INTERIM FINANCIAL REPORT AS AT MARCH 31, 2024
1 FINANCIAL STATEMENTS
1.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Consolidated Statement of Financial Position | 31/03/2024 | 31/12/2023 | ||||
(in thousand of Euro) | ||||||
ASSETS | ||||||
Goodwill | 64,264 | 63,961 | ||||
Other intangible assets | 27,909 | 28,902 | ||||
Property, plant and equipment | 167,511 | 164,469 | ||||
Right-of-use assets | 12,489 | 13,476 | ||||
Other tangible assets | 24,362 | 27,467 | ||||
Deferred tax assets | 11,315 | 11,039 | ||||
Investments | 141 | 141 | ||||
Other non-current assets | 797 | 828 | ||||
Non-current assets | 308,788 | 310,283 | ||||
Inventories | 113,748 | 110,831 | ||||
Trade receivables | 106,640 | 87,790 | ||||
Current tax assets | 8,810 | 9,356 | ||||
Current financial assets | 39,066 | 50,387 | ||||
Other current assets | 6,790 | 4,760 | ||||
Cash and cash equivalents | 245,583 | 212,059 | ||||
Current assets | 520,637 | 475,183 | ||||
Assets held for sale | - | - | ||||
Assets held for sale | - | - | ||||
TOTAL ASSETS | 829,425 | 785,466 | ||||
Consolidated Statement of Financial Position | 31/03/2024 | 31/12/2023 | ||||
(in thousand of Euro) | ||||||
LIABILITIES AND EQUITY | ||||||
Share capital | 62,704 | 62,704 | ||||
Reserves and retained earnings (losses) | 161,796 | 131,228 | ||||
Profit (loss) of the period | 10,695 | 29,745 | ||||
Total equity of the Group | 235,195 | 223,677 | ||||
Equity attributable to non controlling interest | 5,855 | 5,554 | ||||
TOTAL EQUITY | 241,050 | 229,231 | ||||
Loans | 278,982 | 250,222 | ||||
Provisions | 5,717 | 5,735 | ||||
Employee benefits obligations | 5,479 | 5,363 | ||||
Deferred tax liabilities | 14,034 | 14,109 | ||||
Other financial liabilities | 12,992 | 14,410 | ||||
Non-current liabilities | 317,204 | 289,839 | ||||
Trade payables | 100,147 | 95,659 | ||||
Loans | 124,622 | 119,005 | ||||
Tax liabilities | 8,562 | 8,653 | ||||
Other financial liabilities | 5,159 | 5,155 | ||||
Other current liabilities | 32,681 | 37,924 | ||||
Current liabilities | 271,171 | 266,396 | ||||
Liabilities held for sale | - | - | ||||
Liabilities held for sale | - | - | ||||
TOTAL LIABILITIES AND EQUITY | 829,425 | 785,466 | ||||
1.2 CONSOLIDATED INCOME STATEMENT
Consolidated Income Statement | 31/03/2024 | 31/03/2024 | |||||
(in thousand of Euro) | |||||||
REVENUES AND OPERATING INCOME | |||||||
Revenues | 141,569 | 151.157 | |||||
Other operating income | 346 | 284 |
Total revenues and other operating income | 141,915 | 151,441 |
OPERATING EXPENSES | ||
Purchase of materials | (71,978) | (80.780) |
Changes in inventories | 2,931 | 4.195 |
Costs for services | (18,729) | (21.556) |
Personnel costs | (33,657) | (33.337) |
Net reversal/ (write downs) of financial assets | (29) | 84 |
Other operating expenses | (839) | (883) |
Total operating expenses | (122,301) | (132,277) |
Depreciation and amortization | (7,742) | (7.849) |
Gain/(Losses) on the sale of non-current assets | 52 | 18 |
Write-downs on non-current assets | - | - |
OPERATING RESULT | 11,924 | 11.333 |
Financial income | 2,556 | 1.170 |
Financial expenses | (1,777) | (4.253) |
Exchange gains (losses) | 899 | (579) |
Gains/(Losses) from investments | - | - |
PRE-TAX RESULT | 13,602 | 7.671 |
Income taxes | (2,565) | (896) |
NET RESULT | 11,037 | 6.775 |
Of which attributable to non-controlling interests | 342 | 445 |
Of which attributable to the GROUP | 10,695 | 6,330 |
1.3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Statement of comprehensive income
(in thousand of Euro)
31/03/2024 31/03/2024
NET RESULT | 11,037 | 6,775 |
Components that will not subsequently be reclassified to the Income Statement of | ||
the period | ||
Actuarial gains/(losses) from employee benefits obligations | 40 | 200 |
Tax effect | (10) | (48) |
