Interim Financial Reporting
3rd quarter of
2020
(IFRS)
(Unaudited)
INTERIM FINANCIAL REPORT (January to September 2020)
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INTERIM FINANCIAL REPORT (January to September 2020)
Interim Financial Reporting
VAA - Vista Alegre Atlantis SGPS, S.S., hereby presents its accounts for the period from January to September 2020, pursuant to regulation nº 5/2008, in accordance with IAS 34.
These interim financial statements were prepared based on the same accounting policies and calculation methods used in the preparation of the last annual financial statements (2019 financial year).
In this interim financial report, we only release notes which allow us to understand the changes in the financial position and performance of the company since the last annual report.
1. Activity Evolution
In the third quarter of 2020, still in an unstable context, the results of Grupo Vista Alegre showed a remarkable capacity for recovery, compared to the second quarter, where the effect of the pandemic had a very significant negative impact on activity.
Turnover in the first nine months of 2020 was 75.8 million euros, with good performance from exports, which grew 8.4 p.p. over the same period. Strength in foreign markets maintained the growth trajectory, increasing to 82.4% of the turnover of Vista Alegre, reaching 62.4 million euros.
Consolidated Sales per Segment and per Markets
T € | ||||||||
January to September 2020 | January to September 2019 | |||||||
Segments | ||||||||
DM | FM | Total | DM | FM | Total | |||
Porcelain and related products | 7,619 | 10,810 | 18,429 | 14,551 | 21,014 | 35,565 | ||
Earthenware | 2,529 | 3,059 | 5,589 | 3,198 | 2,831 | 6,030 | ||
Stoneware Oven | 698 | 24,736 | 25,433 | 615 | 13,526 | 14,141 | ||
Stoneware Tableware | 566 | 17,797 | 18,362 | 519 | 18,221 | 18,741 | ||
Crystal and Glass | 1,968 | 6,044 | 8,012 | 2,986 | 6,726 | 9,713 | ||
Total | 13,379 | 62,446 | 75,825 | 21,870 | 62,319 | 84,189 | ||
In the third quarter, Grupo Vista Alegre exceeded turnover of the same period by 24%, reaching 33.2 million euros, showing an important sign of recovery of its business. In September turnover was 11.4 million euros, surpassing the same period of the previous year by around 13% (10.1 million euros).
In the retail channel, there was an increase in consumption in this last quarter, which positively influenced sales growth in stores. It is worth highlighting the very positive evolution of the online channel which grew 122% in the first nine months of 2020 compared to the same period of the previous year.
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INTERIM FINANCIAL REPORT (January to September 2020)
Contracts signed in the second quarter of two important orders, worth 16.2 million euros, allowed for further strengthened sales growth in this third quarter.
2. Results
Consolidated results for the third quarter of 2020 of Grupo Vista Alegre showed a performance above that for the same period of 2019, with a turnover of 33.4 million euros (24% above the same period of 2019), EBITDA of 6.1 million euros (12% above the same period of 2019) and a positive net result of 1 million euros.
In aggregate terms in the first nine months of 2020, the company reached a turnover of 75.8 million euros and EBITDA stood at 10.2 million euros.
M€ | ||||||||
Headings | 1Q 2020 | 2Q 2020 | 3Q 2020 | 9M 2020 | 3Q 2019 | 9M 2019 | Variation 3Q | |
Value | % | |||||||
Turnover | 24.3 | 18.3 | 33.2 | 75.8 | 26.8 | 84.2 | 6.5 | 24.2% |
E B I T D A | 3.2 | 0.9 | 6.1 | 10.2 | 5.5 | 17.0 | 0.7 | 12.1% |
EBITDA Margin | 13.0% | 5.0% | 18.5% | 13.5% | 20.5% | 20.2% | -2.0 pp | |
Operating Income | 0.2 | -2.2 | 3.1 | 1.0 | 2.3 | 8.4 | 0.8 | 35.6% |
Operating Margin | 0.6% | -11.9% | 9.2% | 1.4% | 8.4% | 10.0% | 0.8 pp | |
Income before taxes | -1.3 | -3.4 | 1.7 | -2.9 | 0.9 | 5.1 | 0.9 | 100% |
Income tax | 0.5 | 0.8 | -0.7 | 0.6 | -0.7 | -1.2 | 0.1 | |
Net income | -0.8 | -2.6 | 1.0 | -2.3 | 0.1 | 3.8 | 0.9 | 660% |
Investment | 3.3 | 19.3 | -16.0 | -83.1% |
The company recorded a positive operating result of 1 million euros and the net result was negative at 2.3 million euros.
3. Investments
During the third quarter of 2020, investments were carried out amounting to 3.3 million euros aimed mainly at the porcelain segment with the acquisition of new equipment for the forming process of pieces and at the Ovenware segment with the New Shaping Stoneware project of Cerutil.
Ílhavo, 27th November 2020
The Board of Directors
________________________________________________
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INTERIM FINANCIAL REPORT (January to September 2020)
Net income for the financial year Consolidated Statements of Financial Position
ending on the 30th September 2020 and on the 31st December 2019
T € | |||||||||
Notes: | 30/09/2020 | 31/12/2019 | |||||||
ASSETS | |||||||||
Non-current assets | |||||||||
Tangible fixed assets | 5 | 138,693 | 142,691 | ||||||
Goodwill | 4,711 | 4,711 | |||||||
Investment properties | 7 | 970 | 970 | ||||||
Intangible Assets | 6 | 1,351 | 1,384 | ||||||
Financial investments | 8 | 682 | 682 | ||||||
Use rights assets | 9 | 6,820 | 7,546 | ||||||
Deferred taxes | 10 | 5,624 | 5,887 | ||||||
Total non-current assets | 158,850 | 163,871 | |||||||
Current assets | |||||||||
Inventories | 11 | 47,501 | 41,770 | ||||||
Accounts receivable and others | 12 | 20,296 | 21,727 | ||||||
State and other public entities | 18 | 3,497 | 2,152 | ||||||
Cash and cash equivalents | 7,366 | 14,462 | |||||||
Total current assets | 78,660 | 80,111 | |||||||
TOTAL ASSETS | 237,510 | 243,981 | |||||||
SHARE CAPITAL | |||||||||
Equity | 13 | 134,120 | 134,120 | ||||||
Treasury capital | 13 | -2 | -2 | ||||||
Issue premiums | 13 | 24,382 | 24,280 | ||||||
Supplementary benefits | 13 | 38,182 | 38,182 | ||||||
Reserves and retained earnings | 14 | -125,064 | -131,994 | ||||||
Net income for the financial year | -2,231 | 7,226 | |||||||
Equity excluding non-controlling interests | 69,387 | 71,812 | |||||||
Non-controlling interests | 907 | 980 | |||||||
Total equity | 70,294 | 72,792 | |||||||
LIABILITIES | |||||||||
Non-current liabilities | |||||||||
Loans obtained | 15 | 76,891 | 68,370 | ||||||
Subsidies | 19 | 6,586 | 6,768 | ||||||
Lease liabilities | 9 | 4,593 | 5,745 | ||||||
Provisions | 17 | 238 | 238 | ||||||
Provisions f | or pensions | 17 | 1,109 | 1,194 | |||||
Deferred taxes | 10 | 9,278 | 9,289 | ||||||
Total non-current liabilities | 98,696 | 91,604 | |||||||
Current liabilities | |||||||||
Loans obtained | 15 | 22,269 | 29,971 | ||||||
Lease liabilities | 9 | 2,527 | 1,787 | ||||||
Accounts payable and other debts | 16 | 41,133 | 45,925 | ||||||
State and other public entities | 18 | 2,591 | 1,902 | ||||||
Total current liabilities | 68,520 | 79,585 | |||||||
Total liabilities | 167,216 | 171,189 | |||||||
TOTAL EQUITY AND LIABILITIES | 237,510 | 243,981 | |||||||
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INTERIM FINANCIAL REPORT (January to September 2020)
Consolidated Statements of Results for the nine-month periods
ending on the 30th September 2020 and 2019
Headings | Note | 30/09/2020 | 30/09/2019 |
s | |||
Sales and services provided | 3 and 20 | 75,825 | 84,189 |
Cost of goods sold and material consumed | -31,175 | -28,150 | |
Production variation | 5,343 | 2,947 | |
