PRESS RELEASE
ISAGRO BOD APPROVES THE QUARTERLY RESULTS AS OF MARCH 31ST, 2019
Consolidated revenues: 38.7 Euro million (vs. 42.2 million of 1Q 2018)
Consolidated EBITDA: 4.2 Euro million (vs. 4.5 million of 1Q 2018)
Net result: 0.7 Euro million (vs. 1.3 million of 1Q 2018)
Net financial debt as of March 31st, 2019: 59.3 Euro million, out of which 5.7 Euro million due to the first adoption of the new accounting principle IFRS 16 (vs. 45.1 as of December 31st, 2018 and vs. 50.9 as of March 31st, 2018), with a debt/equity ratio of 0.62 (equal to 0.56 without IFRS 16 effect)
Free cash flow excluding IFRS 16 and seasonal variations of NWC: positive for 1.1 Euro million
Milan, May 15th, 2019 - The Board of Directors of Isagro S.p.A. approved today the Consolidated Interim Result Report as of March 31st, 2019, which will be made available to the public following the terms and the modalities of the applicable Laws.
1Q 2019 consolidated financial results
Isagro achieved in the 1Q, period historically not representative of the full-year results due to the seasonality of the business of the Group, the following consolidated results at the Income Statement level:
Revenues of 38.7 Euro million, decreasing by 3.5 million versus 42.2 Euro million of the first quarter of 2018;
an EBITDA of 4.2 Euro million, decreasing by 0.3 million versus 4.5 Euro million of the first quarter of 2018;
a Net result before taxes of 1.4 Euro million, decreasing by 0.9 million versus 2.3 Euro million of the first quarter of 2018;
a Net result of 0.7 Euro million, decreasing by 0.6 million versus 1.3 Euro million of the first quarter of 2018.
With reference to the financial aspects, in the first quarter of 2019 it was generated a positive free cash flow of 1.1 Euro million, excluding the seasonal variations of the Net working capital and the effect of the first adoption of the new accounting principle IFRS 16.
With reference to the Balance Sheet, the Net financial debt as of March 31st, 2019 was equal to 59.3 Euro million, which includes the effect of the first adoption of IFRS 16 for 5.7 Euro million. Excluding such effect,
the Net financial debt as of March 31st, 2019, equal to 53.6 Euro million, is up by 8.5 Euro million versus 45.1 Euro million as at December 31st, 2018 and up by 2.7 versus 50.9 Euro million as at March 31st, 2018.
Perspectives
On a like-for-like basis, in 2019 Isagro expects a substantial consolidation of 2018 revenues from agropharma, with expectations of a significant growth in the mid-term thanks particularly to the new fungicide Fluindapyr.
It is thus confirmed the objective of Isagro to achieve a turnover of 200 Euro million in the mid-term, also catching opportunities of external growth, with a better definition of its asset allocation.
Other information
The Board of Directors of Isagro carried out the assessment of the independence, with a positive outcome, of the Board of Statutory Auditors members Roberto Cassader, Silvia Baroffio, Filippo Cova - Effective auditors - Marco Giuliani, Sonia Peron - Substitute auditors - according to the criteria set by Article 144-novies of Consob Issuers' Regulation and to the Article 8 of the Company's Corporate Governance Code. The Board of Statutory Auditors was appointed by the General Shareholders' Meeting held on April 30th, 2019.
The Manager charged with preparing the company's financial reports, Ruggero Gambini, hereby certifies, pursuant to Article 154-bis, paragraph 2 of the Consolidated Law on Finance, that the financial information in this press release is consistent with the entries in the accounting books and records.
Isagro S.p.A., an independent company from 1993 with Montecatini/Montedison origin, today leads a Group operating in research, development, production and distribution of agropharmaceuticals (the products for the protection and development of crops) with sales in 80 countries amounting around € 150 million (of which 4/5 outside Italy) and around 650 employees worldwide. Isagro is based on the Innovative Research of new molecules, carried out in its Research Center of Novara, and invests in R,I&D activities around 10% of annual turnover. The Group has 5 manufacturing sites (4 in Italy and 1 in India) and distributes directly its products in some selected markets, developing at the same time local presences for marketing and regulatory support.
Isagro operates with a unique business model in the agrochemical Industry, proposing itself as a supplier of innovative products originated by its own Research. Isagro, in fact, associates to the direct exploitation of its Intellectual Property also an indirect exploitation, through agreements with Third Parties attributing to them rights on a territorial basis and/or for mixtures with their active ingredients.