30 | 152 | |
Components that will subsequently be reclassified to the Income | ||
Statement of the period: | ||
Exchange differences from translation of Financial Statements in foreign currency | 792 | (2,367) |
TOTAL COMPREHENSIVE INCOME (LOSS) | 11,859 | 4,560 |
of which: | ||
Attributable to non-controlling interests | (342) | (445) |
ATTRIBUTABLE TO THE GROUP | 11,517 | 4,115 |
1.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Consolidated Statement of | Postemployment | Profit | Total | Equity | |||||||||||||||||||||||||||||
changes in equity | equity | ||||||||||||||||||||||||||||||||
Share | Share Premium | Legal | Treasury | Translation | benefits | Other | (loss) | attributable to | Total | ||||||||||||||||||||||||
(in thousands of Euro) | attributabl | ||||||||||||||||||||||||||||||||
Capital | reserve | reserve | Shares | reserve | discounting | reserves | for the | non controlling | equity | ||||||||||||||||||||||||
e to the | |||||||||||||||||||||||||||||||||
reserve | period | interests | |||||||||||||||||||||||||||||||
Group | |||||||||||||||||||||||||||||||||
BALANCE AS AT 01/01/2022 | 62,704 | 24,762 | 3,745 | (288) | (13,643) | (8) | 81,762 | 47,714 | 206,748 | 4,712 | 211,460 | ||||||||||||||||||||||
Allocation profit 2021 | |||||||||||||||||||||||||||||||||
Dividend | - | - | - | - | - | - | - | - | - | (72) | (72) | ||||||||||||||||||||||
Retained | - | - | - | - | - | - | 47,714 | (47,714) | - | - | - | ||||||||||||||||||||||
Purchase of treasury shares | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
Other | - | - | - | - | - | - | - | - | (115) | (115) | |||||||||||||||||||||||
Statement of comprehensive income as | - | - | - | - | (2,367) | 152 | - | 6,330 | 4,115 | 445 | 4,560 | ||||||||||||||||||||||
at 31/03/2022 | |||||||||||||||||||||||||||||||||
BALANCE AS AT 31/03/2023 | 62,704 | 24,762 | 3,745 | (288) | (16,010) | 144 | 129,476 | 6,330 | 210,863 | 4,970 | 215,833 | ||||||||||||||||||||||
BALANCE AS AT 31/12/2023 | 62,704 | 24,762 | 4,557 | (288) | (17,938) | (91) | 120,226 | 29,745 | 223,677 | 5,554 | 229,231 | ||||||||||||||||||||||
Allocation profit 2022 | |||||||||||||||||||||||||||||||||
Dividend | - | - | - | - | - | - | - | - | - | (62) | (62) | ||||||||||||||||||||||
Retained | - | - | - | - | - | - | 29,745 | (29,745) | - | - | - | ||||||||||||||||||||||
Purchase of treasury shares | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||
Other | - | - | - | - | - | - | - | - | - | 22 | 22 | ||||||||||||||||||||||
Statement of comprehensive income as | - | - | - | - | 792 | 30 | - | 10,695 | 11,517 | 342 | 11,859 | ||||||||||||||||||||||
at 31/03/2023 | |||||||||||||||||||||||||||||||||
BALANCE AS AT 31/03/2024 | 62,704 | 24,762 | 4,557 | (288) | (17,146) | (61) | 149,971 | 10,695 | 235,194 | 5,856 | 241,050 | ||||||||||||||||||||||
1.5 STATEMENT OF CASH FLOWS
Consolidated Statement of Cash Flows | 31.03.2024 | 31.03.2023 | ||||||||
(in thousand Euro) | ||||||||||
A. | Cash and cash equivalents at the beginning of the period | 212,059 | 177,258 | |||||||
Profit (loss) for the period | 11,037 | 6,775 | ||||||||
Adjustments for: | ||||||||||
- Depreciation and amortisation | 7,742 | 7,849 | ||||||||
- (Gains)/losses, write-downs of non-current assets | (52) | (18) | ||||||||
- (Gains)/losses on sales on investments | - | - | ||||||||
- Net financial expenses | (635) | 131 | ||||||||
- Income taxes | 2,565 | 896 | ||||||||
- Changes in fair value | 116 | 2,952 | ||||||||
Changes in employee benefits | 156 | 24 | ||||||||
Changes in provisions | (18) | 140 | ||||||||
Changes in trade receivables | (18,850) | (18,585) | ||||||||
Changes in inventories | (2,931) | (4,195) | ||||||||
Changes in trade payables | 4,488 | (745) | ||||||||
Changes in net working capital | (17,293) | (23,525) | ||||||||
