PRESS RELEASE
B&C Speakers S.p.A.:
Board of Directors approves
the Interim Management Report at 30 June 2024
- Consolidated revenues of € 51.25 million (up 5.6% compared with € 48.54 million for the first half of 2023);
- Consolidated EBITDA of € 11.48 million (down 4.8% compared with € 12.06 million for the first half of 2023);
- Overall Group profit of € 11.83 million (up 45.4% compared to € 8.14 million in the first half of 2023);
- Group net financial position of € 1.80 million (€ 0.65 million at the end of 2023);
- Order book continuing to grow with respect to the first half of 2023 (+64% compared to the first half of 2023)
Bagno a Ripoli (Florence), 10 September 2024 - The Board of Directors of B&C Speakers S.p.A., one of the foremost international players in the design, manufacture, distribution and marketing of professional electro-acoustictransducers, has approved the Group Interim Report at 30 June 2024 in accordance with IFRS international accounting standards.
Consolidated revenue
Consolidated revenue reached € 51.2 million, up 5.6% with respect to the figure in the first six months of 2023, when the amount was € 48.5 million.
The contribution made by the new subsidiaries to turnover during the half came to € 6.3 million, distributed as follows in geographic terms: Eminence KY achieved turnover of € 3.6 million, mainly on the North American market, while B&C Speakers Cina achieved turnover of € 2.7 million on the Asian market.
With respect to sales by the rest of the B&C Group (under the B&C and 18s brands), note that the first half of 2024 ended on a downturn with respect to the same period in 2023. This decrease, equal to 7.5%, is mainly due to a slowdown on the Chinese market and the figure has improved significantly with respect to the figure recorded for the first quarter of 2024 (when the decrease in terms of sales was 12.7%).
New orders received during the first half of 2024 came to a total of 50 million (+64% compared to 2023), while in the same period of 2023 the amount was 30 million. This figure confirms the overall loyalty and stability of customers with respect to the Group's brands. Below is a full breakdown by geographic area for the first half of 2024, compared with the same period in 2023 (amounts in €):
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Geographical Area | 1st half 2024 | % | 1st half 2023 | % | Change | Change % |
Latin America | 4,004,485 | 7.8% | 3,946,663 | 8.1% | 57,822 | 1% |
Europe | 24,766,440 | 48.3% | 23,128,674 | 47.6% | 1,637,766 | 7% |
Italy | 3,663,457 | 7.1% | 3,513,022 | 7.2% | 150,435 | 4% |
North America | 10,822,330 | 21.1% | 8,913,217 | 18.4% | 1,909,114 | 21% |
Middle East & Africa | 378,655 | 0.7% | 836,642 | 1.7% | (457,987) | -55% |
Asia & Pacific | 7,611,750 | 14.9% | 8,203,644 | 16.9% | (591,894) | -7% |
Total | 51,247,118 | 100.0% | 48,541,862 | 100.0% | 2,705,257 | 5.57% |
Cost of sales
During the first six months of 2024 the cost of sales was fairly consistent in terms of its impact on revenues when compared to the same period in 2023, going from 62.7% to 62.5%. This trend was driven by significant improvements in efficiency relative to the cost of production components, which saw its impact on revenues improved by more than 2 percentage points compared to the same period in 2023. Conversely, direct personnel costs had a greater impact, due to the combined effect of lower volumes and the integration of the two new subsidiaries.
Indirect Personnel
Indirect personnel costs have risen as a percentage of revenue when compared to the first six months of 2023, going from 5.1% to 6.7%. In absolute terms, the figure for the first six months of 2024 is up 37% with respect to the first half of 2023, mainly due to the addition of new employees within the technical and sales structures of the two new subsidiaries in the scope of consolidation.
Commercial expenses
Commercial expenses saw a 33.6% increase in absolute terms when compared to the first six months of 2023. This increase is for the most part due to the inclusion of the two new subsidiaries in the scope of consolidation, with their respective commercial expenses rising to carry out development projects for Eminence-brand products.
Administrative costs and overheads
Administrative costs and overheads increased by € 603 thousand with respect to the corresponding figure in 2023, and their impact on revenues also rose from 6.6% to 7.5%. The increase in administrative costs and overheads is entirely due to the inclusion of the two new subsidiaries in the scope of consolidation. In fact, with the same scope as the first half of 2023, administrative costs and overheads would have fallen by 4.8%.
EBITDA and EBITDA Margin
As a result of these trends, EBITDA for the first six months of 2024 was € 11.5 million, down by € 0.6 million (-4.8%) with respect to the same period in 2023.
The EBITDA margin for the first six months of 2024 was equal to 22.4% of revenues, compared to 24.8% in the same period in 2023. The dilution of margins is due to the inclusion of the two new subsidiaries, whose margins are lower than those of B&C Speakers.
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Note that utilising the same scope as in the first half of 2023, the EBITDA margin would have been better - 25.2% compared to 24.8% in the first half of 2023 - demonstrating the well- established efficiency of the original structure of the B&C Speakers Group.
