.1m (EUR 31.5m increase).
  • Net profit of EUR 16.0m.

FINANCIAL STRUCTURE

  • Net debt decreased EUR 35.4m compared to December 2021 (-99.0m compared to June 2021), with a significant improvement on the Debt/EBITDA ratio, to 3.4x.
  • Working capital increased EUR 12.9m compared to December 2021 (-67.2m compared to June 2021).

Results Announcement 1st HALF 2022

INAPA

3

Main activity

Indicators

Amounts in MILLION EUROS except when specified otherwise)

1H22

1H21

VAR.22/21

Tonnes ('000)

390

393

-0,8%

sales

613,6

445,7

37,7%

Gross Margin

127,5

82,0

55,6%

Gross margin (%)

20,8%

18,4%

2,4 pp

Net operating costs

82,2

71,4

15,1%

Operating income

14,4

13,2

8,7%

Operating costs

96,6

84,7

14,1%

Impairment of current assets

0,4

0,9

-61,6%

Re-EBITDA

45,0

9,6

35,4

Re-EBITDA (%)

7,3%

2,2%

5,2 pp

Costs/ (Profits) non current

2,4

0,2

2,3

EBITDA

42,5

9,4

33,1

EBITDA (%)

6,9%

2,1%

4,8 pp

EBIT

33,1

1,6

31,5

EBIT (%)

5,4%

0,4%

5,0 pp

Net Financial function

7,9

7,0

12,6%

EBT

25,2

-5,4

30,6

Income tax

9,2

2,4

6,8

Net income

16,0

-3,0

19,0

30/06/22

30/06/21

VAR.22/21

Net Debt

226,4

325,4

-30,4%

Net Debt/Re-EBITDA1

3,4 x

12,4 x

-9,0 x

Net Debt excluding Trade Finance

207,3

250,7

-17,3%

Interest coverage

5,7 x

1,4 x

4,3 x

Working capital

24,3

91,5

-73,5%

1 Re-EBITDA for the last 12 months

Results Announcement 1st HALF 2022

INAPA

4

Relevant

Events

29.04.2022

2021 Results Announcement

29.04.2022

Notice of Ordinary General Meeting and 2021 Annual Report publication

29.04.2022

2021 Sustainability Report publication

20.05.2022

Ordinary General Meeting

SUBSEQUENT EVENTS

No subsequent events have been recorded up to the release of this announcement.

Results Announcement 1st HALF 2022

INAPA

5

Consolidated Performance

The first six months of the year were marked by the invasion of Ukraine by Russia at the end of February, which is causing blockages in the supply chain and increasing the cost of gas and transport, thus worsening the already high production (raw materials, energy) and logistics costs, leading to a further increase in prices. With the recovery of economies after the Covid-19 pandemic crisis, there has been an increase in demand for paper in a context of continuing factory closures or conversions. The strike in one of the major European producers, which lasted until April, also contributed to a lower availability of paper.

In this context, Inapa consolidated sales reached 613.6 million euros, an increase of 37.7% compared to the same period last year. Paper sales in tonnes were in line with the first semester of 2021, and the average paper price maintained the global trend of sharp increase that we have been witnessing since the end of 2021.

Sales related to the complementary businesses of packaging, visual communication and office supplies registered, in the first six months of the year, a growth of 10% compared to the first half of 2021. The packaging area continued to show a very positive progression compared to the same period last year. With the start of events and fairs, which had been suspended since 2020, we have seen an upturn in the

visual communication area, which also recorded growth compared to 2021.

The gross margin in the first six months of 2022 reached 20.8% of sales, +2.4 percentage points compared to the same period in 2021. In this period we continued to work on a careful price management and on improving the sales mix, by focusing on products with higher margins.

Net operating costs, excluding customer impairments, represented 13.4% of sales in

H1 2022, a decrease of 2.6 percentage points when compared to H1 2021. In absolute terms, we recorded an increase of 10.8 million euros resulting essentially from the increase in staff costs (associated to better sales performance and termination of Governmental aids that were still in place in the first half of 2021) and transportation costs (due to combined effect of higher activity and higher fuel costs. In 2022 the Group benefited from gains resulting from the reorganisations implemented in different geographies in recent years.

Meanwhile, additional cost reduction measures were identified in the areas of logistics and commercial organisation in Germany, which are currently being implemented, and whose savings will be progressively reflected between 2022 and 2023.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Inapa - Investimentos, Participações e Gestão SA published this content on 21 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2022 17:19:04 UTC.