Gross margin | 49,993 | 58,986 | |
Works for the company itself | 5 | 396 | 1,992 |
External supplies and services | 22 | -13,453 | -15,238 |
Personnel costs | 21 | -29,123 | -30,642 |
Amortizations | 5, 6 and 9 | -9,340 | -7,958 |
Impairments | 56 | 13 | |
Other operating expenses and losses | 23 | -713 | -1,123 |
Impairment of depreciable tangible fixed assets | 5 | 112 | -676 |
Other profit and operating income | 23 | 3,110 | 3,045 |
Operating income | 1,038 | 8,399 | |
Interest and similar expenses incurred | 24 | -4,182 | -3,352 |
Interest and similar income obtained | 24 | 196 | 11 |
Financial result | -3,986 | -3,341 | |
Result before taxes | -2,948 | 5,057 | |
Income tax | 10 | 596 | -1,237 |
Consolidated income for the financial year | -2,352 | 3,820 | |
Attributable: | |||
Shareholders | -2,231 | 3,708 | |
Non-controlling interests | -121 | 112 | |
Basic earnings per share (€) | -0.0133 | 0.0251 | |
Diluted earnings per share (€) | -0.0133 | 0.0251 |
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INTERIM FINANCIAL REPORT (January to September 2020)
Comprehensive Consolidated Income Statement for the nine- month periods ending on the 30th September 2020 and 2019
30/09/2020 | 30/09/2019 | |||
Consolidated income for the financial year (a) | -2,352 | 3,820 | ||
Other comprehensive income: | ||||
Amounts that will not be reclassified later in results | ||||
Retirement benefits | ||||
Actuarial gains and losses | 0 | 123 | ||
Tax impact of the above mentioned effect | 0 | -22 | ||
Amounts that will be reclassified later in results | ||||
Adjustments of exchange conversion | -221 | -149 | ||
Other adjustments | ||||
Gross amount | -27 | -42 | ||
-248 | -190 | |||
Other comprehensive income for the financial year (b): | -248 | -89 | ||
Total comprehensive income for the financial year (a) + (b) | -2,600 | 3,731 | ||
Comprehensive income for the financial year attributable to: | ||||
Shareholders | -2,527 | 3,691 | ||
Non-controlling interests | -73 | 40 | ||
-2,600 | 3,731 |
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INTERIM FINANCIAL REPORT (January to September 2020)
Consolidated Statement of Changes in Equity for the nine-month periods ending on the 30th September 2020 and for the financial year ended on the 31st December 2019
Equity attributable to of parent company | |||||||||||||||||
Common | Share | Supplementary | Reserves and | Net results | Non- | Total | |||||||||||
Headings | Capital | retained | Total | ||||||||||||||
(note 13) | shares | premiums | benefits | results | financial | controlling | equity | ||||||||||
(note 13) | (note 13) | (note 13) | year | interests | |||||||||||||
(note 14) | |||||||||||||||||
Balance on the 1st January 2019 | 121,927 | -2 | 22,065 | 38,182 | -132,662 | 49,510 | 780 | 50,290 | ||||||||||||
Changes to the perimeter | 0 | 0 | ||||||||||||||||||
Capital increase | 12,193 | 2,216 | 14,408 | 14,408 | ||||||||||||||||
Total comprehensive income | 7,226 | 7,226 | 228 | 7,454 | ||||||||||||||||
Net income for the financial year | ||||||||||||||||||||
Other comprehensive income for the financial year | 667 | 667 | -27 | 640 | ||||||||||||||||
Total | 12,193 | 0 | 2,216 | 0 | 667 | 7,226 | 22,302 | 201 | 22,502 | |||||||||||
Balance on the 30th December 2019 | 134,120 | -2 | 24,280 | 38,182 | -131,994 | 7,226 | 71,812 | 980 | 72,792 | |||||||||||
Equity attributable to shareholders of parent company | ||||||||||||||||||||
Capital | Common | Share | Supplementary | Reserves and | Net | Non- | Total | |||||||||||||
Headings | shares | premiums | benefits | retained | results | Total | controlling | equity | ||||||||||||
(note 13) | results | |||||||||||||||||||
(note 13) | (note 13) | (note 13) | financial year | interests | ||||||||||||||||
(note 14) | ||||||||||||||||||||
Balance on the 1st January 2020 | 134,120 | -2 | 24,280 | 38,182 | -131,994 | 71,812 | 980 | 72,792 | ||||||||||||
Capital increase | 0 | 102 | 102 | 102 | ||||||||||||||||
Total comprehensive income | ||||||||||||||||||||
Net income for the financial year | 7,226 | -2,231 | -2,231 | -121 | -2,352 | |||||||||||||||
Other comprehensive income for the financial year | -296 | -296 | 48 | -248 | ||||||||||||||||
Total | 0 | 0 | 102 | 0 | 6,930 | -2,231 | -2,425 | -73 | -2,498 | |||||||||||
Balance on the 30th September 2020 | 134,120 | -2 | 24,382 | 38,182 | -125,064 | -2,231 | 69,387 | 907 | 70,294 | |||||||||||
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INTERIM FINANCIAL REPORT (January to September 2020)
Consolidated Statement of Cash Flow for the nine-month periods ending on the 30th September 2020 and 2019 and for the financial year ended on the 31st December 2019
Headings | 30/09/2020 | 30/09/2019 | 31/12/2019 | ||||||
1. OPERATING ACTIVITIES: | |||||||||
Customer receivables | 87,098 | 93,648 | 130,898 | ||||||
Payments to suppliers | -61,904 | -50,581 | -67,092 | ||||||
Payments to staff | -29,152 | -30,649 | -42,209 | ||||||
Flows generated by operations | -3,959 | 12,418 | 21,598 | ||||||
Other operating (payments)/receivables | 167 | -425 | -393 | ||||||
Flows from operating activities | -3,792 | 11,992 | 21,205 |
2. INVESTMENT ACTIVITIES: Receivables from:
Investment properties | 0 | 900 | |||||||||
Investment grants | 1,278 | 4,854 | 8,663 | ||||||||
1,278 | 4,854 | 9,563 | |||||||||
Payments relating to: | |||||||||||
Financial investments | 0 | -500 | |||||||||
Tangible fixed assets | -3,781 | -21,812 | -28,284 | ||||||||
-3,781 | -21,812 | -28,784 | |||||||||
Flows from investment activities | -2,503 | -16,958 | -19,221 |
3. INVESTMENT ACTIVITIES: | |||||||||||
Receivables from: | |||||||||||
Loans obtained | 11,942 | 26,575 | 106,378 | ||||||||
Capital increase, supplementary benefits | 0 | 14,408 | |||||||||
11,942 | 26,575 | 120,786 | |||||||||
Payments relating to: | |||||||||||
Loans obtained | -10,363 | -29,439 | -114,223 | ||||||||
Amortization of financial lease contracts | -15 | -108 | -145 | ||||||||
Interest and similar | -2,362 | -12,741 | -1,416 | -30,962 | -5,084-119,451 | ||||||
Flows generated by investment activities | -799 | -4,387 | 1,335 | ||||||||
4. CASH AND CASH EQUIVALENTS VARIATION | -7,093 | -9,353 | 3,319 | ||||||||
5. EFFECT OF CURRENCY EXCHANGE DIFFERENCES | -2 | 3 | -2 | ||||||||
6. INITIAL CASH AND BANK DEPOSITS | 14,462 | 11,145 | 11,145 | ||||||||
7. FINAL CASH AND BANK DEPOSITS | 7,366 | 1,795 | 14,462 |
30/09/2020 | 30/9/2019 | 31/12/2019 | |
Bank deposits | 7,358 | 1,787 | 14,453 |
Cash | 8 | 8 | 8 |
7,366 | 1,795 | 14,462 |
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INTERIM FINANCIAL REPORT (January to September 2020)
Notes to the Consolidated Financial Statements
The amounts are in thousands of euros, except in the cases indicated otherwise
1. Seasonality of operations
It should be noted that the activity of Grupo VAA is subject to some seasonality, particularly
concerning sales in the company's own stores, since in December they correspond to about three
times the average sales made by the retail channel in the remaining months of the year. This
channel's sales amounted to 7.9 million euros during the first nine months of 2020 and typically
December sales are equal to or higher than the total amount of one quarter of retail sales during the year (during the month of December 2019 for example sales amounted to 4 million euros).
