Cembre S.p.a. MIL:CMB
Cembre S p A : ANNUAL FINANCIAL REPORT 2024
Source: MarketScreener
Cembre S.p.A.
Head Office: Via Serenissima 9, Brescia, Italy Share Capital: EUR 8,840,000 (fully paid-up).
Registration no: 00541390175 (Commercial Register of Brescia)
This document contains translations of the draft statutory annual financial statements and consolidated annual financial statements prepared in the Italian language for the purpose of the law.
This document is not compliant with the provisions of the
Commission Delegated Regulation (EU) 2019/815.
Contents
CONTENTS
REPORT ON OPERATIONS FOR THE 2024 FINANCIAL YEAR
Report on Operations for the 2024 Financial Year
Section 1 - Operating performance 1
Attachment 1: Comparative Consolidated Income Statement 22
Attachment 2: Corporate Boards 23
Section 2 - Sustainability Report 25
Certification of the Sustainability Report pursuant to article 154-bis of Legislative
Decree 58/98 159
CONSOLIDATED FINANCIAL STATEMENTS OF THE CEMBRE GROUP AT DECEMBER 31, 2024
Consolidated Financial Statements at December 31, 2024 of the Cembre Group
Consolidated Statement of Financial Position 160
Consolidated Comprehensive Income Statement 161
Consolidated Cash Flow Statement 162
Statement of Changes in the Consolidated Shareholders' Equity 163
Notes to the Consolidated Financial Statements 164
Certification pursuant to article 154-bis of Legislative Decree 58/98 212
DRAFT FINANCIAL STATEMENTS OF CEMBRE S.P.A. AT DECEMBER 31, 2024
Draft Financial Statements at December 31, 2024 of Cembre S.p.A.
Statement of Financial Position 213
Statement of Comprehensive Income 214
Statement of Cash Flows 215
Statement of Changes in the Shareholders' Equity 216
Notes to the Financial Statements 217
Attachment 1: Comparative Income Statement 261
Attachment 2: Compensation for auditing services and other services 262
Certification pursuant to article 154-bis of Legislative Decree 58/98 263
Annual Financial Report 2024
Report on Operations for the 2024 Financial Year
SECTION 1 - OPERATING PERFORMANCE
Operating review
FY 2024 closed with satisfactory results for the Cembre Group. Consolidated revenues reached €229.7 million, an increase of 3.2% over 2023.
The performance of consolidated sales by geographical areas shows 2.3% growth in the
Italian market, with sales equal to €98.9 million. Sales in the rest of Europe grew by 6.2% on the previous year to €108.6 million while sales in the rest of the World were 5.7% lower, reaching €22.2 million. In 2024, sales revenues to the Italian market represented 43.0% of the total (43.4% in 2023), sales to the rest of Europe 46.9% (46.0% in 2023) and sales in the rest of the world represented 9.7% of total sales (10.6% in 2023).
Sales by geographical area:
(euro '000) | 2024 | 2023 | Change | 2022 | 2021 | 2020 | 2019 |
Italy | 98,892 | 96,691 | 2.3% | 84,385 | 70,406 | 55,955 | 58,469 |
Rest of Europe | 108,574 | 102,280 | 6.2% | 93,214 | 78,772 | 64,050 | 68,757 |
Rest of the World | 22,247 | 23,580 | (5.7%) | 21,197 | 17,657 | 17,132 | 19,070 |
Total | 229,713 | 222,551 | 3.2% | 198,796 | 166,835 | 137,137 | 146,296 |
Revenues by Group company (net of intragroup sales):
(euro '000) | 2024 | 2023 | Change | 2022 | 2021 | 2020 | 2019 |
Parent Company | 123,031 | 121,141 | 1.6% | 109,318 | 91,708 | 73,578 | 76,917 |
Cembre Ltd. (UK) | 31,186 | 27,247 | 14.5% | 25,293 | 22,633 | 16,688 | 19,274 |
Cembre S.a.r.l. (F) | 15,303 | 14,223 | 7.6% | 12,124 | 11,258 | 9,557 | 10,654 |
Cembre España S.L.U. (E) | 23,079 | 20,539 | 12.4% | 16,988 | 12,471 | 11,107 | 11,765 |
Cembre GmbH (D) | 22,510 | 24,437 | (7.9%) | 21,935 | 18,875 | 15,587 | 15,149 |
Cembre Inc. (USA) | 14,604 | 14,964 | (2.4%) | 13,138 | 9,890 | 10,620 | 12,537 |
Cembre BV (NL) | - | - | n.a. | - | - | - | - |
Cembre El. Conn. Shanghai Limited (CN) | - | - | n.a. | - | - | - | - |
Total | 229,713 | 222,551 | 3.2% | 198,796 | 166,835 | 137,137 | 146,296 |
Cembre B.V. and Cembre Electrical Connections Shanghai Limited, established in
September 2024, began operating in 2025.
