Immsi Group: 2018 draft financial statements

Mon, 25/03/2019 - 15:21

In 2018, the Immsi Group reported an improvement in performance from the previous year, growth on all main earnings indicators, a strong increase in Ebit and net profit, larger investments and a reduction in debt.

 

Consolidated net sales reached 1,464.5 million euro, up 1.4% (+5% at constant exchange rates) (1,444.9 €/mln in 2017)

 

Ebitda stood at 213.3 million euro, up 1.8% (209.6 €/mln in 2017)

The Ebitda margin was 14.6% (14.5% in 2017).
 

Ebit was at 100.6 million euro, up 16.4% (86.4 €/mln in 2017). Ebit margin 6.9%
(6% in 2017)

 

Profit before tax 58.6 million euro, up 50.1%

(39 €/mln in 2017)

 

Net profit including minority interests was at 25.4 million euro, up 70.7%
(14,9 €/mln in 2017)

 

Net profit stood at 12.9 million euro, up 57.1% (8.2 €/mln in 2017)

 

Net financial position -852 million euro

an improvement of 6.9 €/mln compared to -858.9 €/mln at 31 December 2017

 

Capital expenditure of 117.8 million euro, up 34.2% (87.8 €/mln in 2017)

 

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Authorisation for the purchase and sale of own shares

 

 

 

Mantua, 25 March 2019 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Immsi S.p.A. (IMS.MI) examined and approved the 2018 draft financial statements.

 

Immsi Group financial and business performance at 31 December 2018 

 

The Immsi Group is continuing its strategic focus on geographical expansion consistent with product strategies and with world macro-economic trends. This management model significantly reduces the risks of an excessive concentration of production and sources of income in a single country, and enables the Group to maximise returns in countries with the highest economic growth rates. At the same time, on-going analysis of the latest international trade policies and current socio-political developments confirms that geographical diversification enables the Group to meet the growing demand for quality among all the customers of its subsidiaries without increasing production costs, while simultaneously improving time to market.

 

Consolidated net sales at 31 December 2018 totalled 1,464.5 million euro, up by 1.4% from 1,444.9 million euro in the previous year. At constant exchange rates, consolidated net sales increased by 5%.

 

Immsi Group consolidated Ebitda amounted to 213.3 million euro, an improvement of 1.8% from 209.6 million euro in 2017. The Ebitda margin was 14.6% (14.5% at 31 December 2017), the best annual result reported since 2004, up for the fifth consecutive year.

 

Ebit stood at 100.6 million euro, up by 16.4% from 86.4 million euro at 31 December 2017. The Ebit margin also improved, to 6.9% (6% at 31 December 2017), including non-recurring income totalling 11 million euros.

 

The Group posted a profit before tax of 58.6 million euro, an increase of 50.1% (39 million euro at 31 December 2017).

 

Net profit including minority interests totalled 25.4 million euro, up 70.7% compared to 14.9 million euro at 31 December 2017.

 

The consolidated net profit was 12.9 million euro, a significant growth of 57.1% from 8.2 million euro at 31 December 2017.

 

Immsi Group net financial debt at 31 December 2018 was 852 million euro, an improvement of 6.9 million euro from debt of 858.9 million euro at 31 December 2017, largely due to the reduction of debt in the industrial sector. Short-term financial debt is up with respect to the end of 2017, due to the reclassification of bank debt of Immsi S.p.A. on the verification of contractually agreed financial parameters.

 

Group shareholders' equity at 31 December 2018 was 379.4 million euro (370.7 million euro at 31 December 2017).

 

In 2018, the Immsi Group capital expenditure amounted to 117.8 million euro, an increase of 30 million euro, up 34.2% from 87.8 million euro in 2017.



 

Performance of the Immsi Group businesses at 31 December 2018

 

Industrial Sector: Piaggio Group

 

In the industrial sector, at December 2018, the Piaggio Group reported an improvement in performance from 2017, with progress on all the main earnings indicators, higher capital expenditure and a reduction in debt.

 

In the financial year 2018, Piaggio Group consolidated net sales totalled 1,389.5 million euro (+4.3%, +8.2% at constant exchange rates); consolidated Ebitda was at 201.8million euro (+4.9%, +7.4% at constant exchange rates), with an Ebitda margin of 14.5%. Ebit was at 92.8 million euro (+28.3%), with an Ebit margin of 6.7%; net profit rose 82.8% to 36.1 million euro.

 

In 2018, Piaggio Group capital expenditure amounted to 115.3 million euro, up 33% from 86.7 million euro in 2017.

 

Piaggio Group net financial debt at 31 December 2018 was 429.2 million euro, an improvement of 22.8 million euro from 452 million euro at 31 December 2017.

 

Over the year, the Piaggio Group sold 603,600 vehicles worldwide, an increase of 9.2%.