Depreciation and amortisation
Depreciation and amortisation of property, plant and equipment, intangible assets and rights of use increased compared to the first six months of 2023, amounting to € 1.3 million (€ 1 million in the first six months of 2023). This increase is mainly due to the inclusion of the two new subsidiaries.
EBIT and EBIT Margin
EBIT for the first six months of 2024 amounted to € 10.2 million, down by 7.5% with respect to the same period in 2023 (when the amount was € 11 million). The EBIT margin was 19.9% of revenue (22.7% in the same period of 2023).
Overall Group Profit
Overall Group Profit at the end of the first six months of 2024 came to € 11.8 million, representing 23.1% of consolidated revenue, with an overall increase of 45.4% with respect to the same period in 2023.
This trend is mainly due to the Patent Box subsidy, which was renewed for the 2020 tax period and subsequent four tax periods in the first half of 2024, after the ruling proceedings with the Revenues Agency was finalised.
The positive effect of this subsidy on the annual income statement is equal to € 3,957 thousand.
The Net Financial Position (NFP) is equal to € 1.8 million, compared to € 0.6 million at the end of 2023. The excellent cash flow coming from operations (€ 7.98 million) had a positive impact on the NFP, making it possible to limit the effects associated with repayments of existing loans and the distribution of dividends for € 7.7 million in May.
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(values in Euro thousands) | 30 June | 31 December | |
2024 (a) | 2023 (a) | Change % | |
A. Cash | 10,368 | 14,613 | -29% |
C. Other current financial assets | 7,027 | 6,979 | 1% |
D. Cash and cash equivalent (A+C) | 17,395 | 21,592 | -19% |
E. Bank overdrafts | (2,500) | (2,708) | - |
F. Current portion of non current borrowings | (6,693) | (8,855) | -24% |
G. Current borrowingse (E+F) | (9,193) | (11,563) | -20% |
H. Current net financial indebtness (G+D) | 8,202 | 10,029 | -18% |
I. Non current financial indebtness | (10,009) | (10,681) | -6% |
L. Non current financial indebtness | (10,009) | (10,681) | -6% |
M. Total financial indebteness (H+L) | (1,807) | (652) | 177% |
The Group's reclassified Income Statement for the first half of 2024 compared with the same period in the previous year is presented below:
Economic trends - Group B&C Speakers | ||||
(€ thousands) | 6 months | Incidence | 6 months | Incidence |
2024 | 2023 | |||
Revenues | 51,247 | 100.00% | 48,542 | 100.0% |
Cost of sales | (32,041) | -62.52% | (30,468) | -62.8% |
Gross margin | 19,207 | 37.48% | 18,073 | 37.2% |
Other revenues | 159 | 0.31% | 170 | 0.3% |
Cost of indirect labour | (3,428) | -6.69% | (2,490) | -5.1% |
Commercial expenses | (640) | -1.25% | (479) | -1.0% |
General and administrative expenses | (3,818) | -7.45% | (3,216) | -6.6% |
Ebitda | 11,480 | 22.40% | 12,059 | 24.8% |
Depreciation and Amortization | (1,289) | -2.52% | (1,035) | -2.1% |
Writedowns | - | 0.00% | 0 | 0.0% |
Earning before interest and taxes (Ebit) | 10,191 | 19.89% | 11,024 | 22.7% |
Writedown of investments in non controlled associates | - | 0.00% | - | 0.0% |
Financial costs | (659) | -1.29% | (981) | -2.0% |
Financial income | 994 | 1.94% | 785 | 1.6% |
Earning before taxes (Ebt) | 10,526 | 20.54% | 10,828 | 22.3% |
Income taxes | 1,202 | 2.35% | (2,715) | -5.6% |
Profit for the year | 11,728 | 22.89% | 8,113 | 16.7% |
Minority interest | 0 | 0.00% | 0 | 0.0% |
Group Net Result | 11,728 | 22.89% | 8,113 | 16.7% |
Other comprehensive result | 105 | 0.20% | 26 | 0.1% |
Total Comprehensive result | 11,833 | 23.09% | 8,138 | 16.8% |
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SIGNIFICANT EVENTS SUBSEQUENT TO 30 JUNE 2024 AND OUTLOOK FOR THE YEAR
New orders received during 2024 up to the date of this press release have seen constant growth with respect to the same period in 2023, even if during the summer a slowing was seen in terms of incoming orders with respect to the beginning of the year. Group management believes, based on available information, that 2024 will end with better production and sales levels than those registered in 2023.
