Immsi Group: 2020 draft financial statements

Fri, 19/03/2021 - 12:38
Data di competenza: 
Fri, 19/03/2021 - 12:38

In 2020 the Immsi Group reported a 23.6% increase in net profit despite the objective difficulties of the pandemic, and successfully reduced debt by more than 128 million euro from the end of March. Especially performance in the second half of 2020 compared with the second half of the previous year was very strong: net sales rose by 1%, EBITDA by 19%, EBIT by 116%.”

  • Consolidated net sales 1,376.8 million euro (1,590.7 €/mln in 2019)
  • EBITDA 186.2 million euro (222.6 €/mln in 2019)
    EBITDA margin 13.5%
    (14% in 2019)
  • EBIT 66.4 million euro (95.3 €/mln in 2019)
    EBIT margin 4.8% (6% in 2019)
  • Profit of 29.4 million euro before tax amounting to 13.6 million euro
  • Net profit including minority interests 15.8 million euro (23 €/mln in 2019)
  • Consolidated net profit 9.8 million euro, +23.6% (7.9 €/mln in 2019)
  • Immsi Group consolidated net financial position -802.9 €/mln, an improvement of 128.4 €/mln from 931.3 €/mln at03.2020 due to the positive sales performance in the second half of 2020 and careful management of working capital. (PFN 796.4 €/mln at 31.12.2019)
  • Capital expenditure 2 million euro (143.6 €/mln in 2019)
  • Authorisation for the purchase and disposal of own shares

Mantua, 19 March 2021 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Immsi S.p.A. (PIA.MI) examined and approved the 2020 draft financial statements.

Immsi Group financial and business performance at 31 December 2020

Consolidated net sales at 31 December 2020 amounted to 1,376.8 million euro, a reduction of 13.5% from 1,590.7 million euro in 2019 as a result of the lockdown, which led to the suspension of production and commercial operations for a number of weeks in many countries. Compared with the second half of 2019, consolidated net sales rose by 1% in the second half of 2020.

Immsi Group consolidated EBITDA amounted to 186.2 million euro (222.6 million euro in 2019). The EBITDA margin was 13.5% (14% in 2019). Compared with the second half of 2019, EBITDA rose by 19% in the second half of 2020.

Consolidated EBIT was 66.4 million euro (95.3 million euro in 2019). The EBIT margin was 4.8% (6% in 2019). Compared with the second half of 2019, EBIT rose by 116% in the second half of 2020.

Profit before tax was 29.4 million euro (53.4 million euro in 2019) and was subject to tax totalling 13.6 million euro.

Net profit including minority interests totalled 15.8 million euro (23 million euro in 2019).

The consolidated net profit was 9.7 million euro, an increase of 23.6% from 7.9 million euro in 2019.

Immsi Group net financial debt at 31 December 2020 stood at 802.9 million euro, an improvement of 128.4 million euro from 931.3 million euro at 31 March 2020, secured by a positive sales performance in the second half of 2020 and prudent management of working capital. At 31 December 2019, the Group had net financial debt of 796.4 million euro.


Immsi Group capital expenditure in 2020 amounted to 143.2 million euro (143.6 million euro in 2019).

 

Group shareholders' equity at 31 December 2020 was 362 million euro (374.3 million euro at 31 December 2019).

 

The Group's operations present seasonal variations in sales over the course of the year, especially in the industrial sector.

 

Performance of the Immsi Group businesses at 31 December 2020

 

Industrial Sector: Piaggio Group

In the year to 31 December 2020, the Piaggio Group sold 482,700 vehicles worldwide, reporting consolidated net sales of 1,313.7 million euro. Consolidated EBITDA was 186.1 million euro, with an EBITDA margin of 14.2%; EBIT was 70.9 million euro, with an EBIT margin of 5.4%; net profit was 31.3 million euro.

Net financial debt at 31 December 2020 was 423.6 million euro, an improvement of 125 million euro from 548.6 million euro at 31 March 2020 at the beginning of the first lockdown, reflecting the positive sales trend in the second half of the year and careful management of working capital.

Naval Sector: Intermarine S.p.A.

