The Board of Directors of the Group Ivy today unanimously approved the consolidated economic results as at 31 March 2016, which confirm a trend with the main values growing despite a difficult quarter. On the one hand, the organic growth based on the pursuit of efficiencies and synergies and the parallel expansion of the markets managed to compensate for the 75% cut in the remuneration of regulated activities, on the other, the M&A activities, mainly relating to the acquisitions made at the end of 2015 , have contributed to the growth in results.
Revenues for 1.235,4 million euros
In the first quarter of 2016, revenues amounted to 1.235,4 million euros, down on the 1.311,9 million euros of the same period of 2015. The reasons for this contraction include the lower volumes sold of gas due to the particularly mild climate; lower revenues from the sale and trading of electricity and gas following the drop in the price of raw materials and the impact on regulated gas, electricity and water cycle services of the new method of calculating the rate of return on invested capital. These negative effects are only partially offset by the increase in revenues due to the higher volumes of electricity sold and by the increase in revenues resulting from the increase in waste disposed of.
Gross operating margin (EBITDA) up to 278,4 million euro
The gross operating margin went from 277,2 million euros in the first three months of 2015 to 278,4 million euros in March 2016, recording an increase of 1,2 million euros (+0,4%). This result is particularly significant if we consider that it was obtained in the first quarter, i.e. in the period of the year in which the reduction of the WACC in the distribution of gas, electricity and water shows, due to seasonality, the greatest negative impact on revenues and EBITDA, settling – in the specific case – at 9,5 million euro. The growth of EBITDA was mainly supported by energy activities, which showed the maintenance of margins and more than offset the performance of regulated activities.
Operating profit and pre-tax profit growing, financial management improves
Operating profit at 31 March 2016 was 170,8 million euro, up compared to 170,1 million in the same period of 2015 (+0,4%), despite the higher depreciation and amortization due to changes in the perimeter, in partly offset by lower provisions. Financial management improved by 3,7 million euro, amounting to 25,7 million euro at the end of the first quarter (-12,6% compared to the same period of 2015), thanks in particular to lower average debt and efficiency on rates. In the light of this situation, pre-tax profit increased from 140,7 million euros in the first three months of 2015 to 145,1 million euros in the same period of 2016, showing a further increase in the growth rate (+ 3,1%).
Net profit for shareholders up to 91,2 million euro (+5,3%)
Net profit marks an increase of 4,7%, going from 92,5 million euros in the first three months of 2015 to 96,8 million euros in the same period of 2016, against the reduction of the tax burden with a tax rate of 33,3% (an improvement compared to 34,3% in the same period of 2015, thanks to the ability to reap the benefits in 2016 resulting from the application of the "patent box" and the tax credit for research and development activities, as well as concessions on maxi depreciation). Net income for shareholders amounted to 91,2 million euros, up by 4,6 million euros compared to the first three months of 2015 (+5,3%), also due to the effect of the reduction in non-controlling interests, mainly resulting from the complete acquisition of the companies Akron and Romagna Compost.
Over 70 million in investments and improving net financial position
In the first 3 months of 2016, the Group's operating investments amounted to 73 million, including 4,5 million in capital grants, an increase compared to the figure for the same period of 2015 (64,1 million euro) and in line with the provisions of the business plan. They mainly concerned interventions on plants, networks and infrastructures, to which must be added the regulatory adjustments which mainly concern the gas area, for the massive replacement of meters, and the purification and sewage area.
The net financial position improved by a good 147 million euro, going from 2.651,7 in 2015 to 2.504,5 as at 31 March 2016 (-5,6%). The NFP/equity ratio settled below 0,96 times, showing an improvement in financial solidity.