2. Conversion of financial statements of foreign companies
The prices used in the conversion to euros of the accounts of the foreign subsidiaries were as follows:
Closing currency exchange | Average currency exchange | |||
Currency | 30/09/2020 | 31/12/2019 | 30/09/2020 | 31/12/2019 |
American dollar | € 0.8541 | € 0.8902 | € 0.8850 | € 0.8933 |
English pound | € 1.0986 | € 1.1714 | € 1.1285 | € 1.1413 |
Mozambican metical | € 0.0118 | € 0.0145 | € 0.0129 | € 0.0143 |
Mexican peso | € 0.0382 | € 0.0474 | € 0.0404 | € 0.0464 |
Brazilian real | € 0.1512 | € 0.2217 | € 0.1722 | € 0.2260 |
Indian rupee | € 0.0120 | € 0.0125 | € 0.0120 | € 0.0127 |
3. Segment reporting
Segment information is presented in relation to the Group's geographic and business segments and is based on the different types of goods that are produced in industrial plants in different locations. The results, assets and liabilities of each segment correspond to those that are directly attributable to them, as well as those that can reasonably be attributed to them. Moreover, common assets ("corporate assets") are allocated to each operating segment based on their weight in the overall activity of Grupo Vista Alegre.
On the 30th September 2020, the Group was organised into six main business segments: (1) Porcelain and Related products, (2) Stoneware Oven-to-tableware, (3) Stoneware tableware, (4) Crystal and Glass, (5) Earthenware and (6) Real estate, and it is according to this segmentation that
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INTERIM FINANCIAL REPORT (January to September 2020)
Internal financial reporting and operational reporting systems are presented. Regarding the "Real Estate" segment, and as a result of the sale of the subsidiary VA Grupo, the segment was no longer relevant to Vista Alegre's activity at Group level, and was only maintained for the purposes of comparison.
3.1-Turnover
3.1.1- Information by business segment
The breakdown of turnover by business segment and geographical areas on the 30th September
2020 and 2019 is as follows:
Porcelain and | Stoneware | Stoneware | Crystal | |||||||
Earthenware | oven to | and | Total | |||||||
related products | tableware | |||||||||
September 2020 | tableware | glass | ||||||||
Gross sales by segment | 18,429 | 5,589 | 25,433 | 18,362 | 8,012 | 75,825 | ||||
Sales % | 24% | 7% | 34% | 24% | 11% | 100% | ||||
Porcelain and | Stoneware | Stoneware | Crystal | |||||||
Earthenware | oven to | and | Total | |||||||
related products | tableware | |||||||||
September 2019 | tableware | glass | ||||||||
Gross sales by segment | 35,565 | 6,030 | 14,141 | 18,741 | 9,713 | 84,189 | ||||
Sales % | 42% | 7% | 17% | 22% | 12% | 100% | ||||
The results by business segment are as follows:
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INTERIM FINANCIAL REPORT (January to September 2020)
30 th September 2020 | |||||||||||||
Porcelain and | Stoneware Stoneware | Crystal | Other not | ||||||||||
Earthenware | and | Real State | Total | ||||||||||
related products | oven to | Tableware | allocated | ||||||||||
tableware | glass | ||||||||||||
Operating profit | -3,493 | 859 | 1,086 | 2,956 | -238 | -132 | 0 | 1,038 | |||||
Net financial costs | -3,239 | -106 | -304 | -106 | -231 | 0 | 0 | -3,986 | |||||
Profit before | |||||||||||||
Income tax | -6,732 | 753 | 782 | 2,850 | -470 | -132 | 0 | -2,948 | |||||
Income tax | 596 | 596 | |||||||||||
Net income for the financial year | -6,732 | 753 | 782 | 2,850 | -470 | -132 | 596 | -2,352 | |||||
Non-controlling interests | -121 | -121 | |||||||||||
Net income for the financial year | |||||||||||||
Attributable to shareholders | -6,732 | 753 | 782 | 2,850 | -470 | -132 | 717 | -2,231 | |||||
30th September 2019 | |||||||||||||
Porcelain and | Stoneware Stoneware | Crystal | Other not | ||||||||||
Earthenware | and | Real State | Total | ||||||||||
related products | oven to | Tableware | allocated | ||||||||||
tableware | glass | ||||||||||||
Operating profit | 3,226 | 1,648 | 435 | 3,618 | -391 | -138 | 0 | 8,399 | |||||
Net financial costs | -2,191 | -244 | -232 | -122 | -552 | 0 | 0 | -3,341 | |||||
Profit before | |||||||||||||
Income tax | 1,035 | 1,405 | 202 | 3,496 | -942 | -138 | 0 | 5,057 | |||||
Income tax | -1,237 | -1,237 | |||||||||||
Net income for the financial year | 1,035 | 1,405 | 202 | 3,496 | -942 | -138 | -1,237 | 3,820 | |||||
Non-controlling interests | 112 | 112 | |||||||||||
Net income for the financial year | |||||||||||||
Attributable to shareholders | 1,035 | 1,405 | 202 | 3,496 | -942 | -138 | -1,349 | 3,708 |
Other elements by business segment (non-cash expenses) are as follows:
30th September 2020 | ||||||||||
Porcelain and | Earthenware | Stoneware | Stoneware | Crystal | Real State Total | |||||
related products | oven to | tableware | and | |||||||
tableware | glass | |||||||||
Amortization and Depreciation | 5,045 | 355 | 487 | 2,458 | 897 | 98 | 9,340 | |||
Impairment (losses/reversals) | -60 | 0 | 3 | 0 | -112 | -169 | ||||
Total | 4,985 | 355 | 490 | 2,458 | 659 | 98 | 9,171 | |||
30th September 2019 | ||||||||||
Porcelain and | Earthenware | Stoneware | Stoneware | Crystal | Real State Total | |||||
related products | oven to | tableware | and | |||||||
tableware | glass | |||||||||
Amortization and Depreciation | 3,979 | 379 | 743 | 1,981 | 781 | 94 | 7,958 | |||
Impairment (losses/reversals) | -9 | 0 | -1 | 0 | 675 | 663 | ||||
Total | 3,970 | 379 | 742 | 1,981 | 1,456 | 94 | 8,621 |
Transfers or transactions between segments are carried out under normal commercial terms and under the conditions applicable to independent third parties.
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INTERIM FINANCIAL REPORT (January to September 2020)
The assets, liabilities and investments of the segments for the financial years ended on the 30th September 2020 and on the 31st December 2019 are as follows:
30 th September 2020 | ||||||||||||||
Porcelain and | Earthenware | Stoneware | Stoneware | Crystal and | Real State | Other not | Total | |||||||
related products | oven to | Tableware | glass | allocated | ||||||||||
tableware | ||||||||||||||
Tangible fixed assets | 47,394 | 13,364 | 19,714 | 39,464 | 18,672 | 84 | 0 | 138,693 | ||||||
Investment properties | 0 | 0 | 0 | 0 | 0 | 970 | 0 | 970 | ||||||
Intangible assets and Goodwill | 3,008 | 37 | 2,693 | 0 | 323 | 0 | 0 | 6,061 | ||||||
Financial investments | 0 | 0 | 0 | 0 | 0 | 0 | 682 | 682 | ||||||
Deferred taxes | 0 | 0 | 0 | 0 | 0 | 0 | 5,624 | 5,624 | ||||||
Use Rights (IFRS 16) | 0 | 0 | 0 | 0 | 0 | 0 | 6,820 | 6,820 | ||||||
Non-current assets | 50,403 | 13,401 | 22,407 | 39,464 | 18,996 | 1,054 | 13,126 | 158,850 | ||||||
Current assets | 34,342 | 5,688 | 13,717 | 6,696 | 10,850 | 0 | 7,366 | 78,660 | ||||||
Total Assets | 84,745 | 19,089 | 36,124 | 46,160 | 29,846 | 1,054 | 20,492 | 237,510 | ||||||
Operating liabilities | 12,289 | 3,547 | 16,105 | 8,263 | 3,265 | 0 | 2,767 | 46,235 | ||||||
Other liabilities | 69,169 | 12,511 | 13,357 | 10,883 | 13,564 | 156 | 1,341 | 120,981 | ||||||
Total liabilities | 81,458 | 16,058 | 29,462 | 19,146 | 16,829 | 156 | 4,107 | 167,216 | ||||||
31 st December 2019 | ||||||||||||||
Porcelain and | Stoneware | Stoneware | Crystal and | Other not | ||||||||||
Earthenware | oven to | Real | State | Total | ||||||||||
related products | tableware | Tableware | glass | allocated | ||||||||||
Tangible fixed assets | 48,095 | 13,734 | 19,989 | 41,215 | 19,658 | 0 | 0 | 142,691 | ||||||
Investment properties | 0 | 0 | 0 | 0 | 0 | 970 | 0 | 970 | ||||||
Intangible assets and Goodwill | 2,907 | 44 | 2,737 | 0 | 406 | 0 | 0 | 6,095 | ||||||
Financial investments | 0 | 0 | 0 | 0 | 0 | 0 | 682 | 682 | ||||||
Deferred taxes | 0 | 728 | 71 | 525 | 0 | 0 | 4,563 | 5,887 | ||||||
Non-current assets | 51,002 | 14,506 | 22,797 | 41,740 | 20,065 | 970 | 12,791 | 163,871 | ||||||
Current assets | 38,176 | 3,285 | 8,645 | 5,946 | 10,798 | 0 | 13,261 | 80,111 | ||||||
Total Assets | 89,178 | 17,791 | 31,442 | 47,686 | 30,863 | 970 | 26,052 | 243,981 | ||||||
Operating liabilities | 11,345 | 2,826 | 13,731 | 12,158 | 3,727 | 0 | 2,130 | 45,917 | ||||||
Other liabilities | 70,316 | 11,951 | 16,771 | 9,823 | 14,822 | 156 | 1,432 | 125,272 | ||||||
Total liabilities | 81,661 | 14,776 | 30,502 | 21,982 | 18,550 | 156 | 3,562 | 171,189 |
Segment assets mainly include tangible fixed assets, intangible assets, inventories, accounts receivable and cash and cash equivalents.