Isagro S.p.A., listed on the Milan Stock Exchange since 2003 and on the STAR - High Requirements Stock Segment - since 2004, in 2014 has issued Growth Shares, an innovative category of special shares specifically conceived for companies having a Controlling Subject. Their main characteristics are the absence of voting rights, an extra-dividend vs. Ordinary Shares (20% in the case of Isagro) and the automatic conversion into Ordinary Shares in the ratio 1:1 in any case of loss of controlling stake and/or of Compulsory Public Offer.
For more information: | ||||
Ruggero Gambini | Erjola Alushaj | |||
Chief Financial Officer | Group | Financial | Planning | & |
Tel. +39(0)240901.280 | Coordination and IR Manager | |||
Tel. +39(0)240901.340 |
ir@isagro.com www.isagro.com
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CONSOLIDATED PROFIT & LOSS STATEMENT AS OF MARCH 31ST, 2019
1° Quarter | 1° Quarter | Differences | Year | ||
(€ 000) | 2019 | 2018 | 2018 | ||
Revenues from sales and services | 38,651 | 42,208 | -3,557 | -8.4% | 152,771 |
Other revenues and income | 407 | 737 | -330 | 3,922 | |
Consumption of materials and external services | (28,982) | (32,376) | +3,394 | (115,336) | |
Variations in inventories of products | 1,308 | 1,497 | -189 | 1,456 | |
Costs capitalized for internal works | 499 | 601 | -102 | 1,945 | |
Allowances and provisions | 288 | (523) | +811 | (821) | |
Labour costs | (7,608) | (7,269) | -339 | (28,964) | |
Bonus accruals | (387) | (379) | -8 | (949) | |
EBITDA | 4,176 | 4,496 | -320 | -7.1% | 14,024 |
% on Revenues | 10.8% | 10.7% | 9.2% | ||
Depreciation and amortisation: | |||||
- tangible assets | (747) | (933) | +186 | (3,405) | |
- intangible assets | (1,604) | (1,338) | -266 | (5,911) | |
- right-of-use asset IFRS 16 | (364) | - | -364 | - | |
- write-down of tangible and intangible assets | (448) | - | -448 | (265) | |
EBIT | 1,013 | 2,225 | -1,212 | -54.5% | 4,443 |
% on Revenues | 2.6% | 5.3% | 2.9% | ||
Interests, fees and financial discounts | (120) | (31) | -89 | (247) | |
Exchange gains/(losses) and derivatives | 404 | 74 | +330 | (1,199) | |
Revaluations of equity investments | 149 | 48 | +101 | 200 | |
Result before taxes | 1,446 | 2,316 | -870 | -37.6% | 3,197 |
Current and deferred taxes | (727) | (1,019) | +292 | (2,734) | |
Net result of | |||||
continuing operations | 719 | 1,297 | -578 | N/S | 463 |
Net result of discontinued operations | - | - | - | (100) | |
Net result | 719 | 1,297 | -578 | N/S | 363 |
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CONSOLIDATED BALANCE SHEET AS OF MARCH 31ST, 2019
March 31, | December 31, | Differences | March 31, | ||
(€ 000) | 2019 | 2018 | 2018 | ||
Net fixed assets | |||||
Goodwill | 3,379 | 3,308 | +71 | 3,435 | |
Other intangible assets | 49,801 | 49,510 | +291 | 50,181 | |
Tangible assets | 18,655 | 19,228 | -573 | 19,856 | |
Right-of-use asset IFRS 16 | 6,210 | - | +6,210 | - | |
Financial assets | 676 | 593 | +83 | 485 | |
Other medium/long terms assets and liabilities | 10,760 | 11,256 | -496 | 13,207 | |
Total net fixed assets | 89,481 | 83,895 | +5,586 | +6.7% | 87,164 |
Net current assets | |||||
Inventories | 50,347 | 48,097 | +2,250 | 48,142 | |
Trade receivables | 50,370 | 39,823 | +10,547 | 52,192 | |
Trade payables | (35,938) | (32,696) | -3,242 | (38,184) | |
Subtotal Net working capital | 64,779 | 55,224 | +9,555 | 62,150 | |
Current provisions | (1,556) | (1,151) | -405 | (2,418) | |
Other current assets and liabilities | 4,998 | 4,363 | +635 | 3,221 | |
Subtotal Other assets and liabilities | 3,442 | 3,212 | +230 | 803 | |
Total net current assets | 68,221 | 58,436 | +9,785 | +16.7% | 62,953 |
