Immsi Group: First Half 2020

Wed, 02/09/2020 - 13:00
Data di competenza: 
Tue, 30/06/2020 - 13:52

The Immsi Group posts a profit for the first six months of 2020, despite the objective difficulties of the pandemic. The half-year results reflect differing trends among the Group sectors as a result of different business dynamics and the effects of seasonality.
The parent Immsi S.p.A. had a positive cash flow and also cut its net debt by 67.2 million euro from the first half of 2019.


  • Consolidated net sales 629.9 million euro (-26%, 851 €/mln at 30.06.2019) 
  • EBITDA 83.6 million euro (136.6 €/mln at 30.06.2019)
    EBITDA margin 13.3%
    (16.1% at 30.06.2019)
  • EBIT 23 million euro (75.2 €/mln at 30.06.2019)
    EBIT margin 3.7% (8.8% at 30.06.2019)
  • Profit before tax 5.2 million euro subject to tax amounting to 4.3 million euro
  • Consolidated net profit of 1.5 million euro (12.8 €/mln at 30.06.2019)
  • Consolidated net financial position of the Immsi Group -898.8 €/mln, an improvement of 32.5 million euro from 931.3 €/mln at 31.03.2020 (-796.4 €/mln at 31.12.2019, -838.2 €/mln at 30.06.2019)
  • Positive net financial position of 11.7 €/mln for the parent Immsi S.p.A.,
    an improvement of 67.2 million euro
    from debt of 55.5 €/mln at 30.06.2019
  • Capital expenditure 54.5 million euro (61.6 €/mln at 30.06.2019)

 

Mantua, 02 September 2020 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Immsi S.p.A.(IMS.MI) examined and approved the interim report on operations as at and for the six months to 30 June 2020.

 

Immsi Group financial and business performance at 30 June 2020

Consolidated net sales amounted to 629.9 million euro, a reduction of 26% from 851 million euro in the first half of 2019 as a result of the lockdown, which led to the suspension of production and commercial operations in many countries for a number of weeks.

Immsi Group consolidated EBITDA amounted to 83.6 million euro, down 38.8% from 136.6 million euro at 30 June 2019. The EBITDA margin was 13.3% (16.1% at 30 June 2019).

Consolidated EBIT was 23 million euro (75.2 million euro at 30 June 2019). The EBIT margin was 3.7% (8.8% at 30 June 2019).

Profit before tax was 5.2 million euro (54.1 million euro at 30 June 2019) and was subject to tax totalling 4.3 million euro.

Net profit including minority interests totalled 0.9 million euro (25.7 million euro at 30 June 2019).

Consolidated net profit was 1.5 million euro (12.8 million euro at 30 June 2019).

Immsi Group net financial debt at 30 June 2020 stood at 898.8 million euro, an improvement of 32.5 million euro from debt of 931.3 million euro at 31 March 2020 arising largely from efficient inventories management at the Piaggio Group. Immsi Group net financial debt at
31 December 2019 was 796.4 million euro, and at 30 June 2019 it was 838.2 million euro.

Immsi Group capital expenditure in the first half of 2020 amounted to54.5 million euro (61.6 million euro in the year-earlier period).

At 30 June 2020 the parent Immsi S.p.A. reported a positive cash flow and also reduced its net debt by 67.2 million euro, taking the net financial position from debt of 55.5 million euro at 30 June 2019 to cash of 11.7 million euro at 30 June 2020. 

 

Performance of the Immsi Group businesses at 30 June 2020 

  

Industrial Sector: Piaggio Group

In the first half to 30 June 2020, the Piaggio Group sold 210,300 vehicles worldwide, reporting consolidated net sales of 600.1 million euro. Consolidated EBITDA was 83.1 million euro, with an EBITDA margin of 13.8%; EBIT was 24.7 million euro, with an EBIT margin of 4.1%; net profit was 9.1 million euro. Operating management absorbed the overheads at the production plants in Europe, India and Asia, which were affected by the health regulations introduced for the prevention of Covid-19.

The Piaggio Group's operating expense in the first half to 30 June 2020 totalled 147 million euro, a sharp reduction of 16% from 174.9 million euro in the year-earlier period, arising largely as a result of the mitigating action put in place since the end of the first quarter of 2020 to respond to the Covid-19 emergency.

Piaggio Group net debt at 30 June 2020 stood at 528.5 million euro, an improvement of 20.1 million euro from 548.6 million euro at 31 March 2020, secured by effective inventories management in the first quarter of the year. The Piaggio Group issued bonds, of which 11.1 million euro maturing by 30 June 2021 and 11.1 million euro maturing by 30 June 2022. 

 

Naval Sector: Intermarine S.p.A.

At 30 June 2020, the subsidiary Intermarine S.p.A. reported consolidated net sales of 29.6 million euro; EBITDA was 3.8 million euro (+6.6%), with an EBITDA margin of 12.8%; EBIT was 2 million euro (+10.4%), with an EBIT margin of 6.9%; net profit was 0.5 million euro, up 7.1% from the figure at 30 June 2019.