Segment liabilities correspond to operating liabilities and exclude provisions and deferred taxes that are not easily allocated to the business. Deferred tax liabilities related to the revaluation of factories and real estate were allocated by business, as were loans.
3.2- Information by geographical area
The four segments of the Gruop's industrial (non-real estate) business components operate in three broad geographical areas, despite being managed worldwide. The breakdown of turnover by geographic segment on the 30th September 2020 and 2019 is as follows:
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INTERIM FINANCIAL REPORT (January to September 2020)
January to September 2020
Porcelain and | Stoneware | Stoneware | Crystal | Total | ||||
Geographical area | related products | Earthenware | oven to | Tableware | and | |||
tableware | ||||||||
glass | ||||||||
Portugal | 7,619 | 2,529 | 698 | 566 | 1,968 | 13,379 | ||
France | 667 | 184 | 9,043 | 4,229 | 4,082 | 18,206 | ||
Netherlands | 185 | 184 | 9,056 | 3,007 | 74 | 12,505 | ||
Italy | 135 | 111 | 774 | 4,242 | 8 | 5,270 | ||
Spain | 2,473 | 387 | 14 | 3,681 | 407 | 6,962 | ||
Germany | 570 | 71 | 2,828 | 1,133 | 17 | 4,619 | ||
USA | 1,015 | 372 | 192 | 0 | 267 | 1,845 | ||
United Kingdom | 193 | 339 | 49 | 558 | 657 | 1,797 | ||
Brazil | 839 | 28 | 110 | 0 | 20 | 997 | ||
Sweden | 131 | 355 | 1 | 591 | 9 | 1,086 | ||
Rest of Europe | 3,079 | 608 | 1,091 | 356 | 239 | 5,373 | ||
Other countries | 1,524 | 421 | 1,578 | 0 | 262 | 3,785 | ||
Total | 18,429 | 5,589 | 25,433 | 18,362 | 8,012 | 75,825 | ||
January to September 2019
Porcelain and | Stoneware | Stoneware | Crystal | ||||||
Geographical area | Earthenware | and | |||||||
related products | oven to | Tableware | |||||||
glass | Total | ||||||||
tableware | |||||||||
Portugal | 14,551 | 3,198 | 615 | 519 | 2,986 | 21,870 | |||
France | 570 | 261 | 1,432 | 4,187 | 4,582 | 11,032 | |||
Netherlands | 7,828 | 140 | 1,349 | 1,491 | 88 | 10,895 | |||
Italy | 2,510 | 113 | 3,309 | 4,016 | 26 | 9,974 | |||
Spain | 3,128 | 296 | 290 | 2,972 | 449 | 7,135 | |||
Germany | 219 | 49 | 2,870 | 2,580 | 25 | 5,744 | |||
USA | 1,080 | 310 | 737 | 0 | 244 | 2,370 | |||
United Kingdom | 381 | 211 | 166 | 994 | 481 | 2,234 | |||
Brazil | 1,448 | 121 | 271 | 0 | 97 | 1,936 | |||
Sweden | 1 | 388 | 9 | 1,192 | 7 | 1,597 | |||
Rest of Europe | 1,219 | 414 | 1,441 | 604 | 208 | 3,885 | |||
Other countries | 2,631 | 527 | 1,653 | 186 | 520 | 5,517 | |||
Total | 35,565 | 6,030 | 14,141 | 18,741 | 9,713 | 84,189 | |||
Total assets by geographical area: | Total liabilities by geographical area: | ||||||||
30/09/2020 | 31/12/2019 | 30/09/2020 | 31/12/2019 | ||||||
Portugal | 228,815 | 199,411 | Portugal | 152,856 | 145,724 | ||||
Rest of Europe | 5,006 | 7,095 | Rest of Europe | 6,643 | 8,673 | ||||
Other countries | 3,689 | 6,351 | Other countries | 7,718 | 8,170 | ||||
237,510 | 212,857 | 167,216 | 162,568 |
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INTERIM FINANCIAL REPORT (January to September 2020)
4. Financial instruments by class
Financial instruments were classified as follows:
Amount in the | |||
Notes | Consolidated | ||
Financial Position | |||
30/09/2020 | 31/12/2019 | ||
Financial assets | |||
Available-for-sale financial assets | |||
Financial investments | 8 | 682 | 682 |
Loans and receivables | |||
Accounts receivable and others | 12 | 20,296 | 21,727 |
State and other public entities | 18 | 3,497 | 2,152 |
Cash and cash equivalents | 7,366 | 14,462 | |
Total | 31,841 | 39,022 | |
Financial liabilities | |||
Loans obtained | |||
Interest-bearing bank loans at variable interest rates | 15 | 69,679 | 61,166 |
Unpaid loans (subsidies) | 15 | 17,403 | 16,685 |
Operating loans | 15 | 12,078 | 20,490 |
Lease liability | 9 | 7,121 | 7,532 |
Accounts payable | |||
Suppliers | 16 | 18,577 | 23,965 |
State and other public entities | 18 | 2,591 | 1,902 |
Other creditors | 16 | 7,855 | 5,063 |
Investors | 16 | 1,334 | 3,697 |
Advances to customers | 16 | 224 | 231 |
Total | 136,862 | 140,731 |
The financial assets available for sale were measured at the cost of investing in unlisted companies, and whose fair value cannot be reliably measured. The Board of Directors believes that the amount by which these assets are reflected is lower than the respective realization value.