At 31 December 2020, the subsidiary Intermarine S.p.A. reported consolidated net sales of 61.6 million euro, EBITDA of 6.1 million euro (EBITDA margin 9.8%), EBIT of 2.5 million euro (EBIT margin 4.1%) and net profit of 0.2 million euro.

Specifically, net sales consisted of 48.8 million euro in the Military Sector and 12.8 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 1.5 million euro at 31 December 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.

* * *

Immsi S.p.A. parent company

 

The parent Immsi S.p.A. posted a net profit for the year of 4.9 million euro (8.9 million euro for 2019). The downturn from the previous year was largely due to a reduction in dividends received from subsidiaries and larger write-downs on equity investments, offset in part by lower operating expense and lower interest expense.

At 31 December 2020, the parent Immsi S.p.A. had a positive net financial position of 6.8 million euro, a decrease of 5.7 million euro from the figure at 31 December 2019 (12.5 million euro).

The Board of Directors will ask the Shareholders’ Meeting (30 April 2021 on first call and 14 May 2021 on second call) not to distribute a dividend for financial year 2020 (a similar proposal was approved for financial year 2019).

* * *

 

Significant events in and after 2020

Supplementing the information published above or at the time of approval of the 2020 third-quarter results (directors’ meeting of 12 November 2020), this section illustrates key events in and after 2020.

On 14 December, the launch ceremony of the CP420 “Natale De Grazia”, the longest self-righting and unsinkable boat ever built in Italy, was held at the port of Messina, Sicily. The vessel was commissioned from Intermarine S.p.A. by the General Command of the Port Captaincies - Coast Guard.

On 26 January 2021, at an online international première, the Piaggio Group presented its new range of four-wheel lightweight commercial vehicles: the new Porter NP6, the first city truck, combines compact dimensions with an extraordinary payload and exclusively eco-friendly engines. Compact dimensions and the new CombiFuel petrol\LPG and petrol\methane 1,498 cc Euro 6D Final engines make the Piaggio Porter NP6 the ideal urban work vehicle for last-mile deliveries and short- and medium-range goods transport.

From 14 to 20 February, the new Aprilia Tuono 660 and Moto Guzzi V7 were presented to the international media at a location just outside Rome, the starting point for a full test ride.

On 15 February, Intermarine signed a contract to study “risk reduction and definition of the project for a new-generation minehunter” for the Italian Navy. The contract relates to the programs for the modernisation of the Italian Navy's fleet of mine countermeasure vessels, which, as set out in the Long-Term Defence Policy Documents of the last two years, provide for the construction of 12 new vessels over the coming years to replace the Navy’s four Lerici class minehunters and eight Gaeta class minehunters.

On 1 March, the Piaggio Group said it had signed a letter of intent with KTM AG, Honda Motor Co., Ltd. and Yamaha Motor Co., Ltd. to form a consortium that will develop interchangeable batteries (using battery swap technology) for motorcycles and lightweight electric vehicles.

On 8 March, the Piaggio Group, which has been present in Nepal with Vespa since 2015, broadened its range of high-end products in the country by launching marketing of the Aprilia brand. The first scooter of the Noale manufacturer to be sold in Nepal is the Aprilia SXR 160, a vehicle with a highly distinctive hi-tech personality, which has already become the new benchmark in the premium two-wheeler segment in India.

On 10 March, the Standard & Poor's Global Ratings agency (S&P) said it had revised its outlook for the Piaggio Group (PIA.MI), upgrading it from negative to positive, and confirmed its B+ rating.

On 15 March, the centenary was celebrated of Moto Guzzi, the world-famous historic motorcycle brand, which has been built in Mandello del Lario since 1921.

From 9 to 12 March, the international press presentation of the new Beverly Piaggio was held in Livorno. The high-end best-seller in the Piaggio line of high-wheel scooters has been completely renewed and is available with 300 and 400 cc engines; extensive test rides were organised for 30 journalists from the main European markets.

* * *

 

Outlook

The situation of macroeconomic instability that developed in 2020 with the spread of Covid-19 affected economic activities initially in China and subsequently in the other countries.

The solution appears to be tied to the availability of a vaccine, which began to be rolled out in the USA and the UK in mid-December 2020. Against these difficult conditions, the 2020 results reflect the efficacy of the Group's response to the impact of the pandemic on the world economy.