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Below are the Consolidated Income Statement and Balance Sheet schedules for the first half of 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 30 June | 31 December |
(Values in Euro) | 2024 | 2023 |
ASSETS | ||
Fixed assets | ||
Tangible assets | 4,790,125 | 3,872,531 |
Right of use | 5,751,153 | 6,477,332 |
Goodwill | 2,318,181 | 2,318,181 |
Other intangible assets | 502,280 | 447,843 |
Deferred tax assets | 981,904 | 906,969 |
Other non current assets | 579,028 | 579,561 |
related parties | 6,700 | 6,700 |
Total non current assets | 14,922,671 | 14,602,417 |
Currents assets | ||
Inventory | 28,536,578 | 27,623,705 |
Trade receivables | 25,450,410 | 18,149,825 |
Tax assets | 1,311,177 | 190,315 |
Other current assets | 9,284,994 | 11,168,904 |
Cash and cash equivalents | 10,368,291 | 14,612,848 |
Total current assets | 74,951,450 | 71,745,597 |
Total assets | 89,874,121 | 86,348,014 |
LIABILITIES | ||
Equity | ||
Share capital | 1,099,370 | 1,099,613 |
Other reserves | 5,523,008 | 5,589,481 |
Foreign exchange reserve | 462,761 | 365,116 |
Retained earnings | 43,211,352 | 39,156,124 |
Total equity attributable to shareholders of the parent | 50,296,490 | 46,210,334 |
Minority interest | - | - |
Total equity | 50,296,490 | 46,210,334 |
Non current liabilities | ||
Long-term borrowings | 5,331,926 | 5,452,443 |
Long-term lease liabilities | 4,676,598 | 5,228,386 |
related parties | 2,034,972 | 2,452,012 |
Severance Indemnities | 845,037 | 2,537,875 |
Provisions for risk and charges | 43,012 | 43,012 |
Total non current liabilities | 10,896,573 | 13,261,716 |
Current liabilities | ||
Short-term borrowings | 7,912,087 | 10,147,066 |
Short-term lease liabilities | 1,281,272 | 1,416,216 |
related parties | 875,489 | 921,670 |
Trade liabilities | 14,943,780 | 10,823,737 |
related parties | 86,981 | 88,737 |
Tax liabilities | 859,064 | 1,011,163 |
Other current liabilities | 3,684,854 | 3,477,782 |
Total current liabilities | 28,681,057 | 26,875,964 |
Total Liabilities | 89,874,121 | 86,348,014 |
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 1 H 2024 | 1 H 2023 |
(Values in Euro) | ||
Revenues | 51,247,119 | 48,541,861 |
Cost of sales | (32,040,610) | (30,468,416) |
Other revenues | 159,171 | 169,770 |
Cost of indirect labour | (3,427,927) | (2,489,662) |
Commercial expenses | (639,502) | (478,825) |
General and administrative expenses | (3,818,352) | (3,215,746) |
Depreciation and amortization | (1,289,005) | (1,035,166) |
Writedowns | - | 0 |
Earning before interest and taxes | 10,190,893 | 11,023,817 |
Writedown of investments in non controlled associates | - | - |
Financial costs | (659,181) | (981,259) |
related parties | (33,640) | (41,873) |
Financial income | 994,308 | 785,471 |
Earning before taxes | 10,526,020 | 10,828,029 |
Income taxes | 1,202,470 | (2,715,429) |
Profit for the year (A) | 11,728,491 | 8,112,600 |
Other comprehensive income/(losses) for the year that will not be reclassified in icome | ||
statement: | ||
Actuarial gain/(losses) on DBO (net of tax) | 7,006 | 1,008 |
Other comprehensive income/(losses) for the year that will be reclassified in icome | ||
statement: | ||
Exchange differences on translating foreign operations | 97,645 | 24,867 |
Total other comprehensive income/(losses) for the year (B) | 104,652 | 25,875 |
Total comprehensive income (A) + (B) | 11,833,142 | 8,138,475 |
Profit attributable to: | ||
Owners of the parent | 11,728,491 | 8,112,600 |
Minority interest | - | - |
Total comprehensive income atributable to: | ||
Owners of the parent | 11,833,142 | 8,138,475 |
Minority interest | - | - |
Basic earning per share | 1.07 | 0.75 |
Diluted earning per share | 1.07 | 0.75 |
The Financial Reporting Manager of B&C Speakers S.p.A., Francesco Spapperi, hereby declares, pursuant to Art. 154-bis, section 2 of Italian Legislative Decree 58/1998 - that the accounting disclosures contained in this press release are consistent with the company's accounting documents, books and records.
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B&C Speakers S.p.A.
Francesco Spapperi (Head of Investor Relations),
Email: investors@bcspeakers.com
B&C Speakers S.p.A. is an international leader in the design, production, distribution and marketing of professional electro-acoustic transducers (the main components in acoustic speakers for music, commonly referred to as loudspeakers), supplied mainly to professional audio-system manufacturers (OEM). With around 347 employees, approximately 12% of whom are in its Research and Development Department, B&C Speakers carries out all design, production, marketing and control activities under the Group's brands at its offices in Florence, Reggio Emilia, Eminence (KY-USA) and DongGuan (CN): B&C, 18SOUND, EMINENCE and CIARE. Most of its products are developed according to its key customers' specifications. B&C Speakers also operates in the US and Brazil through two subsidiaries carrying out commercial activities.
Press Office
Spriano Communication
Fiorella Girardo -fgirardo@sprianocommunication.com
Cristina Tronconi -ctronconi@sprianocommunicaton.com
www.sprianocommunication.com
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