5. Tangible fixed assets
During the nine-month period ending on the 30th of September 2020 and the year ended on the 31st of December 2019, the changes in the gross value of tangible fixed assets, as well as in the related accumulated amortization and impairment losses, were as follows:
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INTERIM FINANCIAL REPORT (January to September 2020)
Lands and | Transport equipment | Office | Other | Cultural | |||||||
and basic | assets tools | Assets in progress | Total | ||||||||
buildings | heritage | ||||||||||
equipment | |||||||||||
equipment | utensils | ||||||||||
Financial year 2020 | |||||||||||
Initial net amount | 69,421 | 56,155 | 62 | 1,308 | 9,901 | 5,845 | 142,691 | ||||
Additions | 694 | 741 | 18 | 89 | 1,702 | 0 | 3,244 | ||||
Sales and write-offs (net amount) | 0 | -93 | -1 | 0 | 0 | 0 | -93 | ||||
Impairments | 0 | 112 | 0 | 0 | 0 | 0 | 112 | ||||
Transfer | 276 | 4,544 | 34 | 337 | -5,390 | 0 | -200 | ||||
Depreciation of the financial year | -1,970 | -4,674 | -42 | -374 | 0 | 0 | -7,060 | ||||
Final net amount September 2020 | 68,421 | 56,785 | 71 | 1,359 | 6,212 | 5,845 | 138,693 | ||||
Lands and | Transport equipment | Office | Other | Cultural | |||||||
and basic | assets tools | Assets in progress | Total | ||||||||
buildings | equipment | heritage | |||||||||
equipment | utensils | ||||||||||
Financial year 2019 | |||||||||||
Initial net amount | 60,667 | 28,338 | 176 | 1,803 | 30,470 | 5,845 | 127,299 | ||||
Additions | 3,899 | 11,928 | 34 | 24 | 7,122 | 0 | 23,008 | ||||
Sales and write-offs (net amount) | 0 | -13 | -1 | 0 | 0 | 0 | -14 | ||||
Impairments | 0 | -632 | 0 | 0 | 0 | 0 | -632 | ||||
Revaluation | 1,189 | 0 | 0 | 0 | 0 | 0 | 1,189 | ||||
Transfer | 6,312 | 21,286 | 2 | 1 | -27,691 | 0 | -89 | ||||
Depreciation of the financial year | -2,646 | -4,752 | -150 | -521 | 0 | 0 | -8,069 | ||||
Final net amount December 2019 | 69,421 | 56,155 | 62 | 1,308 | 9,901 | 5,845 | 142,691 |
The amounts of property, plant and equipment increases on the 30th September 2020 are mainly related to the acquisition and installation of forming equipment to respond to a contract signed with a world-renowned brand (VAA, SA); and also related to the investment resulting from the New Shaping Stoneware project (Cerutil), still in progress.
During the nine-months ending on the 30th September 2020, the amount of increases in tangible fixed assets includes approximately 396 thousand euros related to the capitalization of expenses ("Works for the company itself"), associated with internal development project which relate to the investments described above. These expenses mainly relate to the internal personnel expenses of the Group that were involved in the development of the projects.
6. Intangible Assets
During the nine-month period ending on the 30th September 2020 and the financial year ended on the 31st December 2019, changes in the gross value of intangible assets, as well as in the respective amortizations and accumulated impairment losses, were as follows:
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INTERIM FINANCIAL REPORT (January to September 2020)
Change | Project | Software | Other | ||
intangible | Total | ||||
management | development | programs | |||
assets | |||||
Financial year 2020 | |||||
Initial net amount | 166 | 977 | 19 | 222 | 1,384 |
Increases | 0 | 0 | 0 | 20 | 20 |
Transfer | 0 | 0 | 200 | 0 | 200 |
Amortization of the financial year | 0 | -121 | -36 | -96 | -253 |
Final net amount September 2020 | 166 | 856 | 183 | 145 | 1,351 |
Change | Project | Software | Other | ||
intangible | Total | ||||
management | development | programs | |||
assets | |||||
Financial year 2019 | |||||
Initial net amount | 166 | 1,138 | 26 | 301 | 1,631 |
Amount | 0 | 0 | 9 | 51 | 60 |
Changes to the perimeter | 0 | 0 | 0 | 0 | 0 |
Amortization of the financial year | 0 | -161 | -18 | -217 | -396 |
Final net amount December 2019 | 166 | 977 | 19 | 222 | 1,384 |
7. Investment properties
These are real estate (land and buildings) not used in the ordinary course of the Group's business, and are for sale either in their current state or after a valuation process. However, part of this real estate generates rent and therefore, taking into account the Group's activity, these assets can also be considered as Investment Properties.
As a reference to the 30th September 2020, the Group decided not to request the independent evaluators to update the valuations carried out by reference to the 31st December 2019, since there were no circumstances that materially altered said valuations.
The amounts recognised in the income statement for September 2020 and 2019 related to income from investment properties were as follows, in thousands of euros:
30/09/2020 | 30/09/2019 | ||
Real estate rents | 2 | 1 | |
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INTERIM FINANCIAL REPORT (January to September 2020)
8. Financial investments
The heading "Financial investments" consists of residual investments in companies for which the Group has no control or significant influence and have been classified as available-for-sale financial investments.
Available-for-sale financial investments were measured at cost as they are investments in unlisted companies, whose fair value cannot be measured reliably.
The detail on the 30th September 2020 and on the 31st December 2019 of this heading is as follows:
Financial investments | 30/09/2020 | 31/12/2019 |
Capital Criativo - SCR, S.A. | 500 | 500 |
Imerys Ceramics Portugal, SA | 58 | 58 |
VAA-Empreendimentos Turísticos, SA | 45 | 45 |
Fundação Visabeira - Instit..Solid. Social | ||
36 | 36 | |
Lusitánia Gás SA | 20 | 20 |
Centro Tecnológico da Cerâmica e do Vidro | 6 | 6 |
Duofil Lda | 0 | 0 |
Other participations | 17 | |
17 | ||
682 | 682 | |
9. Use Rights and Operating Leases (IFRS 16)
Changes in the nine-month period ending on the 30th September 2020 in the amount of use rights, as well as in the respective accumulated amortizations and impairment losses, were as follows:
Buildings and other | ||
constructions | ||
Gross asset | ||
Opening balance on 1st January 2020 | 7,546 | |
Renewal / new contracts of the exercise | 1,249 | |
Final balance | 8,796 | |
Accumulated amortization and impairment losses | ||
Depreciations in the financial year | 1,976 | |
Final balance | 1,976 | |
Net asset value at 30th September 2020 | 6,820 | |
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INTERIM FINANCIAL REPORT (January to September 2020)
Changes in the nine-month period ending on the 30th September 2020 in the amount of lease liabilities was as follows:
Buildings and other | ||
constructions | ||
Liabilities | ||
Opening balance | 7,532 | |
New contracts of the exercise | 1,249 | |
Payments made in the financial year | -1,923 | |
Financial cost of the year | 248 | |
Final balance on 30th September 2020 | 7,121 | |
At the balance sheet date, non-current lease liabilities matured as follows:
Value in debt | 30/09/2020 |
Until 12 months | 2,527 |
From 12 to 24 months | 1,448 |
From 24 to 36 months | 1,368 |
≥ 36 months | 1,778 |
Total | 7,121 |
10. Income Tax
Current tax during the nine-month period ending on the 30th of September 2020 and the year ended on the 31st of December 2019 is recorded as an account payable to the company Grupo Visabeira, S.A., in accordance with the Special Regime for the Taxation of Groups of Companies.
