PRESS RELEASE
INTERPUMP GROUP APPROVES THE CONSOLIDATED RESULTS
FOR THE FIRST QUARTER OF 2020
Chairman Fulvio Montipò: "In the quarter, the perimeter extension compensated for the impact
of the Covid-19 pandemic; we hope in a fast recovery so we can go back to our usual pace"
NET SALES: € 344.0 million (+0.1% compared to Q1 2019)
EBITDA: € 74.3 million (-5.5% compared to Q1 2019)
EBITDA/SALES: 21.6% (22.9% in Q1 2019)
CONSOLIDATED NET PROFIT: € 33.3 million
(-26.4% compared to Q1 2019)
NET DEBT: € 384.9 million (€ 370.8 million at 31/12/2019)
(after € 37.7 mn disbursement for acquisitions and € 16.6 mn in purchases of treasury shares)
S. Ilario d'Enza, 13 May 2020 - The Board of Directors of Interpump Group met today and approved the consolidated results for the first quarter of 2020.
Net Sales for the period totaled 344.0 million euro, an increase of 0.1% over the 343.6 million euro in the corresponding period of 2019.
Sales by business sector and geographical area were as follows:
(€/000) | Rest of | North | Pacific Rest of the | |||
Q1 2020 | Italy | Europe | America | Area | World | Total |
Hydraulics | 44,161 | 83,252 | 63,403 | 23,431 | 20,701 | 234,948 |
Water-Jetting | 9,566 | 39,689 | 35,116 | 15,069 | 9,583 | 109,023 |
Total | 53,727 | 122,941 | 98,519 | 38,500 | 30,284 | 343,971 |
Q1 2019 | ||||||
Hydraulics | 49,568 | 85,265 | 52,896 | 20,477 | 24,750 | 232,956 |
Water-Jetting | 9,265 | 42,219 | 34,112 | 14,565 | 10,493 | 110,654 |
Total | 58,833 | 127,484 | 87,008 | 35,042 | 35,243 | 343,610 |
Change, 2020/2019 | ||||||
Hydraulics | -10.9% | -2.4% | +19.9% | +14.4% | -16.4% | +0.9% |
Water-Jetting | +3.2% | -6.0% | +2.9% | +3.5% | -8.7% | -1.5% |
Total | -8.7% | -3.6% | +13.2% | +9.9% | -14.1% | +0.1% |
INTERPUMP GROUP S.p. A. - Via E. FERMI, 25 - 42049 S. ILARIO - REGGIO EMILIA (ITALY) - TEL.+39,0522,904311 FAX. +39,0522,904444 - E- mail info@interpumpgroup.it
CAP. SOC. Euro 56,617,232.88 I. V. - REG. IMPRESE R. E. - COD. FISCALE 11666900151 - C.C.I. A.A. R.E. A. N. 204185
Organic growth, at unchanged perimeter and before the currency exchange, was -15.3% in Hydraulics, -2.6% in Water-Jetting, and -11.2% in total sales.
EBITDA amounted to 74.4 million euro (21.6% of sales) compared to 78.6 million euro in the first quarter of 2019 (22.9% of sales). At unchanged perimeter, EBITDA margin was 22.0%.
The following table sets out EBITDA by business sector:
Q1 2020 | % on | Q1 2019 | % on | ||
€/000 | sales | €/000 | sales | Change | |
Hydraulics | 46,085 | 19.6% | 49,937 | 21.4% | -7.7% |
Water-Jetting | 28,261 | 25.8% | 28,703 | 25.8% | -1.5% |
Total | 74,346 | 21.6% | 78,640 | 22.9% | -5.5% |
Operating income (EBIT) amounted to 50.2 million euro compared to 62.4 million euro in the first quarter of 2019.
Net Profit for the first quarter of 2020 was 33.3 million euro (45.3 million euro in Q1 2019). It was affected by foreign exchange losses due to the weakness of some foreign currencies at the very end of the quarter, and a provision related to the termination of office allowance assigned to the Chairman, recently reconfirmed by the Shareholders' Meeting.