It is still difficult to provide guidance for the coming months, however, as much depends on how the Covid-19 pandemic evolves, following the surge in Europe in the last quarter of 2020, and on government measures implemented to limit contagion and support the economy in the countries where the Group operates.

In the Industrial Sector, the Piaggio Group will continue operations with the launch in 2021 of 10 new two-wheelers and its new lightweight cargo vehicle, the expansion of the E-Mobility department in Pontedera, the start-up of a new facility in Indonesia and the complete refurbishment of the Moto Guzzi production site and museum.

In this general context, Piaggio will continue to work to meet its commitments and targets, maintaining all the necessary measures to ensure a flexible and immediate response to any difficult and unexpected situations that might arise, thanks to careful and efficient business and financial management.

In the Naval Sector, 2021 will see advances in production work on contracts, in order to strengthen the financial consolidation of recent years.

Intermarine 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. The company will also pursue every opportunity to contain direct and indirect costs.

In the Real Estate and Tourism-Hospitality Sector, the impact of the virus and its commercial consequences for Is Molas S.p.A.’s tourism-hospitality operations and the sale of villas will be monitored.

* * *


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 2020.

* * *

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 14 May 2020, which is due to expire during 2021. 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.

* * *

The manager in charge of preparing the company accounts and documents, Andrea Paroli, certifies, pursuant to paragraph 2 of art. 154-bis of the Consolidated Law on Financial Intermediation, that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

 

This press release may contain forward-looking statements relating to future events and Immsi Group business and financial results. By their nature, these statements are subject to inherent risks and uncertainties since they relate to events and depend on circumstances that may or may not occur or exist in the future. Actual results may differ materially from those expressed in such statements as a result of a variety of factors.

This press release contains a number of indicators that, though not yet contemplated by the IFRS (“Non-GAAP Measures”), are based on financial measures envisaged by the IFRS. These indicators – presented in order to assist assessment of the Group’s business performance – should not be considered as alternatives to those envisaged by the IFRS and are consistent with those in the Immsi Group 2019 Annual Report and quarterly and half-year reports. Furthermore, since determination of such indicators is not specifically regulated by the IFRS, the methods used may not coincide with those adopted by other companies/groups, and consequently the indicators in question may not be comparable. Specifically, the following alternative performance indicators are used:

  • EBITDA: earnings before amortisation and impairment losses on property, plant and equipment and intangible assets, as reflected in the income statement;
  • Net financial debt: this reflects financial liabilities (current and non-current), less cash and cash equivalents, and other financial receivables (current and non-current). Determination of net financial debt does not include other financial assets and liabilities arising from measurement at fair value, derivatives designated or not as hedges, fair value adjustments of the related hedged items, related accruals, interest accrued on loans and financial liabilities relating to discontinued operations. The schedules in the Report on Operations and Financial Statements as at and for the year ended 31 December 2020 include a table illustrating the composition of net financial debt. In this regard, in compliance with CESR recommendation of 10 February 2005 “Recommendation for uniform enactment of the European Commission regulation on disclosures”, attention is drawn to the fact that the indicator determined as described represents the amount as monitored by Group management and differs with respect to Consob Communication no. 6064293 of 28 July 2006, since it also includes non-current financial receivables.

In drawing up the Report on Operations and Financial Statements as at and for the year ended 31 December 2020, the Immsi Group applied the same accounting policies as those used to draw up the Report on Operations and Financial Statements as at and for the year ended 31 December 2019.

Immsi S.p.A. said that the Report on Operations and Financial Statements as at and for the year ended 31 December 2020 will be available to the public at the company head office, in the “eMarket STORAGE” authorised storage mechanism at www.emarketstorage.com and on the issuer’s website www.immsi.it (section “Governance/General Meeting/Archive/2021” and section “Investors/Financial Reports/2021”) as required by law.

The Immsi Group consolidated statement of financial position, consolidated income statement and consolidated statement of cash flows, and the Immsi S.p.A. statement of financial position, income statement and statement of cash flows are set out below. At the time of publication of this press release, the audit of the Immsi Group consolidated financial statements, the Immsi S.p.A. separate financial statements and the non-financial disclosure ex 254/2016 at 31 December 2020 had not been completed.