On the 30th September 2020 and on the 31st December 2019, the detail and changes of deferred tax assets and liabilities, according to the temporary differences that originated them, is as follows:
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INTERIM FINANCIAL REPORT (January to September 2020)
Temporary differences | Base | Assets | Liabilities | Net effect | Impact P&L |
Dr/(Cr) | |||||
Balance on the 31st December 2019 | |||||
Revaluation of tangible fixed assets / Fair value invest. properties Investment | 41,084 | 0 | 9,244 | ||
Impairment of depreciable tangible fixed assets | 632 | 161 | |||
Retirement benefits - Benefit plan managed by the Grupo | 970 | 260 | 42 | ||
Adjustments and other provisions not fiscally accepted | 12,198 | 2,745 | 0 | ||
Reportable tax losses - Spain | 3,403 | 851 | 0 | ||
Reportable tax losses - Mozambique | 15 | 7 | 3 | ||
Tax credit | 0 | 1,615 | 0 | ||
Cancellation of intra-group transactions | 1,102 | 248 | 0 | ||
5,887 | 9,289 | ||||
Changes of the net information of the financial year | |||||
Revaluation of tangible fixed assets / Fair value invest. properties Investment | -46 | -10 | 10 | -10 | |
Impairment of depreciable tangible fixed assets | 0 | 0 | |||
Retirement benefits - Benefit plan managed by the Grupo | 0 | 0 | |||
Adjustments and other provisions not fiscally accepted | -1,169 | -263 | -263 | 263 | |
Reportable tax losses - Spain | 0 | 0 | |||
Reportable tax losses - Mozambique | 0 | 0 | |||
Tax credit | 0 | 0 | |||
Balance on the 30th September 2020 | -263 | -10 | -253 | 253 | |
Revaluation of tangible fixed assets / Fair value invest. properties Investment | 41,039 | 0 | 9,234 | ||
Impairment of depreciable tangible fixed assets | 632 | 161 | |||
Retirement benefits - Benefit plan managed by the Grupo | 970 | 260 | 42 | ||
Adjustments and other provisions not fiscally accepted | 11,029 | 2,482 | 0 | ||
Reportable tax losses - Spain | 3,403 | 851 | 0 | ||
Reportable tax losses - Mozambique | 15 | 7 | 3 | ||
Tax credit | 0 | 1,615 | 0 | ||
Cancellation of intra-group transactions | 1,102 | 248 | 0 | ||
5,624 | 9,278 | 0 |
Impact on the Income Statement - Income tax | |||
30/09/2020 | 30/09/2019 | ||
Current tax | 849 | -871 | |
Deferred tax | -253 | -366 |
596 -1,237
11. Inventories
The detail of inventories, with reference to the 30th September 2020 and to the 31st December 2019, is as follows:
30/09/2020 | 31/12/2019 | Adjustments | ||||||||
Gross asset | Impairments | Net | Gross | Impairments | Net | Movement | Movement | |||
Asset | Asset | Asset | 2020 | 2019 | ||||||
Goods | 1,467 | -908 | 559 | 1,604 | -758 | 846 | -150 | 225 | ||
Raw material | 6,358 | -1,644 | 4,714 | 6,081 | -1,644 | 4,438 | 0 | 67 | ||
Products under manufacture | 6,096 | 0 | 6,096 | 5,449 | 0 | 5,449 | 0 | 0 | ||
Finished and intermediate products | 44,501 | -8,368 | 36,132 | 39,746 | -8,708 | 31,038 | 340 | -633 | ||
58,421 | -10,920 | 47,501 | 52,880 | -11,110 | 41,770 | 190 | -341 | |||
The amounts of impairment and reversal of impairment losses are recognized in the consolidated statement of profit and loss, respectively, under "Cost of goods sold and materials consumed" and "Change in production", depending on whether these are goods/ raw materials or products.
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INTERIM FINANCIAL REPORT (January to September 2020)
12. Accounts receivable and others
On the 30th September 2020 and on the 31st December 2019, this heading was as follows:
30/09/2020 31/12/2019
Customers | 14,983 | 17,374 | |||
Other debtors | 5,313 | 4,354 | |||
20,296 | 21,727 | ||||
30/09/2020 31/12/2019 | |||||
Accounts receivable from customers and other debtors | 23,761 | 24,890 | |||
Less: impairment of accounts receivable | -3,465 | -3,163 | |||
Accounts receivable from customers and other debtors-net | 20,296 | 21,727 | |||
Other debtors | 30/09/2020 31/12/2019 | ||||
Advances from suppliers | 62 | 64 | |||
Expenses to be recognized (deferred costs) | 2,313 | 1,977 | |||
Pensions Fund | 187 | 187 | |||
Other debtors | 2,410 | 349 | |||
Other debtors - Grupo Visabeira companies (Note 26) | 341 | 1,776 | |||
5,313 | 4,354 | ||||
The amount of "Expenses to be recognized" corresponds to invoices received during the first nine months of 2020, but which refer to expenses incurred after that date, as well as maintenance and replacement material for the manufacturing areas and equipment, which is recognized as an expense taking into account its consumption/ use.
13. Share capital, treasury shares, issue premiums and other equity
The total authorized number of common shares is 167.650.060 book-entry shares with a nominal value of 0.80 euros per share. All issued shares are paid for.
No of shares | Common shares | Common share | Treasury shares | Treasury shares | ||
(thousands) | Turnover | Premium | Turnover | Premium | Total | |
On the 31st December 2018 and 2009 | 145,040 | 29,008 | 0 | -1 | -1 | 29,006 |
On the 30th June 2010 | 145,040 | 11,603 | 0 | -1 | -1 | 11,601 |
On the 31st December 2016 | 1,156,348 | 92,508 | 0 | -1 | -1 | 92,506 |
On the 31st December 2017 | 1,524,091 | 121,927 | 22,065 | -1 | -1 | 143,990 |
On the 31st December 2018 | 152,409 | 121,927 | 24,280 | -1 | -1 | 146,206 |
On the 31st December 2019 | 167,650 | 134,120 | 24,280 | -1 | -1 | 158,398 |
On the 30th of June 2020 | 167,650 | 134,120 | 24,232 | -1 | -1 | 158,350 |
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INTERIM FINANCIAL REPORT (January to September 2020)
At the end of the third quarter of 2020, the Company owned 110 treasury shares, valued at a price of 0.80 euros each. The premium paid per share was 1.687 euros. The total amount paid for share acquisition was 1,854 euros and this was deducted from equity.
Additionally, as of 30th September 2020 supplementary payments were made by the shareholder Visabeira Indústria, SGPS, S.A. in the amount of 38,181,653.20 euros. These supplementary payments are reimbursable while this operation reduces its own Company capital to a value lower than the sum of the social capital and its legal reserve.
14. Reserves and retained earnings
The changes on reserves and retained earnings headings were as follows:
Retained | Revaluation | Other | |||
of land and | Total | ||||
results | Reserves | ||||
buildings | |||||
Balance on the 1st January 2019 | -195,715 | 37,056 | 18,720 | -139,938 | |
Result of the previous year | 7,276 | 0 | 0 | 7,276 | |
Amounts that will be reclassified later in results | |||||
Other comprehensive income for the financial year | 667 | 0 | 0 | 667 | |
Balance on the 31st December 2019 | -187,772 | 37,056 | 18,720 | -131,994 | |
Result of the previous year | 7,226 | 0 | 0 | 7,226 | |
Amounts that will be reclassified later in results | |||||
Other comprehensive income for the financial year | -296 | 0 | 0 | -296 | |
Balance on the 30th September 2020 | -180,841 | 37,056 | 18,720 | -125,064 |
15. Loans obtained
Debts to credit institutions and shareholder loans were as follows on the 30th September 2020 and on the 31st December 2019:
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INTERIM FINANCIAL REPORT (January to September 2020)
30/09/2020 | 31/12/2019 | |
Non-Current Liabilities | ||
Bank loans | 60,959 | 54,407 |
Unpaid loans / subsidies | 15,827 | 13,815 |
Financial leases | 105 | 147 |
76,891 | 68,370 | |
Non-Current Liabilities | ||
Operating loans | 12,078 | 20,490 |
Financial leases | 118 | 144 |
Unpaid loans / subsidies | 1,576 | 2,869 |
Bank loans | 8,497 | 6,467 |
22,269 | 29,971 | |
99,160 | 98,341 |
The main guarantees and conditions of the agreement with the banks are described below. Moreover, the maturity schedule of bank loans and loans from other entities can be summarized as follows:
Entity | Typology | Amount in | 2020 | 2021 | 2022 | >= 2023 |
debt | ||||||
Various | Commercial paper | 0 | 0 | 0 | 0 | 0 |
Various | Current account | 2,083 | 2,083 | 0 | 0 | 0 |
Various | Mutual / Loans / Bond | 67,372 | 5,015 | 5,026 | 3,752 | 53,579 |
Bank loans | 69,455 | 7,098 | 5,026 | 3,752 | 53,579 | |
Various | Confirming loans | 3,603 | 3,603 | 0 | 0 | 0 |
Various | Funding "Express Bill" | 1,124 | 1,124 | 0 | 0 | 0 |
Various | Discount on export shipments | 6,306 | 6,306 | 0 | 0 | 0 |
Various | Factoring | 1,045 | 1,045 | 0 | 0 | 0 |
Operating loans | 12,078 | 12,078 | 0 | 0 | 0 | |
FRME * | Other loans | 449 | 0 | 449 | 0 | 0 |
FIEAE ** | Other loans | 1,200 | 0 | 0 | 0 | 1,200 |
AICEP *** | Repayable subsidies | 15,754 | 15 | 1,381 | 1,439 | 12,920 |
Unpaid loans / subsidies | 17,403 | 15 | 1,829 | 1,439 | 14,120 | |
Financial leases | 223 | 39 | 93 | 48 | 44 | |
Overall Total | Overall Total | 99,160 | 19,230 | 6,949 | 5,238 | 67,744 |
*FRME - Fundo para a Revitalização e Modernização do tecido Empresarial, SGPS, S.A. **FIEAE - Fundo Imobiliário Especial de Apoio às Empresas
***AICEP - Agência para o Investimento e Comércio Externo de Portugal
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INTERIM FINANCIAL REPORT (January to September 2020)
16. Accounts payable and other debts
On the 30th September 2020 and on the 31st December 2019, the heading "Accounts payable and other debts" was as follows:
30/09/2020 | 31/12/2019 | |
Suppliers | 18,577 | 23,965 |
Creditors and accrued expenses | 22,556 | 21,960 |
41,133 | 45,925 |
The breakdown of "Suppliers" heading on the 30th September 2020 and on the 31st December 2019 is as follows:
30/09/2020 | 31/12/2019 | |
Current account suppliers | 18,328 | 23,823 |
Suppliers invoices receivable and checking | 249 | 127 |
Suppliers' securities payable | 0 | 15 |
18,577 | 23,965 |
The heading "Creditors and accrued expenses" is broken down as follows:
30/09/2020 | 31/12/2019 | |
Accrued expenses | 10,937 | 10,955 |
Related parties - Grupo Visabeira (RETGS) (Note 26) | 2,206 | 2,014 |
Investors | 1,334 | 3,697 |
Other creditors | 7,855 | 5,063 |
Advances to customers | 224 | 231 |
22,556 | 21,960 |
The heading "Other Creditors" includes 7.3 million euros related to confirming commercial debt and operating payments to export (4.1 million euros on the 31st December 2019).