Basic earnings per share went from 0.426 euro in the first quarter of 2019 to 0.310 euro in the first quarter of 2020.
Net cash flow from operating activities was 66.5 million euro (72.3 million euro in Q1 2019). Free cash flow in the first quarter of 2020 amounted to 39.0 million euro (it was 2.7 million euro in the same period last year).
Net debt was 384.9 million euro (370.8 million euro at 31 December 2019). During the quarter, 16.6 million euro were spent in treasury shares, while the change related to acquisitions (Transtecno plus the final balance for Reggiana Riduttori, previously included in commitment for acquisitions) was 37.7 million Additionally, at the end of March the Group had commitments for the acquisition of stakes in subsidiaries worth in total 61.5 million euro (54.3 million euro at 31/12/2019).
Capital employed rose from 1,480.2 million euro at 31 December 2019 to 1,533.6 million euro at 31 March 2020, mostly because of the Transtecno acquisition. Non-annualizedROCE was 3.3% (compared to 4.6% in Q1 2019). Non-annualizedROE was 3.1% (vs. 4.9% in Q1 2019).
As at 31 March 2020 Interpump Group S.p.A. had 2,298,506 treasury shares in its portfolio, representing 2.11% of total share capital, purchased at an average cost of € 25.138.
UPDATE ON COVID-19 PANDEMIC
In Italy, in the month of April saw a worsening of the consequences of Covid-19, following the law provisions imposing an almost complete shutdown of production plants starting from March 23 and until May 3. The diffusion of the disease brought to similar provisions being adopted, in different forms, in several other countries where Interpump has established production and sales, forcing many suppliers and customers to suspend their activity.
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Around the world, all Group companies complied to the restrictions imposed by the health authorities, with the goal of protecting the workers' health and slow down the diffusion of the virus. This entailed the adoption of personal protection devices and procedures, a reorganization of times, places and ways of work, and limitations of production. In any case, Interpump ensured continuity of service everywhere to industries and trades recognized as essential.
Under these circumstances, the Interpump Group demonstrated yet again its solidity. Activity restarted in the month of May and a return to normal is in progress, still conditioned by the provisions of govenrments and authorities.
This enormous effort was successful: no severe or fatal cases of Covid-19 were reported among the 7,400+ employees of the Goup.
* * *
Pursuant to Article 65-bis, paragraph 2 of Consob Deliberation 11971/1999 as modified and supplemented, the Interim Report at 31 March 2020 is available to the public at the Group's registered office and may be also be consulted on the "Financial Statements and Reports" page in the "Investor relations" section of the Group's website www.interpumpgroup.it, as well on the www.emarketstorage.comrepository.
S. Ilario d'Enza (RE), 13 May 2020 | On behalf of the Board of Directors |
Fulvio Montipò, Chairman |
Carlo Banci, the manager responsible for drafting the company's accounting documents, declares - pursuant to the terms Article 154-bis, paragraph 2 of the Consolidated Financial Services Act - that the accounting disclosures in the present release correspond to the contents of the underlying documents, the accounting books and the accounting entries.