Changes in other receivables and payables, deferred taxes | (3,691) | (2,851) | ||||||||
Tax payment | (2,362) | (1,422) | ||||||||
Net paid financial expenses | (1,220) | (1,345) | ||||||||
B. | Cash flows from (used in) operating activities | (3,655) | (10,394) | |||||||
Investments in non-current assets: | ||||||||||
- intangible assets | (517) | (657) | ||||||||
- property, plant and equipment | (7,587) | (5,114) | ||||||||
- financial assets | - | - | ||||||||
Investments in short-term financial assets | 11,464 | 22,105 | ||||||||
Net cash paid Business combination | - | - | ||||||||
Net cash flow generated from disposal of investments | - | - | ||||||||
C. | Cash flows from (used in) investing activities | 3,360 | 16,334 | |||||||
Repayment of loans | (24,178) | (29,752) | ||||||||
New loans | 40,000 | 35,713 | ||||||||
Changes in other financial liabilities | (1,932) | (1,865) | ||||||||
Sale/(purchase) of treasury shares | - | - | ||||||||
Contributions/repayments of own capital | - | - | ||||||||
Payment of dividends | (10) | (6) | ||||||||
Other changes | - | - | ||||||||
D. | Cash flows from (used in) financing activities | 33,880 | 4,090 | |||||||
Exchange differences | 815 | (2,482) | ||||||||
Another non-monetary changes | (876) | 1,778 | ||||||||
E. | Other changes | (61) | (704) | |||||||
F. | Net cash flows in the period (B+C+D+E) | 33,524 | 9,326 | |||||||
Cash and cash equivalents at the end of the period (A+F) | 245,583 | 186,584 | ||||||||
Current financial debt | 90,715 | 16,953 | ||||||||
Non-current financial debt | 291,974 | 331,047 | ||||||||
Net financial debt | 137,106 | 161,416 |
2 CONTENT AND FORM OF THE CONSOLIDATED FINANCIAL STATEMENTS
Introduction
The Interim Financial Report as at 31 March 2024, not audited, has been prepared in compliance with the International Financial Reporting Standards (IFRS) and for this scope the financial statements of the subsidiaries of the Group have been duly reclassified and amended.
The Interim Financial Report has been prepared in accordance with art. 154 Ter, comma 5 of D.Lgs. n. 58 dated 24/02/98 (T.U.F.) and subsequent amendments. Therefore, it does not include the information required in accordance with IAS 34 "Interim Financial Reporting".
Consolidation criteria
The criteria adopted for the consolidation are the same as those adopted for preparation of Consolidated Financial Statement of 31 December 2023.
Accounting standards
Accounting standards adopted in the Interim Financial Report as at 31 March 2024 are the same as those adopted for the Consolidated Financial Statement as at 31 December 2023.
The Interim Financial Report as at 31 March 2024 has been prepared on the basis of the assumption of going concern.
2.1 REVENUES
As stated in the budget, sales of products in Q1 2024, equal to €141.3 million, decreased by 6.2% compared to the same period of 2023, in which in the month of March it was recorded the highest turnover in the history of the Group. The order backlog at the end of March was equal to €168.8 million, with an increase of 8.1% compared to the end of December 2023.
At SBU level, continued the growth trend (+9.5%) of the Cooling System SBU with a total turnover equal to €67.0 million mainly related to important projects in the applications linked both to Datacentre conditioning and to Industrial cooling in general.
Despite an important increase of order intake and sales in the refrigeration business, in the "mobile" applications and a recovery, more than expected, in the segment of the tumble dryers, in the first quarter the Business Unit Components suffered a decrease by 16.9% with a total turnover of €74.3 million due to the expected strong slowdown in the heat exchangers sales for heat pumps, that, in Q1 2023, reached the highest peak.