The heading "Accrued expenses" on the 30th September 2020 and on the 31st December 2019 are broken down as follows:
30/09/2020 | 31/12/2019 | |
Personnel costs | 7,414 | 6,576 |
Interest payable | 2,924 | 3,764 |
Natural gas | 1 | 1 |
Rappel | 155 | 186 |
Electricity | 29 | 29 |
Others | 414 | 398 |
10,937 | 10,955 |
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INTERIM FINANCIAL REPORT (January to September 2020)
17. Provisions
17.1 Provisions
The information related to provisions, regarding the periods to 30th September 2020 and the 31st December 2019, can be summarised as follows:
30/09/2020 | 31/12/2019 | |
Initial balance on the 01st January | 238 | 369 |
Changes to the perimeter | 0 | -61 |
Provision for other risks and charges | 0 | -70 |
Taxes | 0 | -70 |
Final balance | 238 | 238 |
17.2 Provision for pensions
Grupo VAA has several defined benefit pension plans in place, some under the responsibility of Fundos de Pensões specially created and managed by the actuary company (Futuro - Sociedade Gestora de Fundos de Pensões, S.A.) and others under the responsibility of the Group itself ("Plano de benefícios definido - sem Fundo").
Under the responsibility of Futuro- Sociedade Gestora de Fundos de Pensões, S.A. are two funds:
- One ("Ex-Atlantis"), called Adesão Coletiva Atlantis, has an indeterminate duration. All employees of Vista Alegre Atlantis, SA, from Ex - Atlantis - Cristais de Alcobaça, S.A, working for the Subsidiary until the 31st December 2013, and who meet the requirements of eligibility provided for in the Pension Plan, which is to say all participants who are 65 years old, and who have worked at least ten years for the subsidiary, are entitled to a supplementary old-age pension calculated in accordance with the Pension Plan.
This fund is financed by the Viva Pension Fund.
- Other ("Former Vista Alegre" and "Vista Alegre Grupo"), called the Fundo de Pensões Grupo Vista Alegre, also of indefinite duration, which includes the employees of Vista Alegre Atlantis SA, from the former Fábrica de Porcelana da Vista Alegre, S.A. and from Vista Alegre Grupo-VistaAlegre Participações S.A. who have signed an individual employment agreement before the 20th December 1976 and that are covered by the Collective Agreement for the Ceramic Industry.
The Grupo Vista Alegre fund is financed by the Grupo Vista Alegre Pension Fund.
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INTERIM FINANCIAL REPORT (January to September 2020)
18. State and other public entities
On the 30th September 2020 and on the 31st December 2019, the breakdown of the heading "State and other public entities" was as follows:
30/09/2020 | 31/12/2019 | ||||
Assets | Liabilities | Assets | Liabilities | ||
Income tax | 0 | 267 | 0 | 605 | |
Withholding of income tax | 0 | 255 | 0 | 295 | |
Taxes on commercial transactions* | 3,497 | 1,322 | 2,152 | 169 | |
Social security contributions | 0 | 748 | 0 | 833 | |
3,497 | 2,591 | 2,152 | 1,902 | ||
* VAT, ICMS, PIS, COFINS and IPI.
19. Subsidies
The main information on the investment subsidies allocated to the Group on the 30th September
2020 and on the 31st December 2019 is as follows:
Amortization | ||||
31/12/2019 | Reinforcement | (Note 23) | 30/09/2020 | |
Medium and long-term investment subsidies | 6,768 | 264 | -446 | 6,586 |
Stoneware Tableware Project (Ria Stone) | 4,182 | 80 | -370 | 3,892 |
Porcelain Project (Vista Alegre, S.A.) | 865 | 165 | -74 | 956 |
CerexCor & CristalLux Project (Vista Alegre S.A.) | 1,013 | 0 | 0 | 1,013 |
Cerutil Project (Cerutil) | 177 | 19 | -3 | 192 |
Bordalo Pinheiro Project (Bordalo Pinheiro) | 532 | 0 | 0 | 532 |
6,768 | 264 | -446 | 6,586 | |
The total balance as of 30th September 2020, refers to the benefit that the companies consider given that they enjoy financing free of any interest, taxes or expenses in the form of reimbursable subsidies financed by the European Union. This benefit will be reflected over the entire period until the completion of their repayment plan.
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INTERIM FINANCIAL REPORT (January to September 2020)
20. Revenue
During the nine-month period ending on the 30th September 2020 and 2019, the categories of revenue recognised include revenue from:
30/09/2020 | 30/09/2019 | |
Sales of goods | 75,461 | 83,806 |
Services provided | 364 | 383 |
75,825 | 84,189 |
21. Personnel costs
Expenses with personnel for the nine-month period ending on the 30th of September 2020 and 2019 may be analysed as follows:
30/09/2020 | 30/09/2019 | |
Salaries and other personnel costs | 23,886 | 24,823 |
Salaries and other short-term benefits of the Management | 558 | 475 |
Retirement pensions | 0 | 5 |
Expenses with salaries | 4,679 | 5,338 |
Total | 29,123 | 30,642 |
The liabilities with pension and retirement plans are explained in Note 17.
On the 30th September 2020 and 2019, the number of employees working for the Grouo (considering the division they work for) may be analysed as follows:
Number of employees at the end of September 2020 | 30/09/2020 | 30/09/2019 |
Cerutil - Cerâmicas Utilitárias, SA | 315 | 250 |
Faianças Artísticas Bordalo Pinheiro, SA | 298 | 289 |
VAA Vista Alegre Atlantis SGPS | 14 | 12 |
Vista Alegre Atlantis, SA | 1,489 | 1,552 |
Vista Alegre France, SAS | 5 | 6 |
VA - Vista Alegre España, SA | 53 | 53 |
VAA Brasil - Comércio, Importação e Exportação SA | 11 | 11 |
Vista Alegre Atlantis USA | 2 | 2 |
Vista Alegre Atlantis Moçambique, Lda | 3 | 5 |
Ria Stone Fábrica de Louça de Mesa em Grés, SA | 274 | 234 |
2,464 | 2,414 |
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INTERIM FINANCIAL REPORT (January to September 2020)
Average number of employees per company | 30/09/2020 | 30/09/2019 |
Cerutil - Cerâmicas Utilitárias, SA | 396 | 243 |
Faianças Artísticas Bordalo Pinheiro, SA | 308 | 278 |
VAA Vista Alegre Atlantis SGPS | 13 | 12 |
Vista Alegre Atlantis, SA | 1,522 | 1,549 |
Vista Alegre France, SAS | 5 | 7 |
VA - Vista Alegre España, SA | 53 | 53 |
VAA Brasil - Comércio, Importação e Exportação SA | 11 | 11 |
Vista Alegre Atlantis USA | 2 | 2 |
Vista Alegre Atlantis Moçambique, Lda | 4 | 5 |
Ria Stone Fábrica de Louça de Mesa em Grés, SA | 256 | 217 |
2,570 | 2,377 |
22. Services provided
On the 30th September 2020 and 2019, this heading was as follows:
30/09/2020 | 30/09/2019 | |
Electricity | 2,768 | 2,681 |
Specialized works | 1,919 | 2,459 |
Subcontracts | 1,358 | 1,716 |
Freight transport | 1,419 | 1,856 |
Conservation and repair | 1,361 | 1,443 |
Advertising and marketing | 1,089 | 1,224 |
Travels and stays | 525 | 654 |
Cleaning, hygiene and comfort | 444 | 394 |
Insurance | 456 | 358 |
Surveillance and safety | 393 | 325 |
Commissions | 307 | 311 |
Fuels, water and other fluids | 253 | 314 |
Royalties | 166 | 229 |
Tools and utensils for fast wear | 241 | 190 |
Fees | 120 | 161 |
Communication | 227 | 165 |
Rents | 138 | 521 |
Others | 272 | 237 |
13,454 | 15,238 |
For the nine-month period ending on the 30th September 2020, the heading "Rents and leases" includes the impact of the application of IFRS 16 standard that became effective on the 1st January 2019, and the amount of the third quarter of 2020 is 1.9 million euros, derived from the estimated future income and accounted for under amortisation.