 

In 2018, the Piaggio Group concluded a liability management operation on the bond issue “Eur 250 million Piaggio 4.625% due 2021”, aimed at its refinancing under better conditions. At the beginning of April 2018, Piaggio & C. S.p.A. exercised the call option provided by the bond loan issued in April 2014 for a total amount of 250 million euro, maturing on 30 April 2021. On 18 April 2018, a High Yield bond loan was issued (with the same characteristics as the bond issued in 2014), for an amount of 250 million euro, maturing on 30 April 2025. The repayment plan for existing bonds in the Group provides for repayments totalling 10.4 million euros by 31 December 2019, and 11.1 million euros by 31 December 2020.

 

Naval Sector: Intermarine S.p.A.

 

During the 2018 financial year in the naval sector, Intermarine S.p.A. saw consolidated revenues of 69.8 million euros and a positive Ebitda of 14.6 million euros (Ebitda margin of 20.9%); Ebit of 11.3 million euro (Ebit margin of 16.2%), and positive net income of 6.7 million euro, with an impact on production value of 9.6%.

Production Value is comprised of 54.6 million euro for the Military Sector and 15.2 million euro for the Fast Ferries and Yacht division, mainly due to activities carried out by the Messina shipyard and the Marine Systems division.

 

Real Estate and Holding sector


At 31 December 2018, the real estate and holding sector reported net sales of approximately 5.2 million euro, up 9% (4.8 million euro in 2017) and a consolidatable net loss of -10.1 million euro (-9.1 million in 2017).

 

The subsidiary Is Molas S.p.A., which manages the Is Molas Golf Resort project in the province of Cagliari, completed four finished mock-up villas and the remaining 11 villas of the first lot in a rough state of advanced construction, in order to allow potential customers to choose flooring and interior finishes. During the second half of 2018, work began on the second section of urbanisation works. The company examined the possibility of leasing the mockup villas 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.

 

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Immsi S.p.A. parent company

 

The parent company Immsi S.p.A. posted a net profit for the year of approximately 6.7 million euro (3 million euro at 31 December 2017), in part consequent to updates in the value of equities held.

At 31 December 2018, the parent company Immsi S.p.A. had net financial debt of 65 million euro, down by 8.5 million euro from compared to 31 December 2017 (73.5 million euro).

 

The Board of Directors will ask the Shareholders’ Meeting to be held on 30 April 2019 on first call and on 14 May 2019 on second call not to distribute a dividend for financial year 2018 (a similar proposal was approved for financial year 2017).

 

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Outlook

 

As regards the Industrial Sector (Piaggio Group), in a context in which the Piaggio Group is strengthening its position on the global markets, the Group is committed to:

  • confirming its leadership position on the European two-wheeler market, taking full advantage of the expected recovery by further strengthening its scooter and motorcycle range;
  • maintaining its current positions on the European commercial vehicles market by strengthening the sales network;
  • consolidating its presence in Asia Pacific, by exploring new opportunities in countries in the region, with a particular focus on the premium segment of the market;
  • increasing sales on the Indian scooter market thanks to the Vespa and Aprilia offers;
  • growing the penetration of commercial vehicles in India, in part through the introduction of new engine displacements.

 

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

 

At a more general level, the Group maintains its commitment – a characteristic of recent years and continuing in 2019 – to generate higher productivity through close attention to cost and investment efficiency, in compliance with its ethical principles.

 

In the Naval Sector (Intermarine S.p.A.), 2019 will see important advances in production work on contracts, in order to strengthen the financial consolidation that has been underway in recent years. The company is also involved in a number of negotiations, in the Defence sector in particular, to win new orders that would enable it to expand its order book and consequently optimise its production capacity over the coming years.

 

With regard to the Real Estate and Holding Sector, with particular reference to the subsidiary Is Molas SpA, it should be noted that 2019 will see the completion of the second section of urbanisation works, the start of the third section of the same and planning on water works for the two lakes is expected to be completed, along with a verification of market feedback through the signing of the first preliminary sales contracts that will give impetus to the realisation of the Is Molas project.

 

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Non-financial disclosure

 

At today’s meeting, the Board of Directors approved the Immsi S.p.A. consolidated non-financial disclosure drawn up pursuant to Legislative Decree 254/2016, included in the Directors’ Report on Operations as at and for the year ended 31 December 2018.

 

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Authorisation for the purchase and sale of own shares

 

At today’s meeting, the Board of Directors also agreed to ask the ordinary session of the shareholders' meeting to renew the authorisation for the purchase and disposal of Immsi own shares granted by the AGM of 10 May 2018, which is due to expire during 2019. The proposal aims to provide the company with a useful strategic investment opportunity for all purposes allowed under current regulations, including the purposes contemplated in art.5 of EU Regulation 596/2014 (Market Abuse Regulation, hereinafter “MAR”) and in the practices allowed under art. 13 MAR, including purchases of own shares for subsequent cancellation, on the terms and conditions that will be approved by the relevant governance bodies.

All information relating to the terms and procedures of the authorisation will be set out in the Report on the purchase and disposal of own shares, which will be made available to shareholders as required by law.