Esautomotion’s 2023 financial statements approved: revenues still growing despite the uncertain scenario.

Esautomotion's 2023 financial statements approved: revenues still growing despite the uncertain scenario.

On April 4th the Board of Directors of Esautomotion approved the corporate financial statements as of 31 December 2023.
At the end of the year, turnover grew by 4.6% reaching €36.7 million, a result to which the incorporation of Sangalli Servomotori, which took place in July 2023, also contributed.

"2023 was conditioned by a series of factors that we had foreseen in their occurrence" -Franco Fontana, President of Esautomotion, declares - "During the year, the "shortage" phase of microprocessors and electronic components, which had dominated and somewhat drugged the previous two years leading many customers to overstock, was finally resolved. This has led to a progressive slowdown in sales, which had grown double digits in 2021 and 2022, a pace impossible to maintain in 2023. Obviously, we also had to increase stocks of materials too, in order to guarantee deliveries and support the considerable commercial effort we are making indifferent markets.""In any case, I find our performance satisfactory" - Fontana adds - As a matter of practice, we compare ourselves with the absolute world leader in the sector, which alone holds a share of around 60%.The evaluation criterion is simple: when the leader rises, we want to grow at a much higher rate, when the leader falls, we aim to fall at a much lower rate.In the first case, the % increase in our turnover in the past was triple compared to the leader while the decline in the second half of 2023 was 70% lower."

"Such a significant difference in performance can be explained by our strategic choice to concentrate on specialized product macro-niches such as sheet metal, marble and wood processing in which, also due to the lack of major global players (Fanuc and Siemens), Esautomotion can have a leadership position."

The prospects for 2024: commercial and organizational consolidation, new markets priority.

"We hope to reap the fruits of the constant seeding activity of recent years - Andrea Senzolo, General Manager of Esautomotion, declares" - The new business process in our sector is relatively slow: the CNC is the heart of a machine tool, therefore theadoption of a new control requires ad-hoc technical developments, trials and field tests on small batches before arriving at significant orders: a process that can take a long time.
Thanks to the increased visibility at specialized fairs and positive word of mouth, we have developed many new contacts in key and emerging markets, for which we hope to increase the numerical number of customers and turnover in the next two years.
Furthermore, the acquisition of Sangalli Servomotori will allow us to explore new niches using electric motors in the automation sector in general (not just for CNCa) in sectors in which we are still not very presentsuch as, for example, automotive, green economy and more."

"To support this great effort, we have invested in strengthening qualitatively/quantitatively the sales network, improving its organization and carrying out training activities for the staff in all branches."

Türkiye, USA and India are the growth priorities.

"We are very optimistic about the results that the new direct branch Esautomotion Turkiye will be able to guarantee us in terms of penetration among local OEMs, also considering their exports to Europe" - Senzolo declares.

"As far as USA are concerned, "reshoring" is leading to the return of many productions, especially from China" - Senzolo highlights - "Thanks to the local Esautomotion North America branch we are able to guarantee a prompt and "time-zone proof" technical and sales service,which makes us competitive versus European competitors with no facilities in North America.""India deserves a separate discussion" - Senzolo underlines - "Personally, I believe that in the future it will be one of the markets with the highest growth rate, both because the technological level of their manufacturing industry is rising rapidly and the Indian government hasput in place really aggressive protective policies to help this industry.An example is the 100% customs duty applied on industrial products from China.Esautomotion has already a consolidated presence in India through a local distributor and some historic customers.In recent months we have brought new managers into our company to manage this country in a more focused way which, in our vision, could become a platform from which to also serve neighboring nations."

Watch HEREthe video of the interview with Franco Fontana and Andrea Senzolo on the MilanoFinanza/Class channel.