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INTERIM FINANCIAL REPORT (January to September 2020)
23. Other operating income and expenses
Other operating income and expenses for the nine-month period ending on the 30th September
2020 and 2019 may be analysed as follows:
30/09/2020 | 30/09/2019 | ||||
Costs | Income | Costs | Income | ||
Costs and income relating to previous years | 143 | 0 | 0 | 0 | |
Fines and penalties/Contract benefits | 1 | 0 | 1 | 0 | |
Gains and losses with immobilization- reductions/disposal | 0 | 27 | 0 | 22 | |
Heath insurances - HR | 0 | 33 | 0 | 30 | |
Other subsidies | 0 | 1,092 | 0 | 0 | |
Commissions without charges at the stores (cards) | 2 | 0 | 492 | 0 | |
Offers/ samples stocks | 275 | 0 | 212 | 0 | |
Taxes | 160 | 0 | 133 | 0 | |
Currency exchanges differences | 0 | -1 | 0 | 106 | |
Up front discounts | 33 | 1 | 35 | 0 | |
Offering | 0 | 0 | 0 | 900 | |
Subsidies for operating and training | 0 | 1,130 | 0 | 246 | |
Investment subsidies (Note 19) | 0 | 446 | 0 | 920 | |
Sale of chips/waste, scrap, moulds and freight | 0 | 262 | 0 | 702 | |
Interest and similar | 0 | 0 | 95 | 0 | |
Other operating expenses and profit | 100 | 119 | 156 | 118 | |
713 | 3,110 | 1,123 | 3,045 |
The heading "Other subsidies" concerns extraordinary support in light of the reduction of economic activity in 2020 to date.
24. Financial result
The financial results for the nine-month period ending on the 30th September 2020 and 2019 were as follows:
30/09/2020 | 30/09/2019 | |
Interest with loans and overdrafts | -3,507 | -2,772 |
Interest with operating loans | -426 | -580 |
Interests IFRS 16 | -248 | 0 |
Financial income - interests | 196 | 11 |
-3,986 | -3,341 |
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INTERIM FINANCIAL REPORT (January to September 2020)
25. Commitments
Commitment towards investments
Commitments towards investments contracted but not yet incurred on the 30th September 2020 amount to 360 million euros, and regard the amounts already under contract relating to fixed asset orders, but only materialized over the following 12 months.
26. Balances and Transactions with related parties
The entities that, on the 30th September 2020, had a qualifying share in Grupo Vista Alegre were:
Structure of the Share Capital
Shares | ||
Shareholder | No of shares | % of voting rights |
Grupo Visabeira, SA (1) | ||
Directly (its own portfolio) | 5,548,417 | 3.31% |
Through Visabeira Indústria, SGPS, SA | 137,965,920 | 82.29% |
Total attributable to Grupo Visabeira, SA | 143,514,337 | 85.60% |
Caixa Geral de Depósitos, SA | 4,188,830 | 2.50% |
Free Float | 19,946,783 | 11.90% |
Sub-totals | 167,649,950 | 100.00% |
Treasury shares | 110 | 0.00% |
Total shares Vista Alegre Atlantis | 167,650,060 | 100.00% |
- The majority shareholder of VISTA ALEGRE ATLANTIS SGPS, S.A., VISABEIRA INDÚSTRIA, SGPS, S.A., is totally owned by Grupo Visabeira, S.A., whose majority shareholder, NCFGEST, S.A., possesses 99.45%, being this last company totally owned by the individual partner Fernando Campos Nunes.
The following transactions were carried out with parties related to the level of remuneration:
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INTERIM FINANCIAL REPORT (January to September 2020)
30/09/2020 | 30/09/2019 | ||
Salaries and other short-term benefits of the Management | 558 | 475 | |
Retirement pensions with former administrators | 0 | 5 | |
558 | 481 |
The remunerations previously described are all of a fixed nature, occurring during the nine-month period ending on the 30th September 2020 and 2019.
The outstanding balances on the 30th September 2020 and on the 31st December 2019, with related parties are almost exclusively derived from funding obtained from the VISABEIRA, CGD and BCP Groups.
The balances of assets and liabilities of related parties on the 30th September 2020 and on the 31st December 2019 are as follows:
30/09/2020 | 31/12/2019 | |
Assets | ||
Grupo CGD - Demand deposits | 2,272 | 2,317 |
Grupo Visabeira - Other Debtors | 341 | 222 |
2,613 | 2,540 | |
Liabilities | ||
Grupo CGD | ||
Operating loans | 3,123 | 4,017 |
Bank loans | 0 | 147 |
3,123 | 4,164 | |
Grupo Visabeira | ||
Suppliers and other creditors | 1,629 | 1,776 |
Related parties - RETGS (Note 16) | 2,206 | 2,014 |
3,835 | 3,790 | |
Transactions with related parties on the 30th September 2020 and 2019:
30/09/2020 | 31/12/2019 | |||
Purchases to | Sales to | Purchases to | Sales to | |
related | related | related | related | |
parties | parties | parties | parties | |
(COSTS) | (INCOME) | (COSTS) | (INCOME) | |
Grupo CGD | 268 | 0 | 817 | 0 |
GRUPO VISABEIRA | 915 | 110 | 3,078 | 1,355 |
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INTERIM FINANCIAL REPORT (January to September 2020)
27. Subsequent events
There are no events subsequent to the date of the financial statements that influence the reading and interpretation of these consolidated financial statements.
28. Companies included in the consolidation
On the 30th September 2020, the Companies which are part of Grupo VAA - Vista Alegre Atlantis and are part of the respective consolidated by the integral method are as follows:
Percentage | ||
of holding | ||
Companies | Head office | 30/09/2020 |
Vista Alegre Atlantis, SGPS, SA | Ílhavo | Parent company |
Bordalgest, SA | Lisbon | 100.00% |
Cerexport - Cerâmica de exportação, SA | Ílhavo | 100.00% |
Cerutil - Cerâmicas Utilitárias, SA | Sátão | 100.00% |
Faianças Artísticas Bordalo Pinheiro, SA | Caldas da Rainha | 86.14% |
Faianças da Capôa - Indústria Cerâmica, SA | Ílhavo | 100.00% |
Mexicova, SA | Mexico City | 100.00% |
Ria Stone Fábrica de Louça de Mesa em Grés, SA | Ílhavo | 100.00% |
Shree Sharda Vista Alegre Private Limited | Delhi | 50.00% |
VA - Vista Alegre España, SA | Madrid | 100.00% |
VAA Brasil - Comércio, Importação e Exportação, SA | S. Paulo | 89.93% |
VAA I.I. - Sociedade Imobiliária, SA | Ílhavo | 100.00% |
Vista Alegre Atlantis Moçambique, Lda | Maputo | 99.00% |
Vista Alegre Atlantis UK LTD | London | 100.00% |
Vista Alegre Atlantis, SA | Ílhavo | 100.00% |
Vista Alegre France, SAS | Paris | 100.00% |
Vista Alegre USA Corporation | New York | 100.00% |
Ílhavo, 27th November 2020
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VAA - Vista Alegre Atlantis SGPS SA published this content on 26 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2020 17:46:01 UTC