Newlat Food S p A : Q1 2024 Interim Report

Interim Report at 31 March 2024 - Newlat Food

INTERIM REPORT AT 31 MARCH 2024

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Interim Report at 31 March 2024 - Newlat Food

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Interim Report at 31 March 2024 - Newlat Food

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Interim Report at 31 March 2024 - Newlat Food

DIRECTORS' REPORT ON OPERATIONS AT 31 MARCH 2024

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Interim Report at 31 March 2024 - Newlat Food

Contents
Performance as at 31 March 2024	8
BOARDS AND OFFICERS	9
Board of Directors	9
Board of Statutory Auditors	9
Remuneration and Appointments Committee	10
Control and Risks Committee	10
Related Party Transactions Committee	10
Financial Reporting Officer	10
Independent Auditing Firm	10
Group Structure	13
INTERIM MANAGEMENT REPORT	16
Financial statements and explanatory notes	26
Consolidated statement of financial position	27
Consolidated income statement	28
Consolidated statement of other comprehensive income	28
Consolidated statement of changes in equity	29
Consolidated cash flow statement	30
Explanatory notes	31
Notes as at 31 March 2024	33
Scope of consolidation and goodwill	34
Consolidation criteria and methodology	34
Shareholders' equity	38
Current liabilities	40
Income statement	40
Earnings per share	41
Related party transactions	41
Disputes and potential liabilities	43

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Interim Report at 31 March 2024 - Newlat Food

This report is available online at:https://corporate.newlat.it/relazione-con-gli-investitori/bilanci-e-relazioni/

Newlat Food S.p.A.

Registered Office in Reggio Emilia, Via J.F. Kennedy, 16, Paid-in share capital: Euro 43,935,050.00

Tax and VAT ID 00183410653 / no. 277595 on the Economic and Administrative Index (REA) of Reggio Emilia

Company subject to management and coordination by Newlat Group S.A. pursuant to Articles 2497 et seq. of the Italian Civil Code.

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Interim Report at 31 March 2024 - Newlat Food

Performance as at 31 March 2024

In a market that remains highly volatile and characterised by a strong decrease in inflation, the Group closed the first quarter of 2024 with an increase in its margins (+2.5% compared to the same period of the previous year) to Euro 17.2 million with an EBITDA margin of 8.6% (8.1% as at 31 March 2023).

During Q1 2024 investments continued in the new oven line and new packaging machines for baby products, initiatives that will not only greatly strengthen the offer of both speciality and traditional products, expanding the range significantly will also enable our industrial structure to take on new business development challenges with even greater efficiency.

The investment policy also impacted the trend in turnover in the first quarter, which fell slightly compared to the same period last year (-3.7%), driven mainly by the special products segment, where the most important and significant investments were concentrated.

The figures for the Group's business lines were up compared to 31 March 2023 despite a sharp reduction in average sales prices due to falling inflation.

In terms of margins, as already mentioned the Group recorded a 2.5% increase in EBITDA, going from Euro 16.8 million as at 31 March 2023 to Euro 17.2 million as at 31 March 2024. The margin ratio also increased significantly from 8.1% at 31 March 2023 to 8.6% at 31 March 2024.

These figures augur well for the end of the financial year and provide a solid basis for development and to embark on external growth.

Lastly, financial data once again point to a business that is able to constantly generate cash, with the net financial position improving by Euro 8.4 million and a cash conversion rate of 85%.

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Interim Report at 31 March 2024 - Newlat Food

BOARDS AND OFFICERS

Board of Directors

Name and surname	Position
Angelo Mastrolia	Executive Chairman of the Board of Directors and Director (**)
Giuseppe Mastrolia	Chief Executive Officer and Director (**)
Stefano Cometto	Chief Executive Officer and Director (**)
Benedetta Mastrolia	Director (***)
Maria Cristina Zoppo	Director (*)
Valentina Montanari	Director (*)
Eric Sandrin	Director (*)
	Lead Independent Director

1. Independent director, pursuant to article 148 of the Consolidated Law on Finance (TUF) and article 3 of the Corporate Governance Code, who took office on the trading start date. Member of the Control and Risks Committee, member of the Remuneration and Appointments Committee, member of the Related Party Transactions Committee,

1. Executive director.

1. Non-executivedirector.

Board of Statutory Auditors

Name and surname	Position
Massimo Carlomagno	Chair
Ester Sammartino	Standing Auditor
Antonio Mucci	Standing Auditor
Cinzia Voltolina	Alternate Auditor
Giovanni Rayneri	Alternate Auditor

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Interim Report at 31 March 2024 - Newlat Food

Remuneration and Appointments Committee

Name and surname	Position
Eric Sandrin	Chair
Maria Cristina Zoppo	Member
Valentina Montanari	Member

Control and Risks Committee

Name and surname	Position
Valentina Montanari	Chair
Maria Cristina Zoppo	Member
Eric Sandrin	Member

Related Party Transactions Committee

Name and surname	Position
Maria Cristina Zoppo	Chair
Valentina Montanari	Member
Eric Sandrin	Member

Financial Reporting Officer

Rocco Sergi

Independent Auditing Firm

PricewaterhouseCoopers S.p.A.

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