The breakdown of turnover by SBU, by product type and application are given below:
Revenues by SBU | Q1/2024 | % | Q1/2023 | % | Change | % Change | |||||||||||||||||
(in thousands of Euro) | |||||||||||||||||||||||
SBU COOLING SYSTEMS | 66,964 | 47.4% | 61,141 | 40.6% | 5,823 | 9.5% | |||||||||||||||||
SBU COMPONENTS | 74,334 | 52.6% | 89,503 | 59.4% | (15,169) | -16.9% | |||||||||||||||||
TOTAL PRODUCT TURNOVER | 141,298 | 100.0% | 150,644 | 100.0% | (9,346) | -6.2% | |||||||||||||||||
Revenues by product | Q1/2024 | % | Q1/2023 | % | Change | ||||||||||||||||||
(in thousands of Euro) | % | ||||||||||||||||||||||
Heat exchangers | 70,071 | 49,4% | 85,929 | 56.7% | -18.5% | ||||||||||||||||||
Air Cooled Equipment | 66,964 | 47.2% | 61,141 | 40.4% | 9.5% | ||||||||||||||||||
Doors | 4,263 | 3.0% | 3,574 | 2.4% | 19.3% | ||||||||||||||||||
TOTAL PRODUCT TURNOVER | 141,298 | 99.6% | 150,644 | 99.5% | -6.2% | ||||||||||||||||||
Other | 617 | 0.4% | 797 | 0.5% | -22.6% | ||||||||||||||||||
TOTAL | 141,915 | 100.0% | 151,441 | 100.0% | -6.3% | ||||||||||||||||||
APPLICATIONS | Q1/2024 | % | Q1/2023 | % | Change | ||||||||||||||||||
(in thousands of Euro) | % | ||||||||||||||||||||||
Refrigeration | 68,200 | 48.1% | 71,989 | 47.5% | -5.3% | ||||||||||||||||||
Air-conditioning | 33,690 | 23.7% | 47,550 | 31.4% | -29.1% | ||||||||||||||||||
Special application | 23,987 | 16.9% | 19,319 | 12.8% | 24.2% | ||||||||||||||||||
Industrial cooling | 15,421 | 10.9% | 11,786 | 7.8% | 30.8% | ||||||||||||||||||
TOTAL APPLICATION TURNOVER | 141,298 | 99.6% | 150,644 | 99.5% | -6.2% | ||||||||||||||||||
Other | 617 | 0.4% | 797 | 0.5% | -22.6% | ||||||||||||||||||
TOTAL | 141,915 | 100.0% | 151,441 | 100.0% | -6.3% | ||||||||||||||||||
At geographic level, Germany was the most penalized market by the negative trend of heat pumps market and sales in Italy, for the first time in a long time, suffered a decrease too. Very positive, instead, the trend of sales in Poland and Scandinavian countries.
The chart below shows the geographical breakdown of turnover in the first 3 months of 2024:
24,6%20,2%
55,2%
Italy EU RoW
The total turnover doesn't depend, in a significant way, on single commercial or industrial agreements. As at March 31, 2024, sales of the first 10 customers accounted for 31.8% of total turnover and the main customer represented 4.7% of total sales.
2.2 EBITDA
EBITDA was €19.6 million (13.8% of revenues) compared to €19.2 million (12.7% of revenues) in the first 3 months of 2023. No impact, in the income statement of Q1 2024 and Q1 2023, of costs not falling under ordinary management. The EBITDA variation compared to EBITDA in the first three months of 2023 (+€0.4 million) was generated by €2.2 million for the decrease of costs of the main raw materials and other production costs, net of €0.5 million for the decrease in sale prices and of €1.3 million related to the volume effect.
2.3 NET INCOME
Net income for the period amounted to €11.0 million (7.8% of revenues), compared to €6.8 million for the first 3 months of 2023 (4.5% of revenues). Applying the tax effect to the net effect of the positive change in the fair value of derivatives (€0.3 million) and to the net positive impact of amortized cost (€1.1 million), the net income for the first 3 months of 2024 ("Adjusted net income for the period") would have been €9.6 million, 6.8% of revenues (€8.0 million last period, 5.3% of revenues).
2.4 NET FINANCIAL POSITION
The net financial position was negative by €137.1 million (€126.3 million as at December 31, 2023) with a difference of €10.8 million mainly due for €8,1 million to capital expenditures, €0.1 million to dividends, €17.3 million to the increase in operating working capital and €3.7 million related to changes in other payables and receivables, net of €18.4 million of positive cash flow from operations. The comparison with the net financial position as at March 31, 2023 (negative for €161.4 million) shows a positive impact of €24.3 million. In the period April 1, 2023 - March 31, 2024 the cash flow generated, net of the non-operative components, was about €48.5 million.
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LU-VE S.p.A. published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 12:05:55 UTC.