(Alliance News) - Confinvest Spa reported Tuesday that it ended 2023 with a net profit of EUR350,000, which compares with EUR450,000 in the previous year.

Revenues fell to EUR40.6 million from EUR43.1 million while the first margin dropped to EUR2.3 million from EUR2.8 million.

The reduction in revenues is mainly attributable to a volume effect caused by the reduced volatility that the gold price experienced especially during the first half of 2023, in contrast to what happened in last year-"an exceptional year in this respect," according to the company, in which the price of gold had fluctuated sharply in the first half of the year mainly attributable to the outbreak of the conflict in Ukraine and steadily rising inflation, which had stimulated customer interest throughout the year, thus prompting savers to seek security in physical gold, and had fostered growth in business volume.

Ebitda fell to EUR790,000 from EUR870,000 in 2022, Ebit fell to EUR560,000 from EUR640,000, and pretax profit fell to EUR480,000 from EUR630,000.

Net financial position is cash negative EUR1.3 million and the change from December 31, 2022, when it was cash negative EUR130,000, is mainly attributable to the increase in the value of inventories of approximately EUR1.1 million. The increase in inventory values is due to market dynamics that led the company to have a more substantial inventory position at the end of the year, which was also a function of some purchase transactions from customers in the last weeks of 2023, as the volatility of the gold market stimulated customers to make transactions by the end of the year.

Confinvest's stock closed Tuesday down 3.3 percent at EUR1.45 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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