Sant'Ilario d'Enza (RE), 13 May 2020 | Carlo Banci |
Manager responsible for drafting | |
the company's accounting documents |
Media Relations: | Investor Relations: |
Moccagatta Associati | Luca Mirabelli |
Tel. 02 8645.1695 | Tel. 0522-904433 |
segreteria@moccagatta.it | lmirabelli@interpumpgroup.it |
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Consolidated Statement of financial position
(€/000) | 31/03/2020 | 31/12/2019 | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 205,818 | 233,784 | ||
Trade receivables | 289,400 | 284,842 | ||
Inventories | 413,290 | 408,443 | ||
Tax receivables | 22,467 | 24,337 | ||
Other current assets | 12,590 | 9,077 | ||
Total current assets | 943,565 | 960,483 | ||
Non-current assets | ||||
Property, plant and equipment | 492,661 | 484,358 | ||
Goodwill | 550,935 | 508,670 | ||
Other intangible assets | 31,931 | 32,527 | ||
Other financial assets | 1,910 | 4,226 | ||
Tax receivables | 1,673 | 1,590 | ||
Deferred tax assets | 35,640 | 34,679 | ||
Other non-current assets | 2,095 | 2,150 | ||
Total non-current assets | 1,116,845 | 1,068,200 | ||
Total assets | 2,060,410 | 2,028,683 |
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(€/000) | 31/03/2020 | 31/12/2019 | ||
LIABILITIES | ||||
Current liabilities | ||||
Trade payables | 153,990 | 157,413 | ||
Payables to banks | 20,260 | 22,076 | ||
Interest bearing financial payables (current portion) | 180,353 | 195,110 | ||
Taxes payable | 18,278 | 14,965 | ||
Other current liabilities | 74,858 | 90,230 | ||
Provisions for risks and charges | 4,068 | 4,055 | ||
Total current liabilities | 451,807 | 483,849 | ||
Non-current liabilities | ||||
Interest-bearing financial payables | 390,086 | 387,412 | ||
Liabilities for employee benefits | 22,719 | 21,402 | ||
Deferred tax liabilities | 41,977 | 42,154 | ||
Taxes payable | 151 | 125 | ||
Other non-current liabilities | 58,234 | 35,610 | ||
Provisions for risks and charges | 8,059 | 3,057 | ||
Total non-current liabilities | 521,226 | 489,760 | ||
Total liabilities | 973,033 | 973,609 | ||
SHAREHOLDERS' EQUITY | ||||
Share capital | 55,422 | 55,460 | ||
Legal reserve | 11,323 | 11,323 | ||
Share premium reserve | 95,642 | 96,733 | ||
Remeasurement reserve for defined benefit plans | (7,358) | (7,358) | ||
Translation reserve | 4,307 | 7,735 | ||
Other reserves | 918,582 | 885,446 | ||
Group shareholders' equity | 1,077,918 | 1,049,339 | ||
Minority interests | 9,459 | 5,735 | ||
Total shareholders' equity | 1,087,377 | 1,055,074 | ||
Total shareholders' equity and liabilities | 2,060,410 | 2,028,683 |
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Consolidated income statement for the first quarter
(€/000) | 2020 | 2019 | |
Net sales | 343,971 | 343,610 | |
Cost of sales | (221,314) | (218,886) | |
Gross industrial margin | 122,657 | 124,724 | |
% of net sales | 35.7% | 36.3% | |
Other operating income | 4,766 | 4,952 | |
Distribution expenses | (31,649) | (30,697) | |
General and administrative expenses | (39,612) | (35,717) | |
Other operating costs | (5,972) | (846) | |
EBIT | 50,190 | 62,416 | |
% of net sales | 14.6% | 18.2% | |
Financial income | 4,710 | 3,827 | |
Financial charges | (8,719) | (3,525) | |
Equity method contribution | 63 | 75 | |
Profit for the period before taxes | 46,244 | 62,793 | |
Income taxes | (12,948) | (17,526) | |
Consolidated profit for the period | 33,296 | 45,267 | |
% of net sales | 9.7% | 13.2% | |
Attributable to: | |||
Shareholders of Parent | 33,136 | 44,894 | |
Minority shareholders of subsidiaries | 160 | 373 | |
Consolidated profit for the period | 33,296 | 45,267 | |
EBITDA | 74,346 | 78,640 | |
% of net sales | 21.6% | 22.9% | |
Shareholders' equity | 1,087,377 | 921,098 | |
Net debt | 384,881 | 381,585 | |
Payables for purchase of shareholdings | 61,536 | 49,763 | |
