PRESS RELEASE
THE BOARD OF DIRECTORS APPROVES THE FY2020 CONSOLIDATED RESULTS
Net sales: €1,294.4 million (€1,368.6 million in 2019)
EBITDA: €294.1 million or 22.7% of sales (€317.9 million in 2019 or 23.2% of sales)
CONSOLIDATED NET PROFIT: €173.3 million (€180.6 million in 2019)
FREE CASH FLOW: €203.8 million (€124.8 million in 2019)
NET DEBT: €269.5 million (€370.8 million at 31 December 2019)
(after €28.3 million paid in dividends, €49.0 million disbursement for acquisitions, €48.5 million in purchase of treasury shares)
PROPOSED DIVIDEND OF 0.26 EUROS (0.25 Euros for FY2019)
Sant'Ilario d'Enza (RE), 19 March 2021 - The Board of Directors of Interpump Group S.p.A. has approved the draft 2020 separate financial statements and the 2020 consolidated results.
In 2020, the following companies were consolidated for the first time: the Transtecno group (Hydraulics sector, acquired in January 2020 and consolidated for 12 months) and Servizi Industriali Srl (Water-Jetting sector, acquired in July 2020 and consolidated for 6 month. Additionally, the following companies were consolidated for the entire year: the Reggiana Riduttori group (Hydraulics sector, consolidated for 3 months only in FY2019), Hydra Dyne Technology Inc. (Hydraulics sector, consolidated for 10 months in FY2019), and Pioli Srl (Water-Jetting sector, consolidated for 9 months in FY2019).
Net sales
Net sales for 2020 totaled €1,294.4 million, down 5.4% versus sales of €1,368.6 million for 2019.
At unchanged perimeter and exchange rates, the change in overall sales amounted to -12.6%.
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Profitability
EBITDA amounted to €294.1 million (22.7% of sales) compared to €317.9 million in 2019 which represented 23.2% of sales. The EBITDA margin of 2020, calculated with the same consolidation perimeter of 2019, would amount to 22.9%
EBIT amounted to €207.7 million (16.0% of sales) compared to €247.2 million in 2019 (18.1% of sales).
Net profit for FY2020 totaled €173.3 million, versus €180.6 million registered in 2019.
The revaluation of property plant and equipment of some Italy-based companies in the Group, and the tax redemption of goodwill on behalf of the holding company Interpump Group S.p.A. contributed in total for €21.7 million euro. The increase in net income with respect to the preliminary figure published on February 12,
2021, therefore, is mostly due to the above-mentioned fiscal benefits.
Basic earnings per share amounted to €1.596 in 2020 (€1.699 in 2019).
Capital employed was substantially unchanged, going from €1,480.2 million at 31 December 2019 to €1,482.2 million at 31 December 2020, as a consequence of the reduction in net working capital, on one hand, and the acquisition of the Transtecno group, on the other.
ROCE amounted to 14.0% (16.7% in 2019). ROE was 15.1% (17.1% in 2019).
Financial situation
Net cash of €228.6 million was generated by operations (€233.1 million in 2019). Free cash flow was €203.8 million (€124.8 million in 2019).
Net debt at 31 December 2020 stood at €269.5 million (down from €370.8 million at 31 December 2019), after €28.3 million paid in dividends, €49.0 million spent in acquisitions, and purchase of treasury shares for €48.5 million. Additionally, the Group had binding commitments for the acquisition of minority interests in subsidiaries worth €62.7 million at 31 December 2020 (€54.3 million at 31 December 2019).
At 31 December 2020 Interpump Group S.p.A. held 2,222,356 treasury shares, representing 2.04% of share capital, purchased at an average price of €28.141.
DIVIDEND PROPOSAL
The Board of Directors has resolved to submit a proposal to the General Shareholders' Meeting, which will be summoned within the terms set forth by law, to approve the distribution of a dividend of 26 euro cents (FY2019: 25 euro cents). If approved, the dividend will be paid on May 26, 2021, and the share will go ex-dividend on May 24 (record date May 25).
For tax purposes, the dividend shall be considered originating from reserves accumulated after the FY which included December 31, 2007, and within the FY which included December 31, 2016.
CONSOLIDATED NON-FINANCIAL STATEMENT
Additionally, the Board approved Interpump Group's Non-Financial Disclosure, prepared according to the Italian law (D.Lgs 254/2016). The Disclosure will be published in the same terms as the 2020 Financial
Statements.
EFFECTS OF COVID-19 PANDEMIC
The pandemic of Covid-19 has had significant effects on all economies in the world, with the suspension - in the first part of 2020 - of many activities, including part of the manufacturing sector. In China, the impact on companies belonging to the Interpump Group was limited to the first quarter; in the rest of the world, suspensions took place mostly in the months of March and especially April.
Effects on Interpump's results were comparatively small, and the Group's business model has demonstrated an excellent robustness.
During the year of the pandemic, Interpump has given priority to the safety of its employees, and rigidly applied at all its locations all procedures and provisions required to reduce contagion risk, respecting in full the regulations issued by all relevant authorities.
REPORT ON CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURES REPORT ON REMUNERATION POLICY AND COMPENSATION PAID
Pursuant to article 123-bis of the Consolidated Finance Act (TUF), the Board approved the Report on Corporate Governance and Ownership Structures for FY2020.
In addition, pursuant to article 123-ter of the Consolidated Finance Act (TUF) the Board also approved the "Report on remuneration policy and compensation paid" of Interpump Group S.p.A.
The Shareholders' Meeting will be called to approve the remuneration policy (section one of the report) and express an advisory opinion on compensation paid in 2020 (section two).
Both documents will be published and advertised in accordance with the law.
Sant'Ilario d'Enza (RE), 19 March 2021
On behalf of the Board of Directors
The Chairman
Fulvio Montipò
The manager responsible for drafting company accounting documents, Carlo Banci, declares pursuant to the terms of section 2, article 154-bis of the Consolidated Finance 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), 19 March 2021 | |
Media Relations: | Investor Relations: |
Moccagatta Associati | Luca Mirabelli |
Tel. 02 8645.1695 | Tel. 0522-904433 |
segreteria@moccagatta.it | lmirabelli@interpumpgroup.it |
Manager responsible for drafting company accounting documents
Carlo Banci
Consolidated Statement of financial position
(€/000) | 31/12/2020 | 31/12/2019 |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 343,170 | 233,784 |
Trade receivables | 261,707 | 284,842 |
Inventories | 376,596 | 408,443 |
Tax receivables | 23,573 | 24,337 |
Other current assets | 10,360 | 9,077 |
Total current assets | 1,015,406 | 960,483 |
Non-current assets | ||
Property, plant and equipment | 476,480 | 484,358 |
Goodwill | 549,168 | 508,670 |
Other intangible assets | 43,511 | 32,527 |
Other financial assets | 2,269 | 4,226 |
Tax receivables | 757 | 1,590 |
Deferred tax assets | 59,610 | 34,679 |
Other non-current assets | 2,089 | 2,150 |
Total non-current assets | 1,133,884 | 1,068,200 |
Total assets | 2,149,290 | 2,028,683 |
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Interpump Group S.p.A. published this content on 19 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2021 10:54:02 UTC.