Further growth for the Piovan Group: €427.3 million in Revenue (+12.0% compared to the same period of the previous year); Adjusted EBITDA €55.7 million (+25.2% and 13.0% of revenue). Consolidated Net Profit €32.5 million (+13.4%). Excellent cash generation in the period: NFP €87.3 million (€111.8 million as at September 2022). Strong Technical Polymers (+13.8%), driven by the electrical conversion of Automotive, and Services (+21.3%). Capital expenditure grew: €8.1 million (€2.5 million in the first nine months of 2022). The Group's future direction sees the strengthening of the contribution to the Circular Economy, growth through acquisitions and an increase in the Food & Industrial Applications area.
The Board of Directors of Piovan S.p.A. approved the Periodic Financial Information as at 30 September 2023. This is a summary of the Group's financial performance for the first nine months of 2023 compared to September 2022: Total Consolidated Revenues and Other Income €427.3 million, +12.0% (+7.9% on a like-for-like basis); Adjusted Consolidated EBITDA of €55.7 million (13.0% of revenues and other income) +25.2% compared to 30 September 2022 (+22.2% on a like-for-like basis and excluding certain non-recurring items); Consolidated Operating Profit (EBIT) of €48.2 million (11.3% of revenues and other income); Consolidated Net Profit of €32.5 million, up €3.8 million (+13.4%) compared to 30 September 2022; Earnings per share was €0.65 as at 30 September 2023 (€0.56 as at 30 September 2022). Consolidated Net Financial Position stood at €87.3 million despite the increase in investments and the doubling of dividends paid to shareholders during the period.
Revenues by market area
• Technical Polymers Area: +13.8% with a good performance in all geographical areas. The increase can be attributed to (i) the increased use of recycled materials in rigid packaging, a sector in which the Group is a leader; (ii) higher increases in the automotive sector where the transition to electric models requires the replacement of metal components with technical polymers; (iii) investments in new pipelines and - more generally - continued growth in components in medical applications.
• Food & Industrial Applications Area: -9.8% compared to the first nine months of 2022, up from -19.9% in the first half of 2023. Order intake in the plastic powders market and project development timelines took some capacity away from food powders.
• Services: +21.3% of revenues compared to the same period last year. The Group is particularly keen on having a direct presence through sales subsidiaries through which it ensures after-sales service.
Revenues by geographical area: growth in all areas
• North America: +16.1%. Both Technical Polymers and the Food area performed well.
• Asia: +26.3%. There was a recovery in the Asian market, thanks also to the collection of some important orders in late 2022 and early 2023, and positive development in the Indian market.
• Europe: +4.2%. Growth in this area is limited due to large food projects being developed in Europe but destined for North America.
• South America: +11.6%. Good performance thanks to a satisfactory backlog at the beginning of the year.
Future strategic objectives and foreseeable development of operations
Increasing the Piovan Group's contribution to the Circular Economy. The evolution of European legislation on the production and use of plastics encourages the reuse of plastic objects and the use of recycled plastics. This legislation is an opportunity for the Piovan Group, which is very active in the change process thanks to its ever-increasing investment in R&D with 297 resources employed worldwide. Advanced technological innovations - many of which are patented - enable customers to develop technical products that can be multi-used and to develop quality products from 100% recycled polymers.
Since 2006, the Group has contributed to the construction of hundreds of plastics recycling plants and thousands of plants enabling new products to be made from recycled plastics. To date, the company estimates that about 32.4 per cent of its automations sold in the packaging, fibre and recycling sector - where post-consumer plastics are mainly used - are using recycled material.
Growth through acquisitions. The coming months will see the execution of IPEG's integration strategy in order to fully exploit its strategic potential. The Group will continue to evaluate potential acquisition and external growth opportunities, looking with interest at companies with technologies/products that can lengthen the value chain offered by the Group.
Increased market share in the Food & Industrial Applications area through both acquisitions and organic growth, primarily through the reorganisation of the sales network in a more capillary manner.
For a full reading of the financial results, please see the price sensitive press release available here.