Gefran S.p.A. Board approves consolidated results at 31 march 2022

Revenues in the first three months of 2022 amounted to 45.3 million Euro, compared to 37.4 million Euro in revenues in the same period in 2021, an increase of 7.9 million Euro (+21.1%), largely attributable to steadily growing sales.

The breakdown of revenues by geographical region reveals double-digit growth in almost all the areas served by the Group, particularly in Italy (+38.2%), Europe (+32.1% overall) and the Americas (+29.2%). The only one of the principal areas served to go against this trend is Asia, where sales shrank in the first quarter of 2022 as compared to the same period in 2021 (-7.6%). A new spike in the spread of Covid-19 in China contributed to this decline, with introduction of addition, even stricter restrictions and even new lockdowns in certain parts of the country, particularly Shanghai, where one of the Group’s production facilities is located.

Added value at 31 March 2022 amounts to 29.4 million Euro, up 4.8 million Euro thanks to growth in revenues over the same period in 2021, only partially offset by increased raw materials costs causing a drop in the percentage of profit margins.

Higher sales volumes in the first three months of the year led to an increase in other operating costs, and particularly cost of external processing and utility costs, which together amount to 6.8 million Euro.

Personnel costs were also on the rise, amounting to 14 million Euro as of 31 March 2022, as compared to a figure of 12.4 million Euro for the first three months of 2021.

EBITDA in the first quarter of 2022 was positive by 8.6 million Euro (equal to 19.1% of revenues), 2 million Euro higher than on 31 March 2021 (when it was 6.6 million Euro, representing 17.7% of revenues). The increase in EBITDA is attributable to the increased revenues recorded in the period, only partially offset by greater ordinary operating costs.

EBIT in the first quarter of 2022 was positive by 6.5 million Euro (14.3% of revenues), compared to an EBIT of 4.6 million Euro for the same period in 2021 (12.2% of revenues), an increase of 1.9 million Euro. The change is linked to the same dynamics described for EBITDA.

The Group net result as of the close of the first quarter of 2022 was positive by 4.8 million Euro, an increase of 1.1 million Euro compared to the figure for the same period in 2021, 3.7 million Euro. As in the case of EBIT, the change is primarily a result of increased sales in the period.

Working capital was 27 million Euro at 31 March 2022, compared with 20.8 million Euro at 31 December 2021, an overall increase of 6.2 million Euro.

Shareholders’ equity as of 31 March 2022 amounted to 91.1 million Euro, compared to 85.5 million Euro on 31 December 2021, up 5.6 million. The change is primarily a result of entry of the positive result of the period, as well as the impact generated by movements in the conversion reserve and the reserve for stocks at fair value.

Investments in the first three months of 2022 amounted to 1.4 million Euro, 0.4. million Euro higher than in the same period in 2021, and mainly related to investments made in production departments, in research and development, and in the buildings housing the Group’s plants.

Net financial position at 31 March 2022 is positive by 2.4 million Euro, as compared to a positive figure of 3.3 million Euro for the end of 2021.

Marcello Perini, Chief Executive Officer of the Gefran Group, comments: “The company’s economic and financial results in the first quarter are excellent in every way. Our timeliness and efficiency have allowed us to address the difficulty obtaining supplies and take full advantage of demand that continues to be strong. 

The increase in raw material and energy costs has been effectively managed and absorbed also thanks to an increase in volumes. The level and quality of orders from the market reflect Gefran’s solid position as a technological partner in the process of digital transformation that many companies are now addressing.

Despite the current uncertainty and concern (problems obtaining supplies of materials, the impact of the Russia-Ukraine conflict on the world economy, and new lockdowns in China), we believe operations will evolve in a positive direction, with growth of revenues and maintenance of profit margins”.