Capital employed | 1,533,614 | 1,352,446 | |
Non-annualized ROCE | 3.3% | 4.6% | |
Non-annualized ROE | 3.1% | 4.9% | |
Basic earnings per share | 0.310 | 0.426 |
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Consolidated statement of comprehensive income for the first quarter
(€/000) | 2020 | 2019 |
Consolidated profit for the first quarter (A) | 33,296 | 45,267 |
Other comprehensive income which will subsequently be reclassified | ||
to consolidated profit or loss | ||
Gains (losses) on translating the financial statements of foreign | ||
companies | (3,603) | 8,090 |
Gains (losses) from companies accounted for using the equity method | (58) | 28 |
Applicable taxes | - | - |
Total other consolidated income (losses) which will subsequently be | ||
reclassified to consolidated profit for the period, net of the tax effect | ||
(B) | (3,661) | 8,118 |
Consolidated comprehensive income for the quarter (A)+(B) | 29,635 | 53,385 |
Attributable to: | ||
Shareholders of Parent | 29,708 | 52,775 |
Minority shareholders of subsidiaries | (73) | 610 |
Consolidated comprehensive income for the first quarter | 29,635 | 53,385 |
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Consolidated cash flow statement for the first quarter
(€/000) | 2020 | 2019 | ||
Cash flows from operating activities | ||||
Profit before taxes | 46,244 | 62,793 | ||
Adjustments for non-cash items: | ||||
Losses (gains) on the sale of fixed assets | (692) | (782) | ||
Amortization and depreciation | 19,031 | 16,093 | ||
Costs recognized in the income statement relative to stock options that do not involve | ||||
monetary outflows for the Group | 831 | 422 | ||
Expenditures for tangible assets to be leased | (2,119) | (1,251) | ||
Proceeds from the disposal of leased tangible assets | 1,162 | 1,716 | ||
Losses (profits) from investments | (63) | (75) | ||
Net change in risk provisions and allocations to employee benefit provisions | 4,863 | (137) | ||
Net financial charges (revenues) | 4,009 | (302) | ||
73,266 | 78,477 | |||
(Increase) decrease in trade receivables and other current assets | 2,311 | (31,165) | ||
(Increase) decrease in inventories | 4,924 | (18,289) | ||
Increase (decrease) in trade payables and other current liabilities | (13,792) | (3,189) | ||
Interest paid | (1,269) | (1,312) | ||
Realized exchange differences | (68) | 245 | ||
Taxes paid | (5,466) | (5,104) | ||
Net cash from operating activities | 59,906 | 19,663 | ||
Cash flows from investing activities | ||||
Payments for the purchase of investments net of cash received | (29,639) | (15,961) | ||
Capital expenditure on property, plant and equipment | (16,169) | (13,238) | ||
Proceeds from the sale of tangible fixed assets | 477 | 377 | ||
Increase in intangible assets | (766) | (614) | ||
Financial income received | 471 | 84 | ||
Other | (111) | (62) | ||
Net cash (used in) investing activities | (45,737) | (29,414) | ||
Cash flows from financing activities | ||||
Disbursements for purchase of treasury shares | (16,624) | (1,307) | ||
Disbursements (repayments) of loans | (17,840) | (3,848) | ||
Proceeds from the sale of treasury shares to stock option beneficiaries | 614 | 240 | ||
Dividends paid | (169) | - | ||
Change in other financial assets | (466) | (9) | ||
Payment of finance lease installments (principal) | (4,857) | (3,881) | ||
Net cash generated by (used in) financing activities | (39,342) | (8,805) | ||
Net increase (decrease) in cash and cash equivalents | (25,173) | (18,556) | ||
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(€/000) | 2020 | 2019 | |
Net increase (decrease) in cash and cash equivalents | (25,173) | (18,556) | |
Translation differences for cash held by non-EU companies | (1,025) | 969 | |
