we receive e we publish the following press release from Sabaf SpA.
The Board of Directors of Sabaf SpA met today in Ospitaletto to approve the interim management report as of 30 September 2024.
It should be noted that starting from April 2022, Turkey, a country in which Sabaf has production plants, is considered a “hyperinflationary” economy based on the criteria established by “IAS 29 – Financial reporting in hyperinflationary economies”. The press release comments on the normalized consolidated economic results that exclude the impacts for the application of IAS 29. The normalized economic results also exclude, for the data relating to the 2023 financial year only, the costs for the start-up phase of Sabaf India, Sabaf Mexico and the Induction division, whose results are included in the normalized consolidated data for 2024. This representation allows for a better understanding of the Group's performance and a more correct comparison with previous periods.
During the third quarter, the Sabaf Group confirmed a solid growth, supported by good performances in Europe, the positive contribution of the South American market and the constant expansion of the activities of the new sites in Mexico and India. In the United States, however, the market showed signs of slowing down.
During the period the Group recorded sales normalized for 69,2 million euros, 12,8% higher than in the third quarter of 2023 (with unchanged perimeter).
THEEBITDA normalized profit for the third quarter was 9,2 million euros (13,3% of turnover), up 5% compared to 8,8 million euros (14,3%) in the third quarter of 2023. Profitability for the quarter was partially affected by the increase in production costs, including higher labor costs.
in Italy and Türkiye.
Il operating income (EBIT) normalized was EUR 4,5 million (6,4%). In the same period of 2023 it was EUR 6 million (9,8%), which included a capital gain of EUR 1,5 million deriving from the sale of non-current assets (former Lumezzane production plant). Excluding the effect of this capital gain, EBIT for the third quarter of 2024 is substantially unchanged compared to 2023. The normalized net profit for the period attributable to the Group was EUR 2,4 million (3,5%), 53,2% lower than the EUR 5,2 million in the third quarter of 2023 (8,4%).
In the first nine months of 2024, the Sabaf Group achieved normalized sales revenues of 212,3 million euros, 20,4% higher than the 176,3 million euros of the first nine months of 2023 (+12,7% on a like-for-like basis).
Normalized EBITDA for the first nine months of 2024 was €32,1 million (15,1% of sales), up 31,9% compared to €24,4 million (13,8%) in the first nine months of 2023.
THENormalized EBIT was 18 million euros (8,5%), 36,7% higher than the 13,1 million euros (7,5%) of the
first nine months of 2023.
THENet income normalized for the period was 12,6 million euros (5,9%), 49,5% higher than the 8,4 million euros in the first nine months of 2023 (4,8%).
In the first nine months of 2024, operating management generated cash flows of 6,7 million euros. At 30 September 2024, the incidence of net working capital5 on revenues was 27,7%, compared to 36,3% at 30 September 2023 and 30,2% at the end of 2023.
Net investments in the third quarter of 2024 amounted to 3,4 million euros. Total investments in the first nine months of 2024 are 9,5 million euros (13,1 million euros in the same period of 2023).
As of September 30, 2024, thenet financial debt stood at 77 million euros (73,2 million euros at 31 December 2023 and 83,4 million euros at 30 September 2023), against a consolidated net equity of 170,1 million euros. Thenet financial debt as of 30 September 2024 includes 10,8 million euros in financial liabilities relating to the accounting of the put option granted to the minority shareholders of MEC (an American company of which Sabaf acquired 51% in July 2023) and 6,1 million euros in financial liabilities recorded pursuant to IFRS 16.
Outlook
The Group plans to close 2024 with revenues between 276 and 280 million euros, up 15-17% compared to 2023. In recent weeks theOrder entry is affected by the stock reduction policy of the main customers, typical at the end of the year.
In the coming months, any more expansionary monetary policies could stimulate the recovery of the residential sector in Europe and the United States and therefore favor the recovery of the household appliances market. In 2025 Sabaf will continue theImplementation of the Industrial Plan, which aims to increase and consolidate global market shares, through
- the Group's increasingly widespread presence worldwide
- diversification of product offering
- the valorization of synergies with the acquired realities
- growth through external lines.
In particular, an increasing contribution is expected from the Gas division, also thanks to the new plants
of Mexico and India, from the Induction division, as well as from the direct presence in the United States (thanks to the
recent acquisition of MEC).
Peter Iotti, Chief Executive Officer of Sabaf, commented:
“Also in the third quarter, Sabaf achieved double-digit organic growth, which confirms the
2024 as a record year for turnover, thanks to the acquisition of new market shares at a global level.
In 2025, the expected continuation of expansionary monetary policies could also have a positive effect
on the household appliances market, allowing the full effects of our strategies to unfold.
We are therefore confident in a further significant improvement in results."