Overall, sales of the foreign subsidiaries increased by 5.2% from €101.4 million in FY 2023, or 45.6% of consolidated revenue, to €106.7 million in FY 2024, accounting for 46.4% of total consolidated revenue.
Revenues from sales of the various companies prior to consolidation are outlined below:
Revenues from sales prior to consolidation | |||||||
(euro '000) | 2024 | 2023 | Change | 2022 | 2021 | 2020 | 2019 |
Cembre S.p.A. | 175,932 | 173,061 | 1.7% | 149,516 | 125,696 | 101,410 | 108,809 |
Cembre Ltd. (UK) | 33,998 | 29,812 | 14.0% | 25,574 | 24,318 | 18,207 | 21,254 |
Cembre S.a.r.l. (F) | 15,356 | 14,295 | 7.4% | 12,403 | 11,532 | 9,748 | 10,799 |
Cembre España S.L.U. (E) | 23,119 | 20,589 | 12.3% | 17,001 | 12,518 | 11,111 | 11,779 |
Cembre GmbH (D) | 22,620 | 24,649 | (8.2%) | 22,063 | 19,002 | 15,662 | 15,237 |
Cembre Inc. (USA) | 14,614 | 15,058 | (2.9%) | 13,193 | 9,917 | 10,663 | 12,572 |
Cembre BV (NL) | - | - | n.a. | - | - | - | - |
Cembre El.Con.Shanghai Lim. (CN) | - | - | n.a. | - | - | - | - |
In 2024, Group companies reported the following results:
Net result prior to consolidation | |||||||
(euro '000) | 2024 | 2023 | Change | 2022 | 2021 | 2020 | 2019 |
Cembre S.p.A. | 37,200 | 39,629 | (6.1%) | 29,117 | 23,420 | 16,455 | 22,600 |
Cembre Ltd. (UK) | 2,754 | 1,471 | 87.2% | 2,449 | 2,113 | 1,408 | 2,062 |
Cembre S.a.r.l. (F) | (274) | 236 | n.a. | 647 | (327) | 221 | 338 |
Cembre España S.L.U. (E) | 2,370 | 1,953 | 21.4% | 1,530 | 682 | 491 | 443 |
Cembre GmbH (D) | 981 | 1,277 | (23.2%) | 1,360 | 1,096 | 515 | 367 |
Cembre Inc. (USA) | 391 | 128 | n.a. | 491 | 705 | 385 | 666 |
Cembre BV (NL) | - | - | n.a. | - | - | - | - |
Cembre El.Con.Shanghai Lim. (CN) | (16) | - | n.a. | - | - | - | - |
For a more direct assessment of the effect of foreign exchange translations, we include below sales figures of Group companies operating outside the euro area in the respective currency:
Curren | Revenues from sales prior to consolidation | |||||||
(euro '000) | cy | 2024 | 2023 | Change | 2022 | 2021 | 2020 | 2019 |
Cembre Ltd. (UK) | Gbp | 28,783 | 25,930 | 11.0% | 23,514 | 20,904 | 16,198 | 18,656 |
Cembre Inc. (USA) | US$ | 15,817 | 16,282 | (2.9%) | 13,893 | 11,730 | 12,179 | 14,075 |
Cembre El. Con. Shanghai.(CN) | Cny¥ | 0 | - | n.a. | - | - | - | - |
Curren | Net result prior to consolidation | |||||||
(euro '000) | cy | 2024 | 2023 | Change | 2022 | 2021 | 2020 | 2019 |
Cembre Ltd. (UK) | Gbp | 2,359 | 1,280 | 84.3% | 2,088 | 1,816 | 1,253 | 1,810 |
Cembre Inc. (USA) | US$ | 439 | 138 | n.a. | 517 | 834 | 439 | 833 |
Cembre El.Conn. Shanghai L. (CN) | Cny¥ | (128) | - | n.a. | - | - | - | - |
To provide a better understanding of the consolidated financial performance for 2024, a
Comparative Consolidated Income Statement for the previous year showing percentage changes is enclosed as Attachment 1.