Opening cash and cash equivalents of companies consolidated on a line-by-line basis for the | |||
first time | 48 | - | |
Effect of IFRS16 on opening cash and cash equivalents | - | (10) | |
Cash and cash equivalents at the beginning of the period | 211,708 | 96,736 | |
Cash and cash equivalents at the end of the period | 185,558 | 79,139 | |
Cash and cash equivalents consist of the following:
31/03/2020 | 31/12/2019 | |
Cash and cash equivalents as per the consolidated statement of financial position | 205.818 | 233.784 |
Bank payables (overdrafts and subject to collection advances) | (20.260) | (22.076) |
Cash and cash equivalents as per the consolidated cash flow statement | 185.558 | 211.708 |
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Consolidated statement of changes in shareholders' equity
Remeasure- | |||||||||
Share | ment reserve | Group | Non- | ||||||
Share | Legal | premium | for defined | Translation | Other | shareholders' | controlling | ||
capital | reserve | reserve | benefit plans | reserve | reserves | equity | interests | Total | |
At 1 January 2019 | 54,842 | 11,323 | 71,229 | (5,965) | 3,142 | 729,373 | 863,944 | 4,961 | 868,905 |
Purchase of treasury shares | (26) | - | (1,281) | - | - | - | (1,307) | - | (1,307) |
Recognition in income statement of fair value of stock options | |||||||||
granted and exercisable | - | - | 422 | - | - | - | 422 | - | 422 |
Transfer of treasury shares to stock option beneficiaries | 21 | - | 219 | - | - | - | 240 | - | 240 |
Dividends distributed to third parties | - | - | - | - | - | - | - | (547) | (547) |
Comprehensive income (loss) for first quarter of 2019 | - | - | - | - | 7,881 | 44,894 | 52,775 | 610 | 53,385 |
At 31 March 2019 | 54,837 | 11,323 | 70,589 | (5,965) | 11,023 | 774,267 | 916,074 | 5,024 | 921,098 |
Purchase of treasury shares | (1,503) | - | (76,183) | - | - | - | (77,686) | - | (77,686) |
Recognition in income statement of fair value of stock options | |||||||||
granted and exercisable | - | - | 2,163 | - | - | - | 2,163 | - | 2,163 |
Transfer of treasury shares to stock option beneficiaries | 150 | - | 3,433 | - | - | - | 3,583 | - | 3,583 |
Transfer of treasury shares for Reggiana Riduttori acquisition | 1,976 | - | 96,731 | - | - | - | 98,707 | - | 98,707 |
Reggiana Riduttori minorities | - | - | - | - | - | - | - | 175 | 175 |
Acquisition of minorities in subsidiaries | - | - | - | - | - | 103 | 103 | (153) | (50) |
Dividends distributed | - | - | - | - | - | (23,200) | (23,200) | (128) | (23,328) |
Dividends resolved to third parties | - | - | - | - | - | - | - | (99) | (99) |
Comprehensive income (loss) for April-December 2019 | - | - | - | (1,393) | (3,288) | 134,276 | 129,595 | 916 | 130,511 |
At 31 December 2019 | 55,460 | 11,323 | 96,733 | (7,358) | 7,735 | 885,446 | 1,049,339 | 5,735 | 1,055,074 |
Purchase of treasury shares | (317) | - | (16,307) | - | - | - | (16,624) | - | (16,624) |
Recognition in income statement of fair value of stock options | - | ||||||||
granted and exercisable | - | - | 831 | - | - | 831 | - | 831 | |
Transfer of treasury shares to stock option beneficiaries | 25 | - | 590 | - | - | - | 615 | - | 615 |
Transfer of treasury shares as payment for acquisitions | 254 | - | 13,795 | - | - | - | 14,049 | - | 14,049 |
Transtecno minorities | - | - | - | - | - | - | - | 4,380 | 4,380 |
Dividends resolved to third parties | - | - | - | - | - | - | - | (583) | (583) |
Comprehensive income (loss) for first quarter of 2020 | - | - | - | - | (3,428) | 33,136 | 29,708 | (73) | 29,635 |
At 31 March 2020 | 55,422 | 11,323 | 95,642 | (7,358) | 4,307 | 918,582 | 1,077,918 | 9,459 | 1,087,377 |
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Interpump Group S.p.A. published this content on 13 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2020 09:54:07 UTC