Piovan Group Financial Statements approved: € 531.4 million revenue (+85.1%), net profit € 40.6 million (+46.5%), Adjusted EBITDA € 62.7 million (+53%). Significant circular economy revenues (+20% on an organic basis). Future targets: contribution to circular economy, growth through acquisitions, increase in Food & non Plastic and Services area.
The Board of Directors of Piovan S.p.A. approves the financial statements for the year 2022, the year that saw the consolidation of IPEG, Inc. as of 1 February. 531.4 million in revenues (+85.1% compared to 31 December 2021; +13.5% on a like-for-like basis and excluding non-recurring items). Consolidated Adjusted EBITDA amounted to € 62.7 million (excluding certain non-recurring items from EBITDA), 11.8% of revenue and other income, up 53% compared to 2021 (+12.4% on a like-for-like basis and excluding certain non-recurring items). Consolidated net profit amounted to € 40.6 million (7.6% of revenue and other income excluding the effects of PPA, +46.5% compared to 31 December 2021). Profit for the year amounted to € 34.8 million, up from € 27.7 million in the previous year. As a percentage of total revenues and other income, it was 6.6% (9.6% in 2021).
“Despite the complicated global scenario, once again our Group consolidates another year of growth, with revenues exceeding € 500 Million, a workforce of more than 1,800 employees and an Adjusted EBITDA up 53%. None of this would be possible if Piovan Group had not continued to set its strategy on its three historic fundamental pillars: CUSTOMERS, PEOPLE and INNOVATION. Never as in this year has the combination of these 3 elements produced excellent results in every field. But our strategy cannot disregard a fourth element that cuts across those mentioned above, which is the focus on SUSTAINABILITY” - declares Nicola Piovan, Executive Chairman of Piovan S.p.A..
“The Company's choices of increasing focus on sustainability and circular economy have been financially rewarding and have led us to achieve important recognitions. First, with the improvement of our sustainability rating and the obtaining of the prestigious "Industry Top Rated" badge. Then, by the awarding of important orders in the circular economy, including automation for Asia's largest factory of NatureWorks - the world's largest producer of biopolymers. Thanks to the new technologies developed, revenues in the strategic circular economy segment are growing by more than 20% on an organic basis, demonstrating once again how the Group is among the leaders in the industry.” - adds Filippo Zuppichin, CEO of Piovan S.p.A..
Piovan Group's revenues relate to the sectors:
- Plastic, +13.2% in revenues - with a considerable performance in Europe and Asia - spread across all segments, particularly in (i) Packaging, where the Group is a world leader and active in the conversion to recycled polymers, (ii) Consumer & Technical, with the synthetic fibre sector in the highlights, and (iii) Automotive, which is recovering slightly thanks to investments in electric models;
- Food & non-Plastic, +9.1% supported by major North American orders;
- Services, +12.9% of revenues, with a significant contribution from the Packaging segment.
IPEG's contribution was decisive in all businesses, contributing € 151.3 million in revenues for the Plastic area, € 15.7 for the Food & non-Plastic area and € 35.9 for the Services area.
Revenues by geographic area: on a like-for-like basis, there was growth across all geographic areas, with substantial stability in the EMEA region. Including the results attributable to IPEG, performance improved further in all geographical areas, with North America becoming the reference market contributing 52.5% of total results, followed by EMEA (35.7%), Asia (8.5%) and South America (3.4%).
2022 and early 2023: new companies and sales subsidiary, large orders and technological recognition
In addition to the acquisition of IPEG, during 2022 the Group established a new company in China, Piovan Industrial Automation Co., LTD, in order to establish the Piovan Group's new plant in the country, which will also be the headquarters for all Group subsidiaries in the Asian region. The site will be dedicated to the design and production of complete automation systems for the processing of plastics, food powders and refrigeration solutions.
In addition, through its controlled Pelletron, Inc. it won a major order from NatureWorks, the world's largest producer of biopolymers from renewable resources, for the automation of a new PLA plant in Thailand with a production capacity of 75,000 mt per year.
With a view to further geographical expansion, the Group established a new sales subsidiary in Indonesia - PT Piovan Technology Indonesia - on 6 January 2008 in order to provide local and increasingly direct service to customers in this country.
In addition, in the area of innovation, during the year the company entered into an agreement with the Italian Revenue Agency, known as the Patent Box, for tax relief on the direct use of its software, industrial patents and know-how, which are linked by a complementarity bond. This facilitation allows the partial detaxation of income from the direct use of the Company's intangible assets.
Foreseeable development of operations
The Piovan Group is present in several geographic areas and in diversified sectors, which mitigates the risk associated with the current geopolitical crisis and allows us to look to the future positively. Resilient sectors such as medical and flexible packaging are expected to hold up, and automotive is expected to improve.
The focus of the Group in the short to medium term will be the integration of IPEG and the consolidation of its leading position worldwide.
European legislation is increasingly oriented towards the use of recycled or compostable polymers, which represents an important opportunity for the Piovan Group to sell the technologies developed in recent years aimed at the automation, treatment and screening of recycled and compostable plastics. The company estimates that more than 25% of the automation sold in the packaging, fibre and recycling sectors are used recycled material (percentage excluding the contribution of IPEG). In addition, between 2006 and 2022 the Group has built more than 350 plants for recycling plastics and thousands of plants to produce new products with recycled polymers.