Invested capital | 157,702 | 142,331 | +15,371 | +10.8% | 150,117 |
Severance Indemnity Fund (S.I.F.) | (2,339) | (2,384) | +45 | -1.9% | (2,481) |
Net invested capital | 155,363 | 139,947 | +15,416 | +11.0% | 147,636 |
Held for sale non-financial assets | |||||
and liabilities | - | - | - | - | |
Total | 155,363 | 139,947 | +15,416 | +11.0% | 147,636 |
financed by: | |||||
Equity | |||||
Capital stock | 24,961 | 24,961 | - | 24,961 | |
Reserves and retained earnings | 79,554 | 79,820 | -266 | 80,803 | |
Translation difference | (9,200) | (10,314) | +1,114 | (10,303) | |
Profit of the Group | 719 | 363 | +356 | 1,297 | |
Total equity | 96,034 | 94,830 | +1,204 | +1.3% | 96,758 |
Net financial position | |||||
Medium/long term debts: | |||||
- due to banks | 39,533 | 37,855 | +1,678 | 42,444 | |
- due to other lenders | 1,452 | 1,254 | +198 | 1,567 | |
- financial liabilities ex IFRS 16 | 4,568 | - | +4,568 | - | |
- other financial liabilities/(assets), IRS and trading | |||||
derivatives | (2,496) | (2,497) | +1 | 6 | |
Total medium/long term financial debts | 43,057 | 36,612 | +6,445 | +17.6% | +44,017 |
Short-term debts: | |||||
- due to banks | 35,717 | 38,511 | -2,794 | 42,284 | |
- due to other lenders | 2,569 | 1,738 | +831 | 1,391 | |
- financial liabilities ex IFRS 16 | 1,168 | - | +1,168 | - | |
- other financial liabilities/(assets), IRS and trading | |||||
derivatives | (14,089) | (13,825) | -264 | (193) | |
Total short-term financial debts | 25,365 | 26,424 | -1,059 | -4.0% | 43,482 |
Cash and cash equivalents | (9,093) | (17,919) | +8,826 | -49.3% | (36,621) |
Total net financial position | 59,329 | 45,117 | +14,212 | +31.5% | 50,878 |
Total | 155,363 | 139,947 | +15,416 | +11.0% | 147,636 |
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CONSOLIDATED CASH-FLOW STATEMENT OF JANUARY-MARCH 2019
(€ 000) | March 31, | March 31, |
2019 | 2018 | |
Cash and cash equivalents (as of January 1st) | 17,919 | 31,701 |
Operating activities | ||
Net profit of continuing activities | 719 | 1,297 |
- Depreciation of tangible, intangible assets and right of use IFRS 16 | 2,715 | 2,271 |
- Losses in value of tangible and intangible assets | 448 | - |
- Provisions to reserves (including employee indemnity) | 453 | 432 |
- Provisions to incentive and retention plan | 96 | - |
Subtotal Cash - Flow | 4,431 | 4,000 |
- Net losses from disposal of tangible and intangible assets | 5 | - |
- Result on investments valued with the equity method | (149) | (48) |
- Net change in net current assets | (9,007) | (7,536) |
- Net change in other assets/liabilities | 205 | 1,691 |
- Use of funds (including employee indemnity) | (105) | (167) |
Cash flow for operating activities | (4,620) | (2,060) |
Investment activities | ||
- Investments in intangible assets | (2,340) | (1,746) |
- Investments in tangible assets | (109) | (389) |
- Net sale price from disposal of tangible/intangible assets | 10 | - |
Cash flow for investment activities | (2,439) | (2,135) |
Financing activities | ||
- Increase/(decrease) in financial debts (current and non-current) | (1,032) | 9,627 |
- Increase in financial receivables, derivatives and | ||
other financial liabilities (current and non-current) | (517) | (7) |
- Purchase Growth Shares | (261) | - |
Cash flow from/for financing activities | (1,810) | 9,620 |
Translation adjustment changes | 43 | (505) |
Cash flow of the period | (8,826) | 4,920 |
Cash-closing balance (as of March 31st) | 9,093 | 36,621 |
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Isagro S.p.A. published this content on 15 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 May 2019 16:17:03 UTC