Gross operating profit for the period amounted to €66,177 thousand, representing a 28.8% margin on sales, down 0.6% on 2023 when it amounted to €66,569 thousand, representing a 29.9% margin on sales. The incidence of cost of sales on revenue has slightly decreased compared to 2023, dropping from 32.1% to 31.9%.
The incidence of personnel costs on revenue has increased, rising from 25.5% to 26.8%.
The average number of employees engaged by the Group during the period grew from 863 in 2023 (including 91 temporary workers) to 903 in 2024 (including 86 temporary workers).
Consolidated operating profit for the period amounted to €52,804 thousand, representing a 23.0% margin on sales, down 2.1% on €53,964 thousand in 2023, when it represented a 24.2% margin on sales.
Consolidated profit before taxes amounted to €52,726 thousand, representing a 23.0% margin on sales, down 2.0% on €53,828 thousand in 2023, when it represented a 24.2% margin on sales.
Consolidated net profit for the year amounted to €42,590 thousand, representing a 18.5% margin on sales, up by 4.3% compared to 2023, when it amounted to €40,828 thousand and represented a 18.3% margin on sales.
It should be noted that the net result for the 2024 financial year includes an extraordinary tax benefit related to the 2021 financial year amounting to €1.88 million and an extraordinary tax benefit related to the 2022 financial year amounting to €2.06 million, following the signing of a specific agreement with the Italian Revenue Agency regarding the "Patent Box" tax relief for the 2020-2024 tax years. The tax benefits for the years 2023 and 2024 are still being determined and will be accounted for when they can be calculated with the appropriate accuracy.
For further information on this agreement, please refer to the note on Income Taxes in the Notes to the 2024 Financial Statements.
The consolidated net financial position went from a surplus of €18.2 million at December 31, 2023 to a surplus of €1.9 million at December 31, 2024.
See the notes and the statement of cash flows for further detail.
Capital expenditure
Capital expenditure by the Group in 2024 with regard to fixed assets, growth of amortization and depreciation, is broken down as follows:
(euro '000) | 2024 | 2023 | Change |
Capital expenditure on intangible fixes assets | 1,341 | 1,407 | (66) |
Capital expenditure on tangible fixes assets | 28,178 | 13,162 | 15,016 |
Total | 29,519 | 14,569 | 14,950 |
More detail is provided in the notes under Property, plant and equipment.
Results of the Parent Company
Results of the Parent Company for the last two financial years are shown in the table below.
(euro '000) | 2024 | % | 2023 | % | Change |
Revenue from contracts with customers | 175,932 | 100 | 173,061 | 100 | 1.7 |
Gross operating profit | 55,089 | 31.3 | 57,657 | 33.3 | (4.5) |
Operating profit | 44,771 | 25.4 | 47,777 | 27.6 | (6.3) |
Pre-tax result | 45,282 | 25.7 | 51,103 | 29.5 | (11.4) |
Net profit/loss for the year | 37,200 | 21.1 | 39,629 | 22.9 | (6.1) |
In 2024, Cembre S.p.A. recognised €484 thousand in dividends from its subsidiaries as compared with €3,413 thousand in 2023.
Revenues from sales and services of Cembre S.p.A. were up by 1.7%, from €173,061 thousand in 2023 to €175,932 thousand in 2024. Domestic sales grew by 2.3%, sales to other European countries posted an 2.7% increase and sales in the rest of the World decreased by 6.2%.