Specifically, net sales consisted of 21.5 million euro in the Military Sector and 8.1 million euro in the Fast Ferries and Yacht division, relating largely to operations at the Messina shipyard.

 

Real Estate and Holding sector

The Real Estate and Holding sector had net sales of 0.2 million euro in the first half of 2020.

The subsidiary Is Molas S.p.A., which manages the Is Molas Golf Resort project in the province of Cagliari, completed four showhomes and took the remaining 11 villas in the first batch to an advanced unfinished stage, to enable potential clients to select floorings and internal finishes. The company confirmed the possibility of leasing the showhomes in order to enable end customers, including investors, to become familiar with the product and related services on offer. Commercial operations are underway to identify possible national/international purchasers.

 

* * *

Significant events in and after the first half of 2020  

 

Supplementing the information published above or at the time of approval of the 2020 first-quarter results (directors’ meeting of 14 May 2020), this section illustrates key events in and after the first half of 2020.

In May, the invalidity division of the European Union Intellectual Property Office (EUIPO) declared a design registered by a Chinese party, used to justify the production of scooters similar to the Vespa and exhibited at the EICMA 2019 two-wheeler show in Milan, to be invalid, since it was “incapable of eliciting a different general impression with respect to the registered design” of the Vespa Primavera, and pointed out that the registration was an unlawful attempt to reproduce the scooter’s aesthetic elements.

On 12 June, the Vespa brand and the Paris fashion house Christian Dior announced a collaboration agreement on the Vespa 946 Christian Dior, designed by Maria Grazia Chiuri, Dior’s creative director for women's collections. The iconic scooter will be available from Spring 2021 in Dior boutiques around the world and subsequently in selected Motoplex stores, the Piaggio Group flagship stores.

On 18 June, Intermarine and Leonardo signed a strategic agreement covering research and development in new technologies for new-generation products and commercial collaboration to pursue business opportunities on the military and para-military naval market. Their collaboration in the various specialist fields will further strengthen participation in the new-generation programs for the renewal of fleets of minesweepers, patrol boats and hydrographic survey vessels.

On 2 July, the Piaggio Group signed a 60 million euro credit facility with Banca Monte dei Paschi di Siena and Cassa Depositi e Prestiti (in equal proportions). The new line of credit will enable the parent company to continue consolidating and expanding its leadership position in the mobility sector, and further strengthen the Group's financial structure.

On 29 July, Intermarine delivered a minesweeper to a leading navy active in the Mediterranean. The vessel is the second unit of a larger order, and complies with the highest quality standards.

On 7 August, the Piaggio Group was awarded the EU-wide tender put out by Poste Italiane S.p.A. for the supply of 5,000 three-wheel combustion-powered scooters to be used in postal delivery services. The contract is worth an overall amount of more than31 million euro. The scooter in question is the new Piaggio 3W- Delivery 125cc Euro 5,designed and developed specifically by the Piaggio Group to meet the transportation and delivery requirements of corporate fleets and typical delivery needs.

 

* * *

Outlook

During the early months of 2020 a situation of macroeconomic instability emerged with the spread of Covid-19, affecting economic activities initially in China and subsequently in the other countries.

As reflected in the initial half-year figures on world economic performance, this instability is having a significant impact on the global growth outlook, influencing general macroeconomic conditions and the financial and real estate markets, despite the first decisions that have already been taken by the world authorities to support the recovery.

Although the acute phase of the Covid-19 virus reached a peak in the second quarter of 2020, and some markets are still feeling the negative effects due to continuing localised lockdowns, results at 30 June clearly and effectively reflect the resilience and incisiveness of the response to the crisis that has hit the world economy.

At the present time, even after making the appropriate valuations based on the information available, providing full-year guidance remains complicated as it depends in part on the evolution of the pandemic and the effects over the coming months of the measures that have been and will be put in place by the authorities in the countries in which the Group operates.

In the Industrial Sector, the Piaggio Group will continue to work to meet its commitments and targets, maintaining all the measures taken to manage the crisis generated by the pandemic as long as necessary.

From the technological viewpoint, the Piaggio Group will in any case continue research on new solutions to current and future mobility problems, through the activities of Piaggio Fast Forward (Boston) and new advances in design at the PADc (Piaggio Advanced Design Center) in Pasadena.

More generally, Piaggio confirms its commitment to containing any momentary losses of productivity that might ensue as a result of the Coronavirus emergency by increasing its attention to cost and investment efficiency, while continuing to adopt all the health and safety measures necessary to safeguard its employees around the world, consistently with the Group's ethical principles.

In the Naval Sector, over the coming months Intermarine will move forward production on current contracts and continue commercial activities in all its business areas to take advantage of favourable commercial opportunities, with a view to consolidating the financial strengthening of the last few years. Intermarine management will also pursue every opportunity to contain direct and indirect costs.

In the Real Estate and Tourist Hospitality Sector, as for all the Group core businesses, it is difficult to forecast the possible trend in the health emergency and the impact on the economy. Is Molas is conducting commercial operations to identify possible national/international purchasers.