Oviesse records higher-than-expected sales and cash generation in the first nine months of 2021. The Veneto-based company closed the third quarter of 2021 (from August 1 to October 31) with sales of 378 million euros, up 5% compared to the third quarter of 2020 and 11% compared to pre-Covid. In the morning, Ovs shares remained in line with yesterday's last session (2,7880 euros) while the Ftse index moved slightly above parity (+0,19%).
In the period, the cash generated was approximately 63 million euro, approximately 45 million euro higher than that generated in the third quarter of 2019 and approximately 10 million higher than that generated in the third quarter of 2020.
La net financial position adjusted at 31 October 2021 is equal to approximately 255 million euros, a clear improvement of approximately 100 million euros compared to that of a year ago. In fact, the value of the net financial position expected for the end of the year was reached a quarter in advance.
In this regard, the Venetian company has announced that it will proceed to repay the current bullet line early for a total of 90 million euros. This repayment is in addition to the 160 million euro repayment made on 10 November 2021 following the issue of the Sustainability-Linked Bond. This will determine the extinction of the Term B1 line of 250 million euro, which had a cost of 400 Bps + Euribor 3M. For the early repayment, the cash generated by the characteristic management of the business will be used "without resorting to the resources deriving from the capital increase, collected against possible M&A transactions", reads a note.
Equita's analysts revised the target price upwards, which reached 3,2 euros. According to sim experts: “We think these indications will lead to raise the 2021 guidance, probably as sales even if the uncertainty on the Covid conditions and the strength of the third quarter may lead to maintaining a certain prudence, as Ebitda between 120-135 million (Equita estimates 142 million) and as NFP guidance between 255-240 million, (Equita estimates 254 million)”.