Area (euro '000) | 2024 | 2023 | Change |
Italy | 98,892 | 96,691 | 2,201 |
Rest of Europe | 62,155 | 60,497 | 1,658 |
Rest of the World | 14,885 | 15,873 | (988) |
Total | 175,932 | 173,061 | 2,871 |
Reclassified Balance Sheet of Cembre S.p.A
(euro '000) | 12.31.2024 | 12.31.2023 | |
Trade receivables, net Inventories Other non-financial assets Trade payables Other non-financial liabilities | 34,723 52,387 5,875 (18,194) (9,232) | 31,522 49,300 1,879 (14,180) (10,924) | |
A) | Net current assets | 65,559 | 57,596 |
(working capital) | |||
Property, plant and equipment and investment property Intangible fixed assets Goodwill Assets for rights of use on leased assets Deferred tax assets Other non-current assets | 92,900 4,012 - 2,224 1,185 100 | 78,342 3,611 - 2,376 1,197 69 | |
B) | Net fixed assets | 100,421 | 84,398 |
C) | Non-current assets available for sale | - | - |
D) | Employee Termination Indemnity and other personnel benefits | 1,412 | 1,478 |
E) | Provisions for risks and charges | 376 | 691 |
F) | Deferred tax liabilities | 2,383 | 2,509 |
G) | Net capital employed | ||
(A+B+C-D-E-F) | 161,809 | 138,513 | |
Financed by: | |||
H) | Shareholders' equity | 182,818 | 175,579 |
Long-term financial payables Cash and short-term financial receivables Other financial assets Short-term financial payables | 1,286 (4,167) - 4,082 | 1,470 (14,676) (4,000) 1,051 | |
I) | Net Debt/(Availability) | 1,201 | (16,156) |
J) | Total sources of funds (H+I) | 184,019 | 159,423 |
Definition of alternative performance indicators
In compliance with CONSOB Communication n. DEM/6064293 dated July 28, 2007, below we define the alternative performance indicators used in the present document to illustrate the financial and operating performance of the Group:
Gross Operating Result (EBITDA): defined as the difference between sales revenues and costs for materials, of services received, and the net balance of operating income and charges. It represents the profit prior to depreciation, amortization and write-downs, financial flows and taxes.
Operating Result (EBIT): defined as the difference between the Gross Operating Result and the value of amortization/impairment. It represents the profit before cash flows and taxes.
Net Financial Position: represents the algebraic sum of cash and cash equivalents, financial receivables and current and non-current financial debt.
Reclassified Consolidated Statement of Financial Position
(euro '000) | 12.31.2024 | 12.31.2023 | |
Trade receivables, net Inventories Other non-financial assets Trade payables Other non-financial liabilities | 46,182 73,791 6,889 (19,877) (14,053) | 42,493 68,743 2,833 (14,829) (15,982) | |
A) | Net current assets | 92,932 | 83,258 |
(working capital) | |||
Property, plant and equipment and investment property Intangible fixed assets Goodwill Assets for rights of use on leased assets Deferred tax assets Other non-current assets | 109,320 4,901 4,608 8,204 3,616 183 | 90,981 4,712 4,608 6,422 3,447 83 | |
B) | Net fixed assets | 130,832 | 110,252 |
C) | Non-current assets available for sale | - | - |
D) | Employee Termination Indemnity and other | 1,617 | 1,751 |
E) | Provisions for risks and charges | 376 | 691 |
F) | Deferred tax liabilities | 4,015 | 3,570 |
G) | Net capital employed | ||
(A+B+C-D-E-F) | 217,756 | 187,498 | |
Financed by: | |||
H) | Shareholders' equity | 219,743 | 205,719 |
Long-term financial payables Cash and short-term financial receivables Other financial assets Short-term financial payables | 6,213 (13,471) - 5,271 | 4,693 (20,882) (4,000) 1,968 | |
I) | Net Debt/(Availability) | (1,987) | (18,221) |
J) | Total sources of funds (H+I) | 217,756 | 187,498 |