Gefran S.P.A. Board approves consolidated results at 30 June 2022

Revenues in the first six months of 2022 amount to 69.3 million Euro, compared to 59.1 million Euro in the same period of 2021. The increase of 10.2 million Euro (+17.2%) is largely due to the steady growth in the volume of sales. This performance was assisted by positive exchange-rate movements, without which the increase in revenues would have been 8.2 million Euro (+13.9%).

The breakdown of revenues by geographical region reveals double-digit growth in almost all the areas served by the Group, particularly in Italy (+22%), Europe (+24.1% overall) and the Americas (+37.2%). Among the main regions, Asia is the only area to contract during the first half of 2022 compared with the same period in 2021 (-5.3%). Asian results is adversely affected by the spike in Covid-19 outbreaks in China that resulted in further, tougher restrictions and new lockdowns in certain areas of the country, including in Shanghai where the Group has a production plant.

Added value at 30 June 2022 amounts to 49.5 million Euro, up by 6.9 million Euro on higher revenues compared with the same period in 2021. This benefit was partially offset by the rise in raw material procurement costs, which led to a decrease in percentage margins (-0,5%).

The growth in sales during the first six months of the year results in an increase in other operating costs, amounting to 11.3 million Euro. In particular, there are rises in external processing costs (volume linked), utility costs and commercial costs (specifically travel and trade fairs).

Personnel costs amounting to 22.9 million Euro at 30 June 2022, an increase over the figure of 20.4 million Euro for the first half of 2021. This increase is connected with the rise in employment.

EBITDA in the first half of 2022 is positive by 15.4 million Euro (22.2% of revenues) and 3 million Euro more than was reported at 30 June 2021 (12.4 million Euro, representing 21% of revenues). The improvement in EBITDA is due to increased revenues in the period, as only partially offset by higher ordinary operating costs.

EBIT in the first half of 2022 is positive by 11.9 million Euro (17.2% of revenues), compared with 9.1 million Euro in the same period of 2021 (15.4% of revenues), up by 2.8 million Euro. The change is a result of the same dynamics described for EBITDA.

Group net result for the period ended 30 June 2022 is positive by 4.8 million Euro including the negative result of 4.4 million Euro attributable to the assets classified as held for sale pursuant to IFRS 5. This represents a reduction of 3.2 million Euro from the 8.1 million Euro reported at 30 June 2021.

Working capital amounts to 14.4 million Euro at 30 June 2022, compared with 8.7 million Euro at 31 December 2021, up overall by 5.7 million Euro.

Shareholders’ equity as of 30 June 2022 amounts to 86.4 million Euro, compared with 85.5 million Euro at 31 December 2021, up by 0.8 million Euro. This change mainly reflects recognition of the positive result for the period (+4.8 million Euro), partially absorbed by the distribution of dividends in May (-5.5 million Euro). Positive contributions were made by the changes in the currency translation reserve and the fair value measurement reserve (+1.5 million Euro in total).

Investments amount to 2.7 million Euro in the first six months of 2022, up by 0.5 million Euro compared with the same period in 2021, and mainly related to production departments, research and development activities and the buildings housing the Group’s plant.

Net financial position as of 30 June 2022 is positive by 2.5 million Euro, down 3.4 million Euro over the end of 2021.

Marcello Perini, Chief Executive Officer of the Gefran Group, stated: “The outstanding economicfinancial results for the first half of this year confirm the levels of operational excellence achieved during the first quarter. I am very satisfied by how the Group, despite highly complex operating conditions, has been able to generate value by leveraging its core characteristics: innovation, skill, reliability and efficiency. The sensors and the automation components businesses, in particular, achieved double-digit sales growth during the first half of this year with excellent profitability. This evidences their solid market positioning, as consolidated by the investments made in new products, process automation and development of the commercial network. The results achieved by sensors and automation components confirm the validity of placing our strategic focus on those areas. The agreement to sell the motion control business, signed at the beginning of August, is consistent with this strategy. Application of the resources generated by this operation will give further impetus to the growth of the Group. We look forward to the rest of the year with confidence, despite the gradual deterioration in the macroeconomic situation and continuing uncertainties that have marked recent years. Accordingly, we believe that the activities of the Group throughout the full year will generate increased revenues with respect to 2021, with the maintenance